Evaluating the temporal and the spatial heterogeneity of the European convergence process, 1980-1999
AbstractIn this paper, we suggest a general framework that allows testing simultaneously for temporal heterogeneity, spatial heterogeneity and spatial autocorrelation in beta-convergence models. Based on a sample of 145 European regions over the 1980-1999 period, we estimate a Seemingly Unrelated Regression model with spatial regimes and spatial autocorrelation for two sub-periods: 1980-1989 and 1989-1999. The assumption of temporal independence between the two periods is rejected and the estimation results highlight the presence of spatial error autocorrelation in both sub-periods and spatial instability in the second sub-period, indicating the formation of a convergence club between the peripheral regions of the European Union.
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Bibliographic InfoPaper provided by EconWPA in its series Urban/Regional with number 0401003.
Date of creation: 23 Jan 2004
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beta-convergence models; spatial autocorrelation; convergence clubs; temporal instability;
Other versions of this item:
- Julie LE GALLO (IERSO, IFReDE-GRES) & Sandy DALL’ERBA (REAL, University of Illinois at Urbana-Champaign), 2004. "Evaluating the Temporal and the Spatial Heterogeneity of the European Convergence Process, 1980-1999," Cahiers du GRES 2004-23, Groupement de Recherches Economiques et Sociales.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-26 (All new papers)
- NEP-DEV-2004-01-25 (Development)
- NEP-EEC-2004-05-26 (European Economics)
- NEP-GEO-2004-05-26 (Economic Geography)
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