IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00463279.html
   My bibliography  Save this paper

Regional Growth and Convergence: Heterogenous reaction versus interaction in spatial econometric approaches

Author

Listed:
  • Cem Ertur

    (LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

  • Julie Le Gallo

    (CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

Abstract

This paper presents various approaches dealing with heterogeneous reaction combined with interaction between neighboring units of observation developed in the spatial econometric literature, in the framework of cross-sectional models, and applied to the study of growth and convergence processes. We present the main econometric specifications capturing discrete or continuous spatial heterogeneity: the spatial regimes model and the locally linear, geographically weighted regression (GWR). We then examine how these specifications can be extended to further allow for spatial autocorrelation.

Suggested Citation

  • Cem Ertur & Julie Le Gallo, 2009. "Regional Growth and Convergence: Heterogenous reaction versus interaction in spatial econometric approaches," Post-Print hal-00463279, HAL.
    • Handle: RePEc:hal:journl:hal-00463279
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Julie Le Gallo & Sandy Dall’erba, 2006. "Evaluating the Temporal and Spatial Heterogeneity of the European Convergence Process, 1980–1999," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 269-288, May.
    2. Marie Lebreton, 2005. "A NCSTAR model as an alternative to the GWR model," Post-Print hal-00282161, HAL.
    3. Griffith, Daniel A., 1992. "A spatially adjusted N-way ANOVA model," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 347-369, September.
    4. Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European regional convergence process, 1980-1995 : Do spatial dependence and spatial heterogeneity matter ?," Post-Print hal-00485014, HAL.
    5. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-384, Oct.-Dec..
    6. David Wheeler & Catherine Calder, 2007. "An assessment of coefficient accuracy in linear regression models with spatially varying coefficients," Journal of Geographical Systems, Springer, vol. 9(2), pages 145-166, June.
    7. Durlauf, Steven N. & Kourtellos, Andros & Minkin, Artur, 2001. "The local Solow growth model," European Economic Review, Elsevier, vol. 45(4-6), pages 928-940, May.
    8. ERTUR, Cem & KOCH, Wilfried, 2006. "Convergence, Human Capital and International Spillovers," LEG - Document de travail - Economie 2006-03, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    9. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2007. "Regional Convergence in Germany: a Geographically Weighted Regression Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(1), pages 45-64.
    10. Fabio Canova, 2004. "Testing for Convergence Clubs in Income Per Capita: A Predictive Density Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 49-77, February.
    11. Sandy Dall'erba & Julie Le Gallo, 2008. "Regional convergence and the impact of European structural funds over 1989–1999: A spatial econometric analysis," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 219-244, June.
    12. McMillen, Daniel P., 1996. "One Hundred Fifty Years of Land Values in Chicago: A Nonparametric Approach," Journal of Urban Economics, Elsevier, vol. 40(1), pages 100-124, July.
    13. James P. LeSage, 2004. "A Family of Geographically Weighted Regression Models," Advances in Spatial Science, in: Luc Anselin & Raymond J. G. M. Florax & Sergio J. Rey (ed.), Advances in Spatial Econometrics, chapter 11, pages 241-264, Springer.
    14. Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," International Regional Science Review, , vol. 29(1), pages 3-34, January.
    15. KOCH, Wilfried, 2006. "Growth and Spatial Dependence in Europe," LEG - Document de travail - Economie 2006-02, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    16. Julie Le Gallo & Cem Ertur, 2000. "Exploratory spatial data analysis of the distribution of regional per capita GDP in Europe, 1980-1995," Working Papers hal-01527222, HAL.
    17. Cem Ertur & Wilfried Koch, 2006. "Regional disparities in the European Union and the enlargement process: an exploratory spatial data analysis, 1995–2000," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 723-765, December.
    18. Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-465, May.
    19. Maria ABREU & Henri L.F. DE GROOT & Raymond J.G.M. FLORAX, 2005. "Space And Growth: A Survey Of Empirical Evidence And Methods," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 13-44.
    20. Desdoigts, Alain, 1999. "Patterns of Economic Development and the Formation of Clubs," Journal of Economic Growth, Springer, vol. 4(3), pages 305-330, September.
    21. Anselin, Luc, 1990. "Some robust approaches to testing and estimation in spatial econometrics," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 141-163, September.
    22. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
    23. Dan-Lin Yu, 2006. "Spatially varying development mechanisms in the Greater Beijing Area: a geographically weighted regression investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(1), pages 173-190, March.
    24. Patrick Sevestre & Laszlo Matyas, 2008. "The Econometrics of Panel Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00279977, HAL.
    25. Cem Ertur & James Lesage, 2006. "Local versus global convergence in Europe : a bayesian spatial econometric approach," Post-Print hal-00485025, HAL.
