Old Wine in a New Bottle: Growth Convergence Dynamics in the EU

Atlantic Economic Journal, Vol. 38, No. 2, pp. 169-181

Posted: 5 Mar 2008 Last revised: 14 Mar 2011

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Ekaterini Panopoulou

Essex Business School

Chris Tsoumas

Hellenic Open University

Date Written: February 29, 2008

Abstract

In this paper we explore convergence of real per capita output across the European Union (EU) countries as well as the transitional behaviour of possible underlying factors that are responsible for any convergence or divergence pattern. The new panel convergence methodology developed by Phillips and Sul (2007) is employed in a production function growth accounting approach and data from the Total Economy Database and the Total Economy Growth Accounting Database. The empirical findings suggest that the EU countries form two distinct convergent clubs exhibiting considerable heterogeneity in the underlying growth factors. These findings should help policy makers in designing appropriate growth-oriented programs as well as in setting priorities in their implementation.

Keywords: Growth convergence, growth factors, transition paths, EU countries, logt test

JEL Classification: O40, O47, C32, C33

Suggested Citation

Apergis, Nicholas and Panopoulou, Ekaterini and Tsoumas, Chris, Old Wine in a New Bottle: Growth Convergence Dynamics in the EU (February 29, 2008). Atlantic Economic Journal, Vol. 38, No. 2, pp. 169-181. Available at SSRN: https://ssrn.com/abstract=1100071

Nicholas Apergis (Contact Author)

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

Ekaterini Panopoulou

Essex Business School ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Chris Tsoumas

Hellenic Open University ( email )

Parodos Aristotelous 18
26335 Patra
Greece

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