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A spatial approach to EU regional economic convergence: a comparison between parametric and non-parametric analysis

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  • Cristina Brasili
  • Francesca Bruno
  • Annachiara Saguatti

Abstract

The economic convergence among European regions over the period 1980-2006 is analysed in the first place by using a conditional beta-convergence model and a distance-based weight matrix and secondarily by a spatially-conditioned stochastic kernel approach. A Spatial Autoregressive model which identifies two spatial regimes and spatial dependence finds that the convergence process is affected by polarization into two clusters defined both on a geographical and economic criterion, which converge at different rates towards different steady states. A similar result is then reached through a non-parametric analysis of the income distribution dynamics. These results confirm the hypothesis that a methodology which uses spatial econometric techniques is needed. They also suggest some implications for EU Regional Policy that should be taken into account.

Suggested Citation

  • Cristina Brasili & Francesca Bruno & Annachiara Saguatti, 2011. "A spatial approach to EU regional economic convergence: a comparison between parametric and non-parametric analysis," ERSA conference papers ersa11p1271, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa11p1271
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