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Regional convergence and agglomeration in Argentina: a spatial panel data approach

Author

Listed:
  • Nicole Madariaga

    (TEAM)

  • Sylvie Montout

    (TEAM)

  • Patrice Ollivaud

    (OECD)

Abstract
This paper examines the per capita income convergence process among 23 Argentinean provinces over the period 1983-2002. The purpose of this work is to apply new estimation methods following two-step procedure as in Badinger et al. (2004). We combine a spatial filtering of variables to remove the spatial correlation (Getis and Griffith, 2002) and suitable estimators for dynamic panels (using first-differenced and system GMM estimators). Our estimations on filtered variables reveal a conditional convergence process between Argentinean provinces and a positive and significant impact of agglomeration variables on growth rate. Hence, our results show that ignoring spatial distortions due to geographic proximity misleads estimations and underestimates the speed of convergence specifically for provinces that are distant from Buenos Aires. Moreover, we improve estimations of agglomeration effects when spatial autocorrelation is removed

Suggested Citation

  • Nicole Madariaga & Sylvie Montout & Patrice Ollivaud, 2005. "Regional convergence and agglomeration in Argentina: a spatial panel data approach," Cahiers de la Maison des Sciences Economiques bla05006, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:mse:wpsorb:bla05006
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    Cited by:

    1. Juan Gabriel Brida & Nicolás Garrido & Silvia London, 2013. "Estudio del desempeno económico regional: el caso argentino," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, December.
    2. Mauricio Rodrigo Talassino and Marcos Herrera, 2019. "Impacto de los efectos espaciales en la convergencia regional. Análisis departamental para la Argentina," Working Papers 20, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.
    3. Jonathan Jones & Colin Wren, 2008. "FDI Location Across British Regions and Inward Investment Policy," SERC Discussion Papers 0013, Centre for Economic Performance, LSE.
    4. Brida, Juan Gabriel & London, Silvia & Rojas, Mara, 2012. "Convergencia interregional en dinámica de regimenes: el caso del Mercosur [Regional convergence of dynamic of regimens: the case of Mercosur]," MPRA Paper 36863, University Library of Munich, Germany.
    5. Viego, Valentina, 2010. "Rendimientos crecientes, costos de transporte, eslabonamientos verticales y asimetrías regionales persistentes [Increasing returns, transport costs, vertical linkages and persistent regional inequa," MPRA Paper 26881, University Library of Munich, Germany, revised 04 Aug 2010.
    6. Mauricio Rodrigo Talassino & Marcos Herrera, 2019. "Impacto de los efectos espaciales en la convergencia regional. Análisis departamental para la Argentina," Asociación Argentina de Economía Política: Working Papers 4154, Asociación Argentina de Economía Política.
    7. Jolejole-Foreman, Maria Christina & Mallory, Mindy L. & Baylis, Katherine R., 2013. "Impact of Wheat and Rice Export Ban on Indian Market Integration," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150595, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Growth; convergence; spatial dependence; spatial filtering; dynamic panels; Generalized Method of Monuments;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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