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Time series approaches to Italian regional convergence

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  • Marcella D'Uva
  • Rita De Siano

Abstract

This article investigates the evolution of the gap between Italian regions and Italy as a whole during the period of 1980 to 2007. We tested for the presence of the stochastic and β-convergence hypotheses using different time series approaches. The former was studied, first, for the entire sample period and then, with an exogenous instantaneous break in the series. The presence of β-convergence, instead, was estimated considering a known and an unknown trend break date model. Our results show that most of the regions do not converge in an 'actual' way, since they do not present a stochastic and β-convergence simultaneously.

Suggested Citation

  • Marcella D'Uva & Rita De Siano, 2011. "Time series approaches to Italian regional convergence," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4549-4559.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4549-4559
    DOI: 10.1080/00036846.2010.491473
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    References listed on IDEAS

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    1. Ben-David, Dan, 1994. "Convergence Clubs and Diverging Economies," CEPR Discussion Papers 922, C.E.P.R. Discussion Papers.
    2. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
    3. Giuseppe Arbia & Roberto Basile & Gianfranco Piras, 2005. "Using Spatial Panel Data in Modelling Regional Growth and Convergence," ISAE Working Papers 55, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
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    Cited by:

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    2. Efstathios Grigoriadis & Luca Salvati, 2015. "Recession In Action: Exploring The Spatial Divergence Of Percapita Income In Greece," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 9(2), pages 68-83, DECEMBER.

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