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The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?

Author

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  • Cem Ertur

    (University of Burgundy, Pôle d'Economie et de Gestion, Dijon, France, cem.ertur@u-bourgogne.fr)

  • Julie Le Gallo

    (IERSO (IFReDE-GRES), Université Montesquieu-Bordeaux IV, Pessac, France,legallo@u-bordeaux4.fr)

  • Catherine Baumont

    (University of Burgundy, Pôle d'Economie et de Gestion, Dijon, France, catherine.baumont@u-bourgogne.fr)

Abstract

The authors show that spatial dependence and spatial heterogeneity matter in the estimation of the β-convergence process among 138 European regions over the 1980 to 1995 period. Using spatial econometrics tools, the authors detect both spatial dependence and spatial heterogeneity in the form of structural instability across spatial convergence clubs. The estimation of the appropriate spatial regimes spatial error model shows that the convergence process is different across regimes. The authors also estimate a strongly significant spatial spillover effect: the average growth rate of per capita GDP of a given region is positively affected by the average growth rate of neighboring regions.

Suggested Citation

  • Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," International Regional Science Review, , vol. 29(1), pages 3-34, January.
  • Handle: RePEc:sae:inrsre:v:29:y:2006:i:1:p:3-34
    DOI: 10.1177/0160017605279453
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    More about this item

    Keywords

    •-convergence; spatial econometrics; spatial dependence; spatial regimes; geographic spillovers;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • 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

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