Skip to main content
SpringerLink
Log in
Book cover

European Regional Growth pp 215–239Cite as

Trade, Human Capital and Innovation: The Engines of European Regional Growth in the 1990s

  • Chapter

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

Abstract

Regional disparities have been a major policy concern in the European Union, in particular since its Southern enlargement. Widely known as the Union’s cohesion problem, it gave rise to the implementation of EU regional policy supported by substantial financial assistance from the Union’s budget. Although regional disparities have shown a tendency to decrease gradually, the regional convergence process has been interrupted several times. After the post 1975 period of divergence, a period of convergence set in with the accession of Southern countries to the EU and the warm-up phase of the EU’s Internal Market 1986–1992. Thereafter, growth developments of the 1990s again suggest a modest convergence.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Abramovitz M (1986) Catching-up, forging ahead or falling behind. Journal of Economic History, 46: 385–406

    Article  Google Scholar 

  • Abramovitz M (1989) Thinking about growth. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Aghion P, Howitt P (1992) A model of growth through creative destruction. Econometrica, 60: 323–351

    Article  Google Scholar 

  • Anselin L (1988) Spatial econometrics: Methods and models. Dordrecht, Kluwer

    Book  Google Scholar 

  • Anselin L, Florax JGM (1995) New directions in spatial econometrics. Berlin et al., Springer

    Book  Google Scholar 

  • Anselin L, Bera AK (1998) Spatial dependence in linear regression models with an introduction to spatial econometrics. In: Giles D, Ullaah A (eds) Handbook of applied economic statistics, New York, Dekker, pp 237–289

    Google Scholar 

  • Anselin L, Rey S (1991) Properties of tests for spatial dependence in linear regression models. Geographic Analysis, 23: 112–131

    Article  Google Scholar 

  • Aschauer D (1989) Is public expenditure productive? Journal of Monetary Economics, 23(2),pp. 177–200

    Article  Google Scholar 

  • Audretsch D, Feldman M (1996) R&D spillovers and the geography of innovation and production. American Economic Review, 86: 631–640

    Google Scholar 

  • Bacchetta P (1994) Regional investment and growth in the European Community. Department d’Economia i d’Historia Economica Barcelona discussion papers, WP 257.94, Barcelona

    Google Scholar 

  • Badinger H (2001) Growth effects of economic integration — The case of the EU member states (1950–2000). IEF working paper, no. 40, Research Institute for European Affairs, University of Economics and Business Administration, Vienna

    Google Scholar 

  • Balassa B (1961) The Theory of Economic Integration. London: Allen & Unwin.

    Google Scholar 

  • Balassa B (1978) Exports and economic growth: Further evidence, Journal of Development Economics, 5: 181–189

    Article  Google Scholar 

  • Baldwin R, Braconier H, Forslid, R (1999) Multinationals, endogenous growth and technology spillovers: Theory and evidence. CEPR discussion paper, no. 2155

    Google Scholar 

  • Baldwin RE (1993) On the measurement of dynamic effects of integration. Empirica, 20(2): 129–144

    Article  Google Scholar 

  • Baldwin RE, Seghezza E (1996) Growth and European Integration: Towards an empirical assessment. CEPR discussion paper, no. 1393, London, Centre for Economic Policy Research

    Google Scholar 

  • Barro R (1991) Economic growth in a cross-section of countries. The Quarterly Journal of Economics, 106(2): 407–443

    Article  Google Scholar 

  • Bassanini A, Scarpetta S. and Hemmings, P (2001) Economic Growth: The role of policies and institutions. Panel data evidence from OECD countries. OECD working paper, STI 2001/9

    Book  Google Scholar 

  • Bell KP, Bockstael N.E (2000) Applying the generalized-moments estimation approach to spatial problems involving microlevel data. The Review of Economics and Statistics, 82(1): 72–82

    Article  Google Scholar 

  • Ben-David D (1996) Trade and convergence among countries. Journal of International Economics, 40: 279–298

    Article  Google Scholar 

  • Ben-David D, Kimhi A (2000) Trade and the rate of income convergence. NBER working paper, no. 7642, Cambridge MA, National Bureau of Research.

