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Regional Convergence in the European Union: Results from a Panel Data Model

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  • Jesus Lopez-Rodriguez

    (Harvard University and University of A Coruña)

Abstract

This paper evaluates the convergence process for different samples of European Union regions during the period 1982-1999 by using fixed effects panel data regressions. This estimation method allows us to control for unobserved time-invariant heterogeneity in cross-sectional models. The results of growth rates are significantly negatively related to income levels and show that the convergence relationship holds. However when regions are bound to very different steady state positions, convergence to a common income level appears to be impossible.

Suggested Citation

  • Jesus Lopez-Rodriguez, 2008. "Regional Convergence in the European Union: Results from a Panel Data Model," Economics Bulletin, AccessEcon, vol. 18(2), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-08r00001
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    References listed on IDEAS

    as
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    Cited by:

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    2. Seya, Hajime & Tsutsumi, Morito & Yamagata, Yoshiki, 2012. "Income convergence in Japan: A Bayesian spatial Durbin model approach," Economic Modelling, Elsevier, vol. 29(1), pages 60-71.
    3. Josef Novotný, 2010. "Regionální ekonomická konvergence, divergence a další aspekty distribuční dynamiky evropských regionů v období 1992-2006 [Regional Convergence, Divergence and Other Aspects of Distributional Dynami," Politická ekonomie, Prague University of Economics and Business, vol. 2010(2), pages 166-185.
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    5. Ioan Ianos & Irina Saghin & Gabriel Pascariu, 2013. "Regions and the Territorial Cohesion," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(4), pages 415-429, August.
    6. ANDRADE, Carlos & PINHO, Carlos & PINHO, Maria de Fátima, 2010. "Exploring Regional Convergence: Evidence From 19 European Countries, 1991-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    7. Novotný, JOSEF, 2011. "Convergence and divergence in living standards among regions of the enlarged European Union (1992-2006)," MPRA Paper 34145, University Library of Munich, Germany.
    8. Guryanova Lidiya S. & Kholodnyi Gennadyi O. & Lukyanchikova Anna S., 2013. "Methods and models of analysis of spatial clusterisation of rates of socio-economic development of regions," The Problems of Economy, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), issue 2, pages 242-250.
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    11. Soundararajan, Pushparaj, 2013. "Regional income convergence in India: A Bayesian Spatial Durbin Model approach," MPRA Paper 44744, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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