We analyze the space-time dynamics of Indonesia’s provincial unemployment by simultaneously accounting for their serial persistence, spatial dependence, and common factors.
This paper investigates the regional Okun’s law across 514 districts of Indonesia over the 2011–2020 period. To handle the endogeneity issue, we apply a two-stage least squares (2SLS) model and use regional temperature as instrument for economic …
Our results highlight the joint importance of structural change and spatial dependence in the formation of convergence clubs. Specifically, the notion of spatial structural change deserves further attention, as it appears to play a major role in the evolution of regional disparities in the European Union.
Spatial dependence across provinces plays an important role in the formation of convergence clubs. The performance of geographical neighbors affects the probability of club membership through spillovers in capital accumulation and structural change.
Divergence in learning outcomes is increasing over time. Institutional and learning spillovers are decisive for whether an EU Member State is on a high or low human capital trajectory.