In this paper we challenge the ability of the conventional methods initiated by Barro and Sala-i-Martin in the early 1990s to detect actual convergence or divergence trends across countries or regions and suggest an alternative dynamic framework of analysis, which allows for a better understanding of the forces in operation. With the use of a SURE model and time-series data for eight European Union (EU) member states, we test directly for the validity of two competing hypotheses: the neoclassical (NC) convergence hypothesis originating in the work of Solow and the cumulative causation hypothesis stemming from Myrdal's theories. We also account for changes in the external environment, such as the role of European integration on the level of regional disparities. Our findings indicate that both short-term divergence and long-term convergence processes coexist. Regional disparities are reported to follow a procyclical pattern, as dynamic and developed regions grow faster in periods of expansion and slower in periods of recession. At the same time, significant spread effects are also in operation, partly offsetting the cumulative impact of growth on space. Similar results are obtained from the estimation of an intra-EU model of disparities at the national level, indicating that the forces in operation are independent of the level of aggregation. Our findings challenge the view of economic growth as the main driver for a reduction of regional disparities and contribute to the growing scientific evidence that points towards the need to rethink current EU-wide regional development policies.

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This article examines regional inequalities in Greece, on the basis of σ-convergence and β-convergence analysis and shows that they were reduced in the 1970s and the 1980s. Regression analysis indicates that regional inequalities have a pro-cyclical character, increasing in periods of economic expansion and decreasing in periods of economic recession. It also indicates that the structure of local industry, the process of EU integration, the quality of human capital and the existence of resources suitable for the development of tourism are among the factors affecting regional growth.JEL classification : R11, O18, C21

The article evaluates the pre-accession experience of new European Union member-states, coming from the former Eastern bloc, estimating an empirical model used to account for regional-industrial employment growth in the early transition period, 1991-2000. The results obtained indicate the adverse impact of the economic integration dynamics and detect the interplay among structural characteristics and geographical coordinates that determines the relative winners. The findings of the article have important implications for both theory and policy. JEL Classification

The paper examines the pattern of regional convergence and the determinants of regional growth in Europe, providing a discussion of the issues that are of relevance to the theoretical conceptions and the subsequent design of regional development policy, supported by an illustrative empirical analysis. The analysis covers 249 NUTS II regions of the European Union in the period 1990–2003. Using as its basis the standard framework of (absolute) β-convergence, the paper detects a mirror-image J-shaped relationship between regional growth and regional development levels. This type of relationship indicates that regional divergence factors are getting stronger, and, eventually, dominate, at more advanced levels of development. On the basis of a regional growth model, factors such as agglomeration economies, geography, economic integration and economic structure seem to create an overall unfavourable economic environment for lagging (and, possibly, less favoured) regions. Such an environment generates dilemmas and questions concerning the mix of policies that may promote growth and at the same time reduce regional inequalities in the European Union.

The processes of European Union (EU) integration and enlargement have produced a new regional socioeconomic map in Europe. Border regions, in particular, have been put in a state of flux. The re-allocation of activities, opportunities and threats is changing their socioeconomic role and significance. Thus, border regions have become an issue of great importance during the last fifteen years in both the areas of scientific research and policy making. The overall picture of the actual dynamics occurring at the border regions, however, when economic barriers have been abolished, remains rather unclear. The absence of an appropriate methodological framework for the study of the impact of EU integration and enlargement dynamics on border regions is evident. The paper proposes a typology for the EU NUTS III border regions, interpreting the socioeconomic dynamics occurring within the enlarged EU space. Primary and secondary data, incorporating quantitative and qualitative determinants for border regions, were elaborated with integrated factor and fuzzy clustering analysis techniques. The proposed border regions typology provides a framework to assess the relative position of each EU border region in the EU space.

Abstract. This article examines regional inequalities in Greece, on the basis of σ‐convergence and β‐convergence analysis and shows that they were reduced in the 1970s and the 1980s. Regression analysis indicates that regional inequalities have a pro‐cyclical character, increasing in periods of economic expansion and decreasing in periods of economic recession. It also indicates that the structure of local industry, the process of EU integration, the quality of human capital and the existence of resources suitable for the development of tourism are among the factors affecting regional growth.

A plethora of past studies have concluded that unconditional "&bgr;"-convergence is present in a broad sample of regions, implying that poor regions grow faster than rich ones. All these econometric studies tend to overlook the relative importance or size of each region in the national setting, treating all regional observations as equal. However, this assumption might lead to unrealistic or misleading results. Convergence analysis could be more meaningful if it included a weighting mechanism taking into account the size of regions. The aim of this paper is to investigate whether the inclusion of a weighting mechanism in "&bgr;"-convergence analysis, giving more weight to larger regions and less to smaller ones, can result in sharply different implications for the regional convergence-divergence process. For this reason, both unweighted ordinary least squares (OLS) and weighted least squares estimators are used in the analysis of regional (intra-national) convergence within 10 European Union (EU) countries over the period 1990-2000. The comparison between the two methods reveals that when regions are appropriately weighted for their size, intra-national divergence, rather than convergence found with the OLS approach, seems to be the dominant experience in the EU. Copyright (c) 2009 Copyright the Authors. Journal compilation (c) 2009 Wiley Periodicals, Inc..