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Evaluating the temporal and spatial heterogeneity of the European convergence process : 1980-1999

Author

Listed:
  • Julie Le Gallo

    (CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

  • Sandy Dall'Erba

    (School of Geography and Development - University of Arizona)

Abstract

In this paper, we suggest a framework that allows testing simultaneously for temporal heterogeneity, spatial heterogeneity, and spatial autocorrelation in beta-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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Julie Le Gallo & Sandy Dall'Erba, 2006. "Evaluating the temporal and spatial heterogeneity of the European convergence process : 1980-1999," Post-Print hal-00485016, HAL.
    • Handle: RePEc:hal:journl:hal-00485016
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    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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