IDEAS home Printed from https://ideas.repec.org/a/taf/specan/v9y2014i2p120-141.html
   My bibliography  Save this article

Inequality and Growth in European Regions: Towards a Place-based Approach

Author

Listed:
  • Laura De Dominicis

Abstract

Does agglomeration matter for growth? This paper addresses this question by evaluating the impact that intra-regional income distribution has on regional growth in Europe. By using a spatially augmented Solow growth model, we investigate the convergence process among 188 EU regions between 1991 and 2004 and extend the traditional growth models to account for the impact of regional inequality on growth, as well as the effects of interaction among regions. Our assumption is that existing levels of inequality between sub-regional territorial units could positively contribute to regional economic growth in Europe, through the positive effects generated by the emergence of agglomeration economies. Our results show that while we cannot find any overall significant relationship in Europe between agglomeration and growth, once we distinguish between Objective 1 and Non-objective 1 regions we are able to find that agglomeration positively impacts subsequent growth, but only in the less developed regions.

Suggested Citation

  • Laura De Dominicis, 2014. "Inequality and Growth in European Regions: Towards a Place-based Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 120-141, June.
    • Handle: RePEc:taf:specan:v:9:y:2014:i:2:p:120-141
    DOI: 10.1080/17421772.2014.891157
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17421772.2014.891157
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17421772.2014.891157?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Danny Quah, 1997. "Regional Convergence from Local Isolated Actions: II Conditioning," CEP Discussion Papers dp0379, Centre for Economic Performance, LSE.
    2. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
    3. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444, Decembrie.
    4. Danny Quah, 1997. "Regional Convergence from LocalIsolated Actions: I Historical Outcomes," CEP Discussion Papers dp0378, Centre for Economic Performance, LSE.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sardadvar, Sascha, 2015. "Regional Economic Growth and Steady States with Free Factor Movement: Theory and Evidence from Europe," Working Papers in Regional Science 2015/02, WU Vienna University of Economics and Business.
    2. Sascha SARDADVAR, 2016. "Regional Economic Growth And Steady States With Free Factor Movement: A Theoretical Model With Evidence From Europe," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 21-57.
    3. Kowalska Iwona, 2017. "Integrated Territorial Investments in the Formula of Cohesion Policy 2014 - 2020," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 10(1), pages 36-50, March.
    4. Vivek Jadhav & Brinda Viswanathan, 2023. "Spatial Durbin Model of Regional Incomes in India: The Role of Public, Private and Human Capital," Working Papers 2023-243, Madras School of Economics,Chennai,India.
    5. Julián Ramajo & José Manuel Cordero & Miguel Ángel Márquez, 2017. "European regional efficiency and geographical externalities: a spatial nonparametric frontier analysis," Journal of Geographical Systems, Springer, vol. 19(4), pages 319-348, October.
    6. Pontarollo, Nicola & Mendieta, Rodrigo & Ontaneda, Diego, 2019. "Canton growth in Ecuador and the role of spatial heterogeneity," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    7. Cerciello, Massimiliano & Agovino, Massimiliano & Garofalo, Antonio, 2019. "The caring hand that cripples? The effects of the European regional policy on local labour market participation in Southern Italy," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    8. Dimitrios TSIOTAS, 2022. "A Network-Based Algorithm For Computing Keynesian Income Multipliers In Multiregional Systems," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 25-46, June.
    9. Filip Hruza & Stanislav Volcík & Jan Žácek, 2019. "The Impact of EU Funds on Regional Economic Growth of the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 69(1), pages 76-94, February.
    10. Davide Fiaschi & Andrea Mario Lavezzi & Angela Parenti, 2018. "Does EU cohesion policy work? Theory and evidence," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 386-423, March.
    11. Carlos San Juan Mesonada & Carlos Sunyer Manteiga, 2021. "European Structural Funds and Resilient and Recovery Facility Governance," EconPol Working Paper 67, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    12. Miguel A. Márquez & Elena Lasarte & Marcelo Lufin, 2019. "The Role of Neighborhood in the Analysis of Spatial Economic Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 245-273, January.
    13. P. Elhorst & M. Abreu & P. Amaral & A. Bhattacharjee & L. Corrado & B. Fingleton & F. Fuerst & H. Garretsen & D. Igliori & J. Le Gallo & P. McCann & V. Monastiriotis & G. Pryce & J. Yu, 2016. "Raising the bar (2)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(2), pages 123-127, June.
    14. Lionel Vedrine & Julie Le Gallo, 2021. "Does EU Cohesion Policy affect territorial inequalities and regional development?," Post-Print hal-03327693, HAL.
    15. Christos Ap. LADIAS & Filipos RUXHO & Fernando Jos? Calado e Silva Nunes TEIXEIRA & Susana Soares Pinheiro Vieira PESCADA, 2023. "The Regional Economic Indicators And Economic Development Of Kosovo," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 73-83, June.
