The diffusion of spillovers in the EU regions has often been discussed in recent years. Many studies have dealt with the issue of convergence and divergence. However, the theoretical explanation of spillovers and the effects of the integration on regional interaction have usually been neglected. On the basis of endogenous growth theory we develop a regional production function that explains production with technical knowledge, human capital and regional spillovers. A subsequent spatial econometric analysis shows that the effects of the European integration process on international spillovers are too weak to be proved empirically. The fundamental steps in the integration process carrried out in the last fifteen years (single market, monetary union, etc.) have not developed their effectiveness perceptible in respect of regional cooperation so far. From a growth theoretical perspective it is not out of question that it may take several decades before spillovers across neighbouring intercountry EU regions will be measurable.
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Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 225 (2005) Issue (Month): 6 (November) Pages: 600-621 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models F15 - International Economics - - Trade - - - Economic Integration O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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Michaela Trippl & Gunther Maier, 2007.
"Knowledge Spillover Agents and Regional Development,"
SRE-Disc
sre-disc-2007_01, Department of City and Regional Development, Vienna University of Economics and Business Administration.
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