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Institutional change and the development of lagging regions in Europe

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  • Andrés Rodríguez-Pose
  • Tobias Ketterer

Abstract

According to the dominant economic theories, economic growth is the result of a combination of three factors – physical capital, human capital or labour, and innovation –plus a residual factor or error term, which represents what we do not know or cannotexplain. Depending on whether a neoclassical growth (Solow, 1956; Swan, 1956) or an endogenous growth approach is adopted (Romer, 1986: Lucas, 1988), the weight attributed to each of the components varies, but they remain, in different guises the fundamental drivers informing development policies across the world. The European Union’s (EU) regional development and cohesion policy has been no exception. The bulk of cohesion investments have been channelled towards improving the infrastructure endowment and accessibility of the least developed regions of the EU, as well as increasing the availability and quality of human resources, and developing the innovative capacity of individuals and firms across lagging areas of Europe.

Suggested Citation

  • Andrés Rodríguez-Pose & Tobias Ketterer, 2018. "Institutional change and the development of lagging regions in Europe," Working Papers. Collection A: Public economics, governance and decentralization 1808, Universidade de Vigo, GEN - Governance and Economics research Network.
  • Handle: RePEc:gov:wpaper:1808
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    Cited by:

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    2. Marques, Pedro & Morgan, Kevin, 2020. "Innovation without regional development? The complex interplay of innovation, institutions and development," Papers in Innovation Studies 2020/3, Lund University, CIRCLE - Center for Innovation Research.
    3. Rodríguez-Pose, Andrés & Burlina, Chiara, 2020. "Institutions and the uneven geography of the first wave of the COVID-19 pandemic," LSE Research Online Documents on Economics 107499, London School of Economics and Political Science, LSE Library.
    4. Javier Barbero & Giovanni Mandras & Giovanni Mandras & Ernesto Rodriguez-Crespo & Andres Rodriguez-Pose, 2021. "Quality of government and regional trade: Evidence from European Union regions," Papers in Evolutionary Economic Geography (PEEG) 2102, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2021.
    5. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    6. Sofia GOUVEIA & Leonida CORREIA & Patrícia MARTINS, 2020. "European integration and its effects on population in border and peripheral regions Abstract: This paper contributes to the literature that explores the effects of European integration, providing new ," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 8-27, November.
    7. David Burgalassi & Chiara Agnoletti & Leonardo Piccini, 2019. "Polycentricity and regional development: an analytical framework and some evidence from Italy," Discussion Papers 2019/249, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    8. Alina Botezat & Mihaela David & Cristian Incaltarau & Peter Nijkamp, 2021. "The Illusion of Urbanization: Impact of Administrative Reform on Communities’ Resilience," International Regional Science Review, , vol. 44(1), pages 33-84, January.
    9. Rovo,Natasha, 2020. "Structural Reforms to Set the Growth Ambition," Policy Research Working Paper Series 9175, The World Bank.
    10. Cristina ?ERBANICA & Sebastian ENE & Cristina GANESCU & Iuliana TALMACIU, 2018. "Regional Innovation Typologies In Central And Eastern Europe: The Path To Regional Transformation," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 3(4), pages 60-72.
    11. Ganau, Roberto & Rodríguez-Pose, Andrés, 2021. "Institutions and the Productivity Challenge for European Regions," CEPR Discussion Papers 15870, C.E.P.R. Discussion Papers.
    12. World Bank, "undated". "Europe and Central Asia Economic Update, Spring 2020," World Bank Other Operational Studies 33476, The World Bank.

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    More about this item

    Keywords

    changes; development; regions; Europe.;
    All these keywords.

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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