Regional Convergence in Central and Eastern European Countries: A Multidimensional Approach

The paper examines the dynamics of regional income at the NUTS3 level of the new EU Member States from Central and Eastern Europe in the years 1998–2005. The authors apply a wide range of methods and tools including classical beta and sigma convergence analysis supplemented by transition matrices, kernel density estimations and spatial autocorrelation statistics. Results of such a multi-dimensional empirical study reveal some previously unrecognized patterns of regional growth in Central and Eastern European Countries (CEECs). Well-acknowledged metropolization and marginalization processes that cause regional divergence at the national scale are accompanied by the following processes. Firstly, at the macroregional scale, regional convergence has been observed as a result of differences in growth rates between individual countries. Secondly, at the national scale, petrification of existing regional structures has been prevailing in majority of the countries. Furthermore, weak convergence of clubs has been observed separately among the richest metropolitan regions and between the group of the poorest regions. In general, the polycentric spatial structure of the macroregion has reduced the impact of rapid growth of rich capital city-regions on convergence processes. Simultaneously, diffusion of development processes had a rather limited range and polarization in larger metropolitan regions have been a characteristic feature of CEECs.     

A Visual Analytics System for Space–Time Dynamics of Regional Income Distributions Utilizing Animated Flow Maps and Rank-based Markov Chains

Regional income convergence and divergence has been an active field of research for more than 20 years, and research papers in this field are still being produced at a prodigious rate. Despite their importance for the study of dynamics of income distribution, interactive visualization tools revealing spatiotemporal dimensions of the income data have been sparsely developed. This study introduces a visual analytics system for the space–time analysis of income dynamics. We use state-level US income data from 1929 to 2009 to demonstrate the visual analytics system and its utility for exploring similar data. The system consists of two modules, visualization and analytics. The visualization module, a Web-based front-end called Rank-Path Visualizer (RPV), draws inspiration from the cartographic technique of flow mapping, originally developed by Tobler and embodied in his canonical Flow Mapper application.     

Growth and Convergence Profiles in the Spanish Provinces (1965–1997)*

Abstract. Economic performance in Spanish provinces has led to a considerable improvement in standard of living of their populations. Intense capital accumulation since the 1950s played a key roll in this process. Provincial inequalities may increase or decrease as a result of this growth pattern. This study analyzes the evolution of the disparities by means of distribution dynamics techniques. It explicitly considers economic size of each province and whether spatial spillovers exist. Results indicate that the convergence process has been especially intense for labor productivity, total factor productivity, and capital intensity, while for per capita income the patterns of convergence are less marked. When we weight our analysis according to economic size of each province, our conclusions do not hold. However, when we take geographic location into account, we find support for our conclusions.     

Human capital accumulation and long‐term income growth projections for European regions

We propose an econometric framework to construct projections for per capita income growth and human capital for European regions. Using Bayesian methods, our approach accounts for model uncertainty in terms of the choice of explanatory variables, the nature of spatial spillovers, as well as the potential endogeneity between output growth and human capital accumulation. This method allows us to assess the potential contribution of future educational attainment to economic growth and income convergence among European regions over the next decades. Our findings suggest that income convergence dynamics and human capital act as important drivers of income growth for the decades to come.     

A NOTE ON THE DIFFERENTIAL REGIONAL EFFECTS OF INCOME INEQUALITY: EMPIRICAL EVIDENCE USING U.S. COUNTY‐LEVEL DATA

This note examines the correlation between income inequality and economic growth using a panel of income distribution data for 3,109 counties of the U.S. Using the System Generalized Method of Moments (GMM) approach, we find that for the entire sample of 3,109 counties, an increase in a county's level of inequality has a significant negative relationship with future economic growth. In reality, however, the magnitude, sign, and significance of this relationship is not necessarily uniform across all regions of the U.S., motivating the need to examine regional differentials in the relationship between inequality and growth. Consequently, we split our dataset into metropolitan and nonmetropolitan counties, into the eight Bureau of Economic Analysis regions, and into regions of different political affiliation and economic‐dependence typology. Our results show considerable heterogeneity in the relationship between inequality and growth across these regions.     

