Regional dynamics of economic performance in the EU: To what extent do spatial spillovers matter?
This paper investigates the main determinants of economic perfor-
mance in the EU from a regional perspective, covering 253 regions over
the period 2001-2008. In addition to the traditional determinants of eco-
nomic performance, measured by GDP per capita, the analysis accounts
for spatial e¤ects related to externalities from neighbouring regions. The
spatial Durbin random-e¤ect panel specication captures spatial feedback
e¤ects from the neighbours through spatially lagged dependent and inde-
pendent variables. Social-economic environment and traditional determi-
nants of GDP per capita (distance from innovation frontier, physical and
human capital and innovation) are found to be signicant. Overall, our
ndings conrm the signicance of spatial spillovers, as business invest-
ment and human capital of neighbouring regions have a positive impact
both direct and indirect on economic performance of a given region.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
REGION is an open journal, and uses the standard Creative Commons license: Copyright We want authors to retain the maximum control over their work consistent with the first goal. For this reason, authors who publish in REGION will release their articles under the Creative Commons Attribution-NonCommercial license. This license allows anyone to copy and distribute the article for non-commercial purposes provided that appropriate attribution is given to REGION and the authors. For details of the rights authors grant users of their work, see the "human-readable summary" of the license, with a link to the full license. (Note that "you" refers to a user, not an author, in the summary.) Upon submission, the authors agree that the following three items are true: 1) The manuscript named above: a) represents valid work and neither it nor any other that I have written with substantially similar content has been published before in any form except as a preprint, b) is not concurrently submitted to another publication, and c) does not infringe anyone’s copyright. The Author(s) holds ERSA, WU, REGION, and the Editors of REGION harmless against all copyright claims. d) I have, or a coauthor has, had sufficient access to the data to verify the manuscript’s scientific integrity. 2) If asked, I will provide or fully cooperate in providing the data on which the manuscript is based so the editors or their assignees can examine it (where possible) 3) For papers with more than one author, I as the submitter have the permission of the coauthors to submit this work, and all authors agree that the corresponding author will be the main correspondent with the editorial office, and review the edited manuscript and proof. If there is only one author, I will be the corresponding author and agree to handle these responsibilities.