The impact of regional inequality on economic growth: a spatial econometric approach

REFERENCES

• Alesina, A., & Rodrik, D. (1994). Distributive politics and economic growth. The Quarterly Journal of Economics, 109(2), 465–490. https://doi.org/https://doi.org/10.2307/2118470
   Web of Science ®Google Scholar
• Anderson, J., & van Wincoop, E. (2003). Gravity with gravitas: A solution to the border puzzle. American Economic Review, 93(1), 170–192. https://doi.org/https://doi.org/10.1257/000282803321455214
   Web of Science ®Google Scholar
• Anselin, L. (1988). Spatial econometrics: Methods and models. Kluwer.
   Google Scholar
• Anselin, L., & Rey, S. J. (1991). Properties of tests for spatial dependence in linear regression models. Geographical Analysis, 23(2), 112–131. https://doi.org/https://doi.org/10.1111/j.1538-4632.1991.tb00228.x
   Web of Science ®Google Scholar
• Arbia, G. (2001). The role of spatial effects in the empirical analysis of regional concentration. Journal of Geographical Systems, 3(3), 271–281. https://doi.org/https://doi.org/10.1007/PL00011480
   Google Scholar
• Artelaris, P., & Petrakos, G. (2016). Intraregional spatial inequalities and regional income level in the European Union: Beyond the inverted-U hypothesis. International Regional Science Review, 39(3), 291–317. https://doi.org/https://doi.org/10.1177/0160017614532652
   Web of Science ®Google Scholar
• Bailey, N., Holly, S., & Pesaran, M. H. (2016). A two-stage approach to spatio-temporal analysis with strong and weak cross-sectional dependence. Journal of Applied Econometrics, 31(1), 249–280. https://doi.org/https://doi.org/10.1002/jae.2468
   Web of Science ®Google Scholar
• Basile, R., Durbán, M., Mínguez, R., Montero, J. M., & Mur, J. (2014). Modeling regional economic dynamics: Spatial dependence, spatial heterogeneity and nonlinearities. Journal of Economic Dynamics and Control, 48, 229–245. https://doi.org/https://doi.org/10.1016/j.jedc.2014.06.011
   Web of Science ®Google Scholar
• Basile, R., & Gress, B. (2005). Semi-parametric spatial auto-covariance models of regional growth behaviour in Europe. Région et Développement, 21, 93–118.
   Google Scholar
• Butkus, M., Cibulskiene, D., Maciulyte-Sniukiene, A., & Matuzeviciute, K. (2018). What is the evolution of convergence in the EU? Decomposing EU disparities up to the NUTS 3 level. Sustainability, 10(5), 1–37. https://doi.org/https://doi.org/10.3390/su10051552
   Web of Science ®Google Scholar
• Capello, R., Caragliu, A., & Fratesi, U. (2018). Measuring border effects in European cross-border regions. Regional Studies, 52(7), 986–996. https://doi.org/https://doi.org/10.1080/00343404.2017.1364843
   Web of Science ®Google Scholar
• Chen, B. (2003). An inverted-U relationship between inequality and long-run growth. Economics Letters, 78(2), 205–212. https://doi.org/https://doi.org/10.1016/S0165-1765(02)00221-5
   Web of Science ®Google Scholar
• Chow, G. C. (1960). Tests of equality between sets of coefficients in two linear regressions. Econometrica, 28(3), 591–605. https://doi.org/https://doi.org/10.2307/1910133
   Web of Science ®Google Scholar
• Crespo Cuaresma, J., Doppelhofer, G., & Feldkircher, M. (2014). The determinants of economic growth in European regions. Regional Studies, 48(1), 44–67. https://doi.org/https://doi.org/10.1080/00343404.2012.678824
   Web of Science ®Google Scholar
• De Dominicis, L. (2014). Inequality and growth in European regions: Toward a place-based approach. Spatial Economic Analysis, 9(2), 120–141. https://doi.org/https://doi.org/10.1080/17421772.2014.891157
   Web of Science ®Google Scholar
• Durlauf, S. N., & Johnson, P. A. (1995). Multiple regimes and cross-country growth behaviour. Journal of Applied Econometrics, 10(4), 365–384. https://doi.org/https://doi.org/10.1002/jae.3950100404
   Web of Science ®Google Scholar
• Elhorst, J. P. (2010). Applied spatial econometrics: Raising the bar. Spatial Economic Analysis, 5(1), 9–28. https://doi.org/https://doi.org/10.1080/17421770903541772
   Web of Science ®Google Scholar
• Ertur, C., & Koch, W. (2007). Growth, technological interdependence and spatial externalities: Theory and evidence. Journal of Applied Econometrics, 22(6), 1033–1062. https://doi.org/https://doi.org/10.1002/jae.963
   Web of Science ®Google Scholar
• Ertur, C., Le Gallo, J., & Baumont, C. (2006). The European regional convergence process, 1980–1995: Do spatial regimes and spatial dependence matter? International Regional Science Review, 29(1), 3–34. https://doi.org/https://doi.org/10.1177/0160017605279453
   Web of Science ®Google Scholar
• Eurostat. (2019). Methodological manual on territorial typologies (2018 ed.). Publication Office of the European Union.
