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The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?

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Author Info
Catherine Baumont (LATEC UMR 5118 CNRS - University of Burgundy)
Cem Ertur (LATEC UMR 5118 CNRS - University of Burgundy)
Julie Le Gallo (LATEC UMR 5118 CNRS - University of Burgundy)

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Abstract

We show in this paper that spatial dependence and spatial heterogeneity matter in the estimation of the b-convergence process among 138 European regions over the 1980-1995 period. Using spatial econometrics tools, we detect both spatial dependence and spatial heterogeneity in the form of structural instability across spatial convergence clubs. The estimation of the appropriate spatial regimes spatial error model shows that the convergence process is different across regimes. We also estimate a strongly significant spatial spillover effect: the average growth rate of per capita GDP of a given region is positively affected by the average growth rate of neighboring regions.

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Paper provided by EconWPA in its series Econometrics with number 0207002.

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Date of creation: 19 Jul 2002
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Handle: RePEc:wpa:wuwpem:0207002

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Related research
Keywords: convergence; club convergence; spatial econometrics; European regions; spatial regimes; spatial autocorrelation;

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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

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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. Ferhan Gezici & Geoffrey Hewings, 2003. "Spatial Analysis of Regional Inequalities in Turkey," ERSA conference papers ersa03p99, European Regional Science Association. [Downloadable!]
  2. Konstantin Kholodilin & Alexei Oshchepkov & Boriss Siliverstovs, 2009. "The Russian regional convergence process: Where does it go?," KOF Working papers 09-216, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
    Other versions:
  3. 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!]
  4. Robert Stehrer & Neil Foster, 2008. "Sectoral Productivity, Density and Agglomeration in the Wider Europe," Working Papers 47, The Vienna Institute for International Economic Studies, wiiw. [Downloadable!]
  5. Hans-Friedrich Eckey & Matthias Türck, 2006. "Convergence of EU-Regions. A Literature Report," Discussion Papers in Economics 80/06, University of Kassel, Institute of Economics. [Downloadable!]
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