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Evaluating the Temporal and the Spatial Heterogeneity of the European Convergence Process, 1980-1999

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  • Julie LE GALLO (IERSO, IFReDE-GRES)
  • Sandy DALL’ERBA (REAL, University of Illinois at Urbana-Champaign)

Abstract

In this paper, we suggest a general framework that allows testing simultaneously for temporal heterogeneity, spatial heterogeneity and spatial autocorrelation in b-convergence models. Based on a sample of 145 European regions over the 1980-1999 period, we estimate a Seemingly Unrelated Regression Model with spatial regimes and spatial autocorrelation for two sub-periods: 1980-1989 and 1989-1999. The assumption of temporal independence between the two-periods is rejected and the estimation results point to the presence of spatial error autocorrelation in both sub-periods and spatial instability in the second sub-period, indicating the formation of a convergence club between the peripheral regions of the European Union.

Suggested Citation

  • Julie LE GALLO (IERSO, IFReDE-GRES) & Sandy DALL’ERBA (REAL, University of Illinois at Urbana-Champaign), 2004. "Evaluating the Temporal and the Spatial Heterogeneity of the European Convergence Process, 1980-1999," Cahiers du GRES (2002-2009) 2004-23, Groupement de Recherches Economiques et Sociales.
  • Handle: RePEc:grs:wpegrs:2004-23
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    File URL: http://cahiersdugres.u-bordeaux4.fr/2004/2004-23.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Elisa Montresor & Francesco Pecci & Nicola Pontarollo, 2010. "The evaluation of european structural funds on economic convergence with the application of spatial filtering technique," Working Papers 07/2010, University of Verona, Department of Economics.
    2. Montresor, Elisa & Pecci, Francesco & Pontarollo, Nicola, 2011. "The convergence process of the European regions: the role of Regional Policy and the Common Agricultural Policy," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 113(2), October.
    3. Ramajo, Julián & Márquez, Miguel A. & Hewings, Geoffrey J.D. & Salinas, María M., 2008. "Spatial heterogeneity and interregional spillovers in the European Union: Do cohesion policies encourage convergence across regions?," European Economic Review, Elsevier, vol. 52(3), pages 551-567, April.
    4. Valerien O. Pede & Raymond J.G.M. Florax & Henri L.F. de Groot, 2011. "Technological Leadership and Sectoral Employment Growth:A Spatial Econometric Analysis for U.S. Counties," Working Papers 11-1, Purdue University, College of Agriculture, Department of Agricultural Economics.

    More about this item

    Keywords

    b-convergence models; spatial autocorrelation; convergence clubs; temporal instability;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • 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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