Is the division of Western and Eastern Poland still valid? The evolution of regional convergence in Poland
Keywords:club convergence, catch-up effect, log(t) convergence test, economic growth, time-varying factor model
AbstractThe primary aim of the paper is the empirical verification of the hypothesis on the convergence of real GDP per capita of the regions (NUTS-2) in Poland and the catch-up effect of Eastern towards Western Poland. The empirical study is based on a relatively new analytical approach of Phillips and Sul convergence tests which consider significant differences in technological advancement between regions. The results show that the convergence hypothesis was rejected in the group of all regions of Poland and the group of Western Poland regions. Convergence was confirmed in the group of Eastern Poland regions. The strict catch-up effect of the Eastern towards the Western Poland regions was not observed. Nevertheless, thirteen of seventeen regions of Poland were characterised by convergence but within distinct convergence clubs. The identification of convergence clubs, however, was not determined by a sharp East-West Poland dividing line.
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