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Beta and Sigma – Convergence of Productivity of NUTS 2 Regions in the (EU) Member States from the CEE Region

Petar Peshev () and Vera Pirimova
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Vera Pirimova: University of National and World Economy, Sofia, Bulgaria

Economic Alternatives, 2020, issue 1, 79-90

Abstract: In this scientific paper we have examined the presence of beta and sigma-convergence of productivity in the Central and East European NUTS 2 statistical regions of the European Union member states of Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia for the period from 2000 to 2016. Applying a fixed effects panel ordinary least squares regression on real Gross domestic product per employee and Gross domestic product per employee in PPS terms, we find that a catch-up process is underway, together with a decrease of dispersion in variables under investigation, respectively beta and sigma convergence hypotheses are supported for the NUTS 2 regions in selected countries under investigation.

Keywords: productivity convergence; economic convergence; CEE NUTS 2 regions; EU regions; panel data models (search for similar items in EconPapers)
JEL-codes: C23 O11 O47 R11 (search for similar items in EconPapers)
Date: 2020
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