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

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

No 72/2009, Quaderni del Dipartimento di Economia, Finanza e Statistica from Università di Perugia, Dipartimento Economia

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 modeled 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)
JEL-codes: C21 O40 R11 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2009-11-15
New Economics Papers: this item is included in nep-cse, nep-fdg, nep-geo and nep-ure
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Institutions and geography: Empirical test of spatial growth models for European regions (2010)
Working Paper: Institutions and geography: Empirical test of spatial growth models for European regions (2009)
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