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Convergence, Human Capital and International Spillovers

  • ERTUR, Cem


    (LEG - CNRS UMR 5118 - Université de Bourgogne)

  • KOCH, Wilfried


    (LEG - CNRS UMR 5118 - Université de Bourgogne)

This paper develops a growth model with physical and human capital externalities to- gether with technological interdependence between economies. It leads to a spatial autore- gressive reduced form for the convergence equation characterized by parameter heterogeneity. A locally linear spatial autoregressive speci¯cation is then estimated providing a di(r)erent convergence speed estimate for each country in a sample of 89 countries over the period 1960-1995. Finally, counterfactual density estimates show that our model better ¯ts the observed income distribution than the well known augmented neoclassical growth model.

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Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne in its series LEG - Document de travail - Economie with number 2006-03.

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Length: 20 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:lat:legeco:2006-03
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  1. Fabio Canova, 1997. "Testing for convergence clubs in income per-capita: A predictive density approach," Economics Working Papers 404, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
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  10. Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers.
  11. Moreno, Ramon & Trehan, Bharat, 1997. " Location and the Growth of Nations," Journal of Economic Growth, Springer, vol. 2(4), pages 399-418, December.
  12. ERTUR, Cem & KOCH, Wilfried, 2005. "Growth, Technological Interdependence and Spatial Externalities: Theory and Evidence," LEG - Document de travail - Economie 2005-03, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
  13. Klenow, Peter J. & Rodriguez-Clare, Andres, 2005. "Externalities and Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 11, pages 817-861 Elsevier.
  14. Durlauf,S.N. & Kourtellos,A. & Minkin,A., 2000. "The local Solow growth model," Working papers 21, Wisconsin Madison - Social Systems.
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