Growth, convergence and (why not?) regional externalities
This paper considers the effects of regional externalities in economic growth. We define two types of regional spillovers: demand-driven and supply-driven. Both types seem to be significantly positive and the results show how the omission of these effects in a growth equation may downward bias the estimated rate of convergence by assingning the effect of regional externalities to the convergence parameter. We propose the use of spatial econometrics techniques to test and estimate the presence of such externalities.
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|Date of creation:||1998|
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