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Spatial Clubs in European Regions

Davide Fiaschi (), Lisa Gianmoena and Angela Parenti ()

Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy

Abstract: This paper finds evidence of spatial clubs in a sample of 254 European regions in the period 1991-2008. A dynamic extension of the Moran scatter plot, consisting in a non parametric estimate of the joint dynamics of GDP per worker and its spatial lag, suggests the emergence of three spatial clubs: one populated by regions belonging to the former Eastern Bloc countries, one by regions of PIGS countries (Portugal, Italy, Greece and Spain) and the last one by regions of other EU countries (notably Germany, France, UK and Northern Europe countries). In the long run the convergence process is evident only to two spatial clubs with Eastern regions converging to PIGS regions. Spatial spillovers are present across European regions, and their contribution to the emergence of spatial clubs is crucial. On the contrary, cross-region heterogeneity in human capital has a very limited impact on the distribution of GDP per worker. Finally, unobserved heterogeneity explains a substantial share of inequality and polarization.

Keywords: Moran scatter plot; spatial panels; spatial spillovers; bipolarization; core-periphery pattern. (search for similar items in EconPapers)
JEL-codes: C21 R11 O52 F41 (search for similar items in EconPapers)
Date: 2015-02-01
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
Note: ISSN 2039-1854
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Handle: RePEc:pie:dsedps:2015/196