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“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

The research analyzes the convergence of several socioeconomic indicators in a sample of 137 countries over the period 1990–2019. Applying log t-convergence tests, it finds that socioeconomic indicators’ convergence is divergent. Measuring seven different indicators, there are only two indicators of life expectancy and access to the internet converging at the global level, while the remaining indicators of gross domestic product per capita (GDPP), foreign direct investment (FDI) inflow, urbanization, fertility, and CO₂ emissions do not. An extension to sub-sample analysis by levels of income and clustering convergence clubs is employed to confirm the heterogeneity and complexity of development pathways among countries. There are several insights for researchers and governments regarding future research and policies, especially for the development of developing countries.

EU countries, including those in Central and Eastern Europe, seem to have increasingly similar economies, allowing for the study of real convergence as a process of equalising income levels (measured by GDP per capita). Studies of income convergence in the European Union also have a regional dimension and often focus on convergence at the NUTS2 or NUTS3 regional level. The level of development and income in Polish regions differ significantly. The regional policy implemented at the national and EU level focuses on reducing these differences.

The main aim of the chapter is to analyse the income convergence process among regions in Poland and verify the effectiveness of regional policy implemented at the national and EU level.

The study uses Barro type regression for panel data, log t convergence test, and club clustering algorithm introduced by Phillips and Sul to identify patterns of club convergence in Polish regions. The data used for the study is the Local Data Bank provided by Statistics Poland, which includes gross domestic product per capita at the NUTS-3 level for 73 Polish regions over the period of 2000–2020.

The results of the study indicate a very weak convergence process for all Polish NUTS-3 regions and suggest a club convergence. The club convergence is characterised by regions with similar income levels clustering together. The regional distribution of clubs is similar to the regional distribution of income. The study's findings provide important insights into the effectiveness of regional policy in Poland and suggest that policymakers need to focus on policies that promote catch-up growth in less developed regions. The study also highlights the importance of supporting the most developed regions in the country as they can play a crucial role in driving the country's economic growth and prosperity.

Like the cross-country convergence or divergence analysis in incomes to address the global phenomenon, the same analysis is also required to be done in the case of a group of states within a national territory. Further, it is also required to see whether convergence or divergence in incomes of the states is attributable to the convergence or divergence in their allocations of bank credits. Thus, this chapter aims at examining whether the selected major states in India are converging or diverging in the allocations of bank credit, and if so, what will be the magnitudes of decreases or increases in the level of disparities and inequalities in credit allocations. This study concludes that there is a clear diverging tendency of credit allocations of the states of India during the post-reform period so far as the absolute convergence hypothesis of the neoclassical theory is concerned. Further, in terms of the framework of σ convergence, the study observes that all phases of the Indian economy have produced converging paths of the inter-state credit allocations, and the path becomes diverging during the post-reform phase. Based on the quantifications of the magnitudes of disparities and inequalities in terms of CV, C4 concentration, HHI and Gini values, this study thus reveals that there are significant increases in the levels of disparities and inequalities in the allocations of credit to the states from the pre-reform to the post-reform phases. Therefore, the persistence of divergence in income or rising income inequality during the phase of the major reform program in India may be due to the persistence of divergence and rising inequality in the allocation of bank credit.

With the growth of income at the global level, the World Bank data show that there are rising levels of income disparity across countries, groups, regions and within the countries. This fact otherwise hints at the inter-country divergence in incomes, particularly between the developed and developing countries of the world. This chapter, therefore, attempts to examine the convergence or divergence in credit, GDP and HDI across the 10 selected countries for the period of 1990–2019 applying the neoclassical growth approach and the time series approach. The results of the exercise in line with the neoclassical theories on absolute convergence and sigma convergence show that the countries are unquestionably converging in GDP and HDI with mixed results in case of credit. The results of convergence in GDP and HDI in all the countries and their developed and developing counterparts provide a possible explanation as to why the cross countries’ income inequalities as well as world inequality in income and development are reducing over time. On the other hand, the results of the time series approach display that credit and HDI are converging in both absolute and conditional terms but the countries are converging in conditional terms only for GDP. Thus, the claims of the World Bank are not valid for the selected countries in the chapter, rather, they can be verified by taking other countries and groups into consideration.

The main purpose of this paper is to analyze whether sufficient conditions can be met for Turkey and the Balkan and Caucasian Republics to achieve future integration within Europe because Turkey's accession to the European Union (EU) would provide opportunities for further enlargement of the Union toward the East. The paper is developed through three steps: In the first place we will select a group of countries belonging to the Southeastern Europe, Transcaucasia, and the Near-East, which could fulfill at medium term the requirements established by the European Councils of Copenhagen (1993), Madrid (1995), and Helsinki (1999) to be members of the EU in a future. Second, starting from the period 2000–2010, we estimate the possible existence of economic convergence in terms of real per capita income between these countries and the current EU at 27 members. Finally, we analyze whether the entrance of some of those countries in the EU could help to solve some local existing conflicts in the area, especially in the Middle-East.

For the above-mentioned purposes, first, we have selected potential candidates for a future adhesion to EU among the current official candidates, other countries that have already demanded the adhesion, and those other countries in the area for which the EU applies the neighborhood policy. We have selected these countries by using a multicriteria analysis. Second, following Quah (1996), we test the possible existence of several steady states in the EU at 27 members, and hence the possibility of Clubs Convergence in Europe. Also by using the Barro (1991) and Mankiw, Romer, and Weil (1992) models, we test Absolute and Conditional Economic Convergence among all EU-27 countries and between each potential candidate, weighted by surface and population, with the EU-27, during the period 2000–2010.