Inclusive growth from an urban perspective: a challenge for the metropolis of the twenty-first century

This paper addresses the study of inclusive growth from an urban perspective. It proposes to focus the relationship between urban economic growth and income distribution in cities in which manufacturing production and external demand play a central role. Opposed to the literature that considers economic growth leads to an increase in inequality in income distribution, we present some operative economic tools from Marshallian Industrial Districts theory and from urban economic theory with which to develop an economic strategy for inclusive urban growth, making possible to achieve simultaneously economic growth and improvements in income distribution. An interesting example of a metropolis with a dynamic of economic and employment growth compatible with a reduction in income inequality is provided by Barcelona. This metropolis disposes a Survey of living conditions and habits of the population since 1986 that allows an analysis in terms of inclusive urban growth.     

EDUCATION AND INCOME INEQUALITY IN THE REGIONS OF THE EUROPEAN UNION*

ABSTRACT This paper provides an empirical study of the determinants of income inequality across regions of the EU. Using the European Community Household Panel dataset for 102 regions over the period 1995–2000, it analyses how microeconomic changes in human capital distribution affect income inequality for the population as a whole and for normally working people. The different static and dynamic panel data analyses conducted reveal that the relationship between income per capita and income inequality, as well as between a good human capital endowment and income inequality is positive. High levels of inequality in educational attainment are also associated with higher income inequality. The above results are robust to changes in the definition of income distribution and may be interpreted as a sign of the responsiveness of the EU labor market to differences in qualifications and skills. Other results indicate that population ageing, female participation in the labor force, urbanization, agriculture, and industry are negatively associated to income inequality, while unemployment and the presence of a strong financial sector positively affect inequality. Finally, income inequality is lower in social‐democratic welfare states, in Protestant areas, and in regions with Nordic family structures.     

Modelling the effect of Mesolithic populations on the slowdown of the Neolithic transition

The expansion of the Neolithic transition in Europe took place gradually from the Near East across the whole continent. At Northern Europe, observations show a slowdown in the speed of the Neolithic front in comparison to other regions of the continent. It has been suggested that the presence of high population densities of hunter-gatherers at the North could have been the main cause for this slowdown. This proposal has recently been described by a mathematical model that takes into account: (i) the resistance opposed by the Mesolithic populations to the advance of Neolithic populations in their territory, and (ii) a limitation on the population growth dynamics due to the competition for space and resources. But these two effects are not equally responsible for the slowdown of the spread. Indeed, here we show that the limitation on the population growth dynamics seems to have been the main cause of the delay of the expansion of farming in Northern Europe.     

The Impact of Public Capital Stock on Regional Convergence in Turkey

The effect of public capital on regional output and private sector productivity has been the subject of considerable research in the field of regional development literature. However, there have been only a few studies that develop linkages between public capital and regional economic convergence. This study examines the dynamic effects of public capital and transportation capital stocks on output per capita in terms of regional convergence in Turkey at NUTS 2 level. A conditional convergence model based on per capita gross domestic product and per capita public capital and transportation capital stocks is estimated using the panel data set for the Turkish regions for the time period of 1980–2001. The results reveal that public capital has a positive and significant effect on output per capita and thus on regional convergence in some of the models in the Turkish regions,. However, the transportation component of public capital stock has a negative effect on regional convergence in all models employed in the study. This implies that transportation capital stock leads to larger regional disparities between the Turkish regions.     

Regional Efficiency in the European Union

This paper examines existing disparities in technical efficiency levels across the European regions over the period 1986–2002. The results reveal that technical efficiency is not randomly distributed across space in the European setting. On the contrary, the different tests performed highlight the presence of positive spatial autocorrelation and spatial heterogeneity in the distribution under consideration. In fact, we have detected several regional clusters characterized by similar efficiency levels distinguishing them from the rest of the sample. Nevertheless, the estimates carried out show the existence of a process of regional convergence in terms of technical efficiency during the study period. Our findings also reveal that factors such as the regional stock of capital per worker or the patterns of productive specialization are relevant in explaining the changes in technical efficiency experienced by the European regions between 1986 and 2002.     

