The Determinants of Economic Growth in European Regions
By: Crespo-Cuaresma, Jesús.
Contributor(s): Doppelhofer, Gernot | Feldkircher, Martin.
Material type: BookSeries: wiiw Working Papers: 57Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2009Description: 32 S., 7 Tables and 4 Figures, 30cm.Subject(s): model uncertainty | Bayesian Model Averaging (BMA) | spatial autoregressive model | determinants of economic growth | urban agglomerations | European regionsCountries covered: European Unionwiiw Research Areas: Regional DevelopmentClassification: C11 | C15 | C21 | R11 | O52 Online resources: Click here to access online Summary: We use Bayesian Model Averaging (BMA) to evaluate the robustness of determinants of economic growth in a new dataset of 255 European regions in the period 1995-2005. We use three different specifications based on (i) the cross-section of regions, (ii) the cross-section of regions with country fixed effects, and (iii) the cross-section of regions with a spatial autoregressive (SAR) structure. Our results indicate that the income convergence process between countries is dominated by the catching-up process of regions in Central and Eastern Europe (CEE), whereas convergence within countries is mostly a characteristic of regions in old EU member states. We find robust evidence of asymmetric growth performance within countries, with a growth bonus in regions containing capital cities which is particularly sizeable in CEE countries, as well as a robust positive effect of education. The results are robust if we allow for spatial spillovers a priori. In this setting, we also find robust evidence of positive spillovers leading to growth clusters.Item type | Current library | Call number | Status | Date due | Barcode | |
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Paper | WIIW Library | 5.700/57 (Browse shelf(Opens below)) | Available | 1000010001971 |
We use Bayesian Model Averaging (BMA) to evaluate the robustness of determinants of economic growth in a new dataset of 255 European regions in the period 1995-2005. We use three different specifications based on (i) the cross-section of regions, (ii) the cross-section of regions with country fixed effects, and (iii) the cross-section of regions with a spatial autoregressive (SAR) structure. Our results indicate that the income convergence process between countries is dominated by the catching-up process of regions in Central and Eastern Europe (CEE), whereas convergence within countries is mostly a characteristic of regions in old EU member states. We find robust evidence of asymmetric growth performance within countries, with a growth bonus in regions containing capital cities which is particularly sizeable in CEE countries, as well as a robust positive effect of education. The results are robust if we allow for spatial spillovers a priori. In this setting, we also find robust evidence of positive spillovers leading to growth clusters.