Edited By Elżbieta Czarny, Andżelika Kuźnar and Jerzy Menkes
This book gathers Polish and foreign scholars to consider diverse aspects of Transatlantic Trade and Investment Partnership (TTIP). It examines key general areas such as the improvement of the position of the negotiating parties in the world economy, in politics and in international organisations. The contributors analyze possible acceleration of non-discriminatory liberalisation negotiations, creation of new international standards or reducing regulatory differences, such as «Investor-state dispute settlement» (ISDS), public health, geographical indications. The contributions focus also on specific issues, such as the impact of TTIP on Polish and EU economy, on merchandise and services trade, energy supply, research and development, Information and Communication Technologies (ICT), or on the third parties.
Chapter 16. Regions in the United States and European Union in the 21st Century – Wealth of Citizens, Convergence Processes and Spatial Dependencies
The forthcoming Transatlantic Trade and Investment Partnership may become a crucial element in post-crisis world economics and politics; consequently, it is worth scrutinising the economic performance of the United States and European Union. The chapter is aimed at answering the question whether absolute income (GDP per capita) beta-convergence existed for regions of the United States1 (US counties) and the EU-282 (NUTS 3) during the period 2000–20113.
The research4 is based on econometric models, namely, on the spatial lagged (SLM), spatial error (SEM) and Durbin spatial models, which seem to be better specifications of convergence than the ordinary least squares (OLS) model. Detailed information concerning the applied econometric tools is included in Section 1, while Section 2 contains estimation results.
1. Methodology and data
Since in this chapter absolute income beta-convergence among regions is investigated, I used the following equation proposed by Baumol (1986):
←233 | 234→
where y i,0 and y i,1 correspond to the GDP per capita of region i at the initial and final year, respectively, and n is the number of years in the analysed period. Whenever a negative and statistically significant relation was found between the initial GDP per capita level and the corresponding growth rate, we could assume the presence of absolute income beta-convergence (variable y i,0 is statistically significant and the parameter β is negative, thus the annual speed of convergence equals: [-ln(1 + nβ)]/n).
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