Diffusion of Scale Effects between European Regions

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Diffusion of Scale Effects between European Regions

Author Info

Juergen Antony () (University of Augsburg, Department of Economics)

Abstract

This paper develops a multi regional growth model of the second generation type with horizontal and vertical innovations. Technology goods are tradable between regions, creating a regional analogy of the weak scale effect introduced by Jones (2004). Per capita production in one region is a function of the weighted population sizes of trading partner regions. Thus the scale of partner regions diffuses between them. This result is empirically tested using data on the NUTS regions of the EU 15. A highly significant relationship is found between per capita GDP and an interregional scale variable, defined as a weighted sum of the populations of all EU 15 regions.

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Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number 281.

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Date of creation: Oct 2005
Date of revision:
Handle: RePEc:aug:augsbe:0281

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Find related papers by JEL classification:
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-11-19 (All new papers)
NEP-EEC-2005-11-19 (European Economics)
NEP-EFF-2005-11-19 (Efficiency & Productivity)
NEP-GEO-2005-11-19 (Economic Geography)

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