The obtained results indicate the existence of Clubs Convergence in EU-27 because at least there are two steady states. Multicriteria analysis indicates that the following countries fulfill the requirements of the EU at medium term: Macedonia, Albania, Serbia, Turkey, Armenia, Azerbaijan, Georgia, and Lebanon. The convergence analysis indicates Conditional Convergence between the selected countries and the EU.

The research limitations are that this paper only considers countries belonging to this area. The EU expansion could solve conflicts in the European–Asian border, like Cyprus, Nagorno-Karabakh, Kurdish, and other Middle East conflicts. Lebanon is a country that clearly belongs to Asia, but notwithstanding it appears as a possible candidate to enter in the EU considering our multicriteria analysis.

The unequal distribution of economic activities, transposed in economic, social and territorial disparities is the general characteristic of the European economy. Gaps increased in the context of European Union (EU) enlargement towards Eastern and Central Europe and of the economic crisis, thus bringing new differentiations among member states’ economies. The main aim of the chapter is to emphasise the centre-periphery differentiations in the European economy, by using a composite index of peripherality, in order to better understand the determinants of growth and convergence in Central and Eastern European countries and to reach normative conclusions for increasing Cohesion Policy (CP) effectiveness. The first part of the chapter provides a short overview of the main theories and models of the peripherality analysis and the relationships between the centre and the periphery, in order to find out how this analysis relates to the research in the field. The second part provides a comparative analysis of the evolution of European economies during 2003–2014, in order to find out whether the EU enlargement process stabilised the EU core-periphery pattern or, on the contrary, the process of core-periphery structural convergence occurred. The third part includes the suggested model of analysis (methodology, data, and main results) from a multidisciplinary perspective, underlining the centre-periphery differentiations on the two axes, North–South and West–East. The results have been interpreted in conclusions, with a focus on their relevance for the European CP challenges.

The policy of globalization for India was a mix bag contributing benefits and losses. Increased foreign trade, foreign exchange reserves, market expansion was contrasted with fall in domestic industries, unemployment and increase in inequality. The present study analyzes the presence of convergence or divergence of incomes of the states in India using the concepts of Sigma convergence, Beta convergence, and stochastic convergence for the post-reform period of 1993–1994 to 2014–2015. The study tests for absolute β – convergence by using trend line analysis; regression of CAGR (Compound Annual Growth Rate) as a function of the Average PCSDP (Per Capita State Domestic Product) of initial three years of the observed period and regression of point-to-point growth rate of per capita income to the growth rate of initial three years. A negative relationship shall imply the presence of convergence. Further the study uses panel unit root test and relevant dynamic processes to test for conditional β and stochastic convergences. It reveals the evidence of divergence in income across the states.

Climate change is one of the greatest challenges for the earth that is mostly driven by human actions. The rapid increase of world population forces the businesses to reach the economies of scale. Digital and technological transformation of the world, thanks to “Industry 4.0,” provides new opportunities for production as well as international trade. Today, the green production process of an imported product could produce lower emissions than producing domestically. However, the greenest countries in the world are developed ones such as Denmark, Switzerland, and Austria. Furthermore, nearly half of the goods' export belongs to developing economies. This chapter focuses on the carbon dioxide (CO₂) emission of 18 countries that produce approximately 75% of the world's CO₂ emission and its determinants. The main target of the study is to investigate the impact of export on carbon emission. The convergence estimation and responsiveness scores (RSs) of countries' CO₂ emission levels are performed to find carbon emission convergent groups and the impact of emission determinants. Besides, the study divides the export of countries into broad economic categories (BEC) and evaluates the impact of capital goods, intermediate goods, and consumption goods groups over the emission. The findings demonstrate that intermediate goods export leads to 7.4% deviation of CO₂ emission whereas the effects of capital and consumption goods are neutral. To the knowledge of the authors, this is the first research discussing the BEC classification impact over the carbon emission of that 18 countries. The results help to take necessary and effective measures of supranational organizations to have a sustainable trade policy especially for the post-Covid-19 period of the world.

Purpose – In this paper we analyze the relationship between economic convergence with the European Union (EU) and foreign direct investment flows to five EU countries (Bulgaria, Czech Republic, Poland, Romania and Hungary) in the period 2001–2010, in order to determine if the process of economic convergence with the EU level influences FDI inflows in these economies. The paper covers an important research question and reveals empirical findings for the new EU member states.

Methodology – This paper uses a quantitative analysis based on a convergence index creation, and also an exploratory data analysis in order to determine how economic convergence with the EU level influences FDI inflows. The economic convergence index is made up of two equal parts, more exactly a real convergence index and a structural convergence index, and is computed by comparison with the EU average.

Findings – The study does not provide us with a clear answer to our question regarding the influence of the convergence process on the level of FDI attracted by a country. We report a tight relationship between convergence index and FDI inflows in Bulgaria, but quite divergent evolutions of the two variables in the case of Hungary. For the other three countries the indicators fluctuate a lot.

Originality – The main contribution of the paper is represented by additional empirical evidence on economic convergence and FDI inflows for the new EU member states. The empirical research in this area is at an early stage and even though the existing stage does not provide us with accurate conclusions, the theme remains important for the business environment.

Another important contribution of the study consists of creating an economic convergence index that is composed by both real and structural indexes and that offers valuable information regarding the economic evolution of the new EU member states.