Beta and Sigma – Convergence of Productivity of NUTS 2 Regions in the (EU) Member States from the CEE Region

Abstract

In this scientific paper we have examined the presence of beta and sigma-convergence of productivity in the Central and East European NUTS 2 statistical regions of the European Union member states of Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia for the period from 2000 to 2016. Applying a fixed effects panel ordinary least squares regression on real Gross domestic product per employee and Gross domestic product per employee in PPS terms, we find that a catch-up process is underway, together with a decrease of dispersion in variables under investigation, respectively beta and sigma convergence hypotheses are supported for the NUTS 2 regions in selected countries under investigation.

Keywords: productivity convergence, economic convergence, CEE NUTS 2 regions, EU regions, panel data models

JEL Classification: C23, O11, O47, R11