The goal of this article is to test four distinct hypotheses about whether the relative location of an economy affects economic growth and economic well-being using an extended Solow-Swan neoclassical growth model that incorporates both space and time dynamics. We show that the econometric specification takes the form of an unconstrained spatial Durbin model, and we investigate whether the results depend on some methodological issues, such as the choice of the time span and the inclusion of fixed effects. To estimate the fixed effects spatial Solow-Swan model, we adjust the Arrelano and Bond (1991) generalized method-of-moments (GMM) estimator to deal with endogeneity not only arising from the initial income level, as in the basic model, but also from the initial income levels and economic growth rates observed in neighboring economies.
Abstract:In this paper we aim at identifying stylized facts in order to suggest adequate models of spatial co-agglomeration of industries. We describe a class of spatial statistical methods to be used in the empirical analysis of spatial clusters. Compared to previous contributions using point pattern methods, the main innovation of the present paper is to consider clustering for bivariate (rather than univariate) distributions, which allows uncovering co-agglomeration and repulsion phenomena between the different industrial sectors. Furthermore we present the results of an empirical application of such methods to a set of European Patent Office (EPO) data and we produce a series of empirical evidences referred to the the pair-wise intra-sectoral spatial distribution of patents in Italy in the nineties. In this analysis we are able to identify some distinctive joint patterns of location between patents of different sectors and to propose some possible economic interpretations.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.