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Economic Structure, Technology Diffusion and Convergence: The Case of the Italian Regions

  • Matteo Lanzafame


Taking Italy as a case study, this paper investigates the link between economies' structural similarities and convergence. Specifically, treating technology as sector-specific and modelling technological spillovers as a positive function of the degree of similarity between economies' sectoral features, we propose a modified version of the Solow model and derive an "extended" convergence equation. The latter is then estimated by means of Panel Data procedures and data on the Italian regions over the 1970-1995 period. The results bring empirical support to our approach.

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Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 0507.

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Date of creation: Oct 2005
Date of revision:
Handle: RePEc:ukc:ukcedp:0507
Contact details of provider: Postal: School of Economics, University of Kent, Canterbury, Kent, CT2 7NP
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  17. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
  18. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
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