Convergence in Pre-Capita GDP Across European Regions: A Reappraisal
32 Pages Posted: 11 Oct 2004
Date Written: October 2004
Abstract
This paper studies convergence in per-capita GDP across European regions over the period 1980-2000. We use median unbiased estimators of the rate of convergence to the steady-state growth path, while allowing for unrestricted patterns of heterogeneity and spatial correlation across regions. By permitting the model parameters to be completely different across regions, not only we avoid imposing strong a priori assumptions but we are also able to analyze the spatial patterns in the estimated coefficients. Our results differ from those found using conventional estimators. The main differences are: i) the mean rate of convergence is much lower; ii) for most regions this rate is zero; iii) the number of regions for which we reject equality in trend growth rates is substantially lower. We also find significant evidence of correlation of growth rates across neighbor regions and across regions belonging to the same country.
Keywords: Regional convergence, median unbiased estimation, heterogeneous panel models
JEL Classification: R11, C40, C49
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Space and Growth: A Survey of Empirical Evidence and Methods
By Maria Abreu, Henri L. F. De Groot, ...
-
Spatial Growth Regressions: Model Specification, Estimation and Interpretation
-
Using Spatial Panel Data in Modelling Regional Growth and Convergence
By Giuseppe Arbia, Roberto Basile, ...
-
The Impact of Human Capital on Regional Labor Productivity in Europe
By Manfred M. Fischer, Monika Bartkowska, ...
-
By Giuseppe Arbia and Gianfranco Piras
-
Semi-Parametric Spatial Auto-Covariance Models of Regional Growth Behaviour in Europe
By Roberto Basile and Bernard Gress
-
Innovation Networks and Knowledge Flows Across the European Regions
By Raffaele Paci and Ernesto Batteta
-
The Terciarization of Regional Economic Structures in Colombia
-
Analysing Convergence through the Distribution Dynamics Approach: Why and How?