Economic Growth in the Regions of Europe (eBook)

Preface 4
Contents 5
List of Figures 7
List of Tables 8
1 Introduction 9
Part I Theory of Economic Growth 14
2 Neoclassical Growth Theory and Standard Models 15
2.1 From Classical to Neoclassical Growth Theory 15
2.2 The Basic Outline of Neoclassical Growth Models 18
2.3 The Solution with Technological Progress and a Cobb-Douglas Production Function 21
2.4 Human Capital as an Additional Factor of Production 24
3 Growth Models with Spatial Externalities 29
3.1 A Neoclassical Growth Model with Identical Steady States 29
3.2 A Neoclassical Growth Model with Different Steady States 31
4 Convergence: Theory and Evidence 35
4.1 Convergence and Disparities of National Economies 36
4.2 The Formal Derivation of a Convergence Equation 40
4.3 Empirical Tests of Convergence, Conclusions and Unsolved Questions 44
Part II A Model of Regional Growth 48
5 Remarks on Regional Growth 50
5.1 Agglomeration Effects, Increasing Returns and Polarisation 50
5.2 Reconsidering Saving and Gross Investment 53
5.3 Foreign Capital, Its Mobility and the Role of Human Capital 55
6 Structure of the Model 58
6.1 Definitions and Assumptions 58
6.2 The Production Function 60
6.3 Changes of Inputs to Production 64
7 Evolution of Factors and Output 69
7.1 Steady States 69
7.2 Simulation Results 72
7.3 Formal Derivations 79
8 Implications for Output Growth 82
8.1 Taylor Approximation 82
8.2 Solution for Output Growth 85
8.3 Summary and Outlook 88
Part III Empirics 91
9 Regions, Variables and Data 92
9.1 Observation Units, Observation Period and Distance Measures 92
9.2 Variables 95
9.3 An Illustration of Recent Developments 99
10 Spatial Econometric Specification and Estimation 106
10.1 Spatial Econometric Models 106
10.2 The Model Specification 108
10.3 Maximum Likelihood Estimation 110
11 Testing the Theoretical Model 112
11.1 Results 112
11.2 Interpretation and Concluding Remarks 115
12 Summary 118
Appendices 121
Appendix 1: Regions of the Observation Area 121
Appendix 2: Supplementary EconometricResults 124
Appendix 3: Intra-state Developments1995 to 2004 126
Appendix 4: List of Symbols 129
References 132