Analysis of β-Convergence. From Traditional Cross-Section Model to Dynamic Panel Model

A b s t r a c t. The aim of the paper is to discuss the course of development of methodology of economic convergence analyses, which points up the necessity of taking into consideration spatial connections among regions in regional growth models. It presents empirical models of β-convergence concerning the economic growth of European regions using various methodo-logical conceptions. In the paper the models offered by spatial econometrics are recommend-ed. The empirical data refer to per capita GDP across the European Union regions at a NUTS-2 level over the period 1995–2009 (annual data). K e y w o r d s: economic convergence, spatial effects, connectivity matrix, spatial panel models. J E L Classification: C52