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Regional convergence and agglomeration in Argentina : a spatial panel data approach

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  • Nicole Madariaga

    ()
    (TEAM)

  • Sylvie Montout

    (TEAM)

  • Patrice Ollivaud

    (OECD)

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    Abstract

    This paper examines the per capita income convergence process among 23 Argentinean provinces over the period 1983-2002. The purpose of this work is to apply new estimation methods following two-step procedure as in Badinger et al. (2004). We combine a spatial filtering of variables to remove the spatial correlation (Getis and Griffith, 2002) and suitable estimators for dynamic panels (using first-differenced and system GMM estimators). Our estimations on filtered variables reveal a conditional convergence process between Argentinean provinces and a positive and significant impact of agglomeration variables on growth rate. Hence, our results show that ignoring spatial distortions due to geographic proximity misleads estimations and underestimates the speed of convergence specifically for provinces that are distant from Buenos Aires. Moreover, we improve estimations of agglomeration effects when spatial autocorrelation is removed.

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    File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2005/Bla05006.pdf
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    Bibliographic Info

    Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla05006.

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    Length: 26 pages
    Date of creation: Feb 2005
    Date of revision:
    Handle: RePEc:mse:wpsorb:bla05006

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    Related research

    Keywords: Growth; convergence; spatial dependence; spatial filtering; dynamic panels; Generalized Method of Monuments.;

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    References

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    Cited by:
    1. Juan Gabriel Brida & Nicolás Garrido & Silvia London, 2011. "Estudio del Desempeño Económico Regional: el caso Argentino," Documentos de Trabajo en Economia y Ciencia Regional 12, Universidad Catolica del Norte, Chile, Department of Economics, revised May 2011.

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