Dynamic Spatial Modelling of Regional Convergence Processes
Jørgen Lauridsen and
Reinhold Kosfeld ()
No 261, HWWA Discussion Papers from Hamburg Institute of International Economics (HWWA)
Econometric analysis of convergence processes across countries or regions usually refers to a transition period between an arbitrary chosen starting year and a fictitious steady state. Panel unit root tests and panel cointegration techniques have proved to belong to powerful econometric tools if the conditions are met. When referring to economically defined regions, though, it is rather an exception than the rule that coherent time series are available. For this case we introduce a dynamic spatial modelling approach which is suitable to trace regional adjustment processes in space instead of time. It is shown how the spatial error-correction mechanism (SEC model) can be estimated depending on the spatial stationarity properties of the variables under investigation. The dynamic spatial modelling approach presented in this paper is applied to the issue of conditional income and productivity convergence across labour market regions in unified Germany.
Keywords: Regional convergence; dynamic spatial models; spatial unit roots; spatial error-correction (search for similar items in EconPapers)
JEL-codes: R15 R11 C21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed
Downloads: (external link)
Journal Article: Dynamic spatial modelling of regional convergence processes (2004)
Working Paper: Dynamic Spatial Modelling of Regional Convergence Processes (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zbw:hwwadp:26211
Access Statistics for this paper
More papers in HWWA Discussion Papers from Hamburg Institute of International Economics (HWWA) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().