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Regional economic growth in Europe: A semiparametric spatial dependence approach

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  • Basile, Roberto

Abstract

In this article a semiparametric spatial Durbin model is employed to analyse the growth behaviour of 155 European regions in the period 1988–2000. This specification combines the semiparametric approach with the usual parametric spatial econometric technique to accommodate both spatial dependence and nonlinearities as suggested by recent neoclassical growth models with spatial technological interdependence. The results provide evidence of nonlinearities in the effect of initial per capita incomes and human capital investments. Moreover, the specification used allows identifying the effect of the interaction between the characteristics (initial conditions and structural variables) of each region and those of its neighbours. Finally, it shows some indication of global spillovers across†country and local spatial spillovers from domestic neighbours.

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Handle: RePEc:eee:paresc:v:87:y:2008:i:4:p:527-545
DOI: 10.1111/j.1435-5957.2008.00175.x
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JEL classification:

  • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
  • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
  • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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