space and growth: a survey of empirical evidence ... - ResearchGate

22 Maria Abreu, Henri L.F. de Groot and Raymond J.G.M. Floraxtheory or policy considerations). Of these studies, 11% use spatial data analysistechniques, 6% use a spatial lag model, 29% estimate a combination of thespatial error, spatial lag, spatial cross-regressive and spatial regimes models,11% look at Markov transition matrices, and 6% use other more unusual types ofmodels. The distribution of the remaining studies by type of channel is almostevenly split among four categories: 8% of the studies have focused on spatialheterogeneity, 11% on technology diffusion, 10% on spatial spillovers and 8%on spatial convergence clubs. The statistics also indicate that 8% of the studiesare based on models of absolute location, and 92% on models of relativelocation. Only 11% of all studies derive their empirical models explicitly fromtheory.All of the studies based on absolute location use a spatial regimes model toinvestigate spatial heterogeneity. Most of them also touch on spatial dependence,either by using exploratory spatial data analysis techniques to identify clusters,testing the residuals for autocorrelation, or estimating a spatial regimes modelthat also allows for spatial dependence. One of the advantages of using spatialeconometrics to estimate models of spatial heterogeneity resides in thepossibility of testing for any remaining spatial autocorrelation, since ignoring itcould result in biased coefficients. Another advantage of using spatialeconometrics is that exploratory spatial data techniques can help with theidentification of the spatial regimes. For example, Roberts (2004) estimates anabsolute convergence model using county-level data for the United Kingdom. Hefinds no evidence of convergence, and a test for parameter stability across thetraditional North-South divide is inconclusive. An exploratory spatial dataanalysis reveals a cluster of counties in the South West with low initial levels ofGDP per capita. A spatial regimes model based on a structural break between theSouth West counties and the rest of the UK shows that while the rest of the UKis converging in terms of per-capita income, the South West is diverging.Table n° 2: Spatial econometric studiesStudyChannelsTheoretical Geographical Spatialbackground scope weightsArmstrong (1995) 5 CO B W1Ades and Chua (1997) 3 S A W1Moreno and Trehan (1997) 5 S A W3Easterly and Levine (1998) 3 S A W1Fingleton et al. (1998) 2 O B W3Vayá et al. (1998) 5 C-P B W1Fingleton (1999) 5 CO B W3López-Bazo et al. (1999) 5 NN B W1Rey and Montouri (1999) 5 U C W1Aroca and Bosch (2000) 5 U D W1Attfield et al. (2000) 5 CO F W3Baumont et al. (2000) 5 U B W4Cannon et al. (2000) 1 O B W5Fingleton (2000)* 2 O A W3Vayá et al. (2000)* 2 S B W5Ying (2000) 5 C-P E W3