Regional convergence of unemployment rate in Romania
Regional convergence of unemployment rate in Romania
Author(s): Mihaela SimionescuSubject(s): Economy, National Economy, Socio-Economic Research
Published by: Univerzitni servis s.r.o.
Keywords: convergence rate;unemployment rate;fixed-effect model; spatial lag model;spatial error model
Summary/Abstract: In this research a convergence analysis is made for regional unemployment rate in Romania using the spatial econometrics techniques and panel data approach. For the 42 counties of Romania there is strong evidence of divergence process over the period from 1991 to 2015, only the fixed effects models being valid. The annual divergence rate was about 9.11% on this horizon and the time necessary for filling half of the gap from steady state is about 3 years. However, a spatial error model for 2000-2015 indicated a decrease of divergence rate for unemployment rate (5.49%), suggesting a lower degree of disparities in the last years
Journal: International Economics Letters
- Issue Year: 6/2017
- Issue No: 1
- Page Range: 7-16
- Page Count: 9
- Language: English
