Diffusion of Scale Effects between European Regions

Arbeitspapier

This paper develops a multi regional growth model of the second generation type with horizontal and vertical innovations. Technology goods are tradable between regions, creating a regional analogy of the weak scale effect introduced by Jones (2004). Per capita production in one region is a function of the weighted population sizes of trading partner regions. Thus the scale of partner regions diffuses between them. This result is empirically tested using data on the NUTS regions of the EU 15. A highly significant relationship is found between per capita GDP and an interregional scale variable, defined as a weighted sum of the populations of all EU 15 regions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Volkswirtschaftliche Diskussionsreihe ; No. 281

Classification and Topics

• Classification: Wirtschaft ; Size and Spatial Distributions of Regional Economic Activity ; Economywide Country Studies: Europe ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: Regional growth ; scale effects ; interregional trade

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Antony, Jürgen
• Event: Veröffentlichung
• (who): Universität Augsburg, Institut für Volkswirtschaftslehre
• (where): Augsburg
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/22804
• Last update: 10.03.2025, 11:43 AM CET