Regional convergence and agglomeration in Argentina : a spatial panel data approach
AbstractThis 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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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla05006.
Length: 26 pages
Date of creation: Feb 2005
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Growth; convergence; spatial dependence; spatial filtering; dynamic panels; Generalized Method of Monuments.;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- O00 - Economic Development, Technological Change, and Growth - - General - - - General
- 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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