Journal of Economic Geography · 2001 · 191 citations · 0 references
Social SciencesEconomicsLabor EconomicsRegional EconomicsRegional StudiesEuropean EconomicsEuropean EconomyEuropean IntegrationEuropean Union StudiesRegional Economic DevelopmentRegional ProductivityConvergenceEuropean Monetary IntegrationEuropean Union Economic PolicyEuropean Union EconomicsProductivityProductivity ConvergenceRegional Productivity DifferencesRegional Productivity Growth
There is considerable interest and debate over the impact of European monetary integration (EMU) on EU regions, with opinions sharply divided on whether EMU drives regional convergence or divergence. The study examines theoretical arguments and empirical evidence regarding EMU’s effect on regional convergence versus divergence, and analyzes regional productivity and employment growth trends from 1975 to 1998. The authors analyze regional productivity and employment growth data spanning 1975–1998 to evaluate convergence dynamics. Results show only weak convergence in worker productivity—stopping after the mid‑1980s—while employment growth diverges sharply, indicating limited evidence that EMU promotes regional convergence and leaving its regional implications unresolved.
There is currently considerable interest in and debate over the impact of increasing European economic and monetary integration (EMU) on the regions of the EU. Opinion is sharply divided over whether EMU is leading to regional economic convergence or regional economic divergence. This paper examines the theoretical arguments and empirical evidence for these opposing views, and presents some additional analysis of patterns of regional productivity trends and employment growth over the period 1975–98. The picture that emerges is a complex one: whilst worker productivity shows only very weak convergence across the EU regions (a process which halted altogether after the mid-1980s), regional employment growth has been sharply divergent. Although there is little support for the claim that EMU will lead to regional convergence, these findings suggest that until much more detailed investigation of the specific impacts on particular types of region is undertaken, the regional implications of EMU will remain a contentious issue.