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Title:Regional convergence in Germany: a geographically weighted regression approach PDF Logo
Authors:Eckey, Hans-Friedrich
Kosfeld, Reinhold
Türck, Matthias
Issue Date:2005
Series/Report no.:Volkswirtschaftliche Diskussionsbeiträge 76
Abstract:The convergence of German regions represents a politically explosive question. Different studies examined convergence processes of Germany. We derive equations to estimate the convergence speed on basis of a Solow model, to which human capital is added. The geographically weighted regression permits a detailed analysis of convergence processes, which has not been conducted for Germany so far yet. We estimate a separate speed of convergence for every region, which results from the local coefficients of the regression equations. The application of this procedure to German labour market regions shows that regions move with a different speed towards their steady state level. The half lives are substantially longer in the manufacturing sector than in the service sector. One model even yields tendencies towards divergence of some peripheral regions.
Subjects:Regional Convergence
Spatial Econometrics
Geographically Weighted Regression
JEL:C21
R11
R58
Document Type:Working Paper
Appears in Collections:Volkswirtschaftliche Diskussionsbeiträge, Universität Kassel

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