Tag: R11

ECONOMIC GROWTH AND Β-CONVERGENCE IN EUROPE: EMPIRICAL EVIDENCE FROM REGIONAL PANEL DATA, 2011-2023

Evgenia ANASTASIOU

Researcher, Department of Business Administration, University of Thessaly, Gaiopolis, Larissa Ringroad, 41500 Larisa, Greece

evanastasiou@uth.gr

Abstract

This paper examines regional economic growth and β-convergence across European regions using panel data for 233 NUTS-2 regions over the period 2011–2023. The analysis explores whether regions with lower initial income levels experience faster growth and investigates the factors associated with regional growth dynamics. The empirical framework relies on alternative panel data specifications to assess the robustness of the convergence process and to examine the role of key economic and demographic variables. The results indicate the presence of β-convergence among European regions, suggesting that regions with lower initial levels of economic development tend to grow more rapidly over time. Investment activity and migration dynamics emerge as important determinants of regional economic performance, whereas labour and demographic variables show less stable effects across model specifications. Using a recent dataset covering both the post-financial crisis and post-pandemic period, the paper provides updated evidence on regional convergence patterns in Europe. The analysis also reveals differences in convergence dynamics across groups of regions, indicating that structural characteristics and regional conditions influence the pace of economic adjustment. These findings contribute to the empirical literature on regional growth and offer insights relevant to regional development and cohesion policies in the European Union.

Keywords: Regional economic growth, β-convergence, regional disparities, panel data analysis, European regions

JEL classification: O47, R11, R12, R58

pp. 147-158

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THE ECONOMIC PERFORMANCES OF MOROCCAN REGIONS: A TOPSIS AND SPATIAL AUTOCORRELATION METHODS

Hamdi EL ASLI

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

hamdielasli@gmail.com

Mohamed AZEROUAL

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

m.azeroual@usms.ma

Alae MOHAMMED MOURAI

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

alae.mourai@gmail.com

Mounya CHAHBOUNE

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

c.mounya@gmail.com

Abdelhak OULALA

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

oulala1981@gmail.com

Abstract

This paper investigates the economic performance of Morocco’s twelve regions from 2015 to 2022, combining a temporal and spatial analysis methods, and focusing on five key regional macroeconomic indicators: GDP per capita, HFCE per capita, contribution to national growth, start-ups created, and the activity rate. While previous studies have examined regional disparities using MCDM or spatial statistics, none have combined TOPSIS with spatial autocorrelation to evaluate regional economic-entrepreneurial performance in Morocco under its new administrative division, which enables ranking of regional competitiveness and detection of clustering patterns. Findings show that Casablanca-Settat consistently ranks in the top twelve, solidifying its position as the country’s economic capital, followed alternately by the northern Tanger-Tétouan-Al Hoceima and the emergent Rabat-Salé-Kénitra regions, while the southern regions remain at the bottom. Marrakech-Safi was severely affected by the disruption of tourist cash flows under the Covid-19 crisis, before it gradually recovered post-2020. Similarly, Béni Mellal-Khénifra progressed significantly, largely due to its phosphate exports, agro-oil industry, and remittances’ inflows, until 2020, when it retrograded remarkably. Spatial analysis reveals that Moroccan regions exhibit high autocorrelation, with both, top and low ranked regions identified by the TOPSIS method clustering together. Results can inform region-specific development strategies, equitable resource allocation, entrepreneurship promotion, and spatial regional planning. However, limitations such as the restricted set of indicators, short interval, and methodological constraints suggest future research directions that integrate broader social, environmental, and innovation variables, extend the sample interval, and apply advanced comparative and econometric approaches.

Keywords: Morocco, regions, economy, TOPSIS, spatial autocorrelation

JEL classification: C38, L26, R11, R12

pp. 93-114

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DEVELOPMENT TRAPS IN SMALL EU ECONOMIES: INSIGHTS FROM CROATIA’S LOCAL TRAJECTORIES

Vinko MUŠTRA

Full professor, Faculty of Economics, Business and Tourism, University of Split, Croatia

vmustra@efstr.hr

Abstract

This paper examines the long-term dynamics of local development traps in Croatia, a small and open EU economy that experienced profound structural shocks between 2006 and 2022, including the global financial crisis and the COVID-19 pandemic and EU accession in 2013. The concept of the development trap has recently gained prominence in the literature, identifying territories that struggle to sustain economic dynamism relative to national and European peers (Iammarino et al., 2020; Diemer et al., 2022; Rodríguez-Pose et al., 2024). While previous research has highlighted the structural and institutional underpinnings of such traps, less attention has been devoted to the different development paths of local sub-national unites in small and open economies. Using a unique dataset covering all 556 Croatian municipalities and towns for 4 three-year periods from 2006 till 2022., this study applies a standardized, multi-period framework to identify two forms of development traps: (1) a stable trap reflecting persistent positioning within the same income decile (DT1) and (2) a downward trajectory trap marked by monotonic decline in standardized income (DT2). A key finding is that development traps vary heterogeneously even within the same county-level units, underscoring the importance of fine-grained territorial perspective. The results also reveal strong path dependence substantial spatial rigidity and pronounced territorial polarization between coastal and continental areas. DT1 and DT2 are not evenly distributed, suggesting differentiated structural vulnerabilities across counties. By providing new evidence from a small EU economy like Croatia, the paper offers a nuanced operationalization of development traps and highlights the need for targeted, place-sensitive policies aimed at reversing entrenched disparities and preventing further territorial divergence.

Keywords: Local development traps, Income dynamics, path dependence, spatial disparities, Croatia

JEL classification: R11, R12, O18,

pp. 79-92

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