Economic Convergence vs. Economic Convergence vs. Socio-Economic ConvergenceSocio-Economic Convergence

M. Francesca CRACOLICIUniversity of Palermo

cracolici@unipa.it

19th Advanced Summer School in Regional Science GIS and Spatial Econometrics 4-12 July 2006 Groningen, The Netherlands

AIMSAIMS• To assess performance of territorial area To assess performance of territorial area

stressing social aspects;stressing social aspects;

• To evaluate To evaluate differences and development gaps differences and development gaps among territorial area among territorial area considering economic and considering economic and social dimensions;social dimensions;

• To propose a compound measure of material and To propose a compound measure of material and immaterial wellbeing;immaterial wellbeing;

• To use spatial econometrics tools to investigate spatial spillovers.

STYLIZED FACTSSTYLIZED FACTS

1) International comparison on economic performance of countries aimed to evaluate the level of development or growth of them in terms of GDP;

2) This approach has strongly criticized GDP index is not able to catch the different dimensions of wellbeing;

3) GDP partial measure of a multi-dimensional concept as wellbeing (see Sen 1985, 1987; Knan 1991 and Dasgupta 1990, 1993)

FRAMEWORKFRAMEWORKLiving Standards

(Hobijn and Franses 2001; Neumayer 2003; Dowrick et al. 2003)

• Convergence in income levels is important similarity to study the convergence in living standards;

• To extent the evaluation of country’s performance at measures of living standards;

• High GDP necessary condition but not sufficient condition;

Quality of Growth

(see also UNDP 1996, Cracolici and Vassallo 2002).

Material Wellbeing

Socio-Economic Convergence

Socio-Economic Performance

Immaterial Wellbeing

GDP or Consumptionor …… ??????

Level of PollutionSocial Services

Quality of Education

or …… ????

"People want to see their income levels and living standard improving, but also converging to those of the better off” (Neumayer, 2003, p.277)

DEVELOPED COUNTRIES

Quality of Growth

Economic Aspects Social Aspects

COUNTRY PERFORMANCE

CONCEPTUAL MODELCONCEPTUAL MODEL

OPEN QUESTIONSOPEN QUESTIONS

• How to link material and immaterial How to link material and immaterial wellbeing in order to consider the spatial wellbeing in order to consider the spatial dimension (spatial spillovers)? dimension (spatial spillovers)?

• Could simultaneous spatial models be an Could simultaneous spatial models be an useful tool (see Keleijan and Pucha 2004; useful tool (see Keleijan and Pucha 2004; Florax et al. 2006)?Florax et al. 2006)?