Growth, Technological Interdependence and Spatial Externalities: Theory and Evidence

Cem Ertur and Wilfried Koch ()

No 2005-03, LEG - Document de travail - Economie from LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne

Abstract: This paper presents a theoretical model, based on the neoclassical growth literature, which explicitly takes into account technological interdependence among economies and examines the impact of location and neighborhood effects in explaining growth. Technological interdependence is supposed working through spatial externalities. The magnitude of the physical capital externalities at steady state, which is usually not identified in the literature, is estimated using a spatial econometric specification explaining the steady state income level. This spatially augmented Solow model yields a conditional convergence equation which is characterized by parameter heterogeneity. A locally linear spatial autoregressive specification is then estimated.

Keywords: Conditional convergence; technological interdependence; spatial externalities; spatial autocorrelation; parameter heterogeneity; locally linear estimation (search for similar items in EconPapers)
JEL-codes: C14 C31 O4 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2005-07
New Economics Papers: this item is included in nep-dev, nep-geo, nep-ino and nep-ure
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Growth, technological interdependence and spatial externalities: theory and evidence (2007)
Working Paper: Growth, technological interdependence and spatial externalities: theory and evidence (2007)
Working Paper: Growth, Technological Interdependance and Spatial Externalities: Theory and Evidence (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:lat:legeco:2005-03

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