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The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?

Author

Listed:
  • Catherine Baumont

    (LATEC UMR 5118 CNRS - University of Burgundy)

  • Cem Ertur

    (LATEC UMR 5118 CNRS - University of Burgundy)

  • Julie Le Gallo

    (LATEC UMR 5118 CNRS - University of Burgundy)

Abstract

We show in this paper that spatial dependence and spatial heterogeneity matter in the estimation of the b-convergence process among 138 European regions over the 1980-1995 period. Using spatial econometrics tools, we detect both spatial dependence and spatial heterogeneity in the form of structural instability across spatial convergence clubs. The estimation of the appropriate spatial regimes spatial error model shows that the convergence process is different across regimes. We also estimate a strongly significant spatial spillover effect: the average growth rate of per capita GDP of a given region is positively affected by the average growth rate of neighboring regions.

Suggested Citation

  • Catherine Baumont & Cem Ertur & Julie Le Gallo, 2002. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," Econometrics 0207002, EconWPA.
  • Handle: RePEc:wpa:wuwpem:0207002
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    References listed on IDEAS

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    Keywords

    convergence; club convergence; spatial econometrics; European regions; spatial regimes; spatial autocorrelation;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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