Convergence in Per-Capita GDP Across European Regions Using Panel Data Models Extended to Spatial Autocorrelation Effects

33 Pages Posted: 10 Oct 2006

See all articles by Giuseppe Arbia

Giuseppe Arbia

University G.D'Annunzio

Gianfranco Piras

The Catholic University of America; ISAE, Istituto di Studi e Analisi Economica

Date Written: May 2005

Abstract

This paper studies the convergence of per-capita GDP across European regions over a fairly long period. Most of the works in the field are based on either cross-sectional or fixed-effects estimates. We propose the estimation of convergence in per-capita GDP across European regions by making use of panel-data models extended to include spatial error autocorrelation (Anselin, 1988; Elhorst, 2003). This will allow us to extend the traditional beta-convergence model to include a rigorous treatment of the spatial correlation among the intercept terms. A spatial analysis of such intercept terms will also be performed in order to shed light on the concept of spatially conditional convergence.

Keywords: Regional Convergence, Regional spill-overs, Spatial Dependence Modelling, Spatial Panel Data Models.

JEL Classification: C21, C23, R11

Suggested Citation

Arbia, Giuseppe and Piras, Gianfranco, Convergence in Per-Capita GDP Across European Regions Using Panel Data Models Extended to Spatial Autocorrelation Effects (May 2005). ISAE Working Paper No. 51, Available at SSRN: https://ssrn.com/abstract=936327 or http://dx.doi.org/10.2139/ssrn.936327

Giuseppe Arbia (Contact Author)

University G.D'Annunzio ( email )

viale Pindaro 42
I-65127 Pescara
Italy
+39 085 4537 533 (Phone)

Gianfranco Piras

The Catholic University of America ( email )

United States

ISAE, Istituto di Studi e Analisi Economica ( email )

Piazza dell' Indipendenza 4
I-00185
Italy

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