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Regional Convergence in Italy 1951-199: A Spatial Econometric Perspective

  • Giuseppe Arbia

    (University of G.D'Annunzio)

  • Roberto Basile

    (ISAE - Institute for Studies and Economic Analyses)

  • Mirella Salvatore

    (University of G.D'Annunzio)

Testing regional convergence hypothesis involves important data issues. In empirical circumstances the problem arises of finding the best data to test the theory and the best estimators for the associated modelling. In the literature usually little attention is given to the level of spatial aggregation used and to the treatment of the spatial dependence and spatial heterogeneity. In this paper, we present an empirical study of per capita income convergence in Italy based on a fine level of aggregation (the 92 provinces). We correct estimates by modelling the spatial heterogeneity and the spatial dependence among residuals and discuss the implications in terms of convergence speed.

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Paper provided by ISTAT - Italian National Institute of Statistics - (Rome, ITALY) in its series ISAE Working Papers with number 29.

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Length: 28 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:isa:wpaper:29
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  1. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
  2. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December.
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  7. Fabiani, S. & Pellegrini, G., 1997. "Education, Infrastructure, Geography and Growth: An Empirical Analysis of the Development of Italian Provinces," Papers 323, Banca Italia - Servizio di Studi.
  8. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
  9. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
  10. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
  11. Quah, Danny T, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
  12. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
  13. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
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