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A regional growth model with external effects among spanish provinces. Un modelo de crecimiento con efectos externos entre las provincias españolas

Angel Alañon Pardo () and Miguel Gómez de Antonio ()
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Miguel Gómez de Antonio: Departamento de Economía Aplicada VI. Universidad Complutense de Madrid.

Authors registered in the RePEc Author Service: Miguel Gómez ()

No 10-01, Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales

Abstract: A non neoclassical growth model with external effects among Spanish provinces is estimated through cross section and panel data Spatial Econometrics techniques for the 1970-2000 period. There are two kind of regional product determinants: spatial variables (intra and interregional agglomeration forces) and non spatial variables (firm size and public capital). Results show that both intra regional and inter regional spatial variables are statistically significant, and the need of considering the use of Spatial Econometrics techniques when dealing with spatial data and phenomena. We find a positive relationship between public investment and regional economic growth, accepting Aschauer’s hypothesis for the Spanish economy.

Keywords: Regional growth; Agglomeration; External effects; Spatial econometrics; Crecimiento regional; Aglomeración; Efectos externos; Econometría espacial (search for similar items in EconPapers)
JEL-codes: R1 R11 R12 O49 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010
New Economics Papers: this item is included in nep-geo and nep-ure
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