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Economic Growth and Convergence of EU Member States: An Empirical Investigation
Author(s) -
DelgadoRodríguez Ma Jesús,
ÁlvarezAyuso Inmaculada
Publication year - 2008
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2008.00440.x
Subject(s) - convergence (economics) , human capital , economics , cohesion (chemistry) , member states , frontier , european union , physical capital , economic system , economic geography , public capital , macroeconomics , international trade , economic growth , political science , public investment , chemistry , organic chemistry , law
The aim of this article is to construct a European production frontier using deterministic methods, and to break down growth and convergence during the period 1980–2001. The results show that EU growth is primarily driven by physical and human capital accumulation, the contribution of which is essential for the cohesion of European countries. We find capital accumulation and efficiency change to be important convergence factors within the EU, while technical change has worked against it. The approach used has also enabled us to analyze the differences in growth performance of Member States and highlight the role of human and public capital, supporting the European cohesion and development policies carried out in this period.