While it is not a question of undertaking a convergence analysis, this study starts off with a dynamic autoregression model in order to shed light on its implications in an econometric panel model and then, starting from there, other lagged variables are incorporated in order to provide an explanation within the framework of the model to be used in this study. In the first, the macro variables include lagged GDP growth, investment as a percentage of GDP and the expansion of human capital as measured by the mean level of educational attainment of the economically active population (EAP). Labour-market variables include the growth of the labour supply (in hours) and the average wage.