Economic integration, structural change, and uneven development in the European Union

The paper provides an empirical investigation on the evolution of spatial inequalities and structural change in Europe. It is found by the approach of Phillips and Sul (2007, 2009) that there is no global convergence. Instead, five distinct economic clubs that approach a common steady state are identified. With the consideration of a longer period after the global financial crisis compared to previous studies, it is possible to highlight the growing polarization that characterized the most recent years. A subsequent ordered logit regression provides evidence for club membership being explained by different regional economic structures and initial conditions. In particular, the analysis supports the view that a solid manufacturing base and specialization in high-productivity service activities are key explanatory variables of the differentiated development paths. (C) 2019 Elsevier B.V. All rights reserved.