Spatial convergence

摘要

This article analyses the consequences of spatial interdependence for convergence in a Solow-type growth model. In such a model a region's speed of convergence depends on its location and it can be decomposed into: (ⅰ) the speed of convergence proper, (ⅱ) the remoteness effect, and (ⅲ) the impact of the initial gap. Also σ-convergence is affected by spatial interaction and we propose a decomposition to isolate the impact of spatial spillovers. Using GDP per capita of European regions, we calibrate a numerical model with parameters typically found in spatial convergence studies. We find that the remoteness effect leads to considerable variation in the speed of convergence while it marginally affects σ-convergence.