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Growth and externalities across economies. An empirical analysis using spatial econometrics

Esther Vaya Valcarce, Enrique Lopez-Bazo, Rosina Moreno () and Jordi Suriñach

No 59, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: Recent theoretical models of economic growth have emphasised the role of external effects on the accumulation of factors of production. Although most of the literature has considered the externalities across firms within a region, in this paper we go a step further and consider the possibility that these externalities cross the barriers of regional economies. We assess the role of these external effects in explaining growth and economic convergence. We present a simple growth model, which includes externalities across economies, developing a methodology for testing their existence and estimating their strength. In our view, spatial econometrics is naturally suited to an empirical consideration of these externalities. We obtain evidence on the presence of significant externalities both across Spanish and European regions.

JEL-codes: O4 R11 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Related works:
Chapter: Growth and Externalities Across Economies: An Empirical Analysis Using Spatial Econometrics (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:bar:bedcje:200059

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