1. ERSA Summer school Groningen 2006 Convergence among regions of the enlarged Europe: impact of spatial effects Nicolas DebarsyCem Ertur

2. General ideas My research topic consists in implementing theoretically spillovers effects in growth models, and thus using spatial econometrics as methodology Many studies over EU 15 NUTS-2 regions but barely one over enlarged EU This study shows importance of spatial effects in EU-25 NUTS-2 regions

3. General framework β-convergence framework –Absolute (unconditional) convergence –Spatial regimes

4. General framework Clubs convergence (allow to take some spatial heterogeneity into account) Use of Getis statistics (local autocorrelation statistics) to define spatial regimes

5. Description of clubs

6. Estimated equation D 1,i =1 if region i belongs to club West D 2,i =1 if region i belongs to club East

7. Empirics Period: 1993-2002 237 NUTS-2 regions Creation of a weight matrix based on time distance

8. Estimation of absolute convergence by SAR

10. Future research and questions Develop a growth model including spatial effects work on panel data methods applied to spatial econometrics (Matlab routines) How to take outliers effet into account in a frequentist approach? Bayesian econometrics ?