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Growth and Spatial Dependence in Europe

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  • KOCH, Wilfried

    ()
    (LEG - CNRS UMR 5118 - Université de Bourgogne)

Abstract

Recent theoretical and empirical work generally often focus on the interdependence of nations and regions underlying that the economy of one country or region is not independent of the economies of others. However, these models generally ignores the impact of location and neighborhood in explaining growth. This paper presents an augmented Solow model that includes spatial externalities and spatial interdependence among economies. I obtain a spatial econometric reduce form which allows testing the effects of the rate of saving, the rate of population growth and the location on income per capita and on the conditional convergence process in Europe.

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Bibliographic Info

Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne in its series LEG - Document de travail - Economie with number 2006-02.

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Length: 22 pages
Date of creation: Apr 2006
Date of revision:
Handle: RePEc:lat:legeco:2006-02

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Keywords: Solow growth model ; technological interdependence; spatial externalities ; spatial dependence ; regional disparities;

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Cited by:
  1. Michael Pfaffermayr, 2007. "Conditional Beta- and Sigma-Convergence in Space: A Maximum Likelihood Approach," Working Papers 2007-17, Faculty of Economics and Statistics, University of Innsbruck.

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