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Growth and Spatial Dependence in Europe

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  • KOCH, Wilfried

    (LEG - CNRS UMR 5118 - Université de Bourgogne)

Abstract

Recent theoretical and empirical work generally often focus on the interdependence of nations and regions underlying that the economy of one country or region is not independent of the economies of others. However, these models generally ignores the impact of location and neighborhood in explaining growth. This paper presents an augmented Solow model that includes spatial externalities and spatial interdependence among economies. I obtain a spatial econometric reduce form which allows testing the effects of the rate of saving, the rate of population growth and the location on income per capita and on the conditional convergence process in Europe.

Suggested Citation

  • KOCH, Wilfried, 2006. "Growth and Spatial Dependence in Europe," LEG - Document de travail - Economie 2006-02, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    • Handle: RePEc:lat:legeco:2006-02
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    References listed on IDEAS

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    Cited by:

    1. Pfaffermayr, Michael, 2009. "Conditional [beta]- and [sigma]-convergence in space: A maximum likelihood approach," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 63-78, January.
    2. Wilfried Koch, 2008. "Development Accounting with Spatial Effects," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 321-342.
    3. Juan Jung, 2012. "Externalities and Absorptive Capacity in a context of Spatial Dependence: The case of European Regions," Documentos de Trabajo (working papers) 2212, Department of Economics - dECON.
    4. Cem Ertur & Julie Le Gallo, 2008. "Regional Growth and Convergence: Heterogenous reaction versus interaction in spatial econometric approaches," Working Papers hal-00463274, HAL.

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    More about this item

    Keywords

    Solow growth model ; technological interdependence; spatial externalities ; spatial dependence ; regional disparities;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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