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Dynamic Spatial Modelling of Regional Convergence Processes

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Author Info
Kosfeld, Reinhold
Lauridsen, Jorgen

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Abstract

Econometric analysis of convergence processes across countries or regions usually refers to a transition period between an arbitrary chosen starting year and a fictitious steady state. Panel unit root tests and panel cointegration techniques have proved to belong to powerful econometric tools if the conditions are met. When referring to economically defined regions, though, it is rather an exception than the rule that coherent time series are available. For this case we introduce a dynamic spatial modelling approach which is suitable to trace regional adjustment processes in space instead of time. It is shown how the spatial error-correction mechanism (SEC model) can be estimated depending on the spatial stationarity properties of the variables under investigation. The dynamic spatial modelling approach presented in this paper is applied to the issue of conditional income and productivity convergence across labour market regions in unified Germany.

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Publisher Info
Paper provided by Hamburg Institute of International Economics in its series Discussion Paper Series with number 26211.

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Date of creation: 2004
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Handle: RePEc:ags:hiiedp:26211

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Keywords: Regional convergence; dynamic spatial models; spatial unit roots; spatial error-correction; Community/Rural/Urban Development; C21; R11; R15;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Funke, Michael & Strulik, Holger, 1999. "Regional growth in West Germany: convergence or divergence?," Economic Modelling, Elsevier, vol. 16(4), pages 489-502, December. [Downloadable!] (restricted)
  2. Jørgen Lauridsen & Reinhold Kosfeld, 2006. "A test strategy for spurious spatial regression, spatial nonstationarity, and spatial cointegration," Papers in Regional Science, Blackwell Publishing, vol. 85(3), pages 363-377, 08. [Downloadable!] (restricted)
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  3. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Blackwell Publishing, vol. 41(1), pages 117-147. [Downloadable!] (restricted)
  4. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
    Other versions:
  5. Evans, Paul, 1998. "Using Panel Data to Evaluate Growth Theories," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 295-306, May.
  6. Evans, Paul & Karras, Georgios, 1996. "Convergence revisited," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 249-265, April. [Downloadable!] (restricted)
  7. Bernard Fingleton, 2000. "Spatial econometrics, economic geography, dynamics and equilibrium: a 'third way'?," Environment and Planning A, Pion Ltd, London, vol. 32(8), pages 1481-1498, August. [Downloadable!] (restricted)
  8. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Frank Beckenbach, 2005. "Knowledge Representation and Search Processes - a contribution to the microeconomics of invention and innovation," Discussion Papers in Economics 75/05, University of Kassel, Institute of Economics. [Downloadable!]
  2. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2007. "Anmerkung zur Identifikation von Förderregionen in der "Gemeinschaftsaufgabe"," Discussion Papers in Economics 90/07, University of Kassel, Institute of Economics. [Downloadable!]
  3. Hans-Friedrich Eckey & Reinhold Kosfeld, 2004. "New Economic Geography," Discussion Papers in Economics 65/04, University of Kassel, Institute of Economics. [Downloadable!]
  4. Falko Juessen, 2005. "A distribution dynamics approach to regional income convergence in reunified Germany," ERSA conference papers ersa05p411, European Regional Science Association. [Downloadable!]
  5. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2006. "Abgrenzung deutscher Arbeitsmarktregionen," Discussion Papers in Economics 81/06, University of Kassel, Institute of Economics. [Downloadable!]
  6. Hans-Friedrich Eckey & Matthias Türck, 2005. "Deutsche Innovationsregionen," Discussion Papers in Economics 69/05, University of Kassel, Institute of Economics. [Downloadable!]
  7. Jørgen Lauridsen & Reinhold Kosfeld, 2007. "Spatial cointegration and heteroscedasticity," Journal of Geographical Systems, Springer, vol. 9(3), pages 253-265, September. [Downloadable!] (restricted)
  8. Jochen Michaelis, 2005. "Zur Reform der Leistungsformen der Pflegeversicherung - ein familienökonomischer Ansatz," Discussion Papers in Economics 74/05, University of Kassel, Institute of Economics. [Downloadable!]
  9. Trívez Bielsa, F.J., 2004. "Economía espacial: Una disciplina en auge," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 22, pages 1-18, Diciembre. [Downloadable!] (restricted)
  10. Reinhold Kosfeld, 2006. "Regional Spillovers and Spatial Heterogeneity in Matching Workers and Employers in Germany," Discussion Papers in Economics 89/06, University of Kassel, Institute of Economics. [Downloadable!]
    Other versions:
  11. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute. [Downloadable!]
  12. Reinhold Kosfeld & Christian Dreger & Hans-Friedrich Eckey, 2006. "On the Stability of the German Beveridge Curve - A Spatial Econometric Perspective," Discussion Papers in Economics 82/06, University of Kassel, Institute of Economics. [Downloadable!]
    Other versions:
  13. Hans-Friedrich Eckey & Reinhold Kosfeld, 2004. "Regionaler Wirkungsgrad und räumliche Ausstrahlungseffekte der Innovationsförderung," Discussion Papers in Economics 55/04, University of Kassel, Institute of Economics. [Downloadable!]
  14. Lauridsen, J. & Kosfeld, R., 2004. "A wald Test for Spatial Nonstationarity," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 22, pages 1-12, Diciembre. [Downloadable!] (restricted)
  15. Lorenz Blume & Stefan Voigt, 2004. "The Economic Effects of Human Rights," Discussion Papers in Economics 66/04, University of Kassel, Institute of Economics. [Downloadable!]
    Other versions:
  16. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2004. "Regionale Produktionsfunktionen mit Spillover-Effekten für Deutschland," Discussion Papers in Economics 64/04, University of Kassel, Institute of Economics. [Downloadable!]
  17. Jochen Michaelis, 2007. "Internationaler Handel," Discussion Papers in Economics 91/07, University of Kassel, Institute of Economics. [Downloadable!]
  18. 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). [Downloadable!]
    Other versions:
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