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Regional growth in Western Europe : an empirical exploration of interactions with agriculture and agricultural policy

Bivand, Roger S.; Brunstad, Rolf Jens
Working paper
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URI
http://hdl.handle.net/11250/163292
Date
2002-01
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  • Discussion papers (SAM) [604]
Abstract
Studies of convergence of regional growth in Western Europe have given varying

results, depending on the addition of conditioning variables and estimation methods,

as well as underlying models. This exploration adds agricultural variables to the basic

convergence model, which suggests that initially poorer regions grow faster than

initially more wealthy regions. Subsidising agriculture may be expected to impact

growth in different ways than initial gross value added per capita. We find some

support for our hypothesis that agricultural support has a negative impact on

convergence. The coefficients have the right sign and are significant or nearly

significant, but the results of both the basis model and our augmented model may be

subject to other mis-specification problems, possibly including non-stationarity, even after including the spatially lagged dependent variable. This is examined using

geographically weighted regression.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2002:1

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