Regional convergence in the European Union (1985-1999). A spatial dynamic panel analysis

Gabriele Tondl (), Harald Badinger and Werner Müller

ERSA conference papers from European Regional Science Association

Abstract: We estimate the speed of income convergence for a sample of 196 European NUTS 2 regions over the period 1985-1999. So far there is no direct estimator available for dynamic panels with strong spatial dependencies. We propose a two-step procedure, which involves first spatial filtering of the variables to remove the spatial correlation, and application of standard GMM estimators for dynamic panels in a second step. Our results show that ignorance of the spatial correlation leads to potentially misleading results. Applying a system GMM estimator on the filtered variables, we obtain a speed of convergence of seven per cent.

Date: 2003-08
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (8)

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https://www-sre.wu.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/455.pdf (application/pdf)

Related works:
Journal Article: Regional Convergence in the European Union, 1985- 1999: A Spatial Dynamic Panel Analysis (2004)
Working Paper: Regional Convergence in the European Union (1985-1999): A Spatial Dynamic Panel Analysis (2002)
Working Paper: Regional convergence in the European Union (1985 - 1999): A spatial dynamic panel analysis (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa03p455

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