Abstract
The present paper analyzes the effect of regional specialization and R&D expenditures on labor productivity growth. Following Fingleton [Environ Plan 32:1481-1498 2000], we assume positive externalities in labor productivity growth and technological spillovers depend on interregional distances and economy size. Regional specialization and R&D expenditures are assumed to enhance growth by affecting the level of technology. Although it may seem natural that specialization and R&D expenditures can convey great advantages on economic growth, evidence varies across sectors. We conduct an empirical analysis for two economic sectors and the economy as a whole. Recently developed spatial econometric methods are adopted to control for potential heteroscedasticity in the growth equation.
| Original language | English |
|---|---|
| Pages (from-to) | 35-51 |
| Number of pages | 17 |
| Journal | Annals of Regional Science |
| Volume | 49 |
| Issue number | 1 |
| DOIs | |
| State | Published - Aug 2012 |