Quotation Fischer, Manfred M., Stirböck, Claudia. 2006. Pan-European regional income growth and club-convergence. Insights from a spatial econometric perspective. Annals of Regional Science 40 (3), 1-29.




Club-convergence analysis provides a more realistic and detailed picture about regional income growth than traditional convergence analysis. This paper presents a spatial econometric framework for club-convergence testing that relates the concept of club-convergence to the notion of spatial heterogeneity. The study provides evidence for the club-convergence hypothesis in cross-regional growth dynamics from a pan-European perspective. The conclusions are threefold. First, we reject the standard Barro-style regression model which underlies most empirical work on regional income convergence in favour of a two regime [club] alternative in which different regional economies obey different linear regressions when grouped by means of Getis and Ord’s local clustering technique. Second, the results point to a heterogeneous pattern in the pan-European convergence process. Heterogeneity appears in both the convergence rate and the steady-state level. But, third, the study also reveals that spatial error dependence introduces an important bias in our perception of the club-convergence and shows that neglect of this bias would give rise to misleading conclusions.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Annals of Regional Science
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new VW-D
Language English
Title Pan-European regional income growth and club-convergence. Insights from a spatial econometric perspective
Volume 40
Number 3
Year 2006
Page from 1
Page to 29
Reviewed? Y
DOI 10.1007/s00168-005-0042-6


Regional Income Growth and Club-Convergence in Europe - Insights From a Spatial Econometric Perspective
Fischer, Manfred M. (Details)
Stirböck, Claudia (Deutsche Bundesbank, Germany)
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