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

Author

Listed:
  • 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.

Suggested Citation

  • Giuseppe Arbia & Gianfranco Piras, 2005. "Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects," ISAE Working Papers 51, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    • Handle: RePEc:isa:wpaper:51
    as

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    References listed on IDEAS

    as
    1. Valentina Meliciani & Franco Peracchi, 2009. "Convergence in per-capita GDP across European regions: a reappraisal," Studies in Empirical Economics, in: Giuseppe Arbia & Badi H. Baltagi (ed.), Spatial Econometrics, pages 203-222, Springer.
    2. 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).
    3. Elhorst, J.P., 2000. "Dynamic models in space and time," Research Report 00C16, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    4. Badi Baltagi & Dong Li, 2006. "Prediction in the Panel Data Model with Spatial Correlation: the Case of Liquor," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(2), pages 175-185.
    5. 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.
    6. repec:dgr:rugsom:01c05 is not listed on IDEAS
    7. Case, Anne C, 1991. "Spatial Patterns in Household Demand," Econometrica, Econometric Society, vol. 59(4), pages 953-965, July.
    8. 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).
    9. Badi H. Baltagi & Dong Li, 2004. "Prediction in the Panel Data Model with Spatial Correlation," Advances in Spatial Science, in: Luc Anselin & Raymond J. G. M. Florax & Sergio J. Rey (ed.), Advances in Spatial Econometrics, chapter 13, pages 283-295, Springer.
    10. J. Paul Elhorst, 2003. "Specification and Estimation of Spatial Panel Data Models," International Regional Science Review, , vol. 26(3), pages 244-268, July.
    11. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
    12. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1127-1170.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Regional Convergence; Regional spill-overs; Spatial Dependence Modelling; Spatial Panel Data Models.;
    All these keywords.

    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; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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