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Spanish regions catching-up to Europe: an analysis based on the IB-MPI unit root procedure

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  • Antonio Arroyo
  • Aránzazu Juan

Abstract

This article investigates the pair-wise convergence hypothesis of 17 Spanish regions with respect to the European Union (EU) and Euro-Zone (EZ). Several definitions of convergence are taken into account. The IB-MPI unit root testing procedure is then applied. A simultaneous approach based on the gap in levels and logs is developed to study convergence. The empirical results show incomplete catching-up in six cases with respect to both EU and EZ, and complete catching-up in nine with respect to EU and four with respect to EZ. When taking into account the behaviour of both gaps and loggaps, we further get four cases of cointegrated regions with respect to EZ and only one with respect to EU. Finally, there are four regions that diverge with respect to EU, but do converge with respect to the EZ. Only Baleares diverges with respect to both of them. Copyright Springer-Verlag 2013

Suggested Citation

  • Antonio Arroyo & Aránzazu Juan, 2013. "Spanish regions catching-up to Europe: an analysis based on the IB-MPI unit root procedure," Empirical Economics, Springer, vol. 45(2), pages 715-733, October.
    • Handle: RePEc:spr:empeco:v:45:y:2013:i:2:p:715-733
    DOI: 10.1007/s00181-012-0634-9
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    References listed on IDEAS

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    More about this item

    Keywords

    IB-MPI unit-root test; Gaps vs. loggaps; Pair-wise time-series convergence; Structural Funds; C12; C22; C52; F02;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • F02 - International Economics - - General - - - International Economic Order and Integration

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