Spatial Empirics for Economic Growth and Convergence

This paper suggests some new empirical strategies for analyzing the evolution of regional income distributions over time and space. These approaches are based on extensions to the classical Markov transition matrices that allow for a more comprehensive analysis of the geographical dimensions of the transitional dynamics. This is achieved by integrating some recently developed local spatial statistics within a Markov framework. Insights to not only the frequency with which one economy may transition across different classes in the income distribution, but also how those transitions may or may not be spatially dependent are provided by these new measures. A number of indices are suggested as ways to characterize the space‐time dynamics and are illustrated in a case study of U. S. regional income dynamics over the 1929–1994 period.     

PRODUCTIVITY GROWTH IN THE OLD AND NEW EUROPE: THE ROLE OF AGGLOMERATION EXTERNALITIES

As Europe is currently characterized by huge disparities in the economic performance of “old” and “new” states, we investigate whether this is the result of local agglomeration—specialization and diversity—externalities. Our spatial econometric analysis focuses on total factor productivity dynamics over the period 1996–2007 for 13 industries located in 276 European regions. Consistently with the “nursery cities” theory, we find that diversity exerts a positive effect in the knowledge‐intensive services of the “old” Europe urban areas, while specialization is still effective in the “new” Europe low‐tech manufacturing. Human and technological capital has also a positive impact.     

Evolution of knowledge bases in European regions: searching for spatial regularities and links with innovation performance

This paper aims at a greater comprehension of the distribution of differentiated knowledge bases and their association with innovation performance. Drawing on evolutionary economic geography, we applied a combinatorial and dynamic view on knowledge bases. The main contribution is the examination of changes and transformations of knowledge bases over time in particular group of regions in Europe and links with innovation performance. Our study revealed systematic regularities between regions with different innovation performance and their knowledge bases. With decreasing regional innovation performance the volatility of knowledge bases over time increases. Innovation leaders evinced stability over time and the most balanced composition of knowledge bases (compared with Central and Eastern Europe regions). Western European countries and regions exhibit the most balanced structure of knowledge bases. An important complementarity and synergy has been identified in the close relatedness of the symbolic knowledge base to the analytical knowledge base. The highest intensity of SME cooperation takes place in regions with a strong analytical base and in regions with the most balanced mix among all three bases (particularly in the UK, the Netherlands and Belgium. Underperforming in innovation show a balanced mix of synthetic and symbolic knowledge bases.     

A Time Series Analysis of Regional Income Inequalities and Migration in Japan, 1955–1985

This study tests the neoclassical concept of interregional migration in post–World War II Japan. The lead-lag relationship between net migration to a core area and regional income inequalities is examined by modeling an ARIMA transfer function. Until 1961, there was a rapid growth in net migration from the periphery to the core area that was accompanied by rapid divergence in regional income inequalities. Since then, migration to the core apparently has declined due to a convergence of regional income inequalities. The time series analysis indicates there has been short-run, as well as long-run, volatility in migration related to cyclical variations in economic performance in the core.     

Regional polarization in the European Union

This paper examines the level and evolution of polarization in regional per capita income in the European Union between 1977 and 1999. In this analysis, non-parametric estimation techniques are combined with the calculation of various polarization measures. The results obtained suggest a decrease in regional polarization in the European context during the period analysed, as a consequence of various factors, at times working in opposite directions. The findings also reveal the existence of discrepancies between the evolution of polarization and regional inequality. Finally, the analysis carried out highlights the importance of the role played by the national component and the spatial dimension in the formation of homogeneous groups of regions linked by similar development levels in the distribution under study.     

