Innovation, Growth and Convergence in the Euro-Mediterranean Area: Implications for MENA Countries
This paper focuses on the innovation gap between countries in the Euro-Mediterranean (Euromed) area and its implications in terms of growth and convergence. Using a large set of innovation variables, we estimate a growth model à la Barro which shows that differences in innovation between countries explain differences in growth of per capita GDP within this area. The model relies on specific estimators which address the endogeneity problem.These are the fixed effects decomposition variable (FEDV) estimator, the Hausman and Taylor estimator (HT) as well as the error component two-stage least squares instrumental variables estimator (EC2SLQ IV). Finally, the implications for MENA countries are investigated through the estimation of a convergence model, which shows that differences in innovation between MENA countries explain differences in the convergence process of these countries toward EU GDP per capita. These results have important policy implications which are discussed in the conclusion.
Volume (Year): 30 (2010)
Issue (Month): 4 ()
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-10-00451. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.