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

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 (σ-convergence) With the tendencies of poor regions to grow faster than rich regions do (β-convergence). Having the measure introduced by Lichtenberg (1994) 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.