IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa13p772.html
   My bibliography  Save this paper

What about regions in regional science? An exercise of convergence using different geographic scales of European Union

Author

Listed:
  • Guilherme Resende

    ()

  • Tulio Cravo

Abstract

Although the choice of the spatial scale of analysis is a problematic issue in applied research (specifically, in the literature of regional economic growth), it is evident that regional scientists have been very slow at demonstrating the implications of aggregation problems on empirical economic growth studies. The aim of this paper is to examine the alterations in the empirical results caused by the use of different spatial scales in the analysis of convergence process of European Union (EU15) regions by systematically repeating a method originally developed to examine this phenomenon at a single scale across multiple scales (e.g., NUTS1, NUTS2 and NUTS3). Despite the analysis of the robustness of growth regression to various aspects of research design conducted by several studies, it is still necessary to incorporate in this important line of research a deeper investigation of changes in spatial scale of analysis which is usually known by Modifiable Areal Unit Problem (MAUP). Thus, convergence processes among EU15 are examined across three spatial scales often used in applied work, namely, NUTS1, NUTS2 and NUTS3, between 2000 and 2008. The paper suggests that convergence pattern of EU regions depends on the spatial scale of analysis. In sum, the results for NUTS 1 and 2 do not support the hypothesis of b-convergence when country dummies are included in the OLS regressions. On the other hand, results for NUTS 3 controlling for country specific characteristics suggest conditional b-convergence. This might be an indication that convergence occurs within countries at finer scales (NUTS3 level) rather than between EU countries. Furthermore, these findings hold when we correct our econometric specifications for spatial dependence.

Suggested Citation

  • Guilherme Resende & Tulio Cravo, 2013. "What about regions in regional science? An exercise of convergence using different geographic scales of European Union," ERSA conference papers ersa13p772, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa13p772
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa13/ERSA2013_paper_00772.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Julie Le Gallo & Sandy Dall’erba, 2006. "Evaluating the Temporal and Spatial Heterogeneity of the European Convergence Process, 1980–1999," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 269-288, May.
    2. Behrens, Kristian & Thisse, Jacques-Francois, 2007. "Regional economics: A new economic geography perspective," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 457-465, July.
    3. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
      • Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
      • Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
    4. Barro, Robert J & Mankiw, N Gregory & Sala-i-Martin, Xavier, 1995. "Capital Mobility in Neoclassical Models of Growth," American Economic Review, American Economic Association, vol. 85(1), pages 103-115, March.
    5. Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," International Regional Science Review, , vol. 29(1), pages 3-34, January.
    6. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 275-304.
    7. Paul Cheshire & G. Carbonaro, 1996. "Urban Economic Growth in Europe: Testing Theory and Policy Prescriptions," Urban Studies, Urban Studies Journal Limited, vol. 33(7), pages 1111-1128, August.
    8. Luisa Corrado & Bernard Fingleton, 2012. "Where Is The Economics In Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 210-239, May.
    9. Cem Ertur & Wilfried Koch, 2007. "Growth, technological interdependence and spatial externalities: theory and evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(6), pages 1033-1062.
    10. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    11. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
    12. Briant, A. & Combes, P.-P. & Lafourcade, M., 2010. "Dots to boxes: Do the size and shape of spatial units jeopardize economic geography estimations?," Journal of Urban Economics, Elsevier, vol. 67(3), pages 287-302, May.
    13. Somik V. Lall & Zmarak Shalizi, 2003. "Location and Growth in the Brazilian Northeast," Journal of Regional Science, Wiley Blackwell, vol. 43(4), pages 663-681, November.
    14. Sascha Sardadvar, 2012. "Growth and disparities in Europe: Insights from a spatial growth model," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 257-274, June.
    15. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
    16. Guilherme Mendes Resende & Alexandre Xavier Ywata de Carvalho & Patrícia Alessandra Morita Sakowski, 2013. "Evaluating Multiple Spatial Dimensions of Economic Growth in Brazil Using Spatial Panel Data Models (1970 - 2000)," Discussion Papers 1830a, Instituto de Pesquisa Econômica Aplicada - IPEA.
    17. Alan P. Kirman, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-136, Spring.
    18. Daisaku Yamamoto, 2008. "Scales of regional income disparities in the USA, 1955-2003," Journal of Economic Geography, Oxford University Press, vol. 8(1), pages 79-103, January.
    19. Manfred Fischer, 2011. "A spatial Mankiw–Romer–Weil model: theory and evidence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 419-436, October.
    20. Nazrul Islam, 2003. "What have We Learnt from the Convergence Debate?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 309-362, July.
    21. Koen Frenken & Jarno Hoekman, 2006. "Convergence In An Enlarged Europe: The Role Of Network Cities," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 97(3), pages 321-326, July.
    22. Anselin, Luc & Hudak, Sheri, 1992. "Spatial econometrics in practice : A review of software options," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 509-536, September.
    23. J. Barkley Rosser, 2009. "Introduction," Chapters, in: J. Barkley Rosser Jr. (ed.), Handbook of Research on Complexity, chapter 1, Edward Elgar Publishing.
    24. Antonio J. Mora & Esther Vayá & Jordi Suriñach & Enrique López-Bazo, 1999. "original: Regional economic dynamics and convergence in the European Union," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(3), pages 343-370.
    25. Guilherme Mendes Resende, 2011. "Multiple dimensions of regional economic growth: The Brazilian case, 1991−2000," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 629-662, August.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa13p772. 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). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.