2015/01/01 by Sascha Sardadvar, Sardadvar, Sascha
Social Sciences · Economics, Econometrics and Finance · #Regional Development and Policy #Regional Economics and Spatial Analysis #Economic Growth and Productivity
paper · doi:10.57938/81db0c82-0d18-463c-98db-ee003ca9618b
This paper develops a spatial theoretical growth model in order to study the impact of physical and human capital relocations on the growth of open economies. Analytical and simulation results show how the respective neighbours determine an economy's development, why convergence and divergence may alternate in the medium-run, and that interregional migration as a consequence of wage inequalities causes disparities to prevail in the long-run. The empirical part applies spatial econometric specifications for European regions on the NUTS2 level for the observation period 2000-2010. The estimations underline the importance of human capital endowments and its relation with spatial location. (author's abstract)