Quality of government in European regions: do spatial spillovers matter?

Ezcurra, Roberto; Ríos, Vicente Orts

doi:10.1080/00343404.2019.1665644

Cited by 18 publications

(32 citation statements)

References 36 publications

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“…In fact, globalization affects the division of labour of subnational economies and the patterns of regional specialization, in a context where firms can externalize (outsource) or relocate (pure off-shoring) some of their functions to other international locations, regardless the position of each function in the value chain (Cooper et al 2007). In this setting, regions must compete with the rest to attract FDI and seize the various opportunities offered by globalization (Ezcurra and Rios 2020), which shapes the spatial distribution of economic activity within Europe.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Globalization and spatial inequality: Does economic integration affect regional disparities?

Ezcurra

Villar

2021

Ann Reg Sci

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This article examines the link between economic globalization and spatial inequality in a panel of 142 countries over the period 1992-2012. Our instrumental variables estimates reveal a strong causal effect of the degree of economic integration with the rest of the world on spatial inequality, indicating that the advances in the process of globalization currently underway contribute to significantly increasing regional income disparities. This means that globalization leads to the emergence of losing and winning regions within countries and that the group of losing (winning) regions tends to be made up of low (high-)-income regions. This result has to do with the regressive spatial impact of actual economic flows, while existing restrictions on trade and capital do not exert a significant effect in this context. Our findings are robust to the inclusion in the analysis of different covariates that may be correlated with both spatial inequality and globalization and are not driven by a specific group of influential countries. Likewise, the observed relationship between economic integration and spatial inequality does not depend on the measures used to quantify the magnitude of regional income disparities within the various countries. At the same time, our estimates suggest that the spatial impact of globalization is contingent on the level of economic development.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Globalization and spatial inequality: Does economic integration affect regional disparities?

Ezcurra

Villar

2021

Ann Reg