Convergence of European regions: a reappraisal

Théophile T. Azomahou, J. El Ouardighi, P. Nguyen Van & Thi Kim Cuong Pham


We provide a reappraisal of income convergence across European regions over the period 1990-2005 by using a semiparametric partially linear model to approximate the relationship between the average growth rate of GDP per capita and the initial GDP per capita. Estimation results point out both country heterogeneity and non-linearity in the convergence process. Only low income regions converge while there is little evidence of convergence for higher income regions.

Key words: Convergence; Heterogeneity; Non-linearity; Kernel estimator; European regions

JEL classification: C14; O40; O52

UNU-MERIT Working Papers ISSN 1871-9872

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