    26. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    27. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    28. Gelfand A.E. & Kim H-J. & Sirmans C.F. & Banerjee S., 2003. "Spatial Modeling With Spatially Varying Coefficient Processes," Journal of the American Statistical Association, American Statistical Association, vol. 98, pages 387-396, January.
    29. Roberto BASILE & Bernard GRESS, 2005. "Semi-Parametric Spatial Auto-Covariance Models Of Regional Growth In Europe," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 93-118.
    30. repec:rre:publsh:v:37:y:2007:i:1:p:82-108 is not listed on IDEAS
    31. Peter Egger & Michael Pfaffermayr, 2006. "Spatial convergence," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 199-215, June.
    32. Ramajo, Julián & Márquez, Miguel A. & Hewings, Geoffrey J.D. & Salinas, María M., 2008. "Spatial heterogeneity and interregional spillovers in the European Union: Do cohesion policies encourage convergence across regions?," European Economic Review, Elsevier, vol. 52(3), pages 551-567, April.
    33. Liu, Zhenjuan & Stengos, Thanasis, 1999. "Non-linearities in Cross-Country Growth Regressions: A Semiparametric Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 527-538, Sept.-Oct.
    34. Cem Ertur & Wilfried Koch, 2007. "Growth, technological interdependence and spatial externalities: theory and evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(6), pages 1033-1062.
    35. Manfred M. Fischer & Claudia Stirböck, 2005. "Pan-European Regional Income Growth and Club-Convergence - Insights from a Spatial Econometric Perspective," ERSA conference papers ersa05p6, European Regional Science Association.
    36. Chang‐Lin Mei & Shu‐Yuan He & Kai‐Tai Fang, 2004. "A Note on the Mixed Geographically Weighted Regression Model," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 143-157, February.
    37. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    38. 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.
    39. Enrique López‐Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 43-73, February.
    40. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, March.
    41. A S Fotheringham & M E Charlton & C Brunsdon, 1998. "Geographically Weighted Regression: A Natural Evolution of the Expansion Method for Spatial Data Analysis," Environment and Planning A, , vol. 30(11), pages 1905-1927, November.
    42. Bernard Fingleton & Enrique López‐Bazo, 2006. "Empirical growth models with spatial effects," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 177-198, June.
    43. Durlauf, Steven N., 2001. "Manifesto for a growth econometrics," Journal of Econometrics, Elsevier, vol. 100(1), pages 65-69, January.
    44. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    45. Lebreton, Marie, 2005. "The NCSTAR model as an alternative to the GWR model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 355(1), pages 77-84.
    46. László Mátyás & Patrick Sevestre (ed.), 2008. "The Econometrics of Panel Data," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75892-1, July-Dece.
    47. Alain Desdoigts, 1999. "Patterns of economic development and the formation of clubs," Post-Print hal-02878020, HAL.
    48. Anselin, Luc & Tam Cho, Wendy K., 2002. "Spatial Effects and Ecological Inference," Political Analysis, Cambridge University Press, vol. 10(3), pages 276-297, July.
    49. Cleveland, William S. & Devlin, Susan J. & Grosse, Eric, 1988. "Regression by local fitting : Methods, properties, and computational algorithms," Journal of Econometrics, Elsevier, vol. 37(1), pages 87-114, January.
    50. David Wheeler & Michael Tiefelsdorf, 2005. "Multicollinearity and correlation among local regression coefficients in geographically weighted regression," Journal of Geographical Systems, Springer, vol. 7(2), pages 161-187, June.
    51. Chang-Lin Mei & Ning Wang & Wen-Xiu Zhang, 2006. "Testing the Importance of the Explanatory Variables in a Mixed Geographically Weighted Regression Model," Environment and Planning A, , vol. 38(3), pages 587-598, March.
    52. Daniel P. McMillen, 2004. "Geographically Weighted Regression: The Analysis of Spatially Varying Relationships," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 554-556.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Biswajit Mohanty & N. R. Bhanumurthy, 2018. "Regional growth policy experience in India: the spatial dimension," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 479-505, August.
    2. Burhan Can Karahasan, 2020. "Winners and losers of rapid growth in Turkey: Analysis of the spatial variability of convergence," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 603-644, June.
    3. Up Lim, 2016. "Regional income club convergence in US BEA economic areas: a spatial switching regression approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 273-294, January.
    4. Basile, Roberto & Durbán, María & Mínguez, Román & María Montero, Jose & Mur, Jesús, 2014. "Modeling regional economic dynamics: Spatial dependence, spatial heterogeneity and nonlinearities," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 229-245.
    5. R. Basile & S. Usai, 2012. "Analysis of regional endogenous growth," Working Paper CRENoS 201211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    6. Wei-Bin Zhang, 2017. "Spatial Agglomeration And Economic Development With The Inclusion Of Interregional Tourism," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 93-128, April - J.
