Institutions and geography: Empirical test of spatial growth models for European regions

Giuseppe Arbia (), Michele Battisti and Gianfranco Di Vaio ()

Economic Modelling, 2010, vol. 27, issue 1, 12-21

Abstract: This article provides an empirical assessment of the growth experiences of European regions, during the period 1991-2004, by taking into account the spatial effects due to both institutions and geography. These effects have been modelled by means of specific controls and by using a non-conventional spatial weight matrix. Results favour a model dealing with substantive spatial externalities. Within this framework, the country-specific institutions are strongly and positively related to the regional productivity's growth rate. In addition, the geo-institutional proximity increases the spatial dependence of the regional output per worker and raises the speed of convergence. By contrast, the pure geographical metrics is underperforming, while underestimating the convergence dynamics.

Keywords: Regional growth; Income convergence; Institutions; Geography; Spatial effects (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (91)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264-9993(09)00116-3
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Institutions and geography: Empirical test of spatial growth models for European regions (2009)
Working Paper: Institutions and geography: Empirical test of spatial growth models for European regions (2009)
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:eee:ecmode:v:27:y:2010:i:1:p:12-21

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().