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Technology adoption and club convergence

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  • Alexiadis, Stilianos
  • Tomkins, Judith

Abstract

Although the importance of technology adoption has been acknowledged, nevertheless, at a more general level, a critical question arises: how do the overall infrastructure conditions affect the absorptive ability of a regional economy? This question can be stated alternatively as: what are the implications of a ‘poor’ or a ‘superior’ infrastructure for regional convergence? It is possible to provide some answers to these questions by constructing a model of regional convergence that encapsulates the impact of infrastructure in the absorptive ability of a regional economy. In this model the possibility that high technological gaps might act as obstacles to convergence is taken explicitly into consideration. The model developed in this paper indicates that convergence towards leading regions is feasible only for regions with sufficient absorptive capacity, which is assumed to be a function of infrastructure conditions in a regional economy. The model is tested using data for the NUTS-2 regions of the EU-27 during the time period 1995-2006. The results suggest that adoption of technology has a significant effect on regional growth patterns in Europe.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21260.

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Date of creation: 03 Mar 2010
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Handle: RePEc:pra:mprapa:21260

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Keywords: Convergence-club; Technological Gap; European Regions;

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Cited by:
  1. Lechman, Ewa, 2012. "Technology convergence and digital divides. A country-level evidence for the period 2000-2010," MPRA Paper 41849, University Library of Munich, Germany.
  2. Gianni Guastella & Francesco Timpano, 2012. "Increasing Returns, Decreasing Returns and Regional Economic Convergence in the EU," ERSA conference papers ersa12p344, European Regional Science Association.
  3. Ewa, Lechman, 2011. "Catching-up and club convergence from cross-national perspective. A statistical study for the period 1980-2010," MPRA Paper 37383, University Library of Munich, Germany.

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