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Regional convergence from local isolated actions : II conditioning

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This paper develops an empirical procedure to assess alternative explanations for differing patterns of growth and convergence. It finds that positive spatial spillovers account for a large part of inequality dynamics across Europe as a whole, the Cohesion economies (Greece, [Ireland]. Spain. Portugal), and selected non-Cohesion EU member states. The analysis shows that when the Cohesion economies see their incomes increase and experience higher tendencies towards greater equality, so will the non-Cohesion economies of France, Italy and the UK experience similar outcomes: moreover it is the relatively poor non-Cohesion economies that will benefit most from improving conditions in the Cohesion economies.

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en

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http://eprints.lse.ac.uk/2183/

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