Regional Convergence in the European Union: What are the Factors of Growth?

Jan Pintera ()
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Jan Pintera: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic

No 2021/20, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: Despite years of deepening economic integration among the states and regions of the European Union, empirical research remains inconclusive about speed of convergence across regions, if not its existence. This paper provides a new look on convergence in the EU while focusing on development at regional level after the Great Recession. It uses the log t convergence test by Phillips and Sul (2007) to analyze the convergence in level of income among the European regions. Rather than supporting the convergence hypothesis, we identify five convergence clubs in which the regions converge in income growth rates. Investigating further the geographical distribution of the convergence clubs, we confirm high inequality within the member states and find large continuous area of high convergence clubs in the urbanized part of Western Europe. Furthermore, we investigated the determinants of convergence club membership using Logistic Regression. We found a low impact of any of the estimated variables on membership in the highest club but confirmed positive association of membership in the higher clubs with research and patent activities.

Keywords: Club Convergence; European Regions; log t test; Logistic regression (search for similar items in EconPapers)
JEL-codes: C23 C40 R11 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2021-06, Revised 2021-06
New Economics Papers: this item is included in nep-eec and nep-geo
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2021_20

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