Socio-Economic Convergence in the EU at National and Regional Level

Procedia Economics and Finance, Volume 23, 2015, pp. 1090-1095, 2015, DOI:10.1016/S2212-5671(15)00333-0

Posted: 5 Jan 2014 Last revised: 1 Jan 2018

See all articles by Adrian Otoiu

Adrian Otoiu

Bucharest University of Economic Studies

Emilia Titan

Bucharest University of Economic Studies

Date Written: January 4, 2014

Abstract

This paper explores whether socio-economic convergence occurs in the EU, at both national and regional level. Using data for NUTS 2 regions for disposable income, unemployment rates, incidence of households with low work intensity, and internal migration, we calculate coefficients of variations for these variables and decompose them into within-country and between-country variations. Evidence shows that convergence occurs mostly at country level, and, except for unemployment rates, convergence resumes after a short break experienced during the first years of the Great Recession. Furthermore, it seems that within-country convergence is weak and that divergence or status-quo are the norm. Trends diverge further when we look at Eastern Europe vs. Western Europe. Country-level converge and Regional divergence is mostly concentrated in Eastern Europe, whereas stability and mild convergence is characteristic for Western Europe. This decomposition analysis shows that cohesion policy managed to reduce disparities between countries mostly, and that Easter Europe accounts for most of these reductions. However, it seems that at regional level disparities hold or even increase in Eastern Europe which calls into question whether the cohesion policy is effective.

Keywords: cohesion policy, convergence, socio-economic characteristics, Eastern Europe, EU

JEL Classification: E24, F02, R12, R23, R58, O18

Suggested Citation

Otoiu, Adrian and Titan, Emilia, Socio-Economic Convergence in the EU at National and Regional Level (January 4, 2014). Procedia Economics and Finance, Volume 23, 2015, pp. 1090-1095, 2015, DOI:10.1016/S2212-5671(15)00333-0, Available at SSRN: https://ssrn.com/abstract=2374649

Adrian Otoiu (Contact Author)

Bucharest University of Economic Studies ( email )

Romania

Emilia Titan

Bucharest University of Economic Studies ( email )

Tache Ionescu street, no. 11, sector 1
Bucharest
Romania

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
427
PlumX Metrics