Regional Convergence and Spatial Dependence: A Worldwide Perspective

37 Pages Posted: 20 Nov 2017 Last revised: 12 Jul 2019

See all articles by Marcos Sanso-Navarro

Marcos Sanso-Navarro

Universidad de Zaragoza

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza

Miguel Puente-Ajovin

University of Zaragoza; Independent

Date Written: July 10, 2019

Abstract

This paper incorporates technological interdependence into a neoclassical regional growth framework with imperfect factor mobility, leading to a convergence equation with spatial effects. The empirical analysis is based on the estimation of a spatial Durbin panel data model and the implementation of multiple imputation techniques. Our results show that taking into account both unobserved heterogeneity and spatial dependence increases the estimated regional convergence rate. This provides an explanation for puzzling findings in the related literature. We also obtain evidence of heterogeneity across country groups regarding the regional speed of convergence and the degree of diffusion of technology.

Keywords: Technological interdependence, regional convergence, spatial Durbin model, panel data, multiple imputation

JEL Classification: C23, O47, R11

Suggested Citation

Sanso-Navarro, Marcos and Vera-Cabello, María and Puente-Ajovin, Miguel, Regional Convergence and Spatial Dependence: A Worldwide Perspective (July 10, 2019). Available at SSRN: https://ssrn.com/abstract=3072955 or http://dx.doi.org/10.2139/ssrn.3072955

Marcos Sanso-Navarro (Contact Author)

Universidad de Zaragoza ( email )

Facultad de Economía y Empresa
Departamento de Análisis Económico
Zaragoza, 50005
Spain
+34 876 554 629 (Phone)

HOME PAGE: http://personal.unizar.es/marcossn

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza ( email )

Academia General Militar, Ctra. de Huesca, s/n
Zaragoza, Zaragoza 50009
Spain

Miguel Puente-Ajovin

University of Zaragoza ( email )

50005 Zaragoza
Spain

HOME PAGE: http://mpajovin.github.io

Independent ( email )

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