Structural Change, Infrastructure and Convergence in the Regions of the European Union

Abstract

This paper tries to give a better understanding of the convergence process among the regions of the EU. It focuses on the role of structural change and infrastructures in this process. First we analyse the convergence of production, labour and productivity among the European Union (EU) regions for the period 1980-96. We then study the impact of structural change in this process. The second part of this article deals with infrastructure, which - since the beginning of the application of EU regional policy - has been one of the main instruments for generating cohesion among EU countries and regions, and was one of the determinants of regional growth and convergence for three periods, namely: 1970-80, 1980-86 and 1988-94. The main findings are: first, that convergence seems to be a complex process, in which structural change is a relevant force; and, second, that infrastructure could be one of the factors that fosters regional growth and convergence.