Convergence in Income Per Capita in the EMU Regions: An empirical investigation of sigma and beta convergence
(2013) NEKH01 20131Department 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 NUTS2 level regions of Eurozone countries between 20022010 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 NUTS2 level regions of Eurozone countries between 20022010 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:
http://lup.lub.lu.se/studentpapers/record/4025174
 author
 Sandström, Sofie ^{LU}
 supervisor

 Pontus Hansson ^{LU}
 organization
 course
 NEKH01 20131
 year
 2013
 type
 M2  Bachelor Degree
 subject
 keywords
 Regional Convergence, European Regions, Economic growth, CrossSection Regression
 language
 English
 id
 4025174
 date added to LUP
 20130917 15:39:26
 date last changed
 20130917 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 NUTS2 level regions of Eurozone countries between 20022010 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}, keyword = {Regional Convergence,European Regions,Economic growth,CrossSection Regression}, 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}, }