ECONOMETRIC ANALYSIS OF INCOME CONVERGENCE IN SELECTED EU COUNTRIES AND THEIR NUTS 3 LEVEL REGIONS

Tiiu Paas, Andres Kuusk, Friso Schlitte and Andres Võrk

No 60, University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia)

Abstract: The paper estimates equations for regional income convergence in selected EU countries and their NUTS 3 level regions during the European Union pre-enlargement period (1995–2002), using both spatial and non-spatial approaches. There has been absolute income convergence between regions in both the groups of countries looked at, the countries of the EU15, or the old member states, and the new member states or NMS. When national effects are included in convergence equations using country dummies, no evidence of regional income convergence can be observed. The results of the analysis assert the importance of regional policies in inhibiting the increase of regional income disparities and improving conditions for income growth, particularly within the new member states.

Pages: 56 pages
Date: 2007
New Economics Papers: this item is included in nep-geo and nep-tra
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