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Regional infrastructure and convergence: growth implications in a spatial framework

Author

Listed:
  • Chiara DEL BO
  • Massimo FLORIO
  • Giancarlo MANZI

Abstract

In this paper we contribute to the debate on convergence, by presenting an overview of the catch up process of the EU regions between 1995 and 2006, focusing on both absolute and conditional ? convergence. Our focus is on the role of infrastructure stock in shaping the growth and convergence process between EU regions and to what extent the spatial dimension of the data affects results. We also explicitly examine the link between infrastructure evolution and regional economic growth with a spatial panel data approach. Our results confirm an ongoing convergence process at the EU regional level, and assess the important role of transport and telecommunication infrastructure, with traditional and spatial estimation techniques. We also confirm, in a panel setting, the strong positive correlation between transport and TLC indicators and GDP growth at the regional level.

Suggested Citation

  • Chiara DEL BO & Massimo FLORIO & Giancarlo MANZI, 2009. "Regional infrastructure and convergence: growth implications in a spatial framework," Departmental Working Papers 2009-034, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2009-034
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    More about this item

    Keywords

    Infrastructure capital; regional growth; convergence; spatial econometrics;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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