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FACTORS THAT PROMOTE EXPORT CONVERGENCE: A SPATIAL ANALYSIS IN ROMANIA

Gheorghe Zaman () and Zizi Goschin ()

Romanian Journal of Regional Science, 2017, vol. 11, issue 1, 1-17

Abstract: This paper combines two topics of high interest for regional development in Romania - international trade and real convergence – in an attempt to better understand their recent trends. Aiming to use the most appropriate and up to date instruments for our analysis, we tested the conditional beta convergence model both in its classic regression specification and in the spatial regression framework that allowed us to address properly the territorial dimension of the phenomenon by accounting for spatial autocorrelation in exports. Although the hypothesis of sigma convergence in export flows does not hold, we found a significant process of conditional beta convergence among the Romanian counties, for various model specifications and time intervals. Our results confirm that the prerequisites for real convergence in Romanian exports are already met and sigma convergence might appear in the future.

Keywords: export; sigma and beta convergence; economic crisis; spatial model; county; Romania (search for similar items in EconPapers)
JEL-codes: R10 R12 R58 (search for similar items in EconPapers)
Date: 2017
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