Convergence clubs in different regions of Serbia

Abstract

ABSTRACT This paper investigates the existence of club convergence on the NUTS (Nomenclaturedes Unités Territoriales Statistiques) 3 level in Serbia. While a common approach in investigating convergence is based on dividing units of observation a priori into individual groups based on some of their particular characteristics, we use a method developed by Phillips and Sul that allows identification of clusters of convergence on the basis of an algorithm that is data-driven and thereby avoids a priori classification of the data into subgroups. We use data on real gross valued added (GVA) per capita for the NUTS3 level in Serbia for the period 2001–2017. Our results show that there are two convergence clubs in Serbia, while the Belgrade district shows no signs of convergence with any of the other clubs.