Convergence in transport and ICT infrastructure: Evidence of EU member states

Abstract

While countries' social and economic well-being depends on various factors, recent research emphasises the importance of transport and ICT infrastructure. To reduce the welfare differences among EU countries, the European Commission and governments have to ensure the convergence of this infrastructure as well. Previous studies have shown that convergence is taking place at the national level, however the situation at the regional level still needs to be determined. In light of this, the study examines transport and ICT infrastructure convergence in EU member states and NUTS 2 regions at different periods. The research methodology is based on the neoclassical approach of convergence, i.e., β-convergence model presented by Barro and Sala-i-Martin (1992). This approach is deemed most appropriate for determining whether the disparities in terms of infrastructure among EU members and regions are diminishing. Research findings present clear evidence of absolute β-convergence in infrastructure development across EU member states and NUTS 2 regions. Strong evidence of transport convergence is identified among EU member states and among NUTS 2 regions, however, it is observed only in one out of the three types of infrastructure. In contrast, the robust evidence of ICT infrastructure convergence is prominent across EU countries and NUTS 2 regions, showcasing substantial reductions in disparities.