Multiple Regimes in Cross-Region Growth Regressions with Spatial Dependence: A Parametric and a Semi-parametric Approach
This paper studies the distribution dynamics of development across European regions over the period 1975-2000. Regional development is measured in terms of both per capita GDP (Y/P) and its components: labour productivity and employment ratio (that in turn can be decomposed in terms of activity and unemployment rate). The Core/Periphery pattern in the European Union is firstly investigated and a comparative analysis in terms of income, productivity, employment and unemployment rates of the two partitions is carried out. Moreover, for each variable as well as for each partition, a nonparametric beta convergence analysis is applied. Synthetically, the results confirm the lack of regional convergence in per capita incomes, the presence of a negative quasi-linear relationship between growth rates and initial levels of labour productivity and a U-shaped relationship between growth rates and initial levels of unemployment rates. As it is well known, however, b-convergence analysis does not allow any test of multiple equilibria, such as “emerging twin peaks”, in the growth process. Equilibrium multiplicity can be properly assessed by using nonparametric techniques of analysis of the cross-regional distribution. In particular, a way to quantify the intra-distribution dynamics is the multivariate kernel, which estimates the joint density of regional income, productivity and (un)employment distribution at time t0 and t0+t. The results of this analysis suggest that over the period considered the regional growth pattern in Europe has followed a polarisation process rather than a convergence path. This appears particularly true in the case of per capita incomes and unemployment rates. Finally, in order to “explain” polarisation, conditional multivariate kernels are estimated. In particular, the role of spatial contiguity and regional sectoral specialisation is investigated.
|Date of creation:||Aug 2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Durlauf, S.M. & Johnson, P.A., 1995.
"Multiple Regimes and Cross-Country Growth Behavior,"
9419r, Wisconsin Madison - Social Systems.
- Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-84, Oct.-Dec..
- Durlauf, S.N. & Johnson, P.A., 1994. "Multiple Regimes and Cross-Country Growth Behavior," Working papers 9419, Wisconsin Madison - Social Systems.
- Durlauf, Steven N. & Quah, Danny T., 1999.
"The new empirics of economic growth,"
Handbook of Macroeconomics,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308
- S Durlauf & Danny Quah, 1998. "The New Empirics of Economic Growth," CEP Discussion Papers dp0384, Centre for Economic Performance, LSE.
- Durlauf,S.N. & Quah,D.T., 1998. "The new empirics of economic growth," Working papers 3, Wisconsin Madison - Social Systems.
- Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
- Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," Working Papers 98-01-012, Santa Fe Institute.
- Durlauf,S.N. & Kourtellos,A. & Minkin,A., 2000.
"The local Solow growth model,"
21, Wisconsin Madison - Social Systems.
- Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
- Liu, Zhenjuan & Stengos, Thanasis, 1999. "Non-linearities in Cross-Country Growth Regressions: A Semiparametric Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 527-38, Sept.-Oct.
- Mankiw, N Gregory & Romer, David & Weil, David N, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 407-37, May.
- Roberto Basile & Sergio De Nardis & Alessandro Girardi, 2003. "Dinamiche di sviluppo nel centro e nella periferia d'Europa: il ruolo delle politiche strutturali," Rivista di Politica Economica, SIPI Spa, vol. 93(4), pages 89-134, July-Augu.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa03p4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.