A Development Club and Groupings in Europe, and Growth Strategies

The concept of development clubs and groupings is defined. A development club comprises a group of countries at similar levels of per capita income, which are converging to a common steady state, and that have similar growth patterns. There is only one development club in Europe. It consists of the economies from the core of Western Europe. Other European countries can be grouped into two or three additional groupings according to certain similar characteristics, yet they do not form development clubs. The dynamics of development groupings are also considered. Finally, some applications and implications for growth strategies are indicated. Comparative Economic Studies (2007) 49, 660–682. doi:10.1057/palgrave.ces.8100222