    Google Scholar 

  • Benhabib J, Spiegel M (1994) The role of human capital in economic development: Evidence from aggregate cross-country data. Journal of Monetary Economics, 34(2): 143–73

    Article  Google Scholar 

  • Bernard A, Jones C (1996) Technology and convergence. The Economic Journal, 106: 103 7–1044

    Google Scholar 

  • Bottazzi L, Peri G (1999), Innovation, demand and knowledge spillovers: Theory and evidence from European regions. CEPR discussion paper, no. 2279, London, Centre for Economic Policy Research

    Google Scholar 

  • Branstetter LG (2001) Are knowledge spillovers international or intranational in scope? Microeconometric evidence from the U.S. and Japan. Journal of International Economics, 53: 53–79

    Article  Google Scholar 

  • Breuss F (1996) Austria’s approach towards the EU. IEF working paper, no. 18, Research Institute for European Affairs, University of Economics and Business Administration, Vienna

    Google Scholar 

  • Breuss F (1998) Die Nachhaltigkeit der volkswirtschaftlichen Entwicklung der MOEL. In: Fritz Breuss (ed) Reifegrad der mittel-und osteuropäischen EU Beitrittswerber, Vienna, WIFO-Austrian Institute for Economic Research

    Google Scholar 

  • Coe DT, Helpman E (1995) International R&D Spillovers. European Economic Review, 39(5): 859–87

    Article  Google Scholar 

  • Cohen D, Soto M (2001) Growth and human capital: Good data, good results. CEPR discussion paper, no. 3025, London, Centre for Economic Policy Research

    Book  Google Scholar 

  • de la Fuente A (1998) Convergence Equations and Income Dynamics: The Sources of OECD Convergence, 1970–95. CEPR discussion paper, no. 1794, London, Centre for Economic Policy Research

    Google Scholar 

  • de la Fuente A, Domenech R (2000) Human capital in growth regressions: How much difference does data quality make? CEPR discussion paper, no. 2466, London, Centre for Economic Policy Research

    Book  Google Scholar 

  • Dollar D (1992) Outward oriented developing countries really do grow more rapidly: Evidence from 95 LDCs, 1976–1985. Economic Development and Cultural Change, 40(3): 523–544

    Article  Google Scholar 

  • Durlauf SN (2001) Manifesto for a Growth Econometrics. Journal of Econometrics, 100: 65–69

    Article  Google Scholar 

  • Durlauf SN, Quah, D (1998) The new empirics of economic growth. NBER working paper, no. 6422, Cambridge, Ma: National Bureau of Economic Research

    Google Scholar 

  • European Commission (2000) The EU Economy. 2000 Review. European Economy, no. 71, Office for Official Publications of the EC, Luxembourg

    Google Scholar 

  • Fagerberg J (1987) A technology gap approach to why growth rates differ. Research Policy, 16(2–4): 87–99

    Article  Google Scholar 

  • Fagerberg J, Verspagen B (1996) Heading for divergence? Regional growth in Europe reconsidered. Journal of Common Market Studies, 34(3): 431–48

    Article  Google Scholar 

  • Fagerberg J, Verspagen B, Caniels M (1997) Technology, growth and unemployment across European regions. Regional Studies, 31: 457–466

    Article  Google Scholar 

  • Fingleton B (2001) Theoretical economic geography and spatial econometrics: dynamic perspectives. Journal of Economic Geography, 1: 201–225

    Article  Google Scholar 

  • Fujita M, Krugman P, Venables A (1999) The spatial economy: Cities, regions, and international trade. Cambridge MA, MIT Press

    Google Scholar 

  • Funke M, Niebuhr A (2000) Spatial R&D spillovers and economic growth — Evidence from West Germany. HWWA discussion paper, no. 98, Hamburg, Hamburgisches WeltWirtschafts-Archiv

