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Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects

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Author Info
Giuseppe Arbia (University G.D'annunzio)
Gianfranco Piras (University of Rome, Tor Vergata)

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Abstract

This paper studies the convergence of per-capita GDP across European regions over a fairly long period. Most of the works in the field are based on either cross-sectional or fixed-effects estimates. We propose the estimation of convergence in per-capita GDP across European regions by making use of panel-data models extended to include spatial error autocorrelation (Anselin, 1988; Elhorst, 2003). This will allow us to extend the traditional betaconvergence model to include a rigorous treatment of the spatial correlation among the intercept terms. A spatial analysis of such intercept terms will also be performed in order to shed light on the concept of spatially conditional convergence.

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Publisher Info
Paper provided by ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY) in its series ISAE Working Papers with number 51.

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Length: 33 pages
Date of creation: May 2005
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Handle: RePEc:isa:wpaper:51

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Related research
Keywords: Regional Convergence; Regional spill-overs; Spatial Dependence Modelling; Spatial Panel Data Models.;

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February. [Downloadable!] (restricted)
  2. Valentina Meliciani & Franco Peracchi, 2006. "Convergence in per-capita GDP across European regions: a reappraisal," Empirical Economics, Springer, vol. 31(3), pages 549-568, September. [Downloadable!] (restricted)
    Other versions:
  3. Case, Anne C, 1991. "Spatial Patterns in Household Demand," Econometrica, Econometric Society, vol. 59(4), pages 953-65, July. [Downloadable!] (restricted)
  4. Cheng Hsiao, 1985. "Benefits and limitations of panel data," Econometric Reviews, Taylor and Francis Journals, vol. 4(1), pages 121-174. [Downloadable!] (restricted)
  5. Giuseppe Arbia & Roberto Basile & Mirella Salvatore, 2002. "Regional Convergence in Italy 1951-199: A Spatial Econometric Perspective," ISAE Working Papers 29, ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY). [Downloadable!]
  6. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June. [Downloadable!] (restricted)
  7. 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)
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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. Juarez, Miguel A. & Steel, Mark F. J., 2006. "Non-Gaussian dynamic Bayesian modelling for panel data," MPRA Paper 450, University Library of Munich, Germany. [Downloadable!]
  2. Giuseppe Arbia & Laura De Dominicis & Gianfranco Piras, 2005. "The relationship between Regional Growth and Regional Inequality in EU and transition countries - a Spatial Econometric Approach," ERSA conference papers ersa05p168, European Regional Science Association. [Downloadable!]
  3. 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!]
  4. Riccardo Corradini, 2006. "Advanced estimates of regional accounts: an alternative approach by spatial panels," Computing in Economics and Finance 2006 287, Society for Computational Economics. [Downloadable!]
  5. Noé Gonçalves Maranduba JR. & Eduardo Almeida, 2008. "Eficiência e Eficácia Da Política Regional em Minas Geras," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807021536400, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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