Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18524 
Year of Publication: 
2006
Series/Report no.: 
DIW Discussion Papers No. 631
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
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

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