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Publication Detailed Description
The promised LAND or a mirage? The puzzling divergence of the euro AREA’S periphery
Journal Title
International Review of Applied Economics
Year (definitive publication)
N/A
Language
English
Country
United Kingdom
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Abstract
This paper examines whether the Economic and Monetary Union (EMU) has fostered convergence in income and productivity among peripheral member states. Using the Convergence Quadrants framework for 1992–2019, it identifies divergence relative to the core, which intensifies after 2009. Productivity analysis shows an initial catch-up phase from 1992 to 2008, followed by a sharp post-crisis reversal. The findings suggest that this later divergence is driven by structural deterioration, particularly a weakening of dynamic increasing returns to scale (the Verdoorn effect) in peripheral economies. Overall, post-crisis stagnation appears not purely cyclical but rooted in weakened structural conditions for demand-led productivity growth.
Acknowledgements
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Keywords
Convergence quadrants diagram,Productivity convergence/divergence model,Peripheral member states,Economies of scale,Income elasticity
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
Funding Records
| Funding Reference | Funding Entity |
|---|---|
| UI/BD/150768/2020 | Fundação para a Ciência e a Tecnologia |
| UID/03127/2025 | Fundação para a Ciência e a Tecnologia |
