1University of Pavia, Dipartimento di Ricerche Aziendali, Pavia, Italy AGRICULTURAL AND ECONOMIC CONVERGENCE IN THE EU INTEGRATION PROCESS: DO GEOGRAPHICAL RELATIONSHIPS MATTER? Sassi M.1 - Pecci F.2 1University of Pavia, Dipartimento di Ricerche Aziendali, Pavia, Italy 2University of Verona, Dipartimento di Economie, società ed Istituzioni, Verona Italy

Agricultural real convergence process Enlargement form EU-15 to UE-27 OBJECTIVE 1. Objective 2. Relevance of the topic Agricultural real convergence process Enlargement form EU-15 to UE-27 3. Methodology 4. Time period and data set 5. Results Economic real convergence process 6. Conclusions GWR approach

Political and financial importance RELEVANCE OF THE TOPIC 1. Objective 2. Relevance of the topic Political and financial importance 3. Methodology 4. Time period and data set Integration and income gap reduction Convergence process Territorial dimension 5. Results 6. Conclusions Rural development and cohesion

Standard OLS growth regression GWR approach METHODOLOGY (1/2) 1. Objective 2. Relevance of the topic VS. Standard OLS growth regression GWR approach 3. Methodology 4. Time period and data set Bias regression coefficient 5. Results Locally different parameters 6. Conclusions Invalid significant tests Spatial spillovers

METHODOLOGY (2/2) OLS GWR Global parameter of convergence 1. Objective 2. Relevance of the topic Global parameter of convergence Unknown parameters more than degrees of freedom OLS 3. Methodology 4. Time period and data set Weighted regression Local parameters of convergence 5. Results GWR Weight values inverse function of the distance 6. Conclusions Adaptive bandwidth bi-square function

TIME PERIOD AND DATA SET 1. Objective 2. Relevance of the topic 1991-2007 3. Methodology Agricultural gross value added N. of agricultural workers 4. Time period and data set 5. Results Total gross value added N. of total workers 6. Conclusions Cambridge Econometrics’ annual time series

RESULTS: AGRICULTUAL SECTOR 1. Objective 2. Relevance of the topic EU-15 EU-27 3. Methodology 4. Time period and data set 5. Results 6. Conclusions Global coefficient of convergence –0.034 Global coefficient of convergence –0.016

RESULTS: AGRICULTURE AND ECONOMY 1. Objective 2. Relevance of the topic EU-27: AGRICULTURE EU-27: ECONOMY 3. Methodology 4. Time period and data set 5. Results 6. Conclusions Global coefficient of convergence –0.016 Global coefficient of convergence –0.015 Spearman Rank Correlation Coefficient = -0.031

No unique convergence rate CONCLUSIONS (1/3) 1. Objective 2. Relevance of the topic Agricultural sector 3. Methodology No correlation between the speed of convergence at the regional level 4. Time period and data set No unique convergence rate Factors at the basis of the asymmetric nature of the regionl problems of the EU 5. Results 6. Conclusions Economy

Intensity of convergence process CONCLUSIONS (2/3) 1. Objective 2. Relevance of the topic Intensity of convergence process 3. Methodology 4. Time period and data set Policy options at the territorial level: Rural development, Structural and Regional policy Geographical proximity 5. Results 6. Conclusions Direction of convergence process

Integration has not supported convergence CONCLUSIONS (3/3) 1. Objective 2. Relevance of the topic Neoclassical theory? 3. Methodology 4. Time period and data set Integration has not supported convergence 5. Results A better understanding of the factors of growth 6. Conclusions