Regional Income Inequality and Convergence Processes in the EU-25
The paper investigates income inequality and convergence among the EU-25 countries and their regions at NUTS 3 (Nomenclature of Territorial Units for Statistics) level during the period 1995-2002. We measure the level of income inequality and its decomposition distinguishing the between and within country inequality as the components of the overall income inequality of EU-25, EU-15 and the new member states (NMS) of the EU recent enlargement in May 2004. In order to assess the inequality in living standards GDP in purchasing power standards (PPS) is used. In the empirical analysis of the convergence processes we consider the effects of interactions among neighbouring regions implementing spatial econometrics techniques. The estimation results are sensitive to the control for national effects. While the EU-25 and the EU-15 experienced a slow but significant process of absolute convergence there is no evidence found for regional convergence when national effects are considered. In the NMS the process of conditional convergence across regions even turns out to be significantly negative. This indicates that there were some divergence tendencies in the NMS during the period of 1995 â€“ 2002.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
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.:
- Giuseppe Arbia & Gianfranco Piras, 2005.
"Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects,"
ISAE Working Papers
51, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
- Giuseppe Arbia & Gianfranco Piras, 2004. "Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects," ERSA conference papers ersa04p524, European Regional Science Association.
- Catherine Baumont & Cem Ertur & Julie Le Gallo, 2003. "Spatial Convergence Clubs and the European Growth Process, 1980-1995," Post-Print halshs-00250290, HAL.
- Fischer, Manfred M. & Stirböck, Claudia, 2004. "Regional Income Convergence in the Enlarged Europe, 1995-2000: A Spatial Econometric Perspective," ZEW Discussion Papers 04-42, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Abigail Barr, 1995.
"The missing factor: entrepreneurial networks, enterprises and economic growth in Ghana,"
CSAE Working Paper Series
1995-11, Centre for the Study of African Economies, University of Oxford.
- Abigail Barr, 1995. "The missing factor: entrepreneurial networks, enterprises and economic growth in Ghana," Economics Series Working Papers WPS/1995-11, University of Oxford, Department of Economics.
- Kurt Geppert & Andreas Stephan, 2008.
"Regional disparities in the European Union: Convergence and agglomeration,"
Papers in Regional Science,
Wiley Blackwell, vol. 87(2), pages 193-217, 06.
- Stephan, Andreas & Happich, Michael & Geppert, Kurt, 2005. "Regional Disparities in the European Union: Convergence and Agglomeration," Working Paper Series 2005,4, European University Viadrina Frankfurt (Oder), The Postgraduate Research Programme Capital Markets and Finance in the Enlarged Europe.
- Kurt Geppert & Michael Happich & Andreas Stephan, 2004. "Regional disparities in the European Union: Convergence and Agglomeration," ERSA conference papers ersa04p219, European Regional Science Association.
- Kurt Geppert & Michael Happich & Andreas Stephan, 2005. "Regional Disparities in the European Union: Convergence and Agglomeration," Discussion Papers of DIW Berlin 525, DIW Berlin, German Institute for Economic Research.
- Juan R. Cuadrado-Roura, 2001. "Regional convergence in the European Union: From hypothesis to the actual trends," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(3), pages 333-356.
- Valentina Meliciani & Franco Peracchi, 2004.
"Convergence in Per-capita GDP Across European Regions: A Reappraisal,"
CEIS Research Paper
58, Tor Vergata University, CEIS.
- Valentina Meliciani & Franco Peracchi, 2006. "Convergence in per-capita GDP across European regions: a reappraisal," Empirical Economics, Springer, vol. 31(3), pages 549-568, September.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 43-73.
- Robert J. Barro, 1995.
"Inflation and Economic Growth,"
NBER Working Papers
5326, National Bureau of Economic Research, Inc.
- Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
- Martin, Philippe & Rogers, Carol Ann, 1997.
"Stabilization Policy, Learning-by-Doing, and Economic Growth,"
Oxford Economic Papers,
Oxford University Press, vol. 49(2), pages 152-66, April.
- Martin, Philippe & Rogers, Carol Ann, 1995. "Stabilization Policy, Learning by Doing, and Economic Growth," CEPR Discussion Papers 1130, C.E.P.R. Discussion Papers.
- Juan Antonio Duro, 2003. "Factor decomposition of spatial income inequality: a revision," Working Papers wpdea0302, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Annekatrin Niebuhr & Friso Schlitte, 2004. "Convergence, trade and factor mobility in the European Union — Implications for enlargement and regional policy," Intereconomics- Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 39(3), pages 167-176, May.
- Tondl, Gabriele & Vuksic, Goran, 2003. "What makes regions in Eastern Europe catching up? The role of foreign investment, human resources and geography," ZEI Working Papers B 12-2003, University of Bonn, ZEI - Center for European Integration Studies.
- Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
- Niebuhr, Annekatrin, 2000. "Convergence and the effects of spatial interaction," HWWA Discussion Papers 110, Hamburg Institute of International Economics (HWWA).
- Giuseppe Arbia & Roberto Basile & Gianfranco Piras, 2005. "Using Spatial Panel Data in Modelling Regional Growth and Convergence," ISAE Working Papers 55, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
- Xavier Sala-I-Martin, 1997.
"Transfers, Social Safety Nets, and Economic Growth,"
IMF Staff Papers,
Palgrave Macmillan, vol. 44(1), pages 81-102, March.
- Nazrul Islam, 2003. "What have We Learnt from the Convergence Debate?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 309-362, 07.
- Bräuninger, Michael & Niebuhr, Annekatrin, 2005.
"Agglomeration, Spatial Interaction and Convergence in the EU,"
HWWA Discussion Papers
322, Hamburg Institute of International Economics (HWWA).
- Michael Bräuninger & Annekatrin Niebuhr, 2008. "Agglomeration, Spatial Interaction and Convergence in the EU," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 128(3), pages 329-349.
- Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
- Peter Egger & Michael Pfaffermayr, 2006. "Spatial convergence," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 199-215, 06.
- Giuseppe Arbia & Laura De Dominicis & Gianfranco Piras, 2005. "The relationship between Regional Growth and Regional Inequality in EU and transition countries - a Spatial Econometric Approach," ERSA conference papers ersa05p168, European Regional Science Association.
- Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
- BAUMONT, Catherine & ERTUR, Cem & LE GALLO, Julie, 2001. "A Spatial Econometric Analysis of Geographic Spillovers and Growth for European Regions, 1980-1995," LATEC - Document de travail - Economie (1991-2003) 2001-04, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p229. 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.