Eastern Europe – Regional Science Inquiry

Luigi CAPOANI

Adjunct professor at the Department of Economics, Ca’ Foscari University of Venice

luigi.capoani@unive.it

Csaba LAKÓCAI

Research fellow at ELTE Centre for Economic and Regional Studies, Institute of World Economics

lakocai.csaba@krtk.elte.hu

Abstract

The “Blue Banana”, spanning from the United Kingdom to Italy, has been symbolizing economic vitality in Europe. This paper reassesses its contemporary relevance by analyzing economic indicators and regional dynamics, particularly in Eastern and Mediterranean Europe, within the NUTS 2 framework. Leveraging Stewart’s concept of demographic energy and Moran’s spatial statistics, it introduces a robust methodology interweaving territorial and economic dynamics. By examining data layers, this study provides novel insights into the Blue Banana’s significance and its economic impact on Europe during the late 2010s and early 2020s. Furthermore, it illuminates the core area’s interconnections with adjacent economic zones and the emergence of prospective alternative spatial paradigms. The findings indicate that the majority of the Blue Banana regions have remained part of the prominent core area of Europe in terms of the most conventional regional economic indicators. However, emerging alternative spatial concentrations and a partial eastward shift are also visible.

Keywords: Blue Banana, Mediterranean Europe, Eastern Europe, spatial development, productivity

JEL classification: C1, N1, N9, R1, Y1

pp. 63-78

Olcay ÇOLAK
Uşak University, Faculty of Economics and Administrative Sciences, Department of Economics, 1 Eylul Kampusu, 64100/Uşak-TURKEY
olcaycolak10@yahoo.com

Abstract
This paper aims to analyze the convergence pattern of the Central and Eastern European (CEE) and South Eastern European (SEE) to the developed older member countries of European Union. In this context, by performing panel data analysis to 33 countries and each subgroup between 1993 and 2012, results reveal that there is a strong tendency on convergence for the new entrants of European Union after 2004 and for the candidate countries in terms of both convergence types which confirm the findings of neoclassical paradigm states that poorer countries will grow faster than richer ones. The speed of β convergence varies between 1.3 % to 4.2 for each group and the findings suggest that private domestic investment is the most leading determinant of growth and convergence process of Eastern European countries.

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