Regional Convergence in Europe: Evidence from the Perspective of Capital Accumulation in Services
Abstract
The integration process within Europe has resulted in a reduction of regional disparities. It
is, however, unfortunate that little or no attention has been given to how this regional
convergence has occurred, particularly in the growing services sector. Therefore, this paper
analyses the impact of capital accumulation in the services sector in European regional
convergence. We use a spatial correlation to analyze the services sector in 121 European
regions at the NUTS-2 level in nine European Union (EU) countries. The results show the
polarisation of economic activity in the central area of Europe, which creates synergies that
slow down the process of regional convergence. It also reveals the significant role of the nonmarket
services sector in this process, which highlights the importance of maintaining high
rates of investment for continued convergence.
is, however, unfortunate that little or no attention has been given to how this regional
convergence has occurred, particularly in the growing services sector. Therefore, this paper
analyses the impact of capital accumulation in the services sector in European regional
convergence. We use a spatial correlation to analyze the services sector in 121 European
regions at the NUTS-2 level in nine European Union (EU) countries. The results show the
polarisation of economic activity in the central area of Europe, which creates synergies that
slow down the process of regional convergence. It also reveals the significant role of the nonmarket
services sector in this process, which highlights the importance of maintaining high
rates of investment for continued convergence.