Convergence in per-capita gdp across Eu-Nuts2 regions using panel data models extended to spatial autocorrelations effects

Content Provider	Semantic Scholar
Author	Piras, Gianfranco Arbia, Giuseppe
Copyright Year	2007
Abstract	Most of the empirical works in regional convergence are based on either cross-sectional or “a-spatial” panel data models. In this paper, we propose the use of panel data econometrics models that incorporate an explicit consideration of spatial dependence effects (Anselin, 1988; Elhorst, 2001; 2003). This allows us to extend the traditional convergence models to include a rigorous treatment of regional spillovers and to obtain more reliable estimates of the parameters. We consider two models respectively based on the introduction of a spatial lag among the explanatory variables (the “spatial lag model”) and imposing a spatial autoregressive structure to the stochastic component (the “spatial error model”). We apply such a modelling framework to the long-run convergence of per-capita GDP of 125 EU-NUTS2 regions observed yearly in the period 1977-2002. A comparison of the results obtained using the two spatial panel data specifications with the main evidence available in the literature is also provided.
Starting Page	157
Ending Page	172
Page Count	16
File Format	PDF HTM / HTML
DOI	10.6092/issn.1973-2201/3513
Volume Number	67
Alternate Webpage(s)	https://rivista-statistica.unibo.it/article/download/3513/2873
Alternate Webpage(s)	http://www.real.illinois.edu/d-paper/05/05-t-3.pdf
Alternate Webpage(s)	https://doi.org/10.6092/issn.1973-2201%2F3513
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article