Regional Convergence from Local Isolated Actions: II Conditioning

Danny Quah

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: 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.

Date: 1997-12
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0379

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