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Convergence of regions from 23 EU member states

Hans-Friedrich Eckey, Thomas Döring and Matthias Türck

No 86, Volkswirtschaftliche Diskussionsbeiträge from University of Kassel, Faculty of Economics and Management

Abstract: Convergence of EU regions is an often examined research question. However, there are no studies available which include in their analysis the New Member States from the former Eastern Bloc. We estimate several models of absolute convergence and of conditional convergence taking into account the different initial conditions of the regions from each country. First, we calculate convergence models with equal convergence rates of every region (stationary approaches). We prove a convergence process with nearly all models between 1995-2003. Only the spatial filtering approach in combination with the inclusion of country specific dummy variables shows a significant divergent development. Second, we calculate a geographically weighted regression (GWR) approach, which uses instationary regression coefficients. This model gives evidence for a convergence of most regions. However, some regions seem to move away from their steady state.

Keywords: Regional Convergence; Spatial Econometrics; Europe (search for similar items in EconPapers)
JEL-codes: C21 R11 R58 (search for similar items in EconPapers)
Date: 2006
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