Club Convergence & Regional Spillovers In East Java
AbstractThis study try to identify the â-convergence process among regions in East Java using panel data of 37 regencies & municipalities between 1983-2002, taking into account the presence of spatial heterogeneity and spillover effects. Detection of spatial regimes using G-I* statistics (Getis & Ord, 1995) on regional per capita GDP values in 1983 found cluster of high income regions (group of “rich”) in central & eastern part of East Java, and cluster of low income regions (group of “poor”) in western part. The result of OLS & GLS regression on absolute convergence model found the existence of â-divergence process of East Java in overall period (1983-2003), consistent with the ó convergence which showing upward trend (divergence). Meanwhile, the same divergence process is also found in absolute convergence equation estimated for each club, even though in slower rate than East Java divergence rate. Using the methodology proposed by Burn, Combes, & Renard (2002) this study founds the existence of negative spillover effects between regions in “rich” clubs and from “rich” clubs to the “poor” one, where the magnitude is greater in the latter case. The club of “poor” regions is diverging faster than the “rich”. This finding is robust in every convergence equation (with or without the spillover effects). The lack of diversity on East Java’s manufacturing industries (Santosa & Michael, 2005 and Landiyanto, 2005) seems contribute to its divergence process by engaging a competitive mode between regions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series GE, Growth, Math methods with number 0511008.
Length: 23 pages
Date of creation: 20 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 23
Contact details of provider:
Web page: http://22.214.171.124
â-convergence; divergence; spatial regimes; spillover effects;
Find related papers by JEL classification:
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- D9 - Microeconomics - - Intertemporal Choice and Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-01 (All new papers)
- NEP-GEO-2005-12-01 (Economic Geography)
- NEP-SEA-2005-12-01 (South East Asia)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ewa, Lechman, 2011.
"Catching-up and club convergence from cross-national perspective. A statistical study for the period 1980-2010,"
37383, University Library of Munich, Germany.
- Ewa Lechman, 2012. "Catching-up and Club Convergence From Cross-National Perspective a Statistical Study for the Period 1980-2010," Equilibrium, Wydawnictwo Naukowe Uniwersytetu Mikolaja Kopernika, vol. 7, pages 95-109.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.