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Regional Convergence in Germany. A Geographically Weighted Regression Approach

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  • Hans-Friedrich Eckey

    ()

  • Reinhold Kosfeld

    ()

  • Matthias Turck

    ()

Abstract

Regional convergence of German labour markets represents a politically important question. Different studies have examined convergence processes in Germany. We derive equations to estimate the speed of convergence on the basis of an extended Solow model. The technique of geographically weighted regression permits a detailed analysis of convergence processes, which has not been conducted for Germany so far yet. It allows to estimate a separate speed of convergence for every region resulting from the local coefficients of the regression equations. The application of this technique to German labour market regions shows regions moving with a different speeds towards their steady states. The half-live times in the model of conditional convergence disperse less than the same coefficients in the absolute convergence model. Moreover, the speed of convergence is substantially slower in the manufacturing sector than in the service sector.

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa06p461.

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Date of creation: Aug 2006
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Handle: RePEc:wiw:wiwrsa:ersa06p461

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Cited by:
  1. Rusche, Karsten, 2008. "Quality of Life in the Regions: An Exploratory Spatial Data Analysis for West German Labor Markets," MPRA Paper 13459, University Library of Munich, Germany.
  2. Cem Ertur & Julie Le Gallo, 2008. "Regional Growth and Convergence: Heterogenous reaction versus interaction in spatial econometric approaches," Working Papers hal-00463274, HAL.
  3. Chiara DEL BO & Massimo FLORIO & Giancarlo MANZI, 2009. "Regional infrastructure and convergence: growth implications in a spatial framework," Departmental Working Papers 2009-34, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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