THE CONCEPT OF INTER-REGIONAL CONVERGENCE AND ITS DETERMINING FACTORS

Abstract

The concept of interregional convergence describes the process of convergence of regional development levels according to socio-economic indicators. As a result, less developed economies are approaching more developed ones, and the gap between them is narrowing over time. The article analyzes the approach to the dynamics of convergence and steady state at the micro level, as applied to the household. The disadvantages of Robert Solow’s model at the micro and meso levels are revealed. The authors propose endogenous and exogenous explanatory variables of regional and interregional economic development, such as technological and institutional market transformations, emergent effects, and coordinating economic policies at both the regional and federal levels. The purpose of the study is to substantiate emergence and transformation as endogenous factors of inter–regional convergence. Research methodology: the paradigm of catching-up development of Acemoglu-Johnson-Robinson.