Convergence Patterns in the World Economy: Exploring the Non-Linearity Hypothesis

The objective of this paper is to question the conventional convergence literature, which bases its findings on the use of linear regression models. With the use of quadratic WLS regression analysis we show that a number of indicators of economic performance follow a pattern of change that is in essence non-linear. Our results indicate the formation of two clubs at the world scale: A convergence club that includes countries with a low to mediumhigh level of development and a divergence club including countries with a medium-high to very high levels of development. After a critical threshold the forces of divergence at the world scale dominate and the most dynamic countries eventually grow faster. Undoubtedly, the formation of a diverging leaders club and a further increase in world level development gap has serious implications for theory and policy.

Explaining Knowledge-Based Economic Dynamism in a Global Scale

This paper uses the concept of knowledge-based economic dynamism to overcome the simplified perspective on economic performance implied by the economic growth variable. Knowledge-based economic dynamism refers to the potential an area has for generating and maintaining high rates of economic performance. Furthermore, this study develops econometric models to detect the determinants of knowledge-based economic dynamism at the international level. The analysis covers the period 1990-2002. Econometric models provide critical insight relative to the factors driving dynamism with important implications for theory and policy.DYNREG

Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance

DYNREG

Regional inequalities and convergence clubs in the European Union new member-states

The paper assesses on empirical grounds the level and the evolution of regional inequalities in each European Union new member-state (EU NMS) and examines the possibility for the emergence of regional convergence clubs. The experience of the EU NMS is a unique situation, where relatively closed economic systems opened, almost at once, to the world economy and, at the same time, market mechanisms replaced central planning. Thus, understanding the spatial pattern of regional growth in the EU NMS may provide valuable insight for theory and policy. The application of non linear econometric models, which transcend the "all or nothing" logic behind conventional convergence analysis, has shown the existence of regional convergence clubs in many EU NMS. The identification of regional convergence clubs, irrespective of the pattern that emerges in each EU NMS, highlights the heterogeneous spatial impact of the EU economic integration process.new European Union member-states, regional inequalities, convergence clubs, Weighted Least Squares (WLS), integration

Territorial Cohesion as a Policy Narrative: From Economic Competitiveness to ‘Smart’ Growth and Beyond

During the last two decades, a lot of ink has been spent in favour of narrative analysis of policy. According to such approaches, policy processes are influenced by narratives that are spread around specific ‘issues’ and lead to their solutions. Following a similar vein, this article examines territorial cohesion as a policy narrative and how it can be perceived as a narrative constituted by a diverse narrative structure. Territorial cohesion is a dynamic narrative that changes through time. As time goes by and different politico-economic philosophies get more influential, technological changes also bring along different priorities, broader EU narratives change, and territorial cohesion adapts to such changes. Accordingly, within the post-2014 framework (2014–2020), territorial cohesion’s (spatialised) social inclusion perspective was subdued to the economic competitiveness sub-narrative in a globalised world. For the new programming period (2021–2027), the European Cohesion Policy will continue to be increasingly linked to the place-based narrative and most of its funding will be directed towards a ‘smarter’ and ‘greener’ Europe within a global space of flows and fast technological changes. The aim of a ‘smarter’ Europe based on digital transformation and smart growth is a new version of the economic competitiveness sub-narrative, while a ‘greener’ Europe is the new policy meta-imperative (“European Green Deal”). However, it must be considered how the Coronavirus crisis and the measures to fight its economic effects play out on these policy narratives

Detecting the Growth Pattern(s) of the EU Border Regions: A Convergence Clubs Approach.

The EU regions have been experiencing a period of unprecedented change. The ongoing (and parallel) processes of EU integration and enlargement have progressively transformed regional economies to integral parts of the emerging (European) socio-economic space, exposing them to the forces and the dynamics of a more competitive environment. Border regions, in particular, have been put in a state of flux since the re-(al)location of activities, opportunities and threats has changed over (the significance of) their role in the respective emerging (European) socio-economic map. Within the context of the aforementioned milieu, the paper aims at detecting and assessing growth determinants at the EU borderlands. This is an issue that has attracting increasing attention, especially after the creation of the Single European Market and the advent of the euro currency. However, the majority of border studies are enclaved in the “unitary case syndromeâ€Â, without providing substantial added value on border theory. Thus, the present study, following an interdisciplinary approach, compiles a spatial econometrics growth model, incorporating a series of inherent and acquired growth determinants (initial conditions). These determinants are not only quantitative (“hardâ€Â, “traditionalâ€Â) but also qualitative (“softâ€Â, “non-traditionalâ€Â), accentuating the complexity of border issues. The study area covers 349 EU NUTS III border regions, as they are specified by ESPON. The findings of the paper are going to provide valuable insight for the understanding of the determinants of growth in EU border regions, having important implications for both theory and policy-making.

