<< N°143
| N°143 | ||
| Issue Q3 2015 | ||
| Euro area structural convergence? A multi-criterion cluster analysis | ||
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Delphine Irac Jimmy Lopez |
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| This paper proposes a classification of the old member countries of the euro area in a structural data rich environment and run a convergence analysis using the same framework. First, we use a clustering approach and identify two structurally distinct clusters of countries that are not modified between 1999 and 2012: the South Countries Group (SCG) – composed of Greece, Italy, Portugal and Spain – and the Other Countries Group (OCG). Second, we propose a convergence metrics and reach three key findings: (i) increase over time of the between-clusters? dispersion; (ii) diverging demographics and innovation performance into the OCG, and (iii) an unfortunate convergence towards high labour market duality in the SCG. |
Abstract |
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| Cluster analysis ; European monetary union ; Structural policies ; | Keywords | |
| C38 ; E02 ; F33 ; | JEL classification | |
| Order form |