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Regional Convergence in Germany. A Geographically Weighted Regression Approach

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  • Hans-Friedrich Eckey

    ()
    (Department of Economics, University of Kassel)

  • Reinhold Kosfeld

    ()
    (Department of Economics, University of Kassel)

  • Matthias Türck

    ()
    (Department of Economics, University of Kassel)

Abstract

The convergence of German regions represents a politically explosive question. Different studies examined convergence processes of Germany. We derive equations to estimate the convergence speed on basis of a Solow model, to which human capital is added. The geographically weighted regression permits a detailed analysis of convergence processes, which has not been conducted for Germany so far yet. We estimate a separate speed of convergence for every region, which results from the local coefficients of the regression equations. The application of this procedure to German labour market regions shows that regions move with a different speed towards their steady state level. The half lives are substantially longer in the manufacturing sector than in the service sector. One model even yields tendencies towards divergence of some peripheral regions.

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Bibliographic Info

Paper provided by University of Kassel, Institute of Economics in its series Discussion Papers in Economics with number 76/05.

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Length: 27 pages
Date of creation: Sep 2005
Date of revision:
Handle: RePEc:kas:wpaper:2005-76

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Related research

Keywords: Regional Convergence; Spatial Econometrics; Geographically Weighted Regression; Räumliche Konvergenz; räumliche Ökonometrie; räumlich-gewichtete Regression;

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Cited by:
  1. Jesus Felipe & John McCombie, 2012. "Problems with Regional Production Functions and Estimates of Agglomeration Economies: A Caveat Emptor for Regional Scientists," Economics Working Paper Archive wp_725, Levy Economics Institute, The.
  2. Franziska Lottmann, 2012. "Explaining regional unemployment differences in Germany: a spatial panel data analysis," SFB 649 Discussion Papers SFB649DP2012-026, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.

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