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Growth and externalities across economies. An empirical analysis using spatial econometrics

  • Esther Vaya Valcarce
  • Enrique Lopez Bazo
  • Rosina Moreno Serrano
  • Jordi Surinach Caralt

    (Universitat de Barcelona)

Recent theoretical models of economic growth have emphasised the role of external effects on the accumulation of factors of production. Although most of the literature has considered the externalities across firms within a region, in this paper we go a step further and consider the possibility that these externalities cross the barriers of regional economies. We assess the role of these external effects in explaining growth and economic convergence. We present a simple growth model, which includes externalities across economies, developing a methodology for testing their existence and estimating their strength. In our view, spatial econometrics is naturally suited to an empirical consideration of these externalities. We obtain evidence on the presence of significant externalities both across Spanish and European regions.

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Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 59.

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Length: 41 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:bar:bedcje:200059
Contact details of provider: Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
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