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Transition, Regional Features, Growth and Labour Market Dynamics

In: The Labour Market Impact of the EU Enlargement

Author

Listed:
  • Enrico Marelli

    (University of Brescia)

  • Marcello Signorelli
Abstract
The aim of this paper is to throw some light on the institutional change, regional features, and growth and labour market performances in the eight transition countries that became EU members in May 2004 (8-CEECs). After a survey of the theoretical and empirical literature on the great transformation, the empirical results on some regional features (convergence, concentration and specialisation) of the 8-CEECs are discussed. The consideration of a rather fine territorial disaggregation – at NUTS-3 Eurostat level – distinguishes this paper from previous studies. This allows for the investigation of some important tendencies such as the concentration of production around the capital cities. The main empirical finding of the paper is that, while transition countries – in particular the eight CEECs – are converging, with a reduction of disparities in per capita incomes across countries, within each single country divergence is prevailing, with leading regions (mainly the capital city areas) growing much faster than the rest of the country. The final econometric investigations – on the determinants of regional income convergence, GDP growth and employment dynamics – on one hand confirm this result and on the other hand highlight the role of institutional change. The latter, which is always positive for real output growth, in the long run also becomes functional to employment growth, once the short-term effects of rationalisations and restructuring are vanished. The main policy implications, concerning both European and national economic policies, are presented in the conclusive section.

Suggested Citation

  • Enrico Marelli & Marcello Signorelli, 2010. "Transition, Regional Features, Growth and Labour Market Dynamics," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement, pages 99-147, Springer.
    • Handle: RePEc:spr:aiechp:978-3-7908-2164-2_5
    DOI: 10.1007/978-3-7908-2164-2_5
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    Cited by:

    1. Triandafil, Cristina Maria, 2011. "The Analysis Of The Convergence Criteria. Empirical Perspective In The Context Of The Sustainable Character Highlight," Working Papers of National Institute for Economic Research 111205, Institutul National de Cercetari Economice (INCE).
    2. Enrico Marelli & Roberto Patuelli & Marcello Signorelli, 2012. "Regional unemployment in the EU before and after the global crisis," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 155-175, January.
    3. Enrico Marelli & Marcello Signorelli, 2010. "Employment, productivity and models of growth in the EU," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(7), pages 732-754, October.
    4. Demidova, Olga, 2014. "Spatial-autoregressive model for the two groups of related regions (eastern and western parts of Russia)," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 34(2), pages 19-35.
    5. O'Connor, Sean & Doyle, Eleanor & Doran, Justin, 2018. "Diversity, employment growth and spatial spillovers amongst Irish regions," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 260-267.
    6. Azad Haider & Sunila Jabeen & Wimal Rankaduwa & Farzana Shaheen, 2023. "The Nexus between Employment and Economic Growth: A Cross-Country Analysis," Sustainability, MDPI, vol. 15(15), pages 1-18, August.
    7. Cutrini, Eleonora, 2019. "Economic integration, structural change, and uneven development in the European Union," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 102-113.
    8. Aldona Standar & Agnieszka Kozera, 2019. "The Role of Local Finance in Overcoming Socioeconomic Inequalities in Polish Rural Areas," Sustainability, MDPI, vol. 11(20), pages 1-28, October.
    9. Alisher Aldashev, 2011. "Converging Wages, Diverging GRP: Directed Technical Change and Endogenous Growth. Empirical Analysis of Growth Patterns across Kazakh regions," Working Papers 307, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).

    More about this item

    Keywords

    Employment; Growth and Institutional Change; Regional Convergence; Transition;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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