New Study Reveals Unequal Regional Growth Speeds Across Europe
The article compares two models of regional growth and finds that the speed of convergence varies depending on the distance and income differences between regions. Using data from 212 European regions, the researchers show that both models suggest a slow convergence rate of about 0.7 percent per year. However, there is significant variation in the speed of convergence. The spatial Solow model indicates a 2 percent annual convergence rate, while Verdoorn's model shows a smaller and insignificant reduction in variance over time.