Growth with heterogenous interdependence

Miguel Manjon Antolin and Oscar Martinez Ibañez

DES - Working Papers. Statistics and Econometrics. WS from Universidad Carlos III de Madrid. Departamento de Estadística

Abstract: We present a growth model with spatial interdependencies in the heterogeneous technological progress and the stock of knowledge that, under certain conditions, yields agrowth-initial equation that can be taken to the data. We then use data on EU-NUTS2 regions and a correlated random e ects specication to estimate the resulting spatial Durbin dynamic panel model with spatially weighted individual e ects. QML estimatessupport our model against simpler alternatives that impose a homogeneous technology. Also, our results indicate that rich regions tend to have higher (unobserved) productivityand are likely to stay rich because of the strong time and spatial dependence of the GDP per capita. Poor regions, on the other hand, tend to enjoy productivity spillovers but arelikely to stay poor unless they increase their saving rates.

Keywords: Correlated; Random; Effects; Durbin; Model; Economic; Growth; Spatial; Panel; Data (search for similar items in EconPapers)
JEL-codes: C23 O47 (search for similar items in EconPapers)
Date: 2019-10-14
New Economics Papers: this item is included in nep-cse, nep-geo and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://e-archivo.uc3m.es/rest/api/core/bitstreams ... 27dc960efe8c/content (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cte:wsrepe:29023

Access Statistics for this paper

More papers in DES - Working Papers. Statistics and Econometrics. WS from Universidad Carlos III de Madrid. Departamento de Estadística
Bibliographic data for series maintained by Ana Poveda (biblioteca@db.uc3m.es).