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Growth, Agglomeration and Convergence: a Space-time Analysis for European Regions

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  • Maarten Bosker

Abstract

Abstract This paper sheds empirical light on the relationship between agglomeration and economic growth and its impact on the convergence hypothesis. Using a sample of 208 European regions over 25 years, ‘standard’ growth regressions are estimated using panel data techniques. Both the effect of agglomeration within one's own region and the interregional aspect of agglomeration are looked at. The estimation results show that, on average, denser regions grow slower than other regions, indicating a net negative effect of agglomeration. However, being located close to other growing regions is found to stimulate growth in one's own region. The implied convergence rate is also affected when the inter- and intraregional aspects of agglomeration are taken into account, where the former (latter) results in lower (slightly higher) convergence estimates.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Spatial Economic Analysis.

Volume (Year): 2 (2007)
Issue (Month): 1 ()
Pages: 91-100

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Handle: RePEc:taf:specan:v:2:y:2007:i:1:p:91-100

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Related research

Keywords: Economic growth; agglomeration; spatial econometrics; C23; R11; R12;

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Cited by:
  1. Gianni Guastella & Francesco Timpano, . "Spillover Diffusion and Regional Convergence: A Gravity Approach," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1070, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  2. N.S. Bosma & F.G. van Oort, 2012. "Agglomeration Economies, Inventors and Entrepreneurs as Engines of European Regional Productivity," Working Papers 12-20, Utrecht School of Economics.
  3. Gianni Guastella & Francesco Timpano, 2012. "Increasing Returns, Decreasing Returns and Regional Economic Convergence in the EU," ERSA conference papers ersa12p344, European Regional Science Association.
  4. Johanna Vogel, 2012. "Agglomeration and Growth: Evidence from the Regions of Central and Eastern Europe," ERSA conference papers ersa12p1089, European Regional Science Association.
  5. Colin Davis & Ken-ichi Hashimoto, 2014. "Industry Concentration, Knowledge Diffusion, and Economic Growth Without Scale Effects," Discussion Papers 1408, Graduate School of Economics, Kobe University.
  6. T√∫lio Cravo, 2011. "Regional Economic Growth and SMEs in Brazil: a Spatial Analysis (Submission for the Refereed Y-session Papers)," ERSA conference papers ersa10p508, European Regional Science Association.
  7. Steven Poelhekke & Frederick Van der Ploeg, 2008. "Growth, Foreign Direct Investment and Urban Concentrations: Unbundling Spatial Lags," CESifo Working Paper Series 2474, CESifo Group Munich.
  8. T�lio A. Cravo, 2010. "SMEs and economic growth in the Brazilian micro-regions," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 711-734, November.

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