The Determinants of Economic Growth in European Regions

• Published in: Regional studies 2014-01, Vol.48 (1), p.44-67
• Main Authors: Cuaresma, Jesús Crespo, Doppelhofer, Gernot, Feldkircher, Martin
• Format: Article
• Language: English
• Subjects: Area planning & development; Bayesian analysis; Bayesian method; Bayesian Model Averaging; Bayesian model averaging (BMA); Bgi / Prodig; Capital; Central Europe; Colleges and universities; Determinanten des Wirtschaftswachstums; Determinantes del crecimiento económico; Determinants; Determinants of economic growth; Déterminants de la croissance économique; Eastern Europe; Economic development; Economic growth; Economic growth. Development; EU membership; Europe; European regions; European Union; Europäische Regionen; Higher education; Human geography; Income; Member states; Modelo autorregresivo espacial; Modèle auto-régressif géographique; Political and economic geography; Promedios de modelo bayesiano; Regiones europeas; Räumliches autoregressives Modell (SAR-Modell); Régions européennes; Spatial autoregressive (SAR) model; Studies; 欧洲区域; 空间条件自回归模型(SAR); 经济成长要素; 贝式模型平均法(BMA)
• ISSN: 0034-3404; 1360-0591
• DOI: 10.1080/00343404.2012.678824

Crespo Cuaresma J., Doppelhofer G. and Feldkircher M. The determinants of economic growth in European regions, Regional Studies. This paper uses Bayesian model averaging (BMA) to find robust determinants of economic growth between 1995 and 2005 in a new data set of 255 European regions. It finds that income convergence between countries is dominated by the catching-up of regions in new member states in Central and Eastern Europe, whereas convergence within countries is driven by regions in old European Union member states. Regions containing capital cities are growing faster, particularly in Central and Eastern European countries, as do regions with a large share of workers with a higher education. The results are robust when allowing for spatial spillovers among European regions.