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Abstract

A model of optimal allocation of investment across regions is developed. It is shown that the optimality conditions may lead to increasing inequalities at the spatial level. Introducing an element of endogenous innovation dualistic situation emerges. An empirical analysis, using data for the NUTS-2 regions of the European Union seems to confirm this argument.

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File URL: http://www.rsijournal.eu/ARTICLES/December_2011/45-59.pdf
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Bibliographic Info

Article provided by Hellenic Association of Regional Scientists in its journal Regional Science Inquiry.

Volume (Year): 3 (2011)
Issue (Month): 2 (December)
Pages: 45-59

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Handle: RePEc:hrs:journl:v:3:y:2011:i:2:p:45-59

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Related research

Keywords: Regional Allocation of Investment; Regional Inequalities; Regional Policy;

Find related papers by JEL classification:

• C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
• O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
• R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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1. Cesaratto, Sergio, 1999. "Savings and Economic Growth in Neoclassical Theory," Cambridge Journal of Economics, Oxford University Press, vol. 23(6), pages 771-93, November.
2. Alexiadis Stilianos & Ladias Christos & Polo Antoneta, 2010. "Converging And Diverging Regions In The Eu: Implications For Regional Policy," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 2(2), pages 55-70, December.
3. Francesco Pigliaru, 2003. "Detecting Technological Catch-Up in Economic Convergence," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 161-178, 05.
   
   • Pigliaru, Francesco, 2000. "Detecting Technological Catch-Up In Economic Convergence," ERSA conference papers ersa00p21, European Regional Science Association.
   • F. Pigliaru, 1999. "Detecting Technological Catch-Up in Economic Convergence," Working Paper CRENoS 199902, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
4. R. Paci & F. Pigliaru, 1997. "Is dualism still a source of convergence in Europe?," Working Paper CRENoS 199705, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
   
   • Raffaele Paci & Francesco Pigliaru, 1999. "Is dualism still a source of convergence in Europe?," Applied Economics, Taylor and Francis Journals, vol. 31(11), pages 1423-1436.
   • Raffaele Paci & Francesco Pigliaru, 1998. "Is dualism still a source of convergence in Europe?," ERSA conference papers ersa98p462, European Regional Science Association.
5. Andres Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe," ERSA conference papers ersa06p371, European Regional Science Association.
   
   • A. Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, spillovers, innovatoin systems and the genesis of regional growth in Europe," Departmental Working Papers of Economics - University 'Roma Tre' 0067, Department of Economics - University Roma Tre.

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