    7. Sébastien BOURDIN, 2013. "Une Mesure Spatiale Locale De La Sigma-Convergence Pour Evaluer Les Disparites Regionales Dans L’Union Europeenne," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 37, pages 179-196.
    8. Bourdin, Sebastien & Elissalde, Bernard & Langlois, Patrice & Goya, Dominique, 2011. "Une approche prospective de la configuration des disparités économiques régionales au sein de l'Union européenne par la modélisation et la simulation [A forward-looking approach of the configuratio," MPRA Paper 41307, University Library of Munich, Germany, revised 2011.
    9. Roberto Basile, 2014. "Regional productivity growth in Europe: a Schumpeterian perspective," Gecomplexity Discussion Paper Series 1, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Nov 2014.
    10. Up Lim, 2016. "Regional income club convergence in US BEA economic areas: a spatial switching regression approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 273-294, January.
    11. repec:elg:eechap:14395_11 is not listed on IDEAS
    12. Bourdin, Sebastien, 2010. "Repenser le futur de la politique de cohésion européenne pour les pays d’europe centrale et orientale : la prise en compte de l’espace géographique comme piste de recherche [Rethinking the future o," MPRA Paper 40888, University Library of Munich, Germany, revised 2010.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Breandán Ó'hUallacháin, 2008. "Regional growth transition clubs in the United States," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 33-53, March.
    3. Cem Ertur & Wilfried Koch, 2007. "Growth, technological interdependence and spatial externalities: theory and evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(6), pages 1033-1062.
    4. Manfred M. Fischer & James P. LeSage, 2015. "A Bayesian space-time approach to identifying and interpreting regional convergence clubs in Europe," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 677-702, November.
    5. ERTUR, Cem & KOCH, Wilfried, 2006. "Convergence, Human Capital and International Spillovers," LEG - Document de travail - Economie 2006-03, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    6. Burhan Can Karahasan, 2020. "Winners and losers of rapid growth in Turkey: Analysis of the spatial variability of convergence," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 603-644, June.
    7. Cem Ertur & Wilfried Koch, 2006. "The Role of Human Capital and Technological Interdependence in Growth and Convergence Processes: International Evidence," DEGIT Conference Papers c011_029, DEGIT, Dynamics, Economic Growth, and International Trade.
    8. Manfred M. Fischer & James P. LeSage, 2012. "A Bayesian approach to identifying and interpreting regional convergence clubs in Europe," ERSA conference papers ersa12p217, European Regional Science Association.
    9. Arbia, Giuseppe & Battisti, Michele & Di Vaio, Gianfranco, 2010. "Institutions and geography: Empirical test of spatial growth models for European regions," Economic Modelling, Elsevier, vol. 27(1), pages 12-21, January.
    10. Túlio Cravo, 2011. "Regional Economic Growth and SMEs in Brazil: a Spatial Analysis (Submission for the Refereed Y-session Papers)," ERSA conference papers ersa10p508, European Regional Science Association.
    11. repec:rre:publsh:v:37:y:2007:i:1:p:82-108 is not listed on IDEAS
    12. Jesús Mur & Fernando López & Ana Angulo, 2010. "Instability in spatial error models: an application to the hypothesis of convergence in the European case," Journal of Geographical Systems, Springer, vol. 12(3), pages 259-280, September.
    13. Marco Alfo & Giovanni Trovato & Robert J. Waldmann, 2008. "Testing for country heterogeneity in growth models using a finite mixture approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 487-514.
    14. Rosa Bernardini Papalia & Silvia Bertarelli, 2013. "Nonlinearities in economic growth and club convergence," Empirical Economics, Springer, vol. 44(3), pages 1171-1202, June.
    15. Azomahou, Théophile T. & El ouardighi, Jalal & Nguyen-Van, Phu & Pham, Thi Kim Cuong, 2011. "Testing convergence of European regions: A semiparametric approach," Economic Modelling, Elsevier, vol. 28(3), pages 1202-1210, May.
    16. Pfaffermayr, Michael, 2009. "Conditional [beta]- and [sigma]-convergence in space: A maximum likelihood approach," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 63-78, January.
    17. Paolo Postiglione & M. Andreano & Roberto Benedetti, 2013. "Using Constrained Optimization for the Identification of Convergence Clubs," Computational Economics, Springer;Society for Computational Economics, vol. 42(2), pages 151-174, August.
    18. repec:elg:eechap:14395_11 is not listed on IDEAS
    19. Sandy Dall'erba & Julie Le Gallo, 2008. "Regional convergence and the impact of European structural funds over 1989–1999: A spatial econometric analysis," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 219-244, June.
    20. Julie Le Gallo & Sandy Dall'erba, 2008. "Spatial and sectoral productivity convergence between European regions, 1975–2000," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 505-525, November.
    21. Davide Fiaschi & Andrea Mario Lavezzi & Angela Parenti, 2018. "Does EU cohesion policy work? Theory and evidence," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 386-423, March.
    22. Cohen-Cole, Ethan B. & Durlauf, Steven N. & Rondina, Giacomo, 2012. "Nonlinearities in growth: From evidence to policy," Journal of Macroeconomics, Elsevier, vol. 34(1), pages 42-58.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00463279. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.