A spatially filtered mixture of β-convergence regressions for EU regions, 1980–2002

Battisti, Michèle; Vaio, Gianfranco Di

doi:10.1007/s00181-007-0168-8

Cited by 63 publications

(12 citation statements)

References 45 publications

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“…On the other hand, according to Martín [44], another of the main criticisms of "traditional" fixed effects panel models is the bias generated by possible spatial dependencies among regional economies. To deal with spatial interdependence or geographical "spillovers", in studies such as Getis and Griffith [76], Badinger, Müller and Tondl [77] and Battisti and Di Viaio [78] the estimations are made by previously identifying this interdependence through indexes such as Autocorrelation I of Moran or Geary C; others such as Rey and Montouri [79], Fingleton and Lopez-Bazo [80] or Arbia [81], that introduce a spatial "term" in the convergence equation: the spatial error term or the spatially lagged variables. In this sense, and considering the interest in analysing the impact of space on the phenomenon of regional convergence in the Ecuadorian case, a Spatial Durbin Model (sdm) will be estimated for fixed effects, with the purpose of collecting the impact of unobservable effects on the provincial convergence model per capita and in productivity.…”

Section: Panel Model With Fixed Effectsmentioning

confidence: 99%

Spatial Economic Convergence and Public Expenditure in Ecuador

et al. 2019

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In Ecuador, the sectorial policies, public policies and state investment, increase the presence of polarized and polycentric territories with very heterogeneous characteristics and with asymmetric levels of economic growth and development. The explanation for the unequal growth of regions in Ecuador is determined by the existence of different types of asymmetries; that determine economic dynamics and non-convergent development processes. The aim of this research is to determine the effect of an increase in public spending on physical infrastructure and education, on the improvement of productive conditions and on the process of reducing disparities (convergence) at the regional level in Ecuador. To do this, the hypothesis of beta convergence will be tested, which is conditioned by the proxy variables of public expenditure or investment in infrastructure and education at provincial level, for the 2001–2015 period. The results show the existence of a "slight" process of convergence per capita and productivity, although with a significant level of territorial "segregation". In the same way, it is observed that public investment made in this period did not increase the productivity of small and medium-sized provinces significantly, severely conditioning the sustainability of the process of reducing disparities at regional level.

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Section: Panel Model With Fixed Effectsmentioning

confidence: 99%

Spatial Economic Convergence and Public Expenditure in Ecuador

et al. 2019

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“…Mora (2005), Fischer and Stirbock (2006) and Battisti and Vaio (2008) study optimal regional convergence clubs in the European Union. Their primary goal is to define clubs of regions within the European Union sharing the same characteristics in terms of income growth convergence.…”

Section: Introductionmentioning

confidence: 99%

An empirical analysis of income convergence in the European Union

Cavenaile¹,

Dubois²

2011

Applied Economics Letters

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In this article, we investigate the convergence process within the European Union. More particularly, we study the convergence process of the new entrants from Central and Eastern Europe and of the 15 Western countries between 1990 and 2007. Applying a panel approach to the convergence equation derived from the Solow model, we show that new entrants and former members of the European Union can be seen as belonging to different groups of convergence. The existence of heterogeneity in the European Union or the Eurozone might affect their stability as the recent Greece's sovereign debt crisis illustrates it.income convergence, European Union, heterogeneity, panel approach,

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“…They find evidence of the presence of two spatial regimes. Procedures comprising spatial filtering techniques before the actual regression analysis are also proposed by Badinger et al (2004) and Battisti and Vaio (2008) with, however, differing results: across European NUTS-2 regions, Badinger et al (2004) find evidence for conditional convergence, whereas Battisti and Vaio's (2008) mixture regression approach suggests that the majority of European regions shows no tendency to converge. Ramajo et al (2008) explicitly consider spatial heterogeneity and spatial autocorrelation in their regression framework.…”

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confidence: 99%

Regional club convergence in the EU: evidence from a panel data analysis

Lyncker¹,

Thoennessen²

2016

Empir Econ

110

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We investigate club convergence in income per capita in 194 European NUTS-2 regions using a nonlinear, time-varying factor model that allows for individual and transitional heterogeneity. Moreover, we extend an existing club clustering algorithm with two post-clustering merging algorithms that finalize club formation. We also apply an ordered response model to assess the role of initial and structural conditions, as well as geographic factors. Our results indicate the presence of four convergence clubs in the EU-15 countries. In support of the club convergence hypothesis, we find that initial conditions matter for the resulting income distribution. Geographic clustering is quite pronounced; besides a north-to-south division, we detect highincome clusters for capital cities. We conclude that the main supranational policy challenge is the politically sensitive handling of a multi-speed Europe.

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A spatially filtered mixture of β-convergence regressions for EU regions, 1980–2002

Abstract: Regional growth, Convergence patterns, Mixture regression, Spatial effects, C21, O40, R11,

Cited by 63 publications

References 45 publications

Spatial Economic Convergence and Public Expenditure in Ecuador

Spatial Economic Convergence and Public Expenditure in Ecuador

An empirical analysis of income convergence in the European Union

Regional club convergence in the EU: evidence from a panel data analysis

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