Spatial convergence in the quality of public services: evidence from European regions

Abstract

The study of institutional quality at the regional level within the European Union reveals significant differences in the quality of public services both between and within countries, along with considerable shifts over time. Using spatial panel data models, this paper examines spatial regional convergence in public service quality over the period 2010–2021. The results identify two distinct clusters of European regions: Northern-Western and Southern-Eastern. Convergence patterns in public service quality are observed within both clusters, emphasizing the dominant role of a region's own quality standards in driving convergence, which outweighs the impact of neighboring regions. However, significant differences emerge between the clusters regarding the influence of economic development. In the Northern-Western cluster, the economic development of neighboring regions influences convergence, while in the Southern-Eastern cluster, neither the region’s nor its neighbors’ economic development significantly enhances convergence.