    16. Ziyan Zheng & Fangdao Qiu & Xinlin Zhang, 2020. "Heterogeneity of correlation between the locational condition and industrial transformation of regenerative resource‐based cities in China," Growth and Change, Wiley Blackwell, vol. 51(2), pages 771-791, June.
    17. Ensar Yılmaz & Zeynep Kaplan, 2022. "Regional polarization in Turkey," Growth and Change, Wiley Blackwell, vol. 53(1), pages 410-431, March.
    18. Andrzej Tucki & Korneliusz Pylak, 2021. "Collective or Individual? What Types of Tourism Reduce Economic Inequality in Peripheral Regions?," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    19. Ferraro, Aniello & Cerciello, Massimiliano & Agovino, Massimiliano & Garofalo, Antonio, 2021. "Do public policies reduce social exclusion? The role of national and supranational economic tools," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 165-181.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark Thissen & Frank Van Oort, 2010. "European Place‐Based Development Policy And Sustainable Economic Agglomeration," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(4), pages 473-480, September.
    2. Mark Thissen & Narisra Limtanakool & Hans Hilbers, 2011. "Road pricing and agglomeration economies: a new methodology to estimate indirect effects applied to the Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 543-567, December.
    3. Fujita, Masahisa & Thisse, Jacques-François, 2009. "New Economic Geography: An appraisal on the occasion of Paul Krugman's 2008 Nobel Prize in Economic Sciences," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 109-119, March.
    4. Steven Brakman & Harry Garretsen & Charles Van Marrewijk, 2009. "Economic Geography Within And Between European Nations: The Role Of Market Potential And Density Across Space And Time," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 777-800, October.
    5. Ikeda, Kiyohiro & Akamatsu, Takashi & Kono, Tatsuhito, 2012. "Spatial period-doubling agglomeration of a core–periphery model with a system of cities," Journal of Economic Dynamics and Control, Elsevier, vol. 36(5), pages 754-778.
    6. Akamatsu, Takashi & Takayama, Yuki & Ikeda, Kiyohiro, 2012. "Spatial discounting, Fourier, and racetrack economy: A recipe for the analysis of spatial agglomeration models," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1729-1759.
    7. Batóg Barbara & Batóg Jacek & Mojsiewicz Magdalena, 2009. "Application of Kernel Estimation in Analysis of Labour Productivity of the Largest Polish Firms in 2004-2008," Folia Oeconomica Stetinensia, Sciendo, vol. 8(1), pages 126-139, January.
    8. Lionel Artige & Rosella Nicolini, 2006. "Labor productivity in Europe: Evidence from a sample of regions," UFAE and IAE Working Papers 661.06, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    9. Raluca Irina CLIPA & Ionel BOSTAN & Flavian CLIPA, 2017. "Efficiency Versus Equality In Regional Development Policy: The Case Of Romania," European Journal of Law and Public Administration, Editura LUMEN, vol. 4(1), pages 55-67, June.
    10. Alok Kumar Mishra & Prasanna Kumar Mohanty, 2018. "Urban infrastructure financing in India: applying the benefit and earmarking principles of taxation," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 20(1), pages 110-128, April.
    11. B. Fingleton & M. Abreu & L. Corrado & F. Fuerst & H. Garretsen & D. Igliori & J. Le Gallo & P. McCann & J. McCombie & V. Monastiriotis & G. Pryce & J. Yu, 2014. "Editorial," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(1), pages 1-8, March.
    12. Rosella Nicolini, 2011. "Labour productivity in Spain: 1977-2002," Applied Economics, Taylor & Francis Journals, vol. 43(4), pages 465-485.
    13. Imre Lengyel, 2011. "Types of competitiveness of Hungarian regions: agglomeration economies and endogenous regional development," ERSA conference papers ersa11p674, European Regional Science Association.
    14. Vasco Leite & Sofia Castro & João Correia-da-Silva, 2009. "The core periphery model with asymmetric inter-regional and intra-regional trade costs," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 8(1), pages 37-44, April.
    15. Andrés Rodríguez-Pose & Michael Storper, 2020. "Housing, urban growth and inequalities: The limits to deregulation and upzoning in reducing economic and spatial inequality," Urban Studies, Urban Studies Journal Limited, vol. 57(2), pages 223-248, February.
    16. Corsetti, Giancarlo & Martin, Philippe & Pesenti, Paolo, 2007. "Productivity, terms of trade and the `home market effect'," Journal of International Economics, Elsevier, vol. 73(1), pages 99-127, September.
    17. Sandy Fréret & Denis Maguain, 2017. "The effects of agglomeration on tax competition: evidence from a two-regime spatial panel model on French data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1100-1140, December.
    18. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    19. Pamela Bombarda, 2016. "Firm heterogeneity and the localization of economic activities," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 1-26, March.
    20. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2007. "Countries, regions and trade: On the welfare impacts of economic integration," European Economic Review, Elsevier, vol. 51(5), pages 1277-1301, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:specan:v:9:y:2014:i:2:p:120-141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RSEA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.