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Regional Externalities And Growth: Evidence From European Regions

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Author Info
Enrique López-Bazo
Esther Vayá
Manuel Artís

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Abstract

This paper models externalities of production across regional economies. Under the assumption that knowledge diffuses without political or administrative barriers, we derive externalities that affect the steady state and the process of growth of each economy. The empirical counterpart of the reduced form equation summarizing the process of growth allows us to test for the presence of regional spillovers and to measure their magnitude. Our results for a sample of European regions show that spillovers are far from negligible, are robust to the consideration of variables within each region, and may cause nondecreasing returns at the spatial aggregate level. The paper also relates previous empirical evidence on spatial dependence in growth studies to the externalities modeled here. Copyright Blackwell Publishers, 2004

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1085-9489.2004.00327.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Regional Science.

Volume (Year): 44 (2004)
Issue (Month): 1 ()
Pages: 43-73
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Handle: RePEc:bla:jregsc:v:44:y:2004:i:1:p:43-73

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  1. Georgios Fotopoulos, 2005. "Twin - Peaks in E.U. Regional Productivity Dynamics: a nonparametric analysis," Papers on Entrepreneurship, Growth and Public Policy 2005-28, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  2. Peña Sánchez, A.R., 2008. "La distribución regional del capital productivo empresarial en España: Factores determinantes," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 26, pages 277-302, Septiembr. [Downloadable!] (restricted)
  3. Michael Pfaffermayr, 2007. "Conditional Beta- and Sigma-Convergence in Space: A Maximum Likelihood Approach," Working Papers 2007-17, Faculty of Economics and Statistics, University of Innsbruck. [Downloadable!]
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  4. Martin Falk & Franz Sinabell, 2008. "The Effectiveness of Objective 1 Structural Funds in the EU 15: New Empirical Evidence from NUTS 3 Regions," WIFO Working Papers 310, WIFO. [Downloadable!]
  5. Sandy Dall'erba & Eveline Van Leeuwen, 2006. "Does Agricultural Employment Benefit From Eu Support?," ERSA conference papers ersa06p96, European Regional Science Association. [Downloadable!]
  6. Philippe De Vreyer & Gilles Spielvogel, 2005. "Spatial externalities between Brazilian municipios and their neighbours," Ibero America Institute for Econ. Research (IAI) Discussion Papers 123, Ibero-America Institute for Economic Research. [Downloadable!]
  7. Martin Falk & Franz Sinabell, 2009. "A spatial econometric analysis of the regional growth and volatility in Europe," Empirica, Springer, vol. 36(2), pages 193-207, May. [Downloadable!] (restricted)
  8. Tiiu Paas & Friso Schlitte, 2006. "Regional Income Inequality and Convergence Processes in the EU-25," ERSA conference papers ersa06p229, European Regional Science Association. [Downloadable!]
  9. Nicolas Debarsy & Cem Ertur, 2006. "The European Enlargement Process and Regional Convergence Revisited: Spatial Effects Still Matter," ERSA conference papers ersa06p198, European Regional Science Association. [Downloadable!]
  10. Julie Le Gallo & Sandy Dall’erba, 2005. "Spatial And Sectoral Productivity Convergence Between European Regions, 1975-2000," ERSA conference papers ersa05p191, European Regional Science Association. [Downloadable!]
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  11. Roberta Colavecchio & Declan Curran & Michael Funke, 2005. "Drifting Together or Falling Apart? The Empirics of Regional Economic Growth in Post-Unification Germany," Quantitative Macroeconomics Working Papers 20509, Hamburg University, Department of Economics. [Downloadable!]
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  12. José María Mella Márquez & Coro Chasco Yrigoyen, 2004. "Urban growth and territorial dynamics in Spain (1985-2001): A spatial econometrics analysis," Urban/Regional 0411003, EconWPA. [Downloadable!]
  13. Michael Paffermayr, 2009. "Spatial Convergence of Regions Revisited: A Spatial Maximum Likelihood Systems Approach," Working Papers 2009-07, Faculty of Economics and Statistics, University of Innsbruck. [Downloadable!]
  14. Cem Ertur & Wilfried Koch, 2006. "Regional disparities in the European Union and the enlargement process: an exploratory spatial data analysis, 1995–2000," The Annals of Regional Science, Springer, vol. 40(4), pages 723-765, December. [Downloadable!] (restricted)
  15. Philippe De Vreyer & Sandrine Mesplé-Somps & Gilles Spielvogel, 2005. "Spatial externalities between Brazilian municipios and their neighbours," ERSA conference papers ersa05p573, European Regional Science Association. [Downloadable!]
  16. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute. [Downloadable!]
  17. Matías Mayor & Ana López, 2008. "Spatial shift-share analysis versus spatial filtering: an application to Spanish employment data," Empirical Economics, Springer, vol. 34(1), pages 123-142, February. [Downloadable!] (restricted)
  18. Manfred Fischer & Claudia Stirböck, 2006. "Pan-European regional income growth and club-convergence," The Annals of Regional Science, Springer, vol. 40(4), pages 693-721, December. [Downloadable!] (restricted)
  19. Charles Plaigin, 2009. "Exploratory study on the presence of cultural and institutional growth spillovers," Working Papers DULBEA 09-03.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  20. Roberto Basile, 2007. "Productivity polarization across regions in Europe," Quaderni del Dipartimento di Economia, Finanza e Statistica 31/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica. [Downloadable!]
  21. Matías Mayor Fernández & Ana Jesús López Menéndez, 2005. "The spatial shift-share analysis - new developments and some findings for the Spanish case," ERSA conference papers ersa05p659, European Regional Science Association. [Downloadable!]
  22. Matias Mayor Fernandez & Esteban Fernandez Vazquez & Jorge Rodriguez Valez, 2006. "Spatial Structures and Spatial Spillovers: A GME Approach," ERSA conference papers ersa06p777, European Regional Science Association. [Downloadable!]
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