Do dynamic externalities, in the form of technology creation, adoption and spatial agglomeration shape the pattern of regional growth in Europe? This study provides an alternative view on regional convergence. A model is developed which attributes club-convergence to existing differences with respect to the degree of technology adoption. In the first instance, empirical results suggest that the NUTS-2 regions of the EU-27 converge at a very slow rate. Further tests, however, indicate that convergence is restricted to a specific subset of regions. Such conclusions are tested further, using an alternative model of club-convergence, which incorporates the impact of spatial interaction, agglomeration externalities and technology. This shows that the convergence-club in Europe follows a certain geographical pattern and all members share similar characteristics regarding technology creation and adoption, and agglomeration externalities. aIn TG-0 + bs in LOC.0 + ba in DVR, 0 + (Ia (W) a#39;u, ML, Sample 268 NUTS-2 Regions Cl bi b2 b3 b4 bs b6 g 0.3494** 0.2871 ... a0.0744** a0.0290 0.0889** Implied ya 2.27+ Ramsey Reset Test: 0.2693 [0.7640] F-Statistic: F(6, 261) 15.1721anbsp;...
|Title||:||Convergence Clubs and Spatial Externalities|
|Publisher||:||Springer Science & Business Media - 2012-09-24|