Unbalanced development strategies and the lack of regional convergence in the EU
European regional growth patterns have undergone two important changes in recent years. First, the process of convergence that dominated regional growth until the late 1970s and early 1980s has progressively given way to stability and divergence. Economic dynamism is increasingly concentrated in core metropolitan areas, whereas lagging regions in Europe are finding increasingly difficult to keep up with the pace of core regions. Second, the evolution of regional disparities, which in most countries tended to be pro-cyclical in the years of economic convergence is becoming anti-cyclical: lagging regions tend to outperform core areas in periods of relative economic decline. These two transformations are happening in spite of the efforts made by the EU, in order to promote development in the poorest regions of the EU, the so-called objective 1 regions. There are many possible reasons that may explain why European regional development policies have, so far, been unable to deliver greater growth in the periphery than in the core. Lack of adequate funding to curb centripetal market trends, lack of adequate co-ordination between actors are two of them. In this paper we will focus, however, on the inadequacy existing of regional policies. The implementation of unbalanced development policies, with a main focus on infrastructure development, together with other factors like the existing level of transfers and the rapid increase in non-market oriented jobs, is contributing to the generation of increasingly sheltered economies. The combination of these factors may be contributing, in our view, to the increasing of the gap between a competitive market-oriented core of Europe and an assisted and ill-prepared to compete periphery.
|Date of creation:||Aug 2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gouyette, Claudine & Neven, Damien J, 1994.
"Regional Convergence in the European Community,"
CEPR Discussion Papers
914, C.E.P.R. Discussion Papers.
- Damien NEVEN & Claudine GOUYETTE, 1993. "Regional Convergence in the European Comunity," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9311, Université de Lausanne, Faculté des HEC, DEEP.
- Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 257-281, March.
- Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 205-253, 04.
- David Aschauer, 1988.
"Is public expenditure productive?,"
88-7, Federal Reserve Bank of Chicago.
- Henry Overman & Diego Puga, 1999.
"Unemployment Clusters Across European Regions and Countries,"
CEP Discussion Papers
dp0434, Centre for Economic Performance, LSE.
- Henry G. Overman & Diego Puga, 2002. "Unemployment clusters across Europe's regions and countries," Economic Policy, CEPR;CES;MSH, vol. 17(34), pages 115-148, 04.
- Henry G. Overman & Diego Puga, 1999. "Unemployment clusters across European regions and countries," LSE Research Online Documents on Economics 20211, London School of Economics and Political Science, LSE Library.
- Overman, Henry G & Puga, Diego, 1999. "Unemployment Clusters Across European Regions and Countries," CEPR Discussion Papers 2255, C.E.P.R. Discussion Papers.
- Diego Puga, 1999. "Unemployment clusters across Europe's regions and countries," Working Papers dpuga-99-03, University of Toronto, Department of Economics.
- Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," The World Economy, Wiley Blackwell, vol. 21(6), pages 757-774, 08.
- Juan R. Cuadrado-Roura, 2001. "Regional convergence in the European Union: From hypothesis to the actual trends," The Annals of Regional Science, Springer, vol. 35(3), pages 333-356.
- Barro, Robert J & Sala-i-Martin, Xavier, 1992.
Journal of Political Economy,
University of Chicago Press, vol. 100(2), pages 223-51, April.
- Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
- Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
- Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
- Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics 12, Universitat de Barcelona. Espai de Recerca en Economia.
- Puga, Diego, 1997.
"The Rise and Fall of Regional Inequalities,"
CEPR Discussion Papers
1575, C.E.P.R. Discussion Papers.
- Diego Puga, 1996. "The Rise and Fall of Regional Inequalities," CEP Discussion Papers dp0314, Centre for Economic Performance, LSE.
- Diego Puga, 1996. "The rise and fall of regional inequalities," LSE Research Online Documents on Economics 20643, London School of Economics and Political Science, LSE Library.
- Robert J. Barro & Xavier Sala-i-Martin, 1991.
"Convergence across States and Regions,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
- K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Niebuhr, Annekatrin, 2000. "Convergence and the effects of spatial interaction," HWWA Discussion Papers 110, Hamburg Institute of International Economics (HWWA).
- Yannis M. Ioannides & George Petrakos, 2000. "Regional Disparities in Greece and the Performance of Crete, Peloponnese and Thessaly," Discussion Papers Series, Department of Economics, Tufts University 0008, Department of Economics, Tufts University.
- Fabio Canova & Albert Marcet, 1995.
"The poor stay poor: Non-convergence across countries and regions,"
Economics Working Papers
137, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
- Canova, Fabio & Marcet, Albert, 1995. "The Poor Stay Poor: Non-Convergence Across Countries and Regions," CEPR Discussion Papers 1265, C.E.P.R. Discussion Papers.
- Diego Puga, 2002.
"European regional policies in light of recent location theories,"
Journal of Economic Geography,
Oxford University Press, vol. 2(4), pages 373-406, October.
- Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers 2767, C.E.P.R. Discussion Papers.
- Paul Cheshire, 2000. "Endogenous Processes in European Regional Growth: Convergence and Policy," Growth and Change, Wiley Blackwell, vol. 31(4), pages 455-479.
- Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
- Philippe Martin, 1999. "Are European regional policies delivering?," Sciences Po publications info:hdl:2441/9343, Sciences Po.
- Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa02p415. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.