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What drives total factor productivity growth? An examination of spillover effects

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  • Matthias Siller
  • Thomas Schatzer
  • Janette Walde
  • Gottfried Tappeiner

Abstract

This study analyses the role of regional characteristics, particularly regional knowledge spillovers, as drivers of total factor productivity (TFP) growth in 190 European regions. A new modelling approach for knowledge spillovers that is different from the commonly used neighbourhood matrices is proposed. Therefore, by estimating the impact of drivers on TFP growth, findings reveal a strong direct effect of TFP spillovers alongside factors such as research and development (R&D) spending, cultural values or perceived quality of governance. However, the results also show that the openness of regional society to progress is a prerequisite for the effective use of existing knowledge.

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  • Matthias Siller & Thomas Schatzer & Janette Walde & Gottfried Tappeiner, 2021. "What drives total factor productivity growth? An examination of spillover effects," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1129-1139, June.
    • Handle: RePEc:taf:regstd:v:55:y:2021:i:6:p:1129-1139
    DOI: 10.1080/00343404.2020.1869199
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    5. Muhammad Usman & Gulnaz Hameed & Abdul Saboor & Lal K. Almas & Muhammad Hanif, 2021. "R&D Innovation Adoption, Climatic Sensitivity, and Absorptive Ability Contribution for Agriculture TFP Growth in Pakistan," Agriculture, MDPI, vol. 11(12), pages 1-18, November.
    6. Melanie Krause & Sebastian Kripfganz, 2025. "Regional Dependencies and Local Spillovers: Insights From Commuter Flows," Journal of Regional Science, Wiley Blackwell, vol. 65(3), pages 565-585, June.
    7. Alicia Gómez-Tello & María-José Murgui-García & María-Teresa Sanchis-Llopis, 2025. "Agglomeration and human capital: an extended spatial Mankiw-Romer-Weil model for European regions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 52(3), pages 523-557, August.
    8. Martijn Burger & Sarah Courchesne & Ilias Kostarakos & Chiara Peroni & Francesco Sarracino & Spyridon Stavropoulos, 2025. "Subjective well-being and regional productivity in the European Union," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(3), pages 1-25, September.
    9. Hongfeng Zhang & Lu Huang & Yan Zhu & Hongyun Si & Xu He, 2021. "Does Low-Carbon City Construction Improve Total Factor Productivity? Evidence from a Quasi-Natural Experiment in China," IJERPH, MDPI, vol. 18(22), pages 1-21, November.
    10. You Xu & Zhe Zhao & Yi Zhang, 2025. "Can the Implementation of Carbon Emissions Trading Schemes Improve Prefecture-Level Agricultural Green Total Factor Productivity?," Sustainability, MDPI, vol. 17(13), pages 1-27, June.
    11. Meng Sun & Yue Zhang & Yaqi Hu & Jiayi Zhang, 2022. "Spatial Convergence of Carbon Productivity: Theoretical Analysis and Chinese Experience," IJERPH, MDPI, vol. 19(8), pages 1-19, April.
    12. Alicia Gómez-Tello & María-José Murgui-García & María-Teresa Sanchis-Llopis, 2023. "Agglomeration and human capital: an extended spatial Mankiw-Romer-Weil model for European regions," Working Papers 2023.11, International Network for Economic Research - INFER.
    13. Julián Ramajo & Miguel A. Márquez & Geoffrey J. D. Hewings, 2024. "Addressing spatial dependence when estimating technical efficiency: A spatialized data envelopment analysis of regional productive performance in the European Union," Growth and Change, Wiley Blackwell, vol. 55(1), March.

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