Convergence in Per-capita GDP across European Regions using Panel Data Models Extended to Spatial Autocorrelation Effects
- 1 May 2005
- preprint
- Published by Elsevier BV in SSRN Electronic Journal
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
Other Versions
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