The Survey of Economic Convergence and Spillover Effects between EU and Mediterranean Countries: a Spatial Econometric Perspective

In recent decades, economic growth and its determinants have been important issues in economics. economists have made attempts to analyze economic relations of countries and to seek ways leadinb a higher rate of growth. therefore, various models are drawn in this regard. recent theoretical growth models have relied on the importance ofexternalities.today, it is found out a new round in global economy in which the economy of different nations have been closed and linked to each other. in new conditions of global economy, joint activities and signing agreements between countries could generate opportunities for them, and their economies converge. when a country ra.ises its investment and improves technology, it spreads out of its borders. hence, the subject of spillovers is discussed. in the literature, there is particular emphasis on the role of contiguity, trade and economic co-operations in transferring capital and technology resulting in a higher rate of economic growth. less developed and developing countries can benefit from spillover effects knowledge and technology ofdeveloped countries, and they can go through development way more quickly -like newly industrialized asian countries. it is clear that benefiting from these externalities is influenced by domestic situation and capacity of each economy.the objective of this study is to analyze convergence and spillover effects between eu and countries on the southern side of the mediterranean.