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Regional dynamics of economic performance in the EU: To what extent do spatial spillovers matter?

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  • Selin Ozyurt

Abstract

This paper investigates the main determinants of economic perfor- mance in the EU from a regional perspective, covering 253 regions over the period 2001-2008. In addition to the traditional determinants of eco- nomic performance, measured by GDP per capita, the analysis accounts for spatial e¤ects related to externalities from neighbouring regions. The spatial Durbin random-e¤ect panel speci cation captures spatial feedback e¤ects from the neighbours through spatially lagged dependent and inde- pendent variables. Social-economic environment and traditional determi- nants of GDP per capita (distance from innovation frontier, physical and human capital and innovation) are found to be signi cant. Overall, our ndings con rm the signi cance of spatial spillovers, as business invest- ment and human capital of neighbouring regions have a positive impact both direct and indirect on economic performance of a given region.

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  • Selin Ozyurt, 2018. "Regional dynamics of economic performance in the EU: To what extent do spatial spillovers matter?," REGION, European Regional Science Association, vol. 5, pages 75-96.
    • Handle: RePEc:wiw:wiwreg:region_5_3_155
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    Cited by:

    1. Eduardo Bandrés & María Dolores Gadea-Rivas & Ana Gómez-Loscos, 2017. "Regional business cycles across europe," Occasional Papers 1702, Banco de España.
    2. María Dolores Gadea-Rivas & Ana Gómez-Loscos & Danilo Leiva-Leon, 2017. "The evolution of regional economic interlinkages in Europe," Working Papers 1705, Banco de España.
    3. José‐María Montero & Tiziana Laureti & Román Mínguez & Gema Fernández‐Avilés, 2020. "A Stochastic Model with Penalized Coefficients for Spatial Price Comparisons: An Application to Regional Price Indexes in Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(3), pages 512-533, September.
    4. Ana Gómez-Loscos & M. Dolores Gadea & Eduardo Bandres, 2020. "Business cycle patterns in European regions," Empirical Economics, Springer, vol. 59(6), pages 2639-2661, December.
    5. Maximo Camacho & Matias Pacce & Camilo Ulloa, 2017. "Business cycle phases in Spain," Working Papers 17/20, BBVA Bank, Economic Research Department.
    6. Gadea-Rivas, María Dolores & Gómez-Loscos, Ana & Leiva-Leon, Danilo, 2019. "Increasing linkages among European regions. The role of sectoral composition," Economic Modelling, Elsevier, vol. 80(C), pages 222-243.
    7. Camacho, Máximo & Pacce, Matias & Ulloa, Camilo, 2018. "Regional Business Cycle Phases in Spain/Ciclos económicos regionales en España," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 857-896, Septiembr.

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    More about this item

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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