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http://hdl.handle.net/10419/18524
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| Title: | | European Regional Convergence in a Human Capital Augmented Solow Model  |
| Authors: | | Eckey, Hans-Friedrich Dreger, Christian Türck, Matthias |
| Issue Date: | | 2006 |
| Series/Report no.: | | DIW-Diskussionspapiere 631 |
| 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. |
| Subjects: | | Solow model regional convergence spatial lags spatial filtering |
| JEL: | | O47 R15 C21 R11 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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