Arbeitspapier
European Regional Convergence in a Human Capital Augmented Solow Model
In this paper, the process of productivity convergence is investigated for the enlarged European Union using regional (NUTS-2) data. The Solow model extended by human capital is employed as a workhorse. Alternative strategies are proposed to control for spatial effects. All specifications confirm the presence of convergence with an annual speed between 3 and 3.5 percent towards regional steady states. Furthermore, a geographically weighted regression approach indicates a wide variation in the speed of convergence across the regions, where a higher speed is striking in particular in France and the UK. Clusters of convergence can be identified, where regions with high convergence also have high initial income levels.
- Language
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Englisch
- Bibliographic citation
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Series: DIW Discussion Papers ; No. 631
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
General Regional Economics: Econometric and Input-Output Models; Other Models
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
regional convergence
spatial lags
spatial filtering
Dreger, Christian
Türck, Matthias
- Handle
- Last update
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20.09.2024, 8:26 AM CEST
Data provider
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Object type
- Arbeitspapier
Associated
- Eckey, Hans-Friedrich
- Dreger, Christian
- Türck, Matthias
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2006