European regional growth, technology gap and "social capability"

Lydia Greunz

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: This paper aims at testing the technology gap hypothesis in order to explain the growth patterns of European regions. After a review of the related literature, we construct a simultaneous equation model of cumulative growth where catching up is driven by "social capability". This model is applied on an extended sample of 153 European NUTS I and II regions. The estimates are used to cluster the sample of European regions with respect to their growth paths: regions converging to the economic performance of frontiers regions, regions converging to their own steady state and regions for which relative backwardness seems to be a recurrent issue of the growth mechanism.

Date: 2002
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Published in: Jahrbuch fuer Regionalwissenschaft (2002) v.22 n° 2,p.163-184

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Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/9471

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