Drivers of convergence: The role of first- and second-nature geography

The analysis of regional convergence often stays at the level documentation, with limited attention placed on drivers convergence/divergence dynamics. This article offers a systematic this, examining role first-nature (location, proximity, physical geography) and second-nature geography (economic structure, agglomeration, economic potential) in accounting for synchronicity growth trajectories (stochastic convergence). Utilising historical data Greece prefectural up-to-date time-series econometric techniques, we test presence stochastic country over three decades prior to crisis; identify pairs regions which exhibit co-movement their dynamics; examine covariates this. Our results unveil picture limited-only cluster-like convergence, driven predominantly by factors related accessibility, sectoral specialisations, labour market dynamism, potential selected locational characteristics. supports two propositions: (a) is an endogenous process, shared incongruent characteristics regions; and, implication, (b) disparities are structural (in sense that they linked spatial structure) thus require targeted policies order be addressed.