Chapter 62 Regional (di)convergence

Magrini, Stefano

doi:10.1016/s1574-0080(04)80019-1

Cited by 187 publications

(200 citation statements)

References 98 publications

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“…For recent surveys of the β-convergence literature see, for example, Durlauf and Quah (1999), Temple (1999) or Magrini (2004). We reject the β-convergence approach as uninformative and perhaps misleading for both theoretical and empirical reasons.…”

Section: Issues and Approachmentioning

confidence: 79%

Urban growth drivers in a Europe of sticky people and implicit boundaries

Cheshire¹,

Magrini²

2008

Journal of Economic Geography

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Section: Issues and Approachmentioning

confidence: 79%

Urban growth drivers in a Europe of sticky people and implicit boundaries

Cheshire¹,

Magrini²

2008

Journal of Economic Geography

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“…This evidence is usually explained by differences in human capital stocks, as firstly suggested by Nelson and Phelps (1966), and/or by institutional quality heterogeneity, (Hall and Jones, 1999;Acemoglu et al, 2001and 2006, Comin et al, 2009, and/or by the existence of monopoly rights of various forms that create a barrier to technology adoption, as in Parente and Prescott (1999). However, more puzzling is the evidence that slow processes of technology adoption are observed even across similar leading countries of the world economy (Comin andHobijn, 2004 andComin et al 2006) or across regions within the same country or within union of states (see Magrini, 2004, for a review).…”

Section: Introductionmentioning

confidence: 99%

TFP Convergence Across European Regions: A Comparative Spatial Dynamics Analysis

Liberto

Usaï

2012

Geography, Institutions and Regional Economic Performance

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“…From the perspective of the new (endogenous) growth theory (Romer, 1986(Romer, , 1990, regional policy may have long-term effects if it promotes R&D or human capital. 7 A more general survey which includes cross section as well as time series data can be found in Magrini (2004). 8 y it may also indicate the GDP per capita of the region i relative to the aggregate GDP per capita of all regions at time t. In doing so, common time effects are cancelled out absent, i.e., a significantly negative β in the regression framework described above.…”

Section: Measuring the Effectiveness Of Cohesion Policymentioning

confidence: 99%

“…Hence, simply applying a fixed effects estimator in a dynamic setup leads to a correlation of the lagged dependent variable and the error term results in an underestimation of the lagged dependent variable which is well-known as the Nickell bias (Nickell, 1981;Magrini, 2004).…”

Section: Main Econometric Issues and Potential Solutionsmentioning

confidence: 99%

“…Based on a sample of 1084 NUTS-3 regions (EU-15) over the period of 1995-2004, Falk and Sinabell (2008 investigate the determinants of Objective 1 payments on the regional growth of GDP per capita in a cross-sectional analysis. As the Lagrange Multiplier test statistic does not hint at spatial spillover effects, they focus on robust OLS and weighted-least-squares procedures.…”

Section: Empirical Evidencementioning

confidence: 99%

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Econometric Evaluation of EU Cohesion Policy: A Survey

Hagen

Mohl²

2016

Empirical Evidence on the Macroeconomic Effects of EU Cohesion Policy

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp09052.pdf Non-technical summaryMore than one third of the total EU budget is spent on so-called Cohesion Policy via the structural funds. Its main purpose is to reduce disparities among EU regions and to promote economic growth and convergence. Therefore, the convergence process of EU regions is a question of high political importance. The overall empirical evidence points to a small convergence effect of all or at least some European regions. However, whether or not this potential success results from EU Cohesion Policy remains an open question. The existing empirical evidence has provided mixed, if not contradictory, results. While some authors do find evidence of a positive impact of structural funds on economic growth, others find little to no impact at all. Against this background, this paper provides a fundamental review of the econometric evaluation of EU Cohesion Policy in order to shed light on the reasons for the diverging results. It has been shown that the econometric evaluation of EU Cohesion Policy is hampered by several econometric issues. Based on these issues we discuss potential solutions on how to cope with these problems and discuss the related literature.The most that can be concluded from empirical studies using country-level data is that Cohesion Policy seems to be only conditionally effective. Given a good quality institutional setup or decentralised governmental structures, Cohesion Policy has a positive impact on growth. However, using regional level data might be the preferable alternative because, first, EU Cohesion Policy focuses on the development and convergence of regions and, second, the robustness of the results is increased by the higher number of cross sections. The majority of the studies based on EU regions find at least a weak positive effect.One explanation for the weak results might be the fact that almost all studies are derived from a neoclassical growth model assuming that EU Cohesion Policy increases investments, and ultimately raising the economic growth rate. However, there is some empirical evidence that Cohesion Policy may only have a modest impact on investments. Moreover, we know very little about the labour market impact of EU Cohesion Policy. Hence, one task for future studies will be to investigate more thoroughly the channels through i which EU Cohesion Policy works.Another reason for the inconclusive empirical results m...

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Chapter 62 Regional (di)convergence

Cited by 187 publications

References 98 publications

Urban growth drivers in a Europe of sticky people and implicit boundaries

Urban growth drivers in a Europe of sticky people and implicit boundaries

TFP Convergence Across European Regions: A Comparative Spatial Dynamics Analysis

Econometric Evaluation of EU Cohesion Policy: A Survey

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