IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04841821.html

Domestic or export: What is basic at the NUTS 2 regional level? A spatial endogenous regional growth model applied in the EU

Author

Listed:
  • Pascal Ricordel

    (EDEHN - Equipe d'Economie Le Havre Normandie - ULH - Université Le Havre Normandie - NU - Normandie Université)

Abstract

A common statement found in regional policy reports is that regional growth is an "export or die" issue. However, the succession of disruptions in the international supply chain has highlighted the crucial roles of domestic activities, local markets and short supply chains, turning the environmental and resilience challenge present in growth policy into a "domestic or die" issue. Recent regional growth theories have seriously questioned export activity as the only way in which to drive regional growth and have highlighted the crucial role of the domestic sector. However, no empirical study has assessed the roles of the domestic and export sectors in growth during this troubled economic period, despite the usefulness of this information for nonbiased policy decisions. Using a spatial endogenous regional growth model as a framework, we investigate the role of the domestic sector during the 1999–2014 period for 263 European Union (EU) Nomenclature of Territorial Units for Statistics (NUTS) regions. The results stress the importance of domestic productivity for regional growth during this period, which is characterized by three economic shocks, thereby elucidating the importance of domestic productivity for competitiveness and resilience issues.

Suggested Citation

  • Pascal Ricordel, 2024. "Domestic or export: What is basic at the NUTS 2 regional level? A spatial endogenous regional growth model applied in the EU," Post-Print hal-04841821, HAL.
    • Handle: RePEc:hal:journl:hal-04841821
    DOI: 10.1111/grow.12707
    Note: View the original document on HAL open archive server: https://hal.science/hal-04841821v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04841821v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1111/grow.12707?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
    ---><---

    References listed on IDEAS

    as
    1. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
    2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    3. Lesage, James P. & Reed, J. David, 1989. "The dynamic relationship between export, local, and total area employment," Regional Science and Urban Economics, Elsevier, vol. 19(4), pages 615-636, December.
    4. Charles M. Tiebout, 1956. "Exports and Regional Economic Growth: Rejoinder," Journal of Political Economy, University of Chicago Press, vol. 64(2), pages 169-169.
    5. Ron Martin & Peter Sunley, 2015. "On the notion of regional economic resilience: conceptualization and explanation," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 1-42.
    6. Charles M. Tiebout, 1956. "Exports and Regional Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 64(2), pages 160-160.
    7. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    8. Jean-François Ruault & Laurent Proulhac, 2014. "Déplacements de consommation et transferts de richesses en Île-de-France," Géographie, économie, société, Lavoisier, vol. 16(1), pages 91-122.
    9. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-348, November.
    10. Gillian Bristow & Adrian Healy, 2015. "Crisis response, choice and resilience: insights from complexity thinking," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 241-256.
    11. Ugo Fratesi & Giovanni Perucca, 2018. "Territorial capital and the resilience of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 241-264, March.
    12. Ron Martin & Peter Sunley & Ben Gardiner & Peter Tyler, 2016. "How Regions React to Recessions: Resilience and the Role of Economic Structure," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 561-585, April.
    Full references (including those not matched with items on IDEAS)

    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. Pascal Ricordel, 2024. "Domestic or export: What is basic at the NUTS 2 regional level? A spatial endogenous regional growth model applied in the EU," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    2. Dimitrios Tsiotas & Marina‐Selini Katsaiti, 2025. "A 3D index for measuring economic resilience with application to modern financial crises," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(2), pages 371-404, March.
    3. Vinko Muštra & Blanka Šimundić & Zvonimir Kuliš, 2020. "Does innovation matter for regional labour resilience? The case of EU regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 955-970, October.
    4. Ugo Fratesi & Giovanni Perucca, 2018. "Territorial capital and the resilience of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 241-264, March.
    5. Thomas R. Harris & J. Scott Shonkwiler & George E. Ebai, 1999. "Dynamic Nonmetropolitan Export-Base Modeling," The Review of Regional Studies, Southern Regional Science Association, vol. 29(2), pages 115-138, Fall.
    6. Elias Giannakis & Christos T. Papadas, 2021. "Spatial Connectivity and Regional Economic Resilience in Turbulent Times," Sustainability, MDPI, vol. 13(20), pages 1-12, October.
    7. Alessandra de Renzis & Alessandra Faggian & Giulia Urso, 2022. "Distant but Vibrant Places. Local Determinants of Adaptability to Peripherality," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 113(5), pages 483-501, December.
    8. Gordon F. Mulligan, 2023. "Economic vulnerability in US metropolitan areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(1), pages 29-53, February.
    9. Linus Holtermann & Christian Hundt, 2018. "Hierarchically structured determinants and phase related patterns of economic resilience. An empirical case study for European regions," Working Papers on Innovation and Space 2018-02, Philipps University Marburg, Department of Geography.
    10. Michele Costa & Flavio Delbono, 2021. "The Italian Geography of Regional Resilience: The Role of Cooperative Firms," Working Papers wp1166, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Pietro Pizzuto, 2020. "The role of regional competitiveness in shaping the heterogeneous impact of the Great Recession," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 267-290, April.
    12. Andreas Gkouzos & Manolis Christofakis, 2025. "Measuring the effects of economic branches in local economic growth using panel data and time series analysis: a case study of the Greek regions," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 45(2), pages 327-349, June.
    13. Andrés Maroto Sánchez & Juan Ramón Cuadrado-Roura, 2024. "Sectoral–regional resilience and productive specialization: a comparison among the last three crises," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(1), pages 61-86, June.
    14. Oscar Chiwira & Lovemore Muchingami & Lawrence Jambani, 2023. "Exports and economic growth: relationships and threshold analysis for the Southern Africa customs union," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(8), pages 274-288, November.
    15. Hasan Engin Duran & Ugo Fratesi, 2023. "Economic resilience and regionally differentiated cycles: Evidence from a turning point approach in Italy," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 219-252, April.
    16. Harry W. Richardson, 1978. "The State of Regional Economics: A Survey Article," International Regional Science Review, , vol. 3(1), pages 1-48, October.
    17. Harris, Thomas R. & Ebai, George E. & Shonkwiler, John Scott, 1998. "A Multidimensional Estimation of Export Base," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 28(01), pages 1-15.
    18. Alexandru Pavel & Bogdan Andrei Moldovan & Karima Kourtit & Peter Nijkamp, 2020. "Urban or Rural: Does It Make A Difference for Economic Resilience? A Modelling Study on Economic and Cultural Geography in Romania," Sustainability, MDPI, vol. 12(9), pages 1-39, May.
    19. Anastasios Kitsos & André Carrascal-Incera & Raquel Ortega-Argilés, 2019. "The Role of Embeddedness on Regional Economic Resilience: Evidence from the UK," Sustainability, MDPI, vol. 11(14), pages 1-19, July.
    20. Xu, Feng & Wang, Huan & Chi, Guangqing, 2025. "Does market-oriented land conveyance affect regional economic resilience? A spatial and mediation analysis based on 287 Chinese cities," Land Use Policy, Elsevier, vol. 150(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hal:journl:hal-04841821. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.