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.

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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

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Extent:	application/pdf
Series:	Discussion Papers of DIW Berlin. - ISSN 1619-4535.
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:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004963803