European Regional Convergence in a Human Capital Augmented Solow Model

Diskussionspapiere extern , 19 S.

Hans-Friedrich Eckey, Christian Dreger, Matthias Türck

Kassel: Univ., Fachbereich Wirtschaftswissenschaften, 2006, 19 S.
(Volkswirtschaftliche Diskussionsbeiträge ; 88)

Abstract

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.



JEL-Classification: C21;O47;R11;R15
Keywords: Solow model, regional convergence, spatial lags, spatial filtering
Externer Link:
http://www.ivwl.uni-kassel.de/diskussionsbeitraege/workingpaper/papier8806.pdf
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/32145