Does Globalization Affect Regional Growth? Evidence for NUTS-2 Regions in EU-27

Wolfgang Polasek () and Richard Philipp Sellner

No 266, Economics Series from Institute for Advanced Studies

Abstract: We analyze the influence of newly constructed globalization measures on regional growth for the EU-27 countries between 2001 and 2006. The spatial Chow-Lin procedure, a method constructed by the authors, was used to construct on a NUTS-2 level a complete regional data for exports, imports and FDI inward stocks, which serve as indicators for the influence of globalization, integration and technology transfers on European regions. The results suggest that most regions have significantly benefited from globalization measured by increasing trade openness and FDI. In a non-linear growth convergence model the growth elasticities for globalization and technology transfers decrease with increasing GDP per capita. Furthermore, the estimated elasticity for FDI decreases when the model includes a higher human capital premium for CEE countries and a small significant growth enhancing effect accrues from the structural funds expenditures in the EU.

Keywords: Regional globalization measures; EU integration (structural funds); Regional growth convergence models; Foreign direct investment (FDI) (search for similar items in EconPapers)
JEL-codes: C11 C15 C51 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-eur and nep-geo
Date: 2011-05
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http://www.ihs.ac.at/publications/eco/es-266.pdf First version, 2011 (application/pdf)

Related works:
Working Paper: Does Globalization affect Regional Growth? Evidence for NUTS-2 Regions in EU-27 (2011)
Working Paper: Does Globalization a ffect Regional Growth? Evidence for NUTS-2 Regions in EU-27 (2011)
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