Growth, heterogeneous technological interdependence,and spatial externalities: Theory and Evidence

Karen Miranda, Miguel Manjon Antolin and Oscar Martínez Ibáñez

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: We present a growth model with interdependencies in the heterogeneous technological progress, physical capital and stock of knowledge that yields a growth-initial equation that can be taken to the data. We then use data on EU-NUTS2 regions and a correlated random effects specification to estimate the resulting spatial Durbin dynamic panel model with spatially weighted individual e ects. QML estimates support our model against simpler alternatives that impose a homogeneous technology and limit the sources of spatial externalities. Also, our results indicate that rich regions tend to have higher "unobserved productivity" and 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 "unobserved productivity" spillovers but are like to stay poor unless they increase their saving rates. Keywords: correlated random effects, Durbin model, economic growth, spatial panel data. JEL Classification: C23, O47

Keywords: Anàlisi de dades de panel; Creixement econòmic; 33 - Economia (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cse, nep-gro and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2072/307363

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:urv:wpaper:2072/307363

Access Statistics for this paper

More papers in Working Papers from Universitat Rovira i Virgili, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ariadna Casals ().