The emergence of convergence clubs among Greek regions

The evaluation of regional inequalities and the monitoring of their evolution (regional convergence/divergence analysis) is an issue of extreme interest in the field of regional science as it demonstrates the role of market dynamics and appraises the effectiveness of regional policy. Extending the methodology of (regional) convergence clubs, the paper examines for the existence of convergence clubs, in per capita GDP terms, among the NUTS III regions of Greece during the period 1995 - 2005. The approach of (regional) convergence clubs relies on recent paradigms of economic growth and indicates the existence of (regional) convergence within (regional) convergence clubs without the precondition of (regional) convergence between those clubs. The findings of the paper do not verify the existence of regional convergence clubs in Greece. In contrast, they reveal clear trends of divergence, (identifying, additionally, sub-clubs of divergence) stressing out the underestimation of the country's regional problem

The Geography Of Trade Relations Between The EU And The ENP Countries: Emerging Patterns And Policy Recommendations

The European Neighborhood Policy (ENP), launched in 2004, is a unified EU policy framework towards the EU neighboring countries (ENP countries). The objective of the ENP is to strengthen the prosperity, stability and security of the (enlarged) EU and the ENP countries, creating a "ring of friends" around the EU. Currently, the ENP consists of two sub-groups; the ENP East (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) and the ENP South (Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia). Even though the ENP is distinct from the process of EU enlargement, the ENP countries operate under conditions of "neighborhood Europeanization". This indicates a misfit between ENP demands, on the one hand, and ENP rewards, on the other. Given this misfit - and the concomitant skepticism about the ENP capacity to transfer EU values and rules to the neighboring countries - deep(er) economic (in particular, trade) integration between the EU economy and the ENP countries is considered to be a catalyst for the success of the ENP undertaking. The objective of the paper is to study the geography (i.e. the size, the composition and the direction) of EU-ENP trade, conducting an in-depth empirical analysis as regards the trade flows (i.e. imports and exports) of the EU and the ENP countries. The paper provides comparative empirical evidence concerning paths of trade integration between the EU and the ENP countries. It does so by undertaking a descriptive statistical and graphical analysis of the findings derived from the estimation of a series of trade indicators. The analysis utilizes trade data derived from the UN COMTRADE database. The analysis covers the period 2000-2010. This period has been selected so as to gauge the latest shifts operated in trade structures as a result of the recent economic and political reforms (evolutions) implemented (took place) in the EU economy (i.e. the euro currency, the eastwards enlargement, the on-going financial and economic crisis) and the ENP countries (i.e. the "color" revolutions, the Arab "spring"), besides the ENP in itself. Trade data refer to the national-sectoral (2-digit SITC classification) level. The sectors included in the analysis grossly belong to the primary and the secondary sector of production and may form groups of activities according to the intensity of the production factors used. Providing a clear picture regarding the geography of EU-ENP trade, the paper offers valuable insight to both (economic integration) theory and policy-making

Detecting the Growth Pattern(s) of the EU Border Regions: A Convergence Clubs Approach

The EU regions have been experiencing a period of unprecedented change. The ongoing (and parallel) processes of EU integration and enlargement have progressively transformed regional economies to integral parts of the emerging (European) socio-economic space, exposing them to the forces and the dynamics of a more competitive environment. Border regions, in particular, have been put in a state of flux since the re-(al)location of activities, opportunities and threats has changed over (the significance of) their role in the respective emerging (European) socio-economic map. Within the context of the aforementioned milieu, the paper aims at detecting and assessing growth determinants at the EU borderlands. This is an issue that has attracting increasing attention, especially after the creation of the Single European Market and the advent of the euro currency. However, the majority of border studies are enclaved in the "unitary case syndrome", without providing substantial added value on border theory. Thus, the present study, following an interdisciplinary approach, compiles a spatial econometrics growth model, incorporating a series of inherent and acquired growth determinants (initial conditions). These determinants are not only quantitative ("hard", "traditional") but also qualitative ("soft", "non-traditional"), accentuating the complexity of border issues. The study area covers 349 EU NUTS III border regions, as they are specified by ESPON. The findings of the paper are going to provide valuable insight for the understanding of the determinants of growth in EU border regions, having important implications for both theory and policy-making

The Spatial Footprint Of The Ongoing Economic Crisis (2009-…) In Greece: Assessing The Resilience And Development Of The Greek Regions

The fears of a sovereign debt crisis and the consequent lack of confidence, indicated by a widening of bond yield spreads and risk insurance of credit default swaps, have transformed a financial crisis to an economic crisis in Greece, affecting its productive bases and its income level. Up to the present time, there is no clear empirical evidence about the spatial impact of the economic crisis on Greek territory. Because of the austerity measures imposed in Greece from its lenders (i.e. the IMF and the EU counterparts), inevitably, the main focus of attention has been on national rather than regional level, although the crisis has obvious spatial aspects that should not be neglected: (a) the initial, pre-crisis, conditions (i.e. market size, accessibility, geomorphology, natural resources, productive structure) were, already, strongly differentiated among Greek regions; (b) the anti-crisis, austerity, measures taken may have significantly differentiated implications across space; (c) the implementation of spatial policies may be hindered in countries being in stressful fiscal situation. From this perspective, (further) research should be done; critical issues such as how different places are affected by the economic crisis and why, and which regions will continue to be affected, are still open. The paper presents the spatial impact of the ongoing (2009-…) economic crisis in Greece, assessing the resilience and development of the Greek regions. To this end, a Composite Indicator of Regional Resilience (CIRR) and a Composite Indicator of Regional Development (CIRD) are constructed. Both Indicators include statistical data referring to a series of economic, structural, demographic and social variables. The data are derived from Hellenic Statistical Authority (EL.STAT.) and cover the period 2008-2010. The CIRR is calculated, for the whole period under consideration, as the average of the standardized growth values. The CIRD is calculated, for each year included in the period under consideration, as the average of the standardized absolute values. The calculations are conducted at the NUTS III spatial level. Both Indicators are concise, yet comprehensive, policy tools, allowing for the study of the spatial footprint of economic crisis. The findings of the paper verify that the pro-cyclical pattern of regional development in Greece, detected in periods of expansion, still exists in the period of recession. : economic crisis, Greece, spatial impact, composite indicator