The evolution of income disparities among the regions of the European Union
Identifieur interne : 001A11 ( Main/Curation ); précédent : 001A10; suivant : 001A12The evolution of income disparities among the regions of the European Union
Auteurs : Stefano Magrini [Royaume-Uni]Source :
- Regional Science and Urban Economics [ 0166-0462 ] ; 1999.
Abstract
Per capita income disparities, particularly evident between developed and less developed countries, are of noticeable importance even amongst the regions of the European Union and do not seem to reduce their extent following the predictions of the neoclassical model, despite the high degree of openness typical of regional economies. The empirical analysis of convergence among regions confronts two problems that, if not correctly addressed, can reduce the validity of the results. The first concerns the definition of region. Very often, in fact, empirical analyses within a regional context make use of the available data for administrative regions without adequately considering the consequent results of this choice. The second problem is related to the nature of the growth process. The methodology followed by the vast majority of researchers, i.e., cross-sectional regression, is based on the hypothesis of a growth process characterised by a smooth path towards a steady-state. As some authors have demonstrated empirically that this underlying hypothesis is invalid, it is interesting to develop an alternative methodology the results of which are not subject to this restrictive hypothesis on the growth process. The methodology suggested in this study focuses directly on the cross-sectional distribution of per capita income, modelling the growth process as a time homogeneous Markov chain. The methodology is then applied to per capita income data for 122 EU functional regions over the period 1979–1990.
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DOI: 10.1016/S0166-0462(98)00039-8
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