IDEAS home Printed from https://ideas.repec.org/a/khe/scajes/v3y2017i1p81-87.html
   My bibliography  Save this article

The GDP per Capita Convergence in the European Union

Author

Listed:
  • Mihaela Simionescu

Abstract

This paper tests the hypothesis of convergence in per capita GDP for the period 2008-2016 using the case study of European Union (EU) Member States. We also included Croatia into the analysis, even though it became an EU member only in 2013. The general framework for testing the convergence hypothesis is based on the panel data approach. Our results show that there was a convergence in per capita GDP (expressed in thousands Euro PPS in the EU-28) during the period 2003-2016, at a significance level of 5%. The outcomes of the Im-Pesaran-Shin test demonstrate that not all the EU-28 countries yielded the same speed of convergence towards the corresponding steady state. The quantitative approach of the convergence in GDP per capita in the European countries based on the fixed effects model is complemented by the presentation of maps, cartograms, and histograms.

Suggested Citation

  • Mihaela Simionescu, 2017. "The GDP per Capita Convergence in the European Union," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(1), pages 81-87, March.
    • Handle: RePEc:khe:scajes:v:3:y:2017:i:1:p:81-87
    as

    Download full text from publisher

    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_91.pdf
    Download Restriction: no
    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_91.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
    2. 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.
    3. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    4. Mihaela Simionescu, 2014. "Testing the Convergence Hypothesis in the European Union," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(1), pages 222-229, May.
    5. Iancu, Aurel, 2009. "Real Economic Convergence," Working Papers of National Institute for Economic Research 090104, Institutul National de Cercetari Economice (INCE).
    6. Albu, Lucian Liviu, 2012. "The Convergence Process in the EU Estimated by Gini Coefficients," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 5-16, December.
    7. George Petrakos & Andres Rodríguez-Pose & Antonis Rovolis, 2003. "Growth, Integration and Regional Inequality in Europe," ERSA conference papers ersa03p46, European Regional Science Association.
    8. Evans, Paul & Karras, Georgios, 1996. "Do Economies Converge? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 384-388, August.
    9. George Petrakos & Panagiotis Artelaris, 2009. "European Regional Convergence Revisited: A Weighted Least Squares Approach," Growth and Change, Wiley Blackwell, vol. 40(2), pages 314-331, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dimitar Zlatinov & Ilia Atanasov, 2021. "Absolute and Conditional Convergence: A Story about Convergence Clubs and Divergence in the EU," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 39-55.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mihaela Simionescu, 2015. "The Impact Of Economic Crisis On Inflation Convergence In The European Union. A Panel Data Approach," Journal Articles, Center For Economic Analyses, pages 37-46, June.
    2. Mihaela-Nona Chilian & Marioara Iordan & Carmen Beatrice Pauna, 2016. "Real and structural convergence in the Romanian counties in the pre-accession and post-accession periods," ERSA conference papers ersa16p320, European Regional Science Association.
    3. Picard, Pierre M. & Toulemonde, Eric, 2006. "Firms agglomeration and unions," European Economic Review, Elsevier, vol. 50(3), pages 669-694, April.
    4. Bottasso, Anna & Conti, Maurizio & Ferrari, Claudio & Tei, Alessio, 2014. "Ports and regional development: A spatial analysis on a panel of European regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 44-55.
    5. Ageliki Anagnostou & Ioannis Panteladis & Maria Tsiapa, 2015. "Disentangling different patterns of business cycle synchronicity in the EU regions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(3), pages 615-641, August.
    6. Barrios, Salvador & Strobl, Eric, 2009. "The dynamics of regional inequalities," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 575-591, September.
    7. Michael Funke & Kadri Männasoo & Helery Tasane, 2023. "Regional Economic Impacts of the Øresund Cross-Border Fixed Link: Cui Bono?," CESifo Working Paper Series 10557, CESifo.
    8. Head, Keith & Mayer, Thierry, 2006. "Regional wage and employment responses to market potential in the EU," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 573-594, September.
    9. Stoyan Totev, 2006. "Comparative Analysis of the Processes of Regional Specialization and Concentration in EU," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 67-89.
    10. repec:lic:licosd:11802 is not listed on IDEAS
    11. Stoyan Totev, 2010. "Economic Integration and Conversion in the EU Member States," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-23.
    12. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2006. "Putting new economic geography to the test: Free-ness of trade and agglomeration in the EU regions," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 613-635, September.
    13. Jens Suedekum, 2005. "Increasing returns and spatial unemployment disparities," Papers in Regional Science, Wiley Blackwell, vol. 84(2), pages 159-181, June.
    14. Halmai, Péter, 2019. "Konvergencia és felzárkózás az euróövezetben [Convergence and catching up in the Euro zone]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 687-712.
    15. Alfonso Díez‐Minguela & Rafael González‐Val & Julio Martinez‐Galarraga & M. Teresa Sanchis & Daniel A. Tirado, 2020. "The long‐term relationship between economic development and regional inequality: South‐West Europe, 1860–2010," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 479-508, June.
    16. Bande, Roberto & Fernández, Melchor & Montuenga, Víctor, 2008. "Regional unemployment in Spain: Disparities, business cycle and wage setting," Labour Economics, Elsevier, vol. 15(5), pages 885-914, October.
    17. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2001. "New economic geography in Germany: testing the Helpman-Hanson model," Research Report 01D46, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    18. Gianmarco Ottaviano, 2003. "Regional Policy in the Global Economy: Insights from New Economic Geography," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 665-673.
    19. Magnus Gustavsson & Pär Österholm, 2007. "Does Unemployment Hysteresis Equal Employment Hysteresis?," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 159-173, June.
    20. Kurt Geppert & Martin Gornig & Andreas Stephan, 2003. "Productivity Differences in the European Union: National, Regional and Spatial Effects," Discussion Papers of DIW Berlin 383, DIW Berlin, German Institute for Economic Research.
    21. repec:dau:papers:123456789/4070 is not listed on IDEAS
    22. Hossein Mirshojaeian Hosseini & Shinji Kaneko, 2012. "Pattern and determinants of public budget allocation to border regions in iran," Economics Bulletin, AccessEcon, vol. 32(1), pages 1-7.

    More about this item

    Keywords

    Convergence; steady state; GDP; panel data; Im-Pesaran-Shin test; European Union;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:khe:scajes:v:3:y:2017:i:1:p:81-87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adi Sava (email available below). General contact details of provider: https://edirc.repec.org/data/ffucdro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.