   Google Scholar
• Ezcurra, R., & Rodríguez-Pose, A. (2013). Does economic globalization affect regional inequality? A cross-country analysis. World Development, 52(1), 92–103. https://doi.org/https://doi.org/10.1016/j.worlddev.2013.07.002
   Web of Science ®Google Scholar
• Ezcurra, R., & Rodríguez-Pose, A. (2014). Trade openness and spatial inequality in emerging countries. Spatial Economic Analysis, 9(2), 162–182. https://doi.org/https://doi.org/10.1080/17421772.2014.891155
   Web of Science ®Google Scholar
• Fischer, M. M. (2011). A spatial Mankiw–Romer–Weil model: Theory and evidence. The Annals of Regional Science, 47(2), 419–436. https://doi.org/https://doi.org/10.1007/s00168-010-0384-6
   Web of Science ®Google Scholar
• Forbes, K. J. (2000). A reassessment of the relationship between inequality and growth. American Economic Review, 90(4), 869–887. https://doi.org/https://doi.org/10.1257/aer.90.4.869
   Web of Science ®Google Scholar
• Galor, O. (2000). Income distribution and the process of development. European Economic Review, 44(4–6), 706–712. https://doi.org/https://doi.org/10.1016/S0014-2921(99)00039-2
   Web of Science ®Google Scholar
• Galor, O., & Moav, O. (2004). From physical to human capital accumulation: Inequality and the process of development. Review of Economic Studies, 71(4), 1001–1026. https://doi.org/https://doi.org/10.1111/0034-6527.00312
   Web of Science ®Google Scholar
• Henderson, J. V., Squires, T. L., Storeygard, A., & Weil, D. N. (2018). The global spatial distribution of economic activity: Nature, history and the role of trade. The Quarterly Journal of Economics, 133(1), 357–406. https://doi.org/https://doi.org/10.1093/qje/qjx030
   PubMed Web of Science ®Google Scholar
• Iammarino, S., Rodríguez-Pose, A., & Storper, M. (2019). Regional inequality in Europe: Evidence, theory and policy implications. Journal of Economic Geography, 19(2), 273–298. https://doi.org/https://doi.org/10.1093/jeg/lby021
   Web of Science ®Google Scholar
• Janikas, M. V., & Rey, S. J. (2008). On the relationships between spatial clustering, inequality, and economic growth in the United States: 1969–2000. Region et Développement, 27, 13–34.
   Google Scholar
• Kaldor, N. (1956). Alternative theories of distribution. The Review of Economic Studies, 23(2), 83–100. https://doi.org/https://doi.org/10.2307/2296292
   Web of Science ®Google Scholar
• Kashiha, M., Depken, C., & Thill, J.-C. (2016). Border effects in a free-trade zone: Evidence from European wine shipments. Journal of Economic Geography, 17, 411–433. https://doi.org/https://doi.org/10.1093/jeg/lbw017
   Web of Science ®Google Scholar
• Koo, J., & Song, Y. (2016). The relationship between income inequality and aggregate saving: An empirical analysis using cross-country panel data. Applied Economics, 48(10), 892–901. https://doi.org/https://doi.org/10.1080/00036846.2015.1090548
   Web of Science ®Google Scholar
• Le Gallo, J., & Ertur, C. (2003). Exploratory spatial data analysis of the distribution of regional per capita GDP in Europe, 1980–1995. Papers in Regional Science, 82(2), 175–201. https://doi.org/https://doi.org/10.1007/s101100300145
   Web of Science ®Google Scholar
• LeSage, J., & Pace, K. (2009). Introduction to spatial econometrics. CRC Press.
   Google Scholar
• Lessmann, C. (2014). Spatial inequality and development. Is there an inverted-U relationship? Journal of Development Economics, 106(C), 35–51. https://doi.org/https://doi.org/10.1016/j.jdeveco.2013.08.011
   Web of Science ®Google Scholar
• Lessmann, C., & Seidel, A. (2017). Reginal inequality, convergence, and its determinants. A view from outer space. European Economic Review, 92(1), 110–132. https://doi.org/https://doi.org/10.1016/j.euroecorev.2016.11.009
   Web of Science ®Google Scholar
• Li, H., & Zou, H. (1998). Income inequality is not harmful for growth: Theory and evidence. Review of Development Economics, 2(3), 318–334. https://doi.org/https://doi.org/10.1111/1467-9361.00045
   Google Scholar
• Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. The Quarterly Journal of Economics, 107, 407–437. https://doi.org/https://doi.org/10.2307/2118477
   Web of Science ®Google Scholar
• Márquez, M. A., Lasarte-Navamuel, E., & Lufin, M. (2019). The role of neighborhood in the analysis of spatial economic inequality. Social Indicators Research, 141(1), 245–273. https://doi.org/https://doi.org/10.1007/s11205-017-1814-y
   Web of Science ®Google Scholar
• Martino, C., & Perugini, G. (2008). Income inequality within European regions: Determinants and effects on growth. Review of Income and Wealth, 3, 373–406. https://doi.org/https://doi.org/10.1111/j.1475-4991.2008.00280.x
   Web of Science ®Google Scholar
• McCallum, J. (1995). National borders matter: Canada–U.S. regional trade patterns. American Economic Review, 85(3), 615–623.
