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Space-time analysis of GDP disparities among European regions: A Markov chains approach

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Author Info
LE GALLO, Julie () (LATEC - CNRS - Université de Bourgogne)

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Abstract

The purpose of this paper is to study the evolution of the disparities between 138 European regions over the 1980-1995 period. We characterize the regional per capita GDP cross-sectional distribution by means of nonparametric estimations of density functions and we model the growth process as a first-order stationary Markov chain. Spatial effects are then introduced within the Markov chain framework using regional conditioning and spatial Markov chains. The results of the analysis indicate the persistence of regional disparities, a progressive bias toward a poverty trap and the importance of geography to explain growth and convergence processes.

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Publisher Info
Paper provided by LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne in its series LATEC - Document de travail - Economie (1991-2003) with number 2001-06.

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Length: 30 pages
Date of creation: Mar 2001
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Handle: RePEc:lat:lateco:2001-06

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Related research
Keywords: convergence; regional disparities; spatial autocorrelation; spatial Markov chains;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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.:

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    Other versions:
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    Other versions:
  6. BAUMONT, Catherine & ERTUR, Cem & LE GALLO, Julie, 2001. "A Spatial Econometric Analysis of Geographic Spillovers and Growth for European Regions, 1980-1995," LATEC - Document de travail - Economie (1991-2003) 2001-04, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne. [Downloadable!]
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    Other versions:
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    Other versions:
Full references

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. Georgios Fotopoulos, 2005. "Twin - Peaks in E.U. Regional Productivity Dynamics: a nonparametric analysis," Papers on Entrepreneurship, Growth and Public Policy 2005-28, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  2. Fernando Perobelli & Eduardo Amaral Haddad, 2003. "Brazilian Interregional Trade (1985-1996): an Exploratory Spatial Data Analysis," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] e18, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  3. Hajo Holzmann & Sebastian Vollmer, 2008. "A likelihood ratio test for bimodality in two-component mixtures with application to regional income distribution in the EU," AStA Advances in Statistical Analysis, Springer, vol. 92(1), pages 57-69, February. [Downloadable!] (restricted)
  4. Alejandro Rodriguez Caro & Santiago Rodriguez Feijoó & Carlos Gonzalez Correa, 2005. "Markov Chain approach to Purchasing Power Convergence in the 15 European Union," ERSA conference papers ersa05p457, European Regional Science Association. [Downloadable!]
  5. Valentina Meliciani, 2006. "Income and employment disparities across European regions: The role of national and spatial factors," Regional Studies, Taylor and Francis Journals, vol. 40(1), pages 75-91, February. [Downloadable!] (restricted)
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  7. Torres Solé, Teresa & Allepuz Capdevila, Rafael, 2009. "El desarrollo humano: perfiles y perspectivas futuras /Profiles and Prospects of the Human Development," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 545-562, Agosto. [Downloadable!] (restricted)
  8. Juergen Antony, 2005. "Diffusion of Scale Effects between European Regions," Discussion Paper Series 281, Universitaet Augsburg, Institute for Economics. [Downloadable!]
  9. Aroca, Patricio & Guo, Dong & Hewings, Geoffrey J.D., 2006. "Spatial Convergence in China: 1952-99," Working Papers RP2006/89, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  10. Santiago Rodriguez Feijoo & Alejandro Rodriguez Caro & Carlos Gonzalez Correa, 2004. "An Empirical Study of the Purchasing Power Parity in the European Union," ERSA conference papers ersa04p369, European Regional Science Association. [Downloadable!]
  11. Thomas A. Garrett & Gary A. Wagner & David C. Wheelock, 2005. "Regional disparities in the spatial correlation of state income growth," Working Papers 2005-061, Federal Reserve Bank of St. Louis. [Downloadable!]
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  16. Altan Aldan & Esma Gaygisiz, 2006. "Convergence Across Provinces of Turkey : A Spatial Analysis," Working Papers 0609, Research and Monetary Policy Department, Central Bank of the Republic of Turkey. [Downloadable!]
  17. Catherine Baumont & Cem Ertur & Julie Le Gallo, 2002. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," Econometrics 0207002, EconWPA. [Downloadable!]
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