Converging and Diverging Regions in the EU: Implications for Regional Policy

Alexiadis Stilianos*
Visiting Lecturer, University of Piraeus, Department of Economics

Ladias Christos
Department of Regional Economic Development, University of Central Greece

Polo Antoneta
Department of Economics, Eqrem Cabej University, Argirocastro, Albania

This paper investigates the extent of regional cohesion amongst European regions; an issue of emerging importance in the fast growing literature on regional economics. This paper aims to shed some further light on the question of regional cohesion by taking into account the impact of the existing technological gaps across regions. Regional cohesion is examined in terms of labour productivity for the NUTS-2 regions of the EU-27 during the time period 1995-2006. The results suggest the existence of two separate groups or clubs. The first includes regions from advanced northern European countries, while the members in the second club are mainly found in the new member-states and in southern European countries, putting the issue of European regional policy into a fresh premise. To be more specific, the results have important implications for the (re) direction of regional policy in Europe towards a new set of objectives and instruments. read more

Key words: Regional Cohesion, Technological Gap, Regional Policy

JEL: C21; O18; R11

Agglomeration Economies and Location Decision-making of Firms in Location-triangle Approach

Daisuke Nakamura

The International Centre for the Study of East Asian Development (ICSEAD)


The location-triangle framework, which was originally established by Alfred Weber, has been expanded in various ways and generalized as the Weber-Moses location-triangle model. However, several essential elements, in particular, regarding agglomeration economies have been excluded from the model framework. This may cause a potential difficulty to connect location-triangle approach with recent more advanced spatial economic analysis. In this paper, an alternative hypothetical model is introduced to the location triangle framework with the notions of agglomeration economies and corresponding transportation costs. The alternative model framework enables the location-triangle model to deal with investigating modern complex industrial organizations. Further avenues of extension are also discussed. read more

JEL Classification: L14; O21; R30; R58

Keywords: Location-triangle model; agglomeration economies; transportation costs; firm location

Evaluating the risk of unemployment: Comparison between the two most populated Greek regions with the entire country

Stavros Rodokanakis
University of Bath

Irini Moustaki
London School of Economics and Political 

Abstract :
The basic aim of this paper is to investigate the impact that educational level of individuals and participation in training programmes (apprenticeship, intra-firm training, continuing vocational training, popular training) have on their job prospects in the two most populated Greek regions, Attica and Central Macedonia, during the implementation of the first Community Support Framework  CSF (1989-1993). We also research the differences between the two regions under study and the entire country. More specifically, we  research what are the social and demographic characteristics that increase the chances of someone in the examined population finding a job, how those chances change (if they do) after the introduction of training courses and, also, whether University graduates, in contrast to most of the rest of the EU member states, face greater difficulties in finding a job than non-University graduates, as a series of studies or aggregate  statistics for Greece conclude. We use individual anonymised records (micro-data) of the Labour Force Survey (LFS) for both employed and unemployed at both national and NUTS-2 level. The findings of the logit model show that although concerning education the picture is mixed, the more trained a person did not improve his position in the labour market during the examined period.  read more


Keywords: Cross-sectional models, Labour economics policies, Human capital, Skills, Regional, urban  and rural analyses.