Convergence in per-capita GDP across EU-NUTS2 regions using panel data models extended to spatial

PIRAS, GIANFRANCO; REAL, UIUC E DASTA - Università Di Chieti & GIUSEPPE ARBIA
Most of the empirical works in regional convergence are based on either crosssectional or “a-spatial” panel data models. In this paper, we propose the use of panel data econometrics models that incorporate an explicit consideration of spatial dependence effects (Anselin, 1988; Elhorst, 2001; 2003). This allows us to extend the traditional convergence models to include a rigorous treatment of regional spillovers and to obtain more reliable estimates of the parameters.We consider two models respectively based...