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Regional productivity and income convergence in the unified Germany, 1992-2000

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Author Info

  • Reinhold Kosfeld
  • Hans-Friedrich Eckey
  • Christian Dreger

Abstract

Kosfeld R., Eckey H.-F. and Dreger C. (2006) Regional productivity and income convergence in the unified Germany, 1992-2000, Regional Studies 40, 755-767. This paper investigates regional convergence of labour productivity and income per capita in the period 1992-2000 for the unified Germany using spatial econometric techniques. Up to now only first-order spatial models have been employed in investigating convergence across regions and countries. An exploratory data analysis reveals, however, that the fundamental variables of the convergence equation exhibit a clear pattern of higher-order spatial dependencies. It is shown that higher-order spatial autocorrelation can be captured by the spatial ARMA model. In the spatial econometric analysis of German regional labour markets, new indicators of human capital and investment intensity are used that can resolve some 'puzzles' established in previous studies. Substantial differences in both β- and σ-convergence across West and East German regions are assessed. Kosfeld R., Eckey H.-F. et Dreger C. (2006) La productivite regionale et la convergence des revenus dans l'Allemagne unifiee, entre 1992 et 2000, Regional Studies 40, 755-767. A partir des techniques econometriques geographiques, cet article cherche a examiner la convergence regionale de la productivite du travail et du revenu par tete entre 1992 et l'an 2000 pour l'Allemagne unifiee. Jusqu'a present, on n'a employe que des modeles geographiques du premier ordre pour examiner la convergence a travers les regions et les pays. Cependant, une analyse de donnees exploratoire laisse voir que les variables prealables de l'equation de convergence montrent une distribution des dependances geographiques d'ordre superieur assez evidente. On demontre que l'on peut capter l'autocorrelation geographique d'ordre superieur en employant le modele geographique ARMA. Dans l'analyse econometrique geographique des marches du tavail regionaux allemands, on se sert des nouveaux indices du capital humain et du taux d'investissement qui peuvent resoudre des questions posees dans des etudes anterieures. On evalue d'importantes differences de la convergence β et σ a travers les regions de l'ouest et de l'est de l'Allemagne. Convergence regionale Theorie de croissance neoclassique Allemagne unifiee Modele geographique ARMA Kosfeld R., Eckey H.-F. und Dreger C. (2006) Regionale Produktivitat und Einkommenskonvergenz im wiedervereinigten Deutschland, 1992-2000, Regional Studies 40, 755-767. In dieser Arbeit wird die regionale Konvergenz der Arbeitsproduktivitat und des Pro-Kopf-Einkommens im Zeitraum 1992-2000 fur das vereinigte Deutschland auf der Basis von Modellen mit raumlicher Okonometrietechniken untersucht. Bisher ist die Hypothese der Konvergenz von Regionen und Landern allein unter Verwendung raumlicher Modelle erster Ordnung uberpruft worden. Eine exploratorische Datenanalyse deckt jedoch auf, dass die fundamentalen Variablen der Konvergenzgleichung ein recht klares Muster raumlicher Abhangigkeiten hoherer Ordnung aufweisen. Es lasst sich zeigen, dass die Autokorrelationen hoherer Ordnung in einem raumlichen ARMA-Modell abgebildet werden konnen. In der raumlich-okonometrischen Analyse deutscher Arbeitsmarktregionen machen wir von neuen Indikatoren des Humankapitals und der Investitionsintensitat Gebrauch, die in der Lage sind, einige 'Anomalien' aufzulosen, die sich in vorangegangenen Studien ergeben haben. Substanzielle Unterschiede der β- und σ-Konvergenz zwischen den west- und ostdeutschen Regionen werden bewertet. Regionale Konvergenz Neoklassische Wachstumstheorie Vereinigtes Deutschland Raumliches ARMA-Modell Kosfeld R., Eckey H.-F. y Dreger C. (2006) Productividad regional y convergencia de ingresos en la Alemania unificada durante 1992-2000, 1992-2000, Regional Studies 40, 755-767. Mediante tecnicas econometricas espaciales, en este articulo investigamos cual fue la convergencia regional de la productividad laboral y la renta per capita durante el periodo 1992-2000 para la Alemania unificada. Hasta ahora solo se han empleado modelos espaciales de primer orden para investigar la convergencia en regiones y paises. Sin embargo, un analisis preliminar de datos pone de manifiesto que las variables fundamentales de la ecuacion de convergencia presentan un modelo claro de dependencias espaciales de orden superior. Se demuestra que puede captarse la autocorrelacion espacial de orden superior mediante el modelo espacial ARMA. En los analisis econometricos espaciales de los mercados laborales regionales de Alemania utilizamos nuevos indicadores del capital humano y la intensidad de inversion porque son capaces de resolver algunos enigmas establecidos en estudios anteriores. Analizamos las considerables diferencias tanto en la convergencia β como σ en Alemania del este y el oeste. Convergencia regional Teoria neoclasica del crecimiento Alemania unificada Modelo espacial ARMA

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 40 (2006)
Issue (Month): 7 ()
Pages: 755-767

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Handle: RePEc:taf:regstd:v:40:y:2006:i:7:p:755-767

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Related research

Keywords: Regional convergence; Neoclassical growth theory; Unified Germany; Spatial ARMA model;

References

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  1. Funke, Michael & Strulik, Holger, 1999. "Regional growth in West Germany: convergence or divergence?," Economic Modelling, Elsevier, vol. 16(4), pages 489-502, December.
  2. Niebuhr, Annekatrin, 2000. "Convergence and the effects of spatial interaction," HWWA Discussion Papers 110, Hamburg Institute of International Economics (HWWA).
  3. Michael Funke & Holge Strulik, 1999. "Growth and Convergence in a Two-Region Model of Unified Germany," CESifo Working Paper Series 206, CESifo Group Munich.
  4. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  5. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  6. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity across Industries and Countries: Time Series Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 135-46, February.
  7. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity and Convergence across U.S. States and Industries," Empirical Economics, Springer, vol. 21(1), pages 113-35.
  8. Dimitris K. Christopoulos & Efthymios G. Tsionas, 2004. "Convergence and regional productivity differences: Evidence from Greek prefectures," The Annals of Regional Science, Springer, vol. 38(3), pages 387-396, 09.
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Citations

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Cited by:
  1. Juessen, Falko, 2009. "A Distribution Dynamics Approach to Regional GDP Convergence in Unified Germany," IZA Discussion Papers 4177, Institute for the Study of Labor (IZA).
  2. Karsten Rusche, . "Quality of Life in the Regions: An Exploratory Spatial Data Analysis for West German Labor Markets," Working Papers 200120, Institute of Spatial and Housing Economics, Munster Universitary.
  3. Polasek, Wolfgang & Schwarzbauer, Wolfgang & Sellner, Richard, 2010. "Human Capital and Regional Growth in Switzerland," Economics Series 250, Institute for Advanced Studies.
  4. Koetter, Michael & Wedow, Michael, 2008. "Does regional redistribution spur growth?," Discussion Paper Series 1: Economic Studies 2008,28, Deutsche Bundesbank, Research Centre.
  5. Steven Yamarik, 2011. "Human capital and state-level economic growth: what is the contribution of schooling?," The Annals of Regional Science, Springer, vol. 47(1), pages 195-211, August.
  6. Oliver Holtemöller & Maike Irrek & Birgit Schultz, 2012. "A Federal Long-run Projection Model for Germany," IWH Discussion Papers 11, Halle Institute for Economic Research.

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