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Regional growth and national development: transition in Central and Eastern Europe and the regional Kuznets curve in the East and the West

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  • Monastiriotis, Vassilis

Abstract

Regional disparities in Central and Eastern Europe rose substantially since 1990. Still, prima facie evidence of beta-convergence is often found in the CEE data. To reconcile this seeming paradox, we sketch out and test empirically a hybrid model of regional growth that draws on the regional Kuznets curve and incorporates aspects of cumulative causation and neoclassical convergence. In both CEE and the ‘old’ EU15, regional convergence is strongly linked to the level of national development, non-linearly. But while in the EU15 convergence speeds-up at intermediate/high levels of development, in CEE we find divergence at intermediate levels of national development and no significant return to convergence thereafter. Although this may show that overall development levels are not sufficient yet to mobilise regional convergence, it is also possible that non-convergence is attributable to centripetal forces instigated by the process of transition.

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  • Monastiriotis, Vassilis, 2014. "Regional growth and national development: transition in Central and Eastern Europe and the regional Kuznets curve in the East and the West," LSE Research Online Documents on Economics 56731, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:56731
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    9. Dyba Wojciech & Loewen Bradley & Looga Jaan & Zdražil Pavel, 2018. "Regional Development in Central-Eastern European Countries at the Beginning of the 21st Century: Path Dependence and Effects of EU Cohesion Policy," Quaestiones Geographicae, Sciendo, vol. 37(2), pages 77-92, June.
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    More about this item

    Keywords

    Regional growth; convergence; regional Kuznets curve; Central and Eastern Europe;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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