Cover Image

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.
Year of publication:
2006
Authors: Eckey, Hans-Friedrich ; Dreger, Christian ; Türck, Matthias
Institutions: DIW Berlin (Deutsches Institut für Wirtschaftsforschung)
Subject: Solow model | regional convergence | spatial lags | spatial filtering
Full text |
Extent:
application/pdf
Series:
Type of publication: Book / Working Paper
Language: English
Notes:
Number 631 24 pages long
Classification: C21 - Cross-Sectional Models; Spatial Models ; O47 - Measurement of Economic Growth; Aggregate Productivity ; R11 - Regional Economic Activity: Growth, Development, and Changes ; R15 - Econometric and Input-Output Models; Other Models
Source:
Similar items by subject
Similar items by person