REGIONAL CONVERGENCE IN NORTH AFRICA REGIONS : PARAMETRIC AND NON PARAMETRIC APPROACHES

Authors

  • Mohamed HAZEM University of Manouba

DOI:

https://doi.org/10.47742/ijbssr.v2n1p2

Keywords:

North Africa, growth, convergence, spatial econometrics, Markov chain

Abstract

Attention to issues of inequality and convergence has become a topic of considerable interest in both developing and developed economies. The purpose of this paper is to study empirically the evolution of the disparities between more than 360 Maghreb regions considering spatial dependence and to explore a non-parametric approach for characterizing convergence of GDP per capita. This study utilizes growth theory as the theoretical foundation to explore the convergence hypothesis. The methodology consists of identifying the shape of the long-run spatial associations through the use of Markov chains which make it possible to derive a unique stationary distribution related to the transition matrix. The results of the analysis indicate the persistence of regional disparities and the importance of geography to explain the global convergence process with positive spatial spillover effects. The proportion of high-income regions surrounded by similar regions has significantly increased detrimentally to the other spatial associations. This non-parametric approach complements the standard parametric method (absolute and conditional beta-convergence) which shows that the slow convergence process can be accelerated by beneficial spatial interaction effects. These results have strong policy implications with regard to national and territorial policies in these countries.

Downloads

Download data is not yet available.

References

Alexiadis, S. (2013), Convergence Clubs and Spatial Externalities: Models and Applications of Regional Convergence in Europe, Advances in Spatial Science. New York and Heidelberg: Springer, pp. xiv, 244.

Bailey.T. & Gatrell, A. (1995). Interactive Spatial Data Analysis, Longman, Harlow.

Baumont, C., Ertur, C. & Le Gallo, J. (2000). Convergence des régions européennes: Une approche par l’économétrie spatiale. Revue d’Economie Régionale et Urbaine, 2002, vol. 2, pp. 203-216.

Dall’Erba, S. and J. Le Gallo (2008) “Regional convergence and the impact of European structural funds over 1989-1999: a spatial econometric analysis”, Papers in Regional Science, vol. 87(2): 219-244.

Davor, M., Andrea, G., Zeljko, L (2013). Regional convergence in the European Union, new Member States and Croatia, South East European Journal of Economics and Business, Volume 8(1), 7-19.

Ferrer, E (2017). Regional convergence and productive structure in Iberian regions: A spatial approach, Revista Portuguesa de Estudos Regionais, nº 47.

Guétat, I. and F. Serranito (2010), “Convergence et Rattrapage Technologique : Un Test par les Séries Temporelles dans le Cas de' Pays de la Région MENA », Revue d’Economie du Développement, 2 : 5-45.

Haining, R. (1990). Spatial Data Analysis in the Social and Environmental Sciences, Cambridge University Press, Cambridge.

Hammouda, H., S. Karingi, A. Njuguna and M. Sadni-Jallab (2009) “Why Doesn't Regional Integration Improve Income Convergence in Africa?”, African Development Review, 21(2): 291-330.

Kosfeld, R. and J. Lauridsen (2009) “Dynamic Spatial Modelling of Regional Convergence Spatial Econometrics: Methods and Applications, pp. 245-61, Studies in Empirical Economics. New York: Springer, Physica.

Le Gallo, J. (2002). Econométrie spatiale: L’autocorrélation spatiale dans les modèles de régression linéaire. Economie et prévision, 155, 139- 157.

Matsuura, K. and C. Willmott (2009) “Terrestrial Precipitation and Temperature: 1900-2008 Gridded Monthly Time Series”, Center for Climatic Research, Department of Geography,

Péridy, N. and C. Bagoulla (2012) “An Analysis of Real Convergence and its Determinants: Evidence from MENA countries (with C. Bagoulla), Journal of Economic Integration, 27(1): 80-114

Péridy, N., M. Hazem and M. Brunetto (2013) Some new Insights into Real Convergence in MENA countries’ regional areas: A Spatial Econometric Analysis, Economics and Business Letters, 2(4).

Soundararajan, P. (2013) “Regional income convergence in India: A Bayesian Spatial Durbin Model approach”, MPRA Paper No.48453.

Zachary. S, Harper. A. (2013). Spatial Econometric Analysis of Regional Income Convergence: The Case of North Carolina and Virginia. Research in Business and Economics Journal.

Downloads

Published

2021-01-13

How to Cite

HAZEM, M. (2021). REGIONAL CONVERGENCE IN NORTH AFRICA REGIONS : PARAMETRIC AND NON PARAMETRIC APPROACHES . International Journal of Business and Social Science Research, 2(1), 13–19. https://doi.org/10.47742/ijbssr.v2n1p2

Issue

Section

Articles