arbiter
JournalsAccount

Income convergence clubs in the Eurozone: a tale beyond the core/periphery divide

José García Solanes et al.

Applied Economic Analysis2024https://doi.org/10.1108/aea-02-2024-0085article
AJG 1ABDC B
Weight
0.64

Abstract

Purpose This paper aims to examine income convergence among the Euro members from 1995 to 2021. Design/methodology/approach This study uses Phillips and Sul’s test (2007, 2009) extended by Lyncker and Thoennessen’s (2017) algorithm jointly with β and σ – convergence analysis and a traditional growth equation. Findings This analysis identifies three clubs of countries in terms of gross domestic product (GDP) per capita with notable disparities between and within them, which implies that the theory of optimal currency areas has not been fulfilled. Originality/value These results rule out the core/periphery divide as presented in the literature to date. Finally, by estimating an endogenous economic growth model, this study finds the primary factors underpinning the differences between the three stationary states: labor productivity, physical and human capital, investment and international trade.

5 citations

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1108/aea-02-2024-0085

Or copy a formatted citation

@article{josé2024,
  title        = {{Income convergence clubs in the Eurozone: a tale beyond the core/periphery divide}},
  author       = {José García Solanes et al.},
  journal      = {Applied Economic Analysis},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.1108/aea-02-2024-0085},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Income convergence clubs in the Eurozone: a tale beyond the core/periphery divide

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.64

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.80 × 0.4 = 0.32
M · momentum0.63 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.