Agricultural and Economic Convergence in the EU Integration Process: Do Geographical Relationships Matter?

In the light of the reaffirmed importance of agricultural convergence within the integration process, the paper provides a preliminary investigation of the impact of the enlargement from the EU-15 to the EU-27 on agricultural real b-convergence and, with reference to the EU-27, of its relationship with economic catching-up process. The empirical analysis, based on a GWR approach, takes into account the regional spatial interdependences in estimating local parameters of convergence. The approach adopted allows to overcome the contradictory results from OLS estimations and parametric spatial econometric models pointed out by the literature and primarily connected to the existence of no unique convergence rate all over Europe. The analysis is based on a sample of 259 EU-27 regions at NUTS 2 level and is referred to the time period from 1991-2007.Regional convergence, Spatial analysis, GWR approach, International Relations/Trade,

A Mixed Geographically Weighted Approach to Decoupling and Rural Development in the EU-15

The CAP reform and the recent EC communication aimed at preparing its Health Check emphasise the need for interventions locally based where agricultural policy integrates with a broader policy for rural areas growth. In this context, the paper investigates the possible different sets policy indicators affecting agricultural productivity at the regional level considering spatial heterogeneity by means of a Mixed Geographically Weighted Regression approach. The analysis is based on a set of policy sensitive indicators selected according to the key component of the CAP reform and referred to a sample of 164 EU-15 regions at NUTS2 level. The methodology adopted, new for the empirical literature on the topic, allows for a more accurate understanding of spatial relationship of the agricultural and socio-economic factors affecting agricultural productivity at the local level providing useful information for policy making.CAP reform, agricultural productivity, spatial analysis, cluster analysis, Agricultural and Food Policy, Community/Rural/Urban Development, Research Methods/ Statistical Methods,

The convergence process of the European regions: the role of Regional Policy and the Common Agricultural Policy

The study investigates the convergence of labour productivity in 204 NUTS2 regions of the EU-15 between 1995 and 2006. The main objective of our work was to assess whether and to what extent European Union (EU) policies (Regional Policy and the Common Agricultural Policy) have been effective in promoting economic growth and fostering the process of convergence of EU regions. These policies can have an asymmetric spatial impact, even if some concrete steps have been taken to avoid an excessive concentration of costs or benefits. To verify the effects of EU policies we compare different scenarios: with/without EU policies. Under a methodological profile, we adopt the Solovian model proposed by Mankiw et al. (1992). For the estimates we used an econometric approach based on spatial filters with characteristics similar to Geographically Weighted Regression (GWR) in order to obtain consistent estimates of both the convergence parameters β and the impact of the conditioning variables, policy measures in particular. Our technique allows the estimation of different convergence rates for each region and management of both the presence of spatial spillovers and structural differences in the regional economies. The results indicate that global convergence rates are comparable to those obtained in some other studies, while local coefficients help to interpret the regional growth paths in a more realistic way. Finally, we utilise a quasi-experimental design, the Regression Discontinuity, for comparing the results of policy interventions, in terms of regional β-convergence rates, with a ‘counterfactual’ scenario

Sectoral productivity convergence between European regions: does space matter?

The aim of our analysis is the evaluation of the total and sectoral convergence of labour productivity between 182 regions of EU12 in the period 1991-2006. The selected sectors are agriculture, manufactory, market and non-market services. We adopt a β- and σ-convergence approach along with a methodology based on Getis' spatial filters that allows decomposing variables into their spatial and a-spatial components ensuring their spatial independence. This last point is fundamental to avoid i) omitted variables and/or problems of bias and/or inconsistency of coefficients in growth regressions, ii) bias in the computation of variance. The cited econometric approach also permits to identify spatial regimes of regions with high and low productivity, respectively ‘core' and ‘periphery'. Our results show significant σ-convergence in aggregate labour productivity, market and non-market services in the first years and a slightly divergence in the second period. Sigma-divergence is present only in manufactory sector when spatial factors are not considered, while in agriculture a strong convergence is perceivable. The analysis highlights that if we do not take into account spatial effects, σ-convergence is overestimated. In the second part of the paper, we evaluate β-convergence for total labour productivity and for each sector. We considered five cases: the whole sample (EU12) without dummies, with country dummies and with spatial regime dummies, the ‘core' and the ‘periphery'; finally we take into account singularly each spatial regime. The same estimation performed with and without spatially filtered variables leads to different results. While β-convergence process takes place in all cases and with all techniques, countries dummies are statistically significant only when spatial effects are not considered. In case of spatially filtered variables, the dummies, whose aim is to take into account the specificity of an agglomeration of regions, lose their significance, both theoretical and statistical, because the spatial factors embedded in each variable, and strictly connected with the country or convergence club to which they belong, are removed. The interesting point, however, is the lack of significance of dummies for spatial regimes. This finding, common both to filtered and unfiltered variables and to all sectors, is a little surprising because the identified spatial regimes are interpretable (and often interpreted) like convergence clubs. In conclusion, this paper shows that economic structure has to be considered together with spatial structure. These two factors affect themselves reciprocally and, for a full and reliable explanation of regional economic dynamics both must be formally included in the analysis

Simulating the Impact on the Local Economy of Alternative Management Scenarios for Natural Areas

This working paper estimates the impact on the local economy of the High Garda Natural Park of alternative management scenarios for the West Garda Regional Forest. The local economy is specialized in tourist services and strongly linked to the tourist presence and their level of expenditure. We wish to investigate the effects of the participative management strategy, which takes into account users preferences and the non-participative strategy, using the SAM multiplier analysis. The local SAM has been constructed considering three sectors: agriculture, tourism and a third aggregate sector including all the other activities. The resident population has been divided into two categories: residents employed in the tourist sector and the remaining resident population. The SAM analysis shows that the accounting representation of the local economy is meaningful and that the participative program, if chosen by the central regional management, would be the most desirable program also at the local level.Tourism, SAM, Multiplier analysis

The First Empirical Mass Loss Law for Population II Giants

Using the Spitzer IRAC camera we have obtained mid-IR photometry of the red giant branch stars in the Galactic globular cluster 47 Tuc. About 100 stars show an excess of mid-infrared light above that expected from their photospheric emission. This is plausibly due to dust formation in mass flowing from these stars. This mass loss extends down to the level of the horizontal branch and increases with luminosity. The mass loss is episodic, occurring in only a fraction of stars at a given luminosity. Using a simple model and our observations we derive mass loss rates for these stars. Finally, we obtain the first empirical mass loss formula calibrated with observations of Population II stars. The dependence on luminosity of our mass loss rate is considerably shallower than the widely used Reimers Law. The results presented here are the first from our Spitzer survey of a carefully chosen sample of 17 Galactic Globular Clusters, spanning the entire metallicity range from about one hundredth up to almost solar