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Financial centres' competitiveness and economic convergence: evidence from the European Union regions

Degl'Innocenti, Marta; Matousek, Roman; Tzeremes, Nickolaos G.

Financial centres' competitiveness and economic convergence: evidence from the European Union regions Thumbnail


Marta Degl'Innocenti

Roman Matousek

Nickolaos G. Tzeremes


This study analyses the gaps in financial centres' competitiveness and their impact on regional economic convergence in 23 European Union Member States during the period of the Global Financial Crisis. In particular, we explore the economic convergence and divergence patterns among regions from two different perspectives across the selected European Union Member States and within each country. From a methodological viewpoint, we apply a fully non-parametric framework to the club convergence model and address the endogeneity problem between financial centres' competitiveness and regional economic convergence. Our results show that the large and internationally-oriented financial centres experienced a diverging trend in terms of the competitiveness of financial centres' business environment during the peak of the crisis. We also find evidence that the convergence of financial centres reduces regional economic inequalities between the regions where financial centres are located. In contrast, the increase in the competitiveness of financial centres only serves to widen existing inequalities at the national level. Finally, we examine and discuss the impact of competitiveness drivers of financial centres on the convergence pattern of European Union regions.

Journal Article Type Article
Acceptance Date Oct 15, 2017
Online Publication Date Nov 14, 2017
Publication Date Feb 1, 2018
Deposit Date May 8, 2018
Publicly Available Date May 8, 2018
Journal Environment and Planning A
Print ISSN 0308-518X
Electronic ISSN 1472-3409
Publisher SAGE Publications
Peer Reviewed Peer Reviewed
Volume 50
Issue 1
Keywords Financial centres; Financial crisis; Non-parametric technique; European Union regional convergence
Public URL
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Additional Information Copyright © 2018 by SAGE Publications


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