Has the Great Recession affected the convergence process? The case of Spanish provinces

Great Recession and club convergence in Europe: A cross‐country, cross‐region panel analysis (2000–2015)

“…Our results at both geographical levels are different from those obtained by Montañés et al (2018) who adopt a similar approach. They found a pro‐cyclical behavior of GDP disparities among Spanish provinces during the Great Recession.…”

“…Convergence clubs have also emerged by adopting the Phillips and Sul (2007, 2009) methodology (Table 2), both at the country (Apergis, Panopoulou, & Tsoumas, 2010; Borsi & Metiu, 2015; Fritsche & Kuzin, 2011; Monfort, Cuestas, & Ordonez, 2013) and at the regional and provincial levels (Bartkowska & Riedl, 2012; von Lyncker & Thoennessen, 2017; Montañés et al, 2018). However, none of these studies analyses simultaneously the national and regional club convergence on the same panel of countries.…”

“…However, none of these studies analyses simultaneously the national and regional club convergence on the same panel of countries. More important, only one of them (Montañés et al, 2018) considers in the analysis the Great Recession period but in a single country framework (Spain).…”

“…Using the Phillips and Sul (PS henceforth) procedure, we assess the impact of the recent crisis on the convergence process both between and within the clubs. In this sense, we try to generalize and confront our results with the few evidence concerning the impact of the Great Recession on the convergence process which is currently restricted to single countries (see, for Spain, Montañés, Olmos, & Reyes, 2018). Second, since the geographical level of analysis may lead to different results, we apply the abovementioned procedure simultaneously to the regional and the country levels for the same set of countries, making direct comparison between the two levels.…”

Revisiting income convergence in Turkey: Are there convergence clubs?

“…They reveal that initial labor force participation rate, initial human capital, and initial income per capita play significant roles in determining the probability of higher‐ or lower‐income club membership in addition to the geographical factors such as north–south division and capital city effects. Montañés, Olmos, and Reyes () analyze the convergence in income and human development index across Spanish provinces for the 1980–2007 and 1980–2014 periods and find that the number of clubs decreases in the latter sample, a result indicating that the Great Recession lowered the provincial disparities. Apergis et al () examine income inequality convergence across U.S. states between 1916 and 2012.…”