Regional convergence in the enlarged European Union

Hans-Friedrich Eckey, Christian Dreger and Matthias Turck

Applied Economics Letters, 2009, vol. 16, issue 18, 1805-1808

Abstract: There are only a few studies which examine regional convergence in the enlarged European Union. None of these approaches uses a conditional convergence model, which considers different initial conditions of regions. We refer to the Mankiw et al. (1992) model to examine convergence including the New Member States. Note that most researchers use equal values of depreciation rate and rate of technological progress for all regions. Our analysis is based on country specific values of both variables, which vary markedly. We give empirical evidence for a convergence process which exceeds the often measured value of 2%.

Date: 2009
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DOI: 10.1080/13504850701719546

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