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Behind the Pan‐European Convergence Path: The Role of Innovation, Specialisation and Socio‐economic Factors
Author(s) -
Chapman Sheila,
Meliciani Valentina
Publication year - 2017
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12148
Subject(s) - gross domestic product , explanatory power , convergence (economics) , economic geography , european union , per capita , divergence (linguistics) , economics , geographical distance , geography , demographic economics , development economics , international trade , economic growth , demography , population , philosophy , linguistics , epistemology , sociology
The paper analyses the determinants of regional disparities in per capita gross domestic product (GDP) and their evolution over time in the enlarged European Union (EU). With reference to the literature it groups EU regions on the basis of three different factors—specialisation, socio‐economic features, and innovation. It then analyses regional disparities in per capita GDP (EU‐relative and country‐relative) across groups over 2004–2011 using both non‐parametric tools and traditional regression analysis with spatial effects. The paper finds that EU‐wide convergence actually conceals growing divergence across old member regions and within new members. Coming to the factors that lie at the heart of regional disparities, country factors lose importance for newcomers but become more important for older members, notwithstanding longstanding integration. Socio‐economic factors and innovation instead become increasingly important for all areas, socio‐economic factors lying at the heart of within ‐country differences and innovation more of those between regions. Finally, specialisation appears to have a lower explanatory power.