Regional GDP Convergence in the European Regions in the light of the Economic Recession

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This article investigates the implications of the slowdown of the European economies since 2007 on the process of GDP convergence at the regional NUTS 2 level. We use a nominal data set on GPD per capita divided into the periods 1995-2006 and 2007-2010. Using the notion of β-convergence we find that convergence is still present at the aggregated level, but the rate of convergence has significantly decreased from a rate of 2.63 percent before the recession to a rate of convergence equal to 1.60 percent after the recession. Moving to the national level we confirm the findings in many countries that a pattern of regional divergence is present. We do not observe a pattern of regional convergence in any of the nations considered for the period from 2007. Out of the 19 countries analyzed divergence is present in 6 countries whereas the pattern is not determinable in any of the remaining countries. No countries have gone directly from regional convergence to regional divergence. With a few exceptions a more gradual process is observed form convergence to no determined pattern to divergence. This overall pattern is a challenge to the regional development policy of the European Union.
Original languageEnglish
Title of host publicationSymposium i anvendt statistik
EditorsPeter Linde
Place of PublicationKøbenhavn
Publication date2014
ISBN (Print)978-87-501-2111-4
Publication statusPublished - 2014
EventSymposium i anvendt statistik - KU, København, Denmark
Duration: 27. Jan 201429. Jan 2014


ConferenceSymposium i anvendt statistik

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