Regional dynamics of economic performance in the EU: To what extent spatial spillovers matter?

Stephane Dees and Selin Özyurt

No 1870, Working Paper Series from European Central Bank

Abstract: This paper investigates the main determinants of economic performance in the EU from a regional perspective, covering 253 regions over the period 2001-2008. In addition to the traditional determinants of economic performance, measured by GDP per capita, the analysis accounts for spatial effects related to externalities from neighbouring regions. The spatial Durbin random-effect panel specification captures spatial feedback effects from the neighbours through spatially lagged dependent and independent variables. Social-economic environment and traditional determinants of GDP per capita (distance from innovation frontier, physical and human capital and innovation) are found to be significant. Overall, our findings confirm the significance of spatial spillovers, as business investment and human capital of neighbouring regions have a positive impact JEL Classification: O17, O31, O18, R12

Keywords: economic performance; Spatial Durbin Models; spatial spillovers (search for similar items in EconPapers)
Date: 2015-12
Note: 437240
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Regional dynamics of economic performance in the EU: To what extent do spatial spillovers matter? (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20151870

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