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Regional convergence in Germany: A geographically weighted regression approach

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  • Eckey, Hans-Friedrich
  • Kosfeld, Reinhold
  • Türck, Matthias

Abstract

The convergence of German regions represents a politically explosive question. Different studies examined convergence processes of Germany. We derive equations to estimate the convergence speed on basis of a Solow model, to which human capital is added. The geographically weighted regression permits a detailed analysis of convergence processes, which has not been conducted for Germany so far yet. We estimate a separate speed of convergence for every region, which results from the local coefficients of the regression equations. The application of this procedure to German labour market regions shows that regions move with a different speed towards their steady state level. The half lives are substantially longer in the manufacturing sector than in the service sector. One model even yields tendencies towards divergence of some peripheral regions.

Suggested Citation

  • Eckey, Hans-Friedrich & Kosfeld, Reinhold & Türck, Matthias, 2005. "Regional convergence in Germany: A geographically weighted regression approach," Volkswirtschaftliche Diskussionsbeiträge 76, University of Kassel, Faculty of Economics and Management.
  • Handle: RePEc:zbw:kasvdb:76
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    References listed on IDEAS

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    Cited by:

    1. Wieland, Thomas, 2014. "Räumliches Einkaufsverhalten und Standortpolitik im Einzelhandel unter Berücksichtigung von Agglomerationseffekten: Theoretische Erklärungsansätze, modellanalytische Zugänge und eine empirisch-ökonome," MPRA Paper 77163, University Library of Munich, Germany.
    2. Brijesh C. Purohit, 2015. "Health Policy, Inequity and Convergence in India," Working Papers id:7155, eSocialSciences.
    3. Brijesh C. Purohit, 2012. "Health Policy, Inequity and Convergence in India," Working Papers 2012-074, Madras School of Economics,Chennai,India.

    More about this item

    Keywords

    Regional Convergence; Spatial Econometrics; Geographically Weighted Regression;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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