   Web of Science ®Google Scholar
• McMillen, D. P. (2012). Perspectives on spatial econometrics: Linear smoothing with structured models. Journal of Regional Science, 52(2), 192–209. https://doi.org/https://doi.org/10.1111/j.1467-9787.2011.00746.x
   Web of Science ®Google Scholar
• Mookherjee, D., & Shorrocks, A. (1982). A decomposition analysis of the trend in UK income inequality. The Economic Journal, 92(368), 886–902. https://doi.org/https://doi.org/10.2307/2232673
   Web of Science ®Google Scholar
• Panizza, U. (2002). Income inequality and economic growth: Evidence from American data. Journal of Economic Growth, 7(1), 25–41. https://doi.org/https://doi.org/10.1023/A:1013414509803
   Web of Science ®Google Scholar
• Panzera, D., & Postiglione, P. (2020). Measuring the spatial dimension of regional inequality: An approach based on the Gini correlation measure. Social Indicators Research, 148(2), 379–394. https://doi.org/https://doi.org/10.1007/s11205-019-02208-7
   Web of Science ®Google Scholar
• Partridge, M. D. (2005). Does income distribution affect U.S. state economic growth? Journal of Regional Science, 45(2), 363–394. https://doi.org/https://doi.org/10.1111/j.0022-4146.2005.00375.x
   Web of Science ®Google Scholar
• Persson, T., & Tabellini, G. (1994). Is inequality harmful for growth? American Economic Review, 84, 600–621. https://doi.org/https://doi.org/10.3386/w3599
   Web of Science ®Google Scholar
• Pesaran, M. H. (2015). Testing weak cross-section dependence in large panels. Econometric Reviews, 34(6–10), 1089–1117. https://doi.org/https://doi.org/10.1080/07474938.2014.956623
   Web of Science ®Google Scholar
• Petrakos, G., Rodríguez-Pose, A., & Rovolis, A. (2005). Growth, integration, and regional disparities in the European Union. Environment and Planning A: Economy and Space, 37(10), 1837–1855. https://doi.org/https://doi.org/10.1068/a37348
   Web of Science ®Google Scholar
• Portnov, B. A., & Felsenstein, D. (2010). On the suitability of income inequality measures for regional analysis: Some evidence from simulation analysis and bootstrapping tests. Socio-Economic Planning Sciences, 44(4), 212–219. https://doi.org/https://doi.org/10.1016/j.seps.2010.04.002
   Google Scholar
• Postiglione, P., Andreano, M. S., & Benedetti, R. (2013). Using constrained optimization for the identification of convergence clubs. Computational Economics, 42(2), 151–174. https://doi.org/https://doi.org/10.1007/s10614-012-9325-z
   Web of Science ®Google Scholar
• Postiglione, P., Benedetti, R., & Lafratta, G. (2010). A regression tree algorithm for the identification of convergence clubs. Computational Statistics & Data Analysis, 54(11), 2776–2785. https://doi.org/https://doi.org/10.1016/j.csda.2009.04.006
   Web of Science ®Google Scholar
• Quah, D. (1997). Empirics for growth and distribution: Stratification, polarization and convergence clubs. Journal of Economic Growth, 2(1), 27–59. https://doi.org/https://doi.org/10.1023/A:1009781613339
   Google Scholar
• Rey, S. J., & Janikas, M. V. (2005). Regional convergence, inequality, and space. Journal of Economic Geography, 5(2), 155–176. https://doi.org/https://doi.org/10.1093/jnlecg/lbh044
   Web of Science ®Google Scholar
• Rey, S. J., & Smith, R. J. (2013). A spatial decomposition of the Gini coefficient. Letters in Spatial and Resource Sciences, 6(2), 55–70. https://doi.org/https://doi.org/10.1007/s12076-012-0086-z
   Google Scholar
• Rodríguez-Pose, A. (2012). Trade and regional inequality. Economic Geography, 88(2), 109–136. https://doi.org/https://doi.org/10.1111/j.1944-8287.2012.01147.x
   Web of Science ®Google Scholar
• Shorrocks, A., & Wan, G. (2005). Spatial decomposition of inequality. Journal of Economic Geography, 5(1), 59–81. https://doi.org/https://doi.org/10.1093/jnlecg/lbh054
   Web of Science ®Google Scholar
• Theil, H. (1967). Economics and information theory. North Holland.
   Google Scholar
• Thorbecke, E., & Charumilind, C. (2002). Economic inequality and its socioeconomic impact. World Development, 30(9), 1477–1495. https://doi.org/https://doi.org/10.1016/S0305-750X(02)00052-9
   Web of Science ®Google Scholar