Abstract
Among the different sources of regional growth, agglomeration economies, both internal to
regions and external to regions (spillovers) play a primary role. However the presence of
agglomeration economies may obstacle the path toward cohesion making rich (poor) regions
become richer (poorer). While, according to New Growth Theory and New Economic Geography,
there is no doubt that internal economies may lead to divergence, the debate on the role of
external economies on convergence is still open. Much, of course, depends on the spatial extension
of spillovers. The aim of this work is to study the spatial dimension of spillovers using the
framework of cross-region growth regression. In particular we seek to explain whether the
intensity of spillover is either completely exogenous or it can be explained by some endogenous
regional characteristics. Results indicate that the intensity of externalities is determined by a) the
regional geographical position and b) the distance from neighbors with high growth rates. While
the first is completely exogenous, the second is not. Curiously enough, infrastructural endowments
and factors commonly assumed to induce agglomeration do not contribute to explain the intensity
of spillovers. Results have important policy implications. Since spillovers characterize more core
regions, which are well connected to other rich regions, than periphery, the presence of these
externalities may foster the increase of disparities between core and periphery, making harder to
reach the objective of cohesion.
Lingua originale | English |
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pagine (da-a) | 71-82 |
Numero di pagine | 12 |
Rivista | Regional Science Inquiry |
Volume | 2 |
Stato di pubblicazione | Pubblicato - 2010 |
Keywords
- European Union
- Gravity Approach
- Regional Convergence
- Spatial Econometric
- Spillover Diffusion