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Spatial spillovers and labor productivity convergence in Canada

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  • Vatsa, Puneet
  • Pino, Gabriel

Abstract

We analyze labor productivity convergence between and within Canadian provinces by incorporating a spatial lag in a standard empirical neoclassical growth model. Results point to the predominance of inter-sectoral spillover effects. Furthermore, ignoring spatial effects yields smaller convergence estimates.

Suggested Citation

  • Vatsa, Puneet & Pino, Gabriel, 2023. "Spatial spillovers and labor productivity convergence in Canada," Economics Letters, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:ecolet:v:230:y:2023:i:c:s0165176523003014
    DOI: 10.1016/j.econlet.2023.111276
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    References listed on IDEAS

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    More about this item

    Keywords

    Convergence; Labor productivity; Canada; Spatial econometrics; Fixed effects;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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