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EU Growth, Convergence and the Knowledge Economy: An Empirical Investigation

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  • Caraveli, H.
  • Tsionas, E.G.
  • Darzentas, J.

Abstract

This paper examines whether the ‘knowledge' economy could contribute to reversing the existing ‘centre-periphery' pattern in the EU, through its impact on growth. Using a neoclassical growth framework, we test for β - convergence in 205 EU regions on a cross-sectional basis. The impact of knowledge variables on growth is assessed. The empirical results reveal a limited degree of convergence and a positive impact of most knowledge variables on growth. The convergence pattern does not change when a ‘group convergence' approach is attempted. The findings are finally interpreted from a ‘new economic geography' perspective in an attempt to draw policy implications.

Suggested Citation

  • Caraveli, H. & Tsionas, E.G. & Darzentas, J., 2008. "EU Growth, Convergence and the Knowledge Economy: An Empirical Investigation," The Journal of Economic Asymmetries, Elsevier, vol. 5(2), pages 105-124.
    • Handle: RePEc:eee:joecas:v:5:y:2008:i:2:p:105-124
    DOI: 10.1016/j.jeca.2008.02.007
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    References listed on IDEAS

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    Cited by:

    1. Hadad Shahrazad, 2018. "The geographic distribution of Knowledge Economy (KE) within the European Union (EU)," Management & Marketing, Sciendo, vol. 13(3), pages 1089-1107, September.

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    More about this item

    Keywords

    C21; R11; R12; R14; New growth models; β -convergence; Knowledge economy; New economic geography; EU regional disparities; EU regional policy;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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