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Spatial Effects in European Regional Convergence: ERSA Summer School Study

This study presented at the ERSA Summer School in Groningen 2006 explores the impact of spatial effects on regional convergence within the enlarged Europe. Focusing on EU-25 NUTS-2 regions from 1993 to 2002, it delves into the significance of spatial regimes, clubs convergence, and the use of Getis statistics. Empirical findings support the presence of absolute convergence, with implications for future growth modeling incorporating spatial effects. Future research avenues include refining panel data methods, addressing outliers in growth models, and potentially exploring Bayesian econometrics.

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Spatial Effects in European Regional Convergence: ERSA Summer School Study

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  1. ERSA Summer school Groningen 2006 Convergence among regions of the enlarged Europe: impact of spatial effects Nicolas Debarsy Cem Ertur

  2. General ideas • My research topic consists in implementing theoretically spillovers effects in growth models, and thus using spatial econometrics as methodology • Many studies over EU 15 NUTS-2 regions but barely one over enlarged EU • This study shows importance of spatial effects in EU-25 NUTS-2 regions

  3. General framework • β-convergence framework • Absolute (unconditional) convergence • Spatial regimes

  4. General framework • Clubs convergence (allow to take some spatial heterogeneity into account) • Use of Getis statistics (local autocorrelation statistics) to define spatial regimes

  5. Description of clubs

  6. D1,i=1 if region i belongs to club West D2,i=1 if region i belongs to club East Estimated equation

  7. Empirics • Period: 1993-2002 • 237 NUTS-2 regions • Creation of a weight matrix based on time distance

  8. Estimation of absolute convergence by SAR

  9. Future research and questions • Develop a growth model including spatial effects • work on panel data methods applied to spatial econometrics (Matlab routines) • How to take outliers effet into account in a frequentist approach? • Bayesian econometrics ?

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