This paper investigates determinants of convergence in GDP per capita in the euro area and the EU between 1995 and 2021. It finds that the COVID-19 crisis temporarily slowed convergence but the estimated negative impact is significantly smaller than during the global financial crisis. Diverging...

The question of income distribution played a very important role in practical and theoretical development policy during the seventies. World market conditions were blamed for the fact that the income gap between industrialised countries and developing countries was widening. The demands to which...