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What drives total factor productivity growth? An examination of spillover effects

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  • Matthias Siller
  • Thomas Schatzer
  • Janette Walde
  • Gottfried Tappeiner

Abstract

This study analyses the role of regional characteristics, particularly regional knowledge spillovers, as drivers of total factor productivity (TFP) growth in 190 European regions. A new modelling approach for knowledge spillovers that is different from the commonly used neighbourhood matrices is proposed. Therefore, by estimating the impact of drivers on TFP growth, findings reveal a strong direct effect of TFP spillovers alongside factors such as research and development (R&D) spending, cultural values or perceived quality of governance. However, the results also show that the openness of regional society to progress is a prerequisite for the effective use of existing knowledge.

Suggested Citation

  • Matthias Siller & Thomas Schatzer & Janette Walde & Gottfried Tappeiner, 2021. "What drives total factor productivity growth? An examination of spillover effects," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1129-1139, June.
    • Handle: RePEc:taf:regstd:v:55:y:2021:i:6:p:1129-1139
    DOI: 10.1080/00343404.2020.1869199
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    Cited by:

    1. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2022. "Direct and indirect effects of universities on European regional productivity," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1105-1133, October.
    2. Georges Harb & Charbel Bassil, 2023. "TFP in the Manufacturing Sector: Long-Term Dynamics, Country and Regional Comparative Analysis," Economies, MDPI, vol. 11(2), pages 1-22, January.
    3. Muhammad Usman & Gulnaz Hameed & Abdul Saboor & Lal K. Almas & Muhammad Hanif, 2021. "R&D Innovation Adoption, Climatic Sensitivity, and Absorptive Ability Contribution for Agriculture TFP Growth in Pakistan," Agriculture, MDPI, vol. 11(12), pages 1-18, November.
    4. Hongfeng Zhang & Lu Huang & Yan Zhu & Hongyun Si & Xu He, 2021. "Does Low-Carbon City Construction Improve Total Factor Productivity? Evidence from a Quasi-Natural Experiment in China," IJERPH, MDPI, vol. 18(22), pages 1-21, November.
    5. Meng Sun & Yue Zhang & Yaqi Hu & Jiayi Zhang, 2022. "Spatial Convergence of Carbon Productivity: Theoretical Analysis and Chinese Experience," IJERPH, MDPI, vol. 19(8), pages 1-19, April.
    6. Alicia Gómez-Tello & María-José Murgui-García & María-Teresa Sanchis-Llopis, 2023. "Agglomeration and human capital: an extended spatial Mankiw-Romer-Weil model for European regions," Working Papers 2023.11, International Network for Economic Research - INFER.

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