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Evaluating the Temporal and Spatial Heterogeneity of the European Convergence Process, 1980-1999

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  • Julie Le Gallo
  • Sandy Dall'erba

Abstract

In this paper, we suggest a framework that allows testing simultaneously for temporal heterogeneity, spatial heterogeneity, and spatial autocorrelation in &bgr;-convergence models. Based on a sample of 145 European regions over the 1980-1999 period, we estimate a Seemingly Unrelated Regression Model with spatial regimes and spatial autocorrelation for two sub-periods: 1980-1989 and 1989-1999. The assumption of temporal independence between the two periods is rejected, and the estimation results point to the presence of spatial error autocorrelation in both sub-periods and spatial instability in the second sub-period, indicating the formation of a convergence club between the peripheral regions of the European Union. Copyright Blackwell Publishers, 2006

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 46 (2006)
Issue (Month): 2 ()
Pages: 269-288

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Handle: RePEc:bla:jregsc:v:46:y:2006:i:2:p:269-288

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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Cited by:
  1. Julie Le Gallo & Yiannis Kamarianakis, 2011. "The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 123-139.
  2. Manfred M. Fischer & James P. LeSage, 2013. "A Bayesian space-time approach to identifying and interpreting regional convergence clubs in Europe," ERSA conference papers ersa13p39, European Regional Science Association.
  3. Cem Ertur & Julie Le Gallo, 2008. "Regional Growth and Convergence: Heterogenous reaction versus interaction in spatial econometric approaches," Working Papers hal-00463274, HAL.
  4. Rosa Bernadini Papalia & Silvia Bertarelli, 2013. "Identification and Estimation of Club Convergence Models with Spatial Dependence," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(6), pages 2094-2115, November.
  5. Guilherme Resende & Tulio Cravo, 2013. "What about regions in regional science? An exercise of convergence using different geographic scales of European Union," ERSA conference papers ersa13p772, European Regional Science Association.
  6. Shankar, Raja & Shah, Anwar, 2009. "Lessons from European Union policies for regional development," Policy Research Working Paper Series 4977, The World Bank.
  7. Melanie Rapino & Benjamin Spaulding & Dean M. Hanink, 2006. "Have Per Capita Earnings and Income Converged across New England?," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 37(4), pages 620-637.
  8. Ana Angulo & Fernando Lopéz & Jésus Mur, 2011. "Seemingly Unrelated Regressions with Spatial Effects. An Application to the Case of the European Regional Employment," ERSA conference papers ersa10p487, European Regional Science Association.
  9. Manfred Fischer & Claudia Stirböck, 2006. "Pan-European regional income growth and club-convergence," The Annals of Regional Science, Springer, vol. 40(4), pages 693-721, December.
  10. Paolo Postiglione & M. Andreano & Roberto Benedetti, 2013. "Using Constrained Optimization for the Identification of Convergence Clubs," Computational Economics, Society for Computational Economics, vol. 42(2), pages 151-174, August.
  11. René Cabral & André Mollick, 2012. "Mexico’s regional output convergence after NAFTA: a dynamic panel data analysis," The Annals of Regional Science, Springer, vol. 48(3), pages 877-895, June.
  12. Pede, Valerien O. & Florax, Raymond J.G.M. & Holt, Matthew T., 2008. "Modeling Non-Linear Spatial Dynamics: A Family of Spatial STAR Models and an Application to U.S. Economic Growth," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6518, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  13. Andrés Maroto Sánchez & Juan Ramón Cuadrado Roura, 2008. "New Regional convergence in productivity and productive structure. Application to European Southern countries," Working Papers 11/08, Instituto Universitario de Análisis Económico y Social.
  14. Fernando LOPEZ & Ana ANGULO & Jesús MUR, 2009. "Maps Of Continuous Spatial Dependence," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 30, pages 11-34.
  15. Irani Arraiz & David M. Drukker & Harry H. Kelejian & Ingmar R. Prucha, 2008. "A Spatial Cliff-Ord-type Model with Heteroskedastic Innovations: Small and Large Sample Results," CESifo Working Paper Series 2485, CESifo Group Munich.
  16. ARGUELLES, Margarita & BENAVIDES, Carmen & MAYOR, Matias, 2011. "Regional Policy In The Eu Less Favoured Regions For The Period 2000-2006: An Assessment Of The Expenditure Allocation And Governance," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 11(1).

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