Regional economic convergence: Do policy instruments make a difference?

This study analyses the gaps in financial centres' competitiveness and their impact on regional economic convergence in 23 European Union Member States during the period of the Global Financial Crisis. In particular, we explore the economic convergence and divergence patterns among regions from two different perspectives across the selected European Union Member States and within each country. From a methodological viewpoint, we apply a fully non-parametric framework to the club convergence model and address the endogeneity problem between financial centres' competitiveness and regional economic convergence. Our results show that the large and internationally-oriented financial centres experienced a diverging trend in terms of the competitiveness of financial centres' business environment during the peak of the crisis. We also find evidence that the convergence of financial centres reduces regional economic inequalities between the regions where financial centres are located. In contrast, the increase in the competitiveness of financial centres only serves to widen existing inequalities at the national level. Finally, we examine and discuss the impact of competitiveness drivers of financial centres on the convergence pattern of European Union regions.

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Internal Migration, Regional Economic Convergence, and Growth in Croatia

International Regional Science Review ◽

10.1177/0160017615572889 ◽

2016 ◽

Vol 40 (2) ◽

pp. 141-163 ◽

Cited By ~ 6

Author(s):

Djula Borozan

Keyword(s):

Internal Migration ◽

Effect Size ◽

Fixed Effects ◽

Panel Data Analysis ◽

Economic Convergence ◽

Regional Economic ◽

Net Migration ◽

Economic Divergence ◽

Regional Economic Disparities ◽

And Behavior

The article aims to explore internal migration flows, test for economic convergence, and assess the effects of internal migration (net and gross) on convergence and growth in terms of a neoclassical model in Croatia in the period 2000 to 2011. Croatia is a country with significant and persistent regional economic disparities, migration, and turbulent economic and political changes. The main findings of panel data analysis with fixed effects show that (i) contrary to the expectations based on neoclassical theory, the Croatian counties have been facing absolute and conditional economic divergence; (ii) in- and out-migration works symmetrically; (iii) net migration mainly appears to be a force that accelerates divergence, just opposite to gross in- and out-migration; (iv) although the estimated parameters of net and gross migration have expected signs, their effect size lies in the range from statistically significant but minor to insignificant; and (v) migrant characteristics and behavior matter when the effect size is considered.

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