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Econometric analysis reveals declining convergence rates in European Union subnational regions, indicating a substantial slowdown in economic catch-up after the 1960s.
The paper examines GDP per capita growth rated among subnational regions of the European Union between 1950 and 1990. Previous research has suggested that a slow process of convergence (or “catch-up”) has occurred over the period since 1950. Estimation of a catch-up growth model using a modified and larger set of regions than previously the case suggests that existing measures of convergence rates need to be revised downwards and that convergence rates have been reduced in the 1970s and 1980s compared with the 1960s.
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Harvey Armstrong (1995) studied this question.
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