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Convergence, Human Capital and International Spillovers

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Author Info
ERTUR, Cem () (LEG - CNRS UMR 5118 - Université de Bourgogne)
KOCH, Wilfried () (LEG - CNRS UMR 5118 - Université de Bourgogne)

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Abstract

This paper develops a growth model with physical and human capital externalities to- gether with technological interdependence between economies. It leads to a spatial autore- gressive reduced form for the convergence equation characterized by parameter heterogeneity. A locally linear spatial autoregressive speci¯cation is then estimated providing a di(r)erent convergence speed estimate for each country in a sample of 89 countries over the period 1960-1995. Finally, counterfactual density estimates show that our model better ¯ts the observed income distribution than the well known augmented neoclassical growth model.

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Publisher Info
Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS UMR 5118, Université de Bourgogne in its series LEG - Document de travail - Economie with number 2006-03.

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Length: 20 pages
Date of creation: Mar 2006
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Handle: RePEc:lat:legeco:2006-03

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Related research
Keywords: Conditional convergence ; spatial externalities ; spatial autocorrelation ; bayesian estimation ; parameter heterogeneity ; locally linear estimation;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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