Real Convergence in Europe: A Cluster Analysis

Juan Cuestas, Mercedes Monfort and Javier Ordóñez
Additional contact information
Mercedes Monfort: Jaume I University, Spain

No 2012023, Working Papers from The University of Sheffield, Department of Economics

Abstract: In this paper we analyse real convergence in GDP per worker in the EU member states. The aim is to test whether there is evidence of club convergence in the EU, i.e. divergence in GDP per worker. Evidence in favour of cluster or club convergence may be an indication of significant productivity divergences between countries, which may also explain the current turmoil in the euro zone. The results show evidence of different economic growth rates within Europe, which also converge to different steady states, implying divergence in the EU-14. Within the EU-14 member states we observe two convergence clubs, which are not related to the fact that some countries belong to the euro area. Furthermore, Eastern European countries are also divided in two clubs, with a more direct effect of belonging to the euro zone in the composition of the clubs.

Keywords: cluster; real convergence; economic integration; euro (search for similar items in EconPapers)
JEL-codes: C32 C33 O47 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012
New Economics Papers: this item is included in nep-eec, nep-eur, nep-geo and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.shef.ac.uk/economics/research/serps/articles/2012_023.html First version, 2012 (application/pdf)

Related works:
Journal Article: Real convergence in Europe: A cluster analysis (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2012023

Access Statistics for this paper

More papers in Working Papers from The University of Sheffield, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mike Crabtree ().