Convergence in Agriculture: Evidence from the European Regions

Although there have been numerous studies on regional convergence, agriculture has received far less attention. In this study, the intention is to augment the existing literature by testing for convergence in agricultural productivity among the EU-26 regions. A low rate of absolute convergence is estimated over the period 1995-2004 whilst evidence of club convergence is apparent.Absolute and Club Convergence, Agriculture, European Union Regions, Agricultural and Food Policy, Q10, O47, C2,

Adoption of Technology and Regional Convergence in Europe

This paper examines the pattern of convergence in labour productivity across regions due to their ability to adopt technology. Whether regions exhibit a pattern of convergence depends on the degree to which infrastructure conditions are appropriate for the adoption of technological improvements. The ability of a region to adopt or create technology is reflected in the percentage of its labour force employed in technologically dynamic sectors or, more generally, in the resources devoted to science and technology. A high percentage of labour employed in technologically advanced sectors leads a region to a pattern of convergence. This hypothesis is tested using data for the NUTS-2 regions of the EU-27 during the time period 1995-2006. The results suggest that adoption of technology has a significant and positive effect on regional convergence in Europe. The analysis is also shown to have important implications for the direction of regional policy in Europe. To be more specific, regional policies, in order to enhance regional growth and convergence, should encourage employment in advanced technological sectors

The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model

This paper reconsiders the question of regional convergence across the US States over the long-run. The analysis is carried out over the period 1929-2005. Our analysis advocates and implements an Error-Correction-Model (ECM) approach to deal with this issue. The aforementioned model is applied in order to assess the possibilities of intraregional convergence towards steady-state equilibrium, approximated in terms of the State with highest per-capita income in each broad region. Empirical analysis suggests a pattern of convergence in accordance with the ECM supporting its validity. Further inspection of the results provides an indirect indication of the agglomerative effects in shaping the patterns of convergence.Income Convergence; Error-Correction-Model; US States

A note on the morphology of regional unemployment in Greece

A variation of an Error-Correction-Model is applied across the regions of Greece to examine the behaviour of regional unemployment. Allowing for multiple equilibria, this variation is able to pinpoint regional groupings with similar tendencies in the evolution of unemployment. The results have important implications for the direction of regional policies in Greece.Error-correction-model, Greece, regional unemployment, time-series

Health is wealth: an empirical note across the US states

An attempt is made to establish the relation between risk-health factors (encapsulated in terms of obesity) and regional convergence, with special reference to the US states. The econometric results indicate that obesity does have an impact on regional growth and convergence. A preliminary examination of these findings shows harmful effects on the process of catching-up between ‘poor’ and ‘rich’ regions. Nevertheless, considerably more research is required before this relation can be discussed with confidence.Health risk factors; obesity; regional convergence; US states

The ‘Trade-off’ between Spatial Equity and Economic Efficiency Revisited: Evidence from the US States

The principle aims of regional policy can be encapsulated in terms of ‘spatial equity’ and ‘economic efficiency’. Establishing the relation between these two aims is of fundamental importance. Conventionally, however, it is assumed that there is a conflict or a ‘trade-off’ between them. In this paper, a hopeful view, i.e. that the two aims are complementary rather than competitive, is put forward. The validity of this view is examined empirically using data for the US States covering the period 1972-2005. The obtained results map an instructive framework for regional policy where the scope for reducing regional inequalities is not incompatible with improvements in economic efficiency.regional growth; regional policy; spatial equity; trade-off

Technology adoption and club convergence

Although the importance of technology adoption has been acknowledged, nevertheless, at a more general level, a critical question arises: how do the overall infrastructure conditions affect the absorptive ability of a regional economy? This question can be stated alternatively as: what are the implications of a ‘poor’ or a ‘superior’ infrastructure for regional convergence? It is possible to provide some answers to these questions by constructing a model of regional convergence that encapsulates the impact of infrastructure in the absorptive ability of a regional economy. In this model the possibility that high technological gaps might act as obstacles to convergence is taken explicitly into consideration. The model developed in this paper indicates that convergence towards leading regions is feasible only for regions with sufficient absorptive capacity, which is assumed to be a function of infrastructure conditions in a regional economy. The model is tested using data for the NUTS-2 regions of the EU-27 during the time period 1995-2006. The results suggest that adoption of technology has a significant effect on regional growth patterns in Europe.Convergence-club, Technological Gap, European Regions

Convergence in Agriculture: Evidence from the regions of an Enlarged EU

Regional convergence has spurred one of the most debatable topics in contemporary research in economics and one of the most critical issues from a policy perspective. In this paper, the intention is to augment the literature on regional convergence in Europe using the agricultural sector as a context for empirical analysis. More specifically, following the spirit of the literature, we seek in this paper to address the question of whether, during the period 1995-2004 the NUTS-2 regions of EU-25 exhibited any tendencies to converge in terms of agricultural labour productivity. A low annual rate of absolute convergence is estimated over the period 1995-2004 whilst it is established that the regions of European Union follow two different patterns in their convergence behaviou

Convergence in Agriculture: Evidence from the regions of an Enlarged EU

Regional convergence has spurred one of the most debatable topics in contemporary research in economics and one of the most critical issues from a policy perspective. In this paper, the intention is to augment the literature on regional convergence in Europe using the agricultural sector as a context for empirical analysis. More specifically, following the spirit of the literature, we seek in this paper to address the question of whether, during the period 1995-2004 the NUTS-2 regions of EU-25 exhibited any tendencies to converge in terms of agricultural labour productivity. A low annual rate of absolute convergence is estimated over the period 1995-2004 whilst it is established that the regions of European Union follow two different patterns in their convergence behaviou

Aggregate efficiency and interregional equity: a contradiction?

This paper attempts to rekindle interest on regional allocation of investment and to show that a trade-off between aggregate efficiency and interregional equity is implied. Modifying, however, the objective function it is established that this trade-off can be avoided