Productivity growth in the Old and New Europe: the role of agglomeration externalities

TitleProductivity growth in the Old and New Europe: the role of agglomeration externalities
Publication TypeWorking Paper
Year of Publication2010
AuthorsE. Marrocu, R. Paci, S. Usai
Number2010_24
Keywordsagglomeration externalities, local industry growth, spatial models, total factor productivity
Abstract

The recent history of Europe is characterized by a dual picture showing the Old and New countries in sharp contrast with respect to their industrial specialisation and economic performance. We aim at analyzing the intertwined performance of regions and industries in New and Old European economies by investigating the effects of local agglomeration externalities (mainly specialisation and diversity externalities) on total factor productivity dynamics. We also analyse the potential influence of regional intangible assets such as human and technological capital. The econometric analysis makes use of spatial econometric techniques to take into account the possibility of cross- border externalities.

Citation Key3035
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