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

Harald Badinger, Werner Müller and Gabriele Tondl ()

No 210, HWWA Discussion Papers from Hamburg Institute of International Economics (HWWA)

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 6.9 per cent and a capital elasticity of 0.43.

Keywords: growth; convergence; spatial dependence; spatial filtering; dynamic panels; GMM (search for similar items in EconPapers)
JEL-codes: C23 O00 R11 (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/19391/1/210.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 (2003)
Working Paper: Regional Convergence in the European Union (1985-1999): A Spatial Dynamic Panel Analysis (2002)
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: https://EconPapers.repec.org/RePEc:zbw:hwwadp:26329

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 ().