Economics at your fingertips  

A spatial econometric analysis of geographic spillovers and growth for European regions, 1980-1995

Catherine Baumont, Cem Ertur and Julie Le Gallo ()
Additional contact information
Catherine Baumont: LATEC - Laboratoire d'Analyse et de Techniques Economiques - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: The aim of this paper is to consider the geographical dimension of data in the estimation of the convergence of European regions and to emphasize geographic spillovers in regional economic growth phenomena. In a sample of 138 European regions over the 1980-1995 period, we show that the unconditional /? -convergence model is misspecified due to spatially autocorrelated errors. Its estimation by Ordinary Least Squares leads to inefficient estimators and invalid statistical inference. Using spatial econometric methods and a distance based weight matrix we then estimate an alternative specification, which takes into account the spatial autocorrelation detected and leads to reliable statistical inference. Moreover this specification allows us to highlight a geographic spillover effect: the mean growth rate of a region is positively influenced by those of neighboring regions. We finally show by a simulation experiment that a random shock affecting a given region propagates to all the regions of the sample.

Keywords: economic theory; management; management economics; economics; gestion; économie (search for similar items in EconPapers)
Date: 2001
Note: View the original document on HAL open archive server:
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Published in [Research Report] Laboratoire d'analyse et de techniques économiques(LATEC). 2001, 26 p., ref. bib. : 2 p

Downloads: (external link) (application/pdf)

Related works:
Working Paper: A Spatial Econometric Analysis of Geographic Spillovers and Growth for European Regions, 1980-1995 (2001) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2021-07-12
Handle: RePEc:hal:wpaper:hal-01526858