The Cohesion vs Growth Tradeoff - Evidence from EU Regions (1980-2000)
AbstractThis paper provides an empirical investigation of the cohesion versus growth tradeoff on European regions at a fine geographical disaggregation level. We use data on gdp per capita at the NUTS3 level for 1980-2000 to estimate the influence of income dispersion within NUTS1 on their economic growth. We analyze the existence of the tradeoff using Redding and Venables’(2004) approach. From a simple new economic geography model in which we add a technological externality in order to allow for local growth, we derive an estimable equation linking the level of factor prices in a region to the level of inequalities inside that region, as well as the region’s access to markets. Our results show a positive relation between the gdp per capita growth rate of a region and the change in the level of inequalities inside the region. Finally, an increase in market potential, as expected, has an unambiguous positive impact on local growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p716.
Date of creation: Aug 2005
Date of revision:
Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
- Audretsch, David B & Feldman, Maryann P, 1998.
"Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition,"
CEPR Discussion Papers
1980, C.E.P.R. Discussion Papers.
- Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
- Brülhart, Marius & Sbergami, Federica, 2008.
"Agglomeration and Growth: Cross-Country Evidence,"
CEPR Discussion Papers
6941, C.E.P.R. Discussion Papers.
- Marius BRÜLHART & Federica SBERGAMI, 2008. "Agglomeration and Growth : Cross-Country Evidence," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 08.04, Université de Lausanne, Faculté des HEC, DEEP.
- Nuno Carlos LEITÃO, 2013.
"A Panel Data Modelling Of Agglomeration And Growth: Cross-Country Evidence,"
Theoretical and Empirical Researches in Urban Management,
Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(1), pages 67-77, February.
- Leitão, Nuno Carlos, 2012. "A panel data modelling of agglomeration and growth: cross-country evidence," MPRA Paper 37501, University Library of Munich, Germany.
- Philippe Martin, 2005. "The geography of inequalities in Europe," Sciences Po publications info:hdl:2441/9283, Sciences Po.
- Michael Bräuninger & Annekatrin Niebuhr, 2008.
"Agglomeration, Spatial Interaction and Convergence in the EU,"
Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften,
Duncker & Humblot, Berlin, vol. 128(3), pages 329-349.
- Bräuninger, Michael & Niebuhr, Annekatrin, 2005. "Agglomeration, Spatial Interaction and Convergence in the EU," HWWA Discussion Papers 322, Hamburg Institute of International Economics (HWWA).
- 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.
- Steven Poelhekke & Frederick van der Ploeg, 2008. "Growth, Foreign Direct Investment and Urban Concentration: Unbundling Spatial Lags," DNB Working Papers 195, Netherlands Central Bank, Research Department.
- Tripathi, Sabyasachi, 2012. "Large Agglomerations and Economic Growth in Urban India: An Application of Panel Data Model," MPRA Paper 41574, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.