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Convergence in Income Per Capita in the EMU Regions: An empirical investigation of sigma and beta convergence

Sandström, Sofie LU (2013) NEKH01 20131
Department of Economics
Abstract
There are large differences in income level and growth across the members of the European and Monetary Union, and the differences are even larger at a regional level. As integration intensifies an important question is whether the disparities in terms of per capita incomes will diminish. The purpose of the paper is to empirically test the hypothesis of per capita income convergence among 144 NUTS-2 level regions of Eurozone countries between 2002-2010 using the two most common measures of beta and sigma. The regression results for beta convergence indicates that income convergence is conditional as opposed to absolute and suggests that Eurozone regions per capita incomes are converging at a rate of 2.1% per year. The sigma convergence test... (More)
There are large differences in income level and growth across the members of the European and Monetary Union, and the differences are even larger at a regional level. As integration intensifies an important question is whether the disparities in terms of per capita incomes will diminish. The purpose of the paper is to empirically test the hypothesis of per capita income convergence among 144 NUTS-2 level regions of Eurozone countries between 2002-2010 using the two most common measures of beta and sigma. The regression results for beta convergence indicates that income convergence is conditional as opposed to absolute and suggests that Eurozone regions per capita incomes are converging at a rate of 2.1% per year. The sigma convergence test however does not suggest that income disparities are diminishing among the regions. (Less)
Please use this url to cite or link to this publication:
author
Sandström, Sofie LU
supervisor
organization
course
NEKH01 20131
year
type
M2 - Bachelor Degree
subject
keywords
Regional Convergence, European Regions, Economic growth, Cross-Section Regression
language
English
id
4025174
date added to LUP
2013-09-17 15:39:26
date last changed
2013-09-17 15:39:26
@misc{4025174,
  abstract     = {{There are large differences in income level and growth across the members of the European and Monetary Union, and the differences are even larger at a regional level. As integration intensifies an important question is whether the disparities in terms of per capita incomes will diminish. The purpose of the paper is to empirically test the hypothesis of per capita income convergence among 144 NUTS-2 level regions of Eurozone countries between 2002-2010 using the two most common measures of beta and sigma. The regression results for beta convergence indicates that income convergence is conditional as opposed to absolute and suggests that Eurozone regions per capita incomes are converging at a rate of 2.1% per year. The sigma convergence test however does not suggest that income disparities are diminishing among the regions.}},
  author       = {{Sandström, Sofie}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Convergence in Income Per Capita in the EMU Regions: An empirical investigation of sigma and beta convergence}},
  year         = {{2013}},
}