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Regional convergence and spatial dependence: a worldwide perspective

Author

Listed:
  • Marcos Sanso-Navarro

    (Universidad de Zaragoza)

  • María Vera-Cabello

    (Centro Universitario de la Defensa de Zaragoza)

  • Miguel Puente-Ajovín

    (Universidad de Zaragoza)

Abstract

This paper incorporates technological interdependence into a neoclassical regional growth framework with imperfect factor mobility, leading to a convergence equation with spatial effects. The empirical analysis is based on the estimation of a spatial Durbin panel data model and the implementation of multiple imputation techniques. Our results show that taking into account both unobserved heterogeneity and spatial dependence increases the estimated regional convergence rate. This provides an explanation for puzzling findings in the related literature. We also obtain evidence of heterogeneity across country groups regarding the regional speed of convergence and the degree of diffusion of technology.

Suggested Citation

  • Marcos Sanso-Navarro & María Vera-Cabello & Miguel Puente-Ajovín, 2020. "Regional convergence and spatial dependence: a worldwide perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 147-177, August.
    • Handle: RePEc:spr:anresc:v:65:y:2020:i:1:d:10.1007_s00168-020-00978-4
    DOI: 10.1007/s00168-020-00978-4
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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