中部地区城乡收入两极分化程度分析及其时空特征变化

ER型指数测算表明,中部地区88个地市(州)城乡居民收入两极分化程度存在明显的时空变化和地区分异;根据2000年、2009年各地市ER指数值,分别将88个地市分为四大类型区,根据2000-2009年各地市ER指数值的变化情况,将88个地市又分为三类地市,综合分析2000-2009年中部地区城乡收入两极分化程度的时空特征变化。分析结果显示:2000-2009年,中部地区城乡收入两极分化程度越来越严重,绝大多数地市的城乡收入极化程度变化呈现出加速上升或一般化上升趋势,各省城乡居民收入两极分化程度也有很大差别;城乡收入极化程度各类型区的空间分布情况发生了明显的变化,各省收入极化程度变化不同类型区的分布存在明显的差异。     

An Index of Social and Economic Development in the Community's Objective-1 Regions of Countries in Southern Europe

In this article we calculate an indicator of social and economic development using the DP₂ distance method to measure the disparities in Objective-1 regions of southern European countries for 2006. In addition to per capita income, socio-economic components such as health, education, employment, scientific and technological development and infrastructure provision have been incorporated into the index. We examine the issue of whether the Europe Union regions included in the Convergence Objective achieved a lower level of development than the regions no longer covered in this objective for the 2007–2013 programming period by establishing a territorial classification based on the value yielded by the variables of the DP₂. Our indicator constitutes a novel contribution insofar as it was constructed using a large number of variables. In essence, we show that not all the regions of the Convergence Objective presented a lower level of economic and social development than those that lost this consideration between 2007 and 2013 and the opposite.     

REGULATORY FEDERALISM AND THE DISTRIBUTION OF AIR POLLUTANT EMISSIONS*

ABSTRACT Recent empirical work suggests that (i) incomes are converging through time, and (ii) income and pollution levels are linked. This paper weds these two literatures by examining the spatial and temporal distribution of pollution. After establishing that theoretical predictions about whether pollution will converge are critically linked to certain structural parameters, we explore pollution convergence using state‐level data on two important pollutants—nitrogen oxides and sulfur oxides—from 1929 to 1999. We find stronger evidence of converging emission rates during the federal pollution control years (1970–1999) than during the local control years (1929–1969). These results suggest that income convergence alone may not be sufficient to induce convergence of pollutant emissions.     

Regional Concentration of the Knowledge-based Economy in the EU: Towards a Renewed Oligocentric Model?

This paper aims to contribute to a better understanding of the Knowledge-based Economy spatial distribution across the European Union (EU) regions (NUTS II), linking recent research approaches on innovation and structural change with approaches to regional economics. As a means of conducting this research, we classify economic activities according to six sectors based on their knowledge/technology intensity. Our results show that the higher the knowledge/technology content of the economic activity, the higher the concentration level of the activity. We find that some service activities (those considered knowledge intensive) have similar concentration levels to those operating in high or medium tech manufacturing. With regard to specialization, the most outstanding result is the strong presence of high and medium knowledge intensive service activities in metropolitan/capital regions. In general, our results reinforce the notion that an oligocentric model persists in Europe, with the southern German regions leading high and medium tech manufacturing, the south-east of England leading in high knowledge-intensive services, and with the mid-core model exemplified by the European metropolitan archipelago (particularly capital cities) in both northern and southern Europe.     

Income Convergence across U.S. States: An Analysis Using Measures of Concordance and Discordance*

Abstract. This paper presents methods to analyze convergence in cross‐sectional data collected over time using distribution free statistics that are not sensitive to the magnitudes involved. Measures of concordance and discordance are employed in the empirical analysis of real personal income per capita for 48 U.S. States over the period 1929–2002. Although most States are converging with each other, some are converging faster than others. The methods used have the flexibility to focus on specific characteristics such as convergence in absolute differences or convergence in the ratio of rewards. The methods may also be used to consider convergence without switching and additionally be applied to other features such as the percentiles of the distributions.