Using the spatial autoregressively distributed lag model in assessing the regional convergence of per‐capita income in the EU25

Alicja Olejnik ()

Papers in Regional Science, 2008, vol. 87, issue 3, 371-384

Abstract: Abstract. The present study investigates the spatially dynamic income process among 228 regions of the extended European Union 25 on the basis of the augmented Solow model. In particular spatial autocorrelation effects are taken into account. Although a lot of empirical work has been done recently on the convergence process in EU, the importance of pure spatial interactions is still largely underestimated. In this paper a spatially dynamic approach is considered to describe the driving forces present in the economic system rather than the actual movements through time. The spatial error‐correction and other related models are presented and used to explain the process of regional convergence observed at the level of the EU25 NUTS 2 regions in 2004. Resumen. Este estudio investiga el proceso espacialmente dinámico de renta entre 228 regiones de la Unión Europea de los 25 en base al modelo de Solow aumentado. En particular se toman en cuenta los efectos de autocorrelación espacial. Aunque recientemente se ha realizado mucho trabajo empírico sobre el proceso de convergencia en la UE, la importancia de las interacciones espaciales puras está aun subestimada en gran parte. En este artículo se considera un enfoque espacialmente dinámico para describir las fuerzas impulsoras presentes en el sistema económico en vez de los movimientos en el tiempo. La corrección de error espacial y otros modelos relacionados se muestran y utilizan para explicar el proceso de convergencia regional observado para las regiones NUTS2 de la UE (25) en el 2004.

Date: 2008
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Citations: View citations in EconPapers (27)

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https://doi.org/10.1111/j.1435-5957.2008.00190.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:87:y:2008:i:3:p:371-384

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