Galton's Fallacy and Economic Convergence: An Alternative Approach to Regional Convergence in Greece

Dimitris Paschaloudis ; Stilianos Alexiadis

Head of the Department of Business Administration, Technological Education Institute of Serres, Terma Mangnisias Street, 621 24 Serres, Greece dim@teiser.gr
Researcher, Ministry of Rural Development and Foods, Greece

JEL Classfication: C13, O18

Abstract

Most empirical studies on regional convergence are concentrated on testing the 'conventional' measures of σ and β-convergence. However, these measures are crucially flawed as measures of convergence, especially at the regional level of analysis. As a response to this. Lichtenberg (1994) introduces a measure that overcomes the limitations of the 'conventional' measures of convergence. More specifically, this measure combines the tendencies towards decline inequalities (0-convergence) with the tendencies of poor regions to grow faster than rich regions do (β-convergence). Having the measure introduced by Lichtenberg(I994) as the main vehicle of analysis this paper offers an alternative view on the issue of regional convergence in Greece. According to empirical results the 51 NUTS-3 regions of Greece follow a pattern characterized by distinct phases of convergence and divergence.

Keywords:

Convergence, Divergence, Greek Regions

Acknowledgments

respectively. The findings, interpretations, and conclusions are entirely those of the authors. and do not necessarily represent the official position, policies or views of the Ministry of Rural Development and Foods and/or the Greek Government.

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