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Convergence Clubs and Spatial Externalities

Models and Applications of Regional Convergence in Europe

Convergence Clubs and Spatial Externalities by Stilianos Alexiadis
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Do dynamic externalities, in the form of technology creation, adoption and spatial agglomeration shape the pattern of regional growth in Europe? This study provides an alternative view on regional convergence. A model is developed which attributes club-convergence to existing differences with respect to the degree of technology adoption. In the first instance, empirical results suggest that the NUTS-2 regions of the EU-27 converge at a very slow rate. Further tests, however, indicate that convergence is restricted to a specific subset of regions. Such conclusions are tested further, using an alternative model of club-convergence, which incorporates the impact of spatial interaction, agglomeration externalities and technology. This shows that the convergence-club in Europe follows a certain geographical pattern and all members share similar characteristics regarding technology creation and adoption, and agglomeration externalities.  ​
Springer Berlin Heidelberg; September 2012
253 pages; ISBN 9783642316265
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Title: Convergence Clubs and Spatial Externalities
Author: Stilianos Alexiadis
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