Macroeconomists seem to have developed a sudden interest in regional economics over the last few years. This paper explains why and surveys some of the key ideas of this literature. After reviewing the theoretical framework which has guided this line of research and the methodology used in the empirical analysis of regional convergence, we examine some of the most relevant results of recent studies. We also discuss what seems to be the dominant interpretation of the empirical evidence and review some of its theoretical and policy implications. We question some aspects of this interpretation and identify some issues which would deserve further attention in future research.

Keywords: convergence, growth, regional economics.