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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)

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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File URL: http://lipari.istat.it/digibib/Working_Papers/WP_Arbia_Piras_n51_2005.pdf
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Bibliographic Info

Paper provided by ISTAT - Italian National Institute of Statistics - (Rome, ITALY) in its series ISAE Working Papers with number 51.

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Length: 33 pages
Date of creation: May 2005
Date of revision:
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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References

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  1. 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.
  2. Badi H. Baltagi & Dong Li, 2006. "Prediction in the Panel Data Model with Spatial Correlation: The Case of Liquor," Center for Policy Research Working Papers 84, Center for Policy Research, Maxwell School, Syracuse University.
  3. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  4. 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.
  5. Elhorst, J. Paul, 2001. "Panel data models extended to spatial error autocorrelation or a spatially lagged dependent variable," Research Report 01C05, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  6. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
  7. Giuseppe Arbia & Roberto Basile & Mirella Salvatore, 2002. "Regional Convergence in Italy 1951-199: A Spatial Econometric Perspective," ISAE Working Papers 29, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  8. Elhorst, J.P., 2000. "Dynamic models in space and time," Research Report 00C16, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  9. Case, Anne C, 1991. "Spatial Patterns in Household Demand," Econometrica, Econometric Society, vol. 59(4), pages 953-65, July.
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