    Google Scholar 

  • Gerschenkron A (1962) Economic backwardness in historical perspective. Cambridge, Harvard University Press

    Google Scholar 

  • Griffith R, Redding St, Van Reenen J (2000) Mapping the two faces of R&D: Productivity growth in a panel of OECD industries. CEPR discussion paper, no. 2457, London, Centre for economic policy research

    Google Scholar 

  • Griliches Z (1980) R&D and the Productivity Slowdown. American Economic Review, 70: 343–348

    Google Scholar 

  • Grossman GM, Helpman E (1991) Innovation and growth in the global economy. Cambridge MA, MIT Press

    Google Scholar 

  • Hallet M (1999) The regional impact of the single currency. In: Fischer M, Nijkamp P (eds) Spatial dynamics of European Integration. Heidelberg et al., Springer: pp 94–109

    Chapter  Google Scholar 

  • Islam N (1995) Growth empirics: A panel data approach. Quarterly Journal of Economics, 4: 1127–1170

    Article  Google Scholar 

  • Jaffe A, Trajtenberg M (1998) International Knowledge Flows: Evidence from patent citations. NBER working paper, no. 6507, Cambridge MA, National Bureau of Economic Research

    Google Scholar 

  • Jones CI (1995b) R&D-Based Models of Economic Growth. Journal of Political Economy, 103(4): 759–784

    Article  Google Scholar 

  • Kaldor N (1961) Capital accumulation and economic growth. In: Lutz F (ed), The theory of capital, London, Macmillan

    Google Scholar 

  • Kelejian H, Prucha I (1998) A generalized two-stage least squares procedure for estimating a spatial autoregressive model with autoregressive disturbances. Journal of Real State Finance and Economics, 17: 99–121

    Article  Google Scholar 

  • Kelejian H, Prucha I (1999) A generalized moments estimator for the autoregressive parameter in a spatial model. International Economic Review, 40(2): 509–533

    Article  Google Scholar 

  • Keller W (1998) Are international R&D spillovers trade-related? Analyzing spillovers among randomly matched trade partners. European Economic Review, 42: 1469–1481

    Article  Google Scholar 

  • Keuschnigg C, Kohler W (1996) Austria in the European Union. Dynamic Gains from integration and distributional implications. Economic Policy: 155–211

    Google Scholar 

  • Kormendi R, Meguire Ph (1985) Macro-economic determinants of growth: Cross country evidence. Journal of Monetary Economics, 16: 141–163

    Article  Google Scholar 

  • Krueger A, Lindahl M (2000) Education for growth: Why and for Whom. NBER working paper, no. 7591

    Google Scholar 

  • Krugman P (1991) Economic geography and trade. Cambridge MA, MIT Press.

    Google Scholar 

  • Krugman P (1991) Increasing returns and economic geography. Journal of Political Economy, 99: 484–99

    Article  Google Scholar 

  • Krugman P, Venables A (1996) Integration, specialization and adjustment. European Economic Review, 40: 956–67

    Article  Google Scholar 

  • Lichtenberg F, van Pottelsberghe de la Potterie B (1996) Does foreign direct investment transfer technology across borders. NBER working paper, no. 5668, Cambridge MA, National Bureau of Economic Research

    Google Scholar 

  • Lucas RE (1988) On the mechanics of economic development. Journal of Monetary Economics, 22(1): 3–42

    Article  Google Scholar 

  • Mankiw G, Romer D, Weil D (1992) A contribution to the empirics of economic growth. Quarterly Journal of Economics, 107: 407–437

    Article  Google Scholar 

  • Maurseth PB (2001) Convergence, geography and technology, Norwegian Institute of international affairs. Structural Change and Economic Dynamics, 12: 247–276

    Article  Google Scholar 

  • Nelson R, Phelps E (1966) Investment in humans, technological diffusion, and economic growth. American Economic Review, Papers and Proceedings, 61: 69–75

