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We estimate the speed of income convergence for a sample of 196 European NUTS 2 regions over the period 1985-1999. So far there is no direct estimator available for dynamic panels with strong spatial dependencies. We propose a two-step procedure, which involves first spatial filtering of the variables to remove the spatial correlation, and application of(More)
This paper investigates the growth factors of EU regions in the 1990s. We test the hypothesis that regional growth is determined by endogenous growth factors, trade and technological catching-up in a growth accounting framework. Our estimations suggest that growth of EU regions is positively related to the accumulation of physical and human capital.(More)
Since 1975, the extent of catching-up has been very different across Southern regions. Starting from the common arguments of growth theory, the paper wishes to show whether differences in regional income and growth can be attributed to different endowment in human capital, differences in private or public investment level, to structural imbalances, and(More)
Foreign Direct Investment (FDI) has surged in Latin America (LA) since the mid 1990s. European and North American FDI is of capital importance. We investigate the FDI-growth nexus in LA allowing for different source countries, regional heterogeneity, more than 20 growth determinants, and interaction terms with FDI. We use Bayesian Model Averaging to address(More)
During the 1990s, in many Latin American countries, foreign direct investment (FDI) from the European Union (EU) started to rank before FDI from North America (NA). We investigate the impact of EUversus NA-FDI on the growth rate of Latin American output per labor force in a panel data growth model with country specific effects. We include a large set of 28(More)
This paper examines whether European integration, manifesting itself in increased trade and FDI linkages, new specializations and economic policy coordination, contributed to the synchronization of business cycles in the enlarged EU. We estimate the effects on bilateral growth rate correlations in 1995-2008 in a simultaneous equations model which permits to(More)