Institutional change and the development of lagging regions in Europe

Andrés Rodríguez-Pose and Tobias Ketterer

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper assesses whether both the levels and the degree of change in government quality influence regional economic performance in the European Union and, in particular, in its lagging regions. The results of the econometric analysis, covering 249 NUTS-2 regions for the period 1999–2013, suggest that (1) government quality matters for regional growth; (2) relative improvements in quality of government are a powerful driver of development; (3) one-size-fits-all policies for lagging regions are not the solution; (4) government quality improvements are essential for low-growth regions; and (5) in low-income regions basic endowment shortages are still the main barrier to development. In particular, low-growth regions in Southern Europe stand to benefit the most from improvements in government quality, while in low-income regions of Central and Eastern Europe, investments in the traditional drivers of growth remain the main factors behind successful economic trajectories.

Keywords: economic growth; government quality; institutional change; regions; EU (search for similar items in EconPapers)
JEL-codes: N0 (search for similar items in EconPapers)
Date: 2019-05-22
New Economics Papers: this item is included in nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published in Regional Studies, 22, May, 2019. ISSN: 0034-3404

Downloads: (external link)
http://eprints.lse.ac.uk/100721/ Open access version. (application/pdf)

Related works:
Journal Article: Institutional change and the development of lagging regions in Europe (2020)
Working Paper: Institutional change and the development of lagging regions in Europe (2019)
Working Paper: Institutional change and the development of lagging regions in Europe (2019)
Working Paper: Institutional change and the development of lagging regions in Europe (2018)
Working Paper: Institutional change and the development of lagging regions in Europe (2018)
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:ehl:lserod:100721

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().