    Google Scholar 

  • Niebuhr A (2001) Convergence and the effects of spatial interaction. Jahrbuch für Regionalwissenschafi, 21: 113–133

    Google Scholar 

  • Paci R, Pigliaru F (2001) Technological diffusion, spatial spillovers and regional convergence in Europe. University of Cagliari, CRENoS WorkingPaper, no. 01/01

    Google Scholar 

  • Paci R, Usai St (2000) Externalities, knowledge spillovers and the spatial distribution of innovation. GeoJournal, 49(4): 381–390

    Article  Google Scholar 

  • Parente St, Prescott E (1994) Barriers to technology adoption and development. Journal of Political Economy, 102(2): 298–321

    Article  Google Scholar 

  • Podrecca E, Carmeci G (2001) Education and growth. The causality links. University of Trieste, mimeo

    Google Scholar 

  • Pritchett L (1996) Where has all the education gone? World Bank working papers, no. 1581

    Google Scholar 

  • Quah D (1999) Cross-country growth comparison: Theory to empirics. CEPRdiscussion paper, no. 2294, London, Centre for economic policy research

    Google Scholar 

  • Rey S, Montouri B (1999) US regional income convergence: A spatial econometric perspective. Regional Studies, vol. 33(2): 145–156

    Article  Google Scholar 

  • Rivera-Batiz LA, Romer PM (1991) Economic integration and endogenous growth. Quarterly Journal of Economics, 106: 531–555

    Article  Google Scholar 

  • Rivera-Batiz, L.A. and Xie, D (1993) Integration among unequals. Regional Science and Urban Economics, 23: 337–354

    Article  Google Scholar 

  • Romer P (1990) Endogenous technological change. Journal of Political Economy, 98(5), part II: 71–S 102

    Article  Google Scholar 

  • Segerstrom PS (1998) Endogenous growth without scale effects. American Economic Review, 88: 1290–1310

    Google Scholar 

  • Sinha D, Sinha T (1998) Cart before the horse? The saving-growth nexus in Mexico. Economics Letters, 61: 43–47

    Article  Google Scholar 

  • Temple J (1999) The New Growth Evidence. Journal of Economic Literature, 37(1): 112–156

    Article  Google Scholar 

  • Temple J (2001) Generalizations that aren’t? Evidence on education and growth. European Economic Review, 45: 905–918

    Article  Google Scholar 

  • Tondl G (1999) The changing pattern of regional convergence in Europe. Jahrbuch für Regionalwissenschafi, 19(1): 1–33

    Google Scholar 

  • Tondl G (2001) Convergence after divergence? Regional growth in Europe. Wien/New York, Springer

    Book  Google Scholar 

  • Vanhoudt P, Mathä T, and Smid B (2000) How productive are capital investments in Europe? EIB papers, 5(2)

    Google Scholar 

  • Vayá E, López-Bazo E, Moreno R, Suriñach M (2002) Growth and externalities across economies. An empirical analysis using spatial econometrics. Series on Spatial Econometrics and Statistics, Berlin et al., Springer (forthcoming)

    Google Scholar 

  • White H (1980) A Heteroscedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroscedasticity. Econometrica, 48: 817–838

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Vienna University of Economics and Business Administration, Austria

    Harald Badinger & Gabriele Tondl

Authors
  1. Harald Badinger
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Gabriele Tondl
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Land Economy, University of Cambridge, 19 Silver Street, CB3 9EP, Cambridge, UK

    Bernard Fingleton

Rights and permissions

Reprints and permissions

Copyright information

© 2003 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Badinger, H., Tondl, G. (2003). Trade, Human Capital and Innovation: The Engines of European Regional Growth in the 1990s. In: Fingleton, B. (eds) European Regional Growth. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-07136-6_8

Download citation

  • DOI: https://doi.org/10.1007/978-3-662-07136-6_8

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-05571-3

  • Online ISBN: 978-3-662-07136-6

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics

Search

Navigation