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Some new insights into real convergence in MENA countries’ regional areas: a spatial econometric analysis

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  • Nicolas Péridy
  • Mohamed Hazem
  • Marc Brunetto

Abstract

This paper proposes an analysis of real income convergence in MENA countries for more than 800 disaggregated regional areas. A spatial analysis is implemented in order to take into account the spatial interactions of GDP per capita in these areas. Moreover, a b-convergence equation (absolute and conditional) is estimated with spatially correlated errors and spatial lag models. The conditional model also includes original climate variables (temperature and precipitations) at the same geographical level. Results show that the hypothesis of regional convergence is generally accepted in most MENA countries, with the exception of Egypt and Morocco . However, the convergence process is slow and climate change in MENA countries is likely to further slowdown this process.

Suggested Citation

  • Nicolas Péridy & Mohamed Hazem & Marc Brunetto, 2013. "Some new insights into real convergence in MENA countries’ regional areas: a spatial econometric analysis," Economics and Business Letters, Oviedo University Press, vol. 2(4), pages 150-160.
    • Handle: RePEc:ove:journl:aid:9947
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/9947
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    References listed on IDEAS

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    Cited by:

    1. Dimitris Kallioras & Vassilis Monastiriotis & George Petrakos, 2018. "Spatial dynamics and agglomeration forces in the external EU periphery," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(3), pages 591-612, May.
    2. Alexandra Schaffar & Nicolas Péridy, 2015. "Exploring spatial convergence of Maghreb regional areas: An application of a Markov chains approach," Economics Bulletin, AccessEcon, vol. 35(3), pages 1848-1855.

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