European regional convergence

The main focus of this book surrounds the question of whether poor Europan regions catch up to wealthier economies over time. After an overview of the theoretical framework and an extensive literature report we estimate several spatial econometric models. Our analysis is based on ß-convergence models, which are investigated for the enlarged European Union using regional (NUTS- 2) data. We find empirical evidence for absolute and conditional ß-convergence. In addition, we detect indications of convergence clubs. These are regions in the same area that have similar initial conditions as well as speeds of convergence. The convergence clubs sometimes cross national borders. Therefore, the influence of Member State borders seems to become smaller concerning the economic development in the long run.