HEADING FOR DIVERGENCE - REGIONAL GROWTH IN EUROPE RECONSIDERED

This article analyses regional growth in the European Union (EU) in th e postwar period. We examine the levels and growth of per capita GDP f or a sample of 70 regions, covering six of the EU Member States. We fi nd that after a slow, but steady reduction of differences in GDP per c apita across European regions during most of the post-war period, ther e are now some signs of a reversal in this trend. This does not imply that differences in levels of productivity and income across European regions are now reduced to a negligible level. Rather, the explanation is that other variables, notably R&D effort, investment support from the EU, the structure of GDP and differences in unemployment have had a diverging impact. We also find some support for the idea of a 'Europ e at different speeds', with at least three different 'growth clubs' c haracterized by different dynamics, productivity and unemployment leve ls.