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Econometric Analysis Of Income Convergence In Selected Eu Countries And Their Nuts 3 Level Regions

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  • Tiiu Paas
  • Andres Kuusk
  • Friso Schlitte
  • Andres Võrk

Abstract

The paper estimates equations for regional income convergence in selected EU countries and their NUTS 3 level regions during the European Union pre-enlargement period (1995–2002), using both spatial and non-spatial approaches. There has been absolute income convergence between regions in both the groups of countries looked at, the countries of the EU15, or the old member states, and the new member states or NMS. When national effects are included in convergence equations using country dummies, no evidence of regional income convergence can be observed. The results of the analysis assert the importance of regional policies in inhibiting the increase of regional income disparities and improving conditions for income growth, particularly within the new member states.

Suggested Citation

  • Tiiu Paas & Andres Kuusk & Friso Schlitte & Andres Võrk, 2007. "Econometric Analysis Of Income Convergence In Selected Eu Countries And Their Nuts 3 Level Regions," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 60, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    • Handle: RePEc:mtk:febawb:60
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    Cited by:

    1. Burak GÜRIŞ & İpek M. YURTTAGÜLER & Muhammed TIRAŞOĞLU, 2017. "Unemployment convergence analysis for Nordic countries: Evidence from linear and nonlinear unit root tests," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(610), S), pages 45-56, Spring.
    2. Michaela Chocholatá & Andrea Furková, 2017. "Does the location and the institutional background matter in convergence modelling of the EU regions?," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(3), pages 679-697, September.
    3. Sheila Chapman & Valentina Meliciani, 2017. "Behind the Pan-European Convergence Path: The Role of Innovation, Specialisation and Socio-economic Factors," Growth and Change, Wiley Blackwell, vol. 48(1), pages 61-90, March.
    4. Sulekha Hembram & Souparna Maji & Sushil Kr. Haldar, 2019. "Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 184-204, September.
    5. Laia Maynou & Marc Saez & Jordi Bacaria & Guillem Lopez-Casasnovas, 2015. "Health inequalities in the European Union: an empirical analysis of the dynamics of regional differences," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(5), pages 543-559, June.
    6. Mindaugas Butkus & Alma Mačiulytė-Šniukienė & Kristina Matuzevičiūtė & Diana Cibulskienė, . "Does Financial Support from ERDF and CF Contribute to Convergence in the EU? Empirical Evidence at NUTS 3 Level," Prague Economic Papers, University of Economics, Prague, vol. 0, pages 1-43.
    7. Laia Maynou Pujolras, 2013. "Health convergence analysis of the EU regions: 1995 and 2009," ERSA conference papers ersa13p88, European Regional Science Association.
    8. Vassilis Monastiriotis, 2014. "Regional Growth and National Development: Transition in Central and Eastern Europe and the Regional Kuznets Curve in the East and the West," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 142-161, June.
    9. Vassilis Monastiriotis, 2011. "Regional Growth Dynamics in Central and Eastern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 33, European Institute, LSE.
    10. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori [Factors of Economic Growth in Latvia]," MPRA Paper 47550, University Library of Munich, Germany.
    11. Sulekha Hembram & Sushil Kr. Haldar, 2019. "Beta, sigma and club convergence: Indian experience from 1980 to 2015," Indian Economic Review, Springer, vol. 54(2), pages 343-366, December.
    12. Monasterolo, Irene & Benni, Federica, 2013. "Non parametric methods to assess the role of the CAP in regional convergence in Hungary," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 115(3), pages 1-9, December.
    13. Burak GÜRIŞ & İpek M. YURTTAGÜLER & Muhammed TIRAŞOĞLU, 2017. "Unemployment convergence analysis for Nordic countries: Evidence from linear and nonlinear unit root tests," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 45-56, Spring.
    14. Maroš Finka & Milan Husár & Tomáš Sokol, 2020. "Program for Lagging Districts as a Framework for Innovative Approaches within the State Regional Development Policies in Slovakia," Sustainability, MDPI, vol. 12(13), pages 1-20, July.
    15. Mindaugas Butkus & Diana Cibulskiene & Alma Maciulyte-Sniukiene & Kristina Matuzeviciute, 2018. "What Is the Evolution of Convergence in the EU? Decomposing EU Disparities up to NUTS 3 Level," Sustainability, MDPI, vol. 10(5), pages 1-37, May.
    16. Folfas Paweł, 2016. "Income Absolute Beta-Convergence of NUTS 3 Level Regions in New EU Member States before and During a Crisis," Folia Oeconomica Stetinensia, Sciendo, vol. 16(2), pages 151-162, December.

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