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Total Factor Productivity, Intangible Assets and Spatial Dependence in the European Regions

  • Barbara Dettori
  • Emanuela Marrocu
  • Raffaele Paci

Dettori B., Marrocu E. and Paci R. Total factor productivity, intangible assets and spatial dependence in the European regions, Regional Studies . The aim of this paper is to analyse the determinants of the efficiency levels across the European regions. Firstly, a regression-based measure of regional total factor productivity is derived by estimating a spatial Cobb--Douglas production function. Secondly, the role played by intangible factors (human capital, social capital and technological capital) on total factor productivity levels is investigated by applying the spatial two-stage least-squares (2SLS) method and the spatial heteroskedasticy and correlation consistent (SHAC) estimator to account for both heteroskedasticity and spatial autocorrelation. It turns out that a large part of total factor productivity differences across the European regions is explained by disparities in the endowments of these intangible assets.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 46 (2012)
Issue (Month): 10 (November)
Pages: 1401-1416

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Handle: RePEc:taf:regstd:v:46:y:2012:i:10:p:1401-1416
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