We investigate the convergence process among EU regions between 1980-2002 taking into account the effects of spatial heterogeneity and spatial spillover effects. The spatial regimes model allows for different steady-state growth paths. In contrast to previous analyses, the regimes in this paper refer to spatial categories, i.e. we assume that agglomerations, urbanised and rural regions are characterised by group-specific steady-states. Moreover, the regression analysis considers the effects of interaction among neighbouring regions, possibly leading to a spatial dependence of regional growth rates. We check whether spatial dependence is caused by spatial spillovers or is based on country effects.
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Article provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.
Find related papers by JEL classification: C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
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Martin, Philippe & Ottaviano, Gianmarco I P, 2001.
"Growth and Agglomeration,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-68, November.
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