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Income dynamics in an enlarged Europe: the role of capital regions

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Abstract

This article is aimed to study, by means of both a nonparametric and a parametric approach to convergence, whether after the recent enlargements of the European Union the traditional twofold spatial regime of regional per capita income growth, envisaging a north/south and/or a cohesion/non-cohesion countries divide, should be replaced by an alternative east/west spatial pattern. A second relevant issue is whether new member regions where capital cities are located are benefiting from the same “network effect” that stimulated growth in old member capital regions during the 1980s and early 1990s. We find evidence, by means of spatial econometrics tools, of significant spatial effects in the enlarged Europe which seems to be formed by a group of old member regions, slowly becoming more homogeneous, and a newcomers group which represents a separate “convergence club” but whose capital regions are rapidly integrating into the west. The European regional policy may play a crucial role in this context.

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Authors and Affiliations

  1. University Lumsa of Rome, Rome, Italy

    Sheila A. Chapman & Stefania Cosci

  2. University of Rome Tor Vergata, Rome, Italy

    Loredana Mirra

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  1. Sheila A. Chapman
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  2. Stefania Cosci
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  3. Loredana Mirra
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Correspondence to Loredana Mirra.

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Chapman, S.A., Cosci, S. & Mirra, L. Income dynamics in an enlarged Europe: the role of capital regions. Ann Reg Sci 48, 663–693 (2012). https://doi.org/10.1007/s00168-010-0400-x

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