Regional Convergence In The European Union 1985 1999

We estimate the speed of income convergence for a sample of 196 European NUTS 2 regions over the period 1985-1999. So far there is no direct estimator available for dynamic panels with strong spatial dependencies. We propose a two-step procedure, which involves first spatial filtering of the variables to remove the spatial correlation, and application of standard GMM estimators for dynamic panels in a second step. Our results show that ignorance of the spatial correlation leads to potentially misleading results. Applying a system GMM estimator on the filtered variables, we obtain a speed of convergence of 6.9 per cent and a capital elasticity of 0.43. (author's abstract).

The introduction of the single currency in the European economic space constitutes without doubt the most visible step towards monetary and economic integration in the EU. Those who boosted the birth of the Common Market in 1957 dreamt that this would one day come about as a logical consequence of the integration process. However, things have gone much more slowly than possibly imagined, although if taken in an adequate historic perspective, it is undeniable that the agreements that have led to European Monetary Union signify a really formidable jump in the process of political and economic integration in Europe. This is something many doubted would ever happen, but which is already a reality, although still in need of a period of consolidation. The most general economic consequences of the EMU have already been analysed in considerable depth. Proof of this is the literature already available. In general, there is coincidence in affirming that the balance of the results expected is clearly positive. Firstly, as a result of the anticipated gains in efficiency, a consequence of reduction of transaction costs associated to the previous existence of different currencies and of the elimination of exchange rate uncertainties.

Unequal distribution of income is one of the most important socio-economic issues. The processes of globalisation and integration are accelerating economic growth; however, at the same time, imbalances between regions are growing. Reducing inequalities within regions and national economies, as well as around the world, is important for individual and societal well-being and cohesion, and for effective state policies. This book investigates the problem of left-behind regions in the European Union (EU). It first introduces the reader to the theories of regional imbalances and problems with measuring them. It then explores imbalances in the EU using a variety of indicators and describes the EU’s regional policy for reducing regional disparities. It uses an empirical shift-share analysis to assess the productivity of EU regions which are lagging behind. The book also provides an empirical analysis of the effectiveness of EU funds in increasing labour productivity performed with DEA methodology. This book can be used as a teaching resource for undergraduate and postgraduate students and can serve as reference material for academics and researchers, as well as policymakers at the European, national and local levels.

The new Handbook of Regional and Urban Economics: Cities and Geography reviews, synthesizes and extends the key developments in urban and regional economics and their strong connection to other recent developments in modern economics. Of particular interest is the development of the new economic geography and its incorporation along with innovations in industrial organization, endogenous growth, network theory and applied econometrics into urban and regional economics. The chapters cover theoretical developments concerning the forces of agglomeration, the nature of neighborhoods and human capital externalities, the foundations of systems of cities, the development of local political institutions, regional agglomerations and regional growth. Such massive progress in understanding the theory behind urban and regional phenomenon is consistent with on-going progress in the field since the late 1960’s. What is unprecedented are the developments on the empirical side: the development of a wide body of knowledge concerning the nature of urban externalities, city size distributions, urban sprawl, urban and regional trade, and regional convergence, as well as a body of knowledge on specific regions of the world—Europe, Asia and North America, both current and historical. The Handbook is a key reference piece for anyone wishing to understand the developments in the field.

The Oxford Handbook of the European Union brings together numerous acknowledged specialists in their field to provide a comprehensive and clear assessment of the nature, evolution, workings, and impact of European integration.

The Regional Integration Manual brings together different methods for monitoring and analysing regional integration processes in a systematic way. Employing a multi-disciplinary approach, it seeks to provide officials in regional organisations, researchers in think tanks, academics and students worldwide with an accessible set of both quantitative and qualitative tools, useful in their day-to-day work. The Manual addresses an increasing demand for such tools, in a world where mechanisms and ideas for effective regional government and governance are in dire need, whereas the monitoring and analytical capabilities of official and non-governmental actors often lag behind. It also addresses a rapidly growing academic community studying the determinants, depth, speed and other characteristics of regional integration and co-operation. Employing a multi-disciplinary approach, The Regional Integration Manual will be of interest to scholars of governance and regional politics as well as policy-makers and those in regional organisations.

Do dynamic externalities, in the form of technology creation, adoption and spatial agglomeration shape the pattern of regional growth in Europe? This study provides an alternative view on regional convergence. A model is developed which attributes club-convergence to existing differences with respect to the degree of technology adoption. In the first instance, empirical results suggest that the NUTS-2 regions of the EU-27 converge at a very slow rate. Further tests, however, indicate that convergence is restricted to a specific subset of regions. Such conclusions are tested further, using an alternative model of club-convergence, which incorporates the impact of spatial interaction, agglomeration externalities and technology. This shows that the convergence-club in Europe follows a certain geographical pattern and all members share similar characteristics regarding technology creation and adoption, and agglomeration externalities. ​