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Spatial Effects in Convergence of Portuguese Product

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  • Vitor Joao Pereira Domingues Martinho

Abstract

This study analyses, through cross-section estimation methods, the influence of spatial effects in the conditional product convergence in the parishes' economies of mainland Portugal between 1991 and 2001 (the last year with data available for this spatial disaggregation level). To analyse the data, Moran's I statistics is considered, and it is stated that product is subject to positive spatial autocorrelation (product develops in a similar manner to product in neighbouring regions). Taking into account the estimation results, it is stated that there are not indications of convergence (the population is in the littoral of Portugal) and it can be seen that spatial spillover effects, spatial lag (capturing spatial autocorrelation through a spatially lagged dependent variable) and spatial error (capturing spatial autocorrelation through a spatially lagged error term) condition the convergence of product of Portuguese parishes in the period under consideration (1)(Martinho, 2011).

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Paper provided by arXiv.org in its series Papers with number 1110.5556.

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Date of creation: Oct 2011
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Handle: RePEc:arx:papers:1110.5556

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  1. Luc Anselin, 2010. "Thirty years of spatial econometrics," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 3-25, 03.
  2. Vitor Joao Pereira Domingues Martinho, 2011. "Spatial Effects in Convergence of Portuguese Product," Papers 1110.5556, arXiv.org.
  3. Johan Lundberg, 2004. "Using Spatial Econometrics to Analyze Local Growth in Sweden," ERSA conference papers ersa04p25, European Regional Science Association.
  4. Maria Abreu & Henride Groot & Raymond Florax, 2004. "Spatial Patterns of Technology Diffusion: An Empirical Analysis Using TFP," ERSA conference papers ersa04p425, European Regional Science Association.
  5. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Wiley Blackwell, vol. 41(1), pages 117-147.
  6. Nijkamp, P. & Abreu, M., 2009. "Regional development theory," Serie Research Memoranda 0029, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  7. Florax, Raymond J. G. M. & Folmer, Hendrik & Rey, Sergio J., 2003. "Specification searches in spatial econometrics: the relevance of Hendry's methodology," Regional Science and Urban Economics, Elsevier, vol. 33(5), pages 557-579, September.
  8. Giuseppe Arbia & Gianfranco Piras, 2004. "Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects," ERSA conference papers ersa04p524, European Regional Science Association.
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Cited by:
  1. Vítor Martinho, 2011. "Spatial Effects in Convergence of Portuguese Product," Working Papers 79, globADVANTAGE, Polytechnic Institute of Leiria.
  2. Martinho, Vítor João Pereira Domingues, 2011. "Application of Keynesian and convergence theories in Portugal. Differences and similarities," MPRA Paper 32910, University Library of Munich, Germany.
  3. Martinho, Vítor João Pereira Domingues, 2011. "What said the neoclassical and endogenous growth theories about Portugal?," MPRA Paper 32631, University Library of Munich, Germany.

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