Convergence of EU-Regions. A Literature Report
The main focus of convergence studies surrounds the question of
whether poor economies catch up to wealthier economies over time. The regional
convergence process in Europe has generated considerable interest in recent years.
Due to financial straits regional convergence is a central question, since important
funds aim at diminishing disparities. There are many studies published recently dealing
with this issue using different empirical approaches. The β-convergence framework,
which was introduced by Barro and Sala-i-Martin, is, for instance, an often
used approach. This paper provides a critical review of the used approaches and summarises
the results. A special problem is that authors refer to different periods and
Member State groups (EU-9, EU-15, etc.). Altogether it can be stated that most models
find a slow convergence process. In particular, the increase of regional inequalities
caused by the enlargement of the EU with the New Member States from Central
and Eastern Europe explains the existence of convergence clubs.
Check other articles from the issue Primavera 2007 or from other issues.