Regional Economics: Theory and Practice
 

Regional convergence of economic growth: Spatial econometrics

Vol. 16, Iss. 1, JANUARY 2018

Received: 26 September 2017

Received in revised form: 21 October 2017

Accepted: 18 November 2017

Available online: 16 January 2018

Subject Heading: SPATIAL ECONOMICS

JEL Classification: B23, C32, O04

Pages: 58–67

https://doi.org/10.24891/re.16.1.58

Gichiev N.S. Institute of Social and Economic Research of Dagestan Scientific Center of RAS, Makhachkala, Republic of Dagestan, Russian Federation
nabi-05@mail.ru

ORCID id: not available

Subject This article analyzes the theoretical-methodological and empirical aspects of the processes of σ-and β-convergence of economic growth in the regions of the Southern and North Caucasian Federal Districts between 1998 and 2014. The study tests for the presence of σ-convergence and β-convergence.
Objectives The article aims to simulate and analyze trends in the dynamics of between-subject inequality using σ-convergence and β-convergence of economic growth in the regions of the North Caucasian and Southern Federal Districts.
Methods For the study, I applied methodological tools of statistical and econometric analyses.
Results The calculation of the regression equations shows that in the regions of the Southern and North Caucasian Federal Districts, there are a σ-convergence and absolute β-convergence. On the basis of β-convergence model, two β-convergence characteristics of velocity (ν) and time (τ) are defined.
Conclusions The analysis of the convergence processes on the gross regional product confirms the presence of different rates of catching-up development in the Southern and North Caucasian Federal Districts, which may lead in the long term to the divergence of the macro-region's economic growth pace and trajectories.

Keywords: economic growth, spatial econometrics, polarization, σ-convergence, β-convergence

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