Spatial dynamic panel data analysis of the effect of regional development of OECD countries on economic growth

An increase in the amount of goods and services in an economy is called economic growth. It is usually measured by the amount of increase in GDP. Economic growth has been a topic that generated ideas upon which literature has also been debated for years. This variable, which is indicative of the development and development of countries, has become one of the most important topics of econometric analysis. In this study, economic growth was analyzed using the spatial dynamic panel data method. Spatial econometrics is a frequently used method in recent years. GIS (Geographic Information Systems) measures interregional spatial dependence. In spatial econometric methods, variables are weighted by weight matrices created according to the locations of countries. This shows whether economic variables in one region are correlated with econometric variables in the other region. This feature also distinguishes spatial Econometrics from classical econometrics. When the spatial effect is ignored, the results of the analysis may deviate and become meaningless. Therefore, spatial effects should be included in the analysis. In dynamic spatial econometrics, the similarity method is used most often and the lagged value of the dependent variable is included in the model to analyze whether the past period effect continues. In this study, variables are included in the theoretical and practical part and necessary explanations are made. Between 2002 and 2018, whether there is a spatial relationship with 17 OECD member countries, the dynamic spatial panel data method was tested. Keywords: Economic Growth, Economic Development, Regional Development, Spatial Econometrics, Dynamic Spatial Econometrics, Panel Data Model, Spatiality