 Inequality and Growth in European Regions: Towards a Place-based ApproachLaura De Dominicis Spatial Economic Analysis, 2014, vol. 9, issue 2, 120-141 Abstract: Does agglomeration matter for growth? This paper addresses this question by evaluating the impact that intra-regional income distribution has on regional growth in Europe. By using a spatially augmented Solow growth model, we investigate the convergence process among 188 EU regions between 1991 and 2004 and extend the traditional growth models to account for the impact of regional inequality on growth, as well as the effects of interaction among regions. Our assumption is that existing levels of inequality between sub-regional territorial units could positively contribute to regional economic growth in Europe, through the positive effects generated by the emergence of agglomeration economies. Our results show that while we cannot find any overall significant relationship in Europe between agglomeration and growth, once we distinguish between Objective 1 and Non-objective 1 regions we are able to find that agglomeration positively impacts subsequent growth, but only in the less developed regions. Date: 2014 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:specan:v:9:y:2014:i:2:p:120-141 Ordering information: This journal article can be ordered from DOI: 10.1080/17421772.2014.891157 Access Statistics for this article Spatial Economic Analysis is currently edited by Bernie Fingleton and Danilo Igliori More articles in Spatial Economic Analysis from Taylor & Francis Journals |
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