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Variety, economic growth and knowledge intensity of European regions: a spatial panel analysis

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  • Nicola Cortinovis
  • Frank Oort

Abstract

Although the theoretical framework on agglomeration externalities and the channels through which they influence the regional economy appear well established, the empirical evidence on their magnitude and impact has been rather ambiguous and inconclusive. Applying the concepts of related and unrelated variety to an interregional European dataset and using spatial panel analysis, this paper provides critical information on the type and functioning of agglomeration externalities in relation to regional heterogeneity in knowledge intensity and innovation. We demonstrate that modeling this regional heterogeneity in a spatial panel setting is a crucial condition for identifying the positive agglomeration effects of (un)related variety on regional growth. The outcomes have substantial implications for European regional policy: We argue that policies should be both conceptually enriched and more empirically informed. Copyright The Author(s) 2015

Suggested Citation

  • Nicola Cortinovis & Frank Oort, 2015. "Variety, economic growth and knowledge intensity of European regions: a spatial panel analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 7-32, October.
    • Handle: RePEc:spr:anresc:v:55:y:2015:i:1:p:7-32
    DOI: 10.1007/s00168-015-0680-2
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    More about this item

    Keywords

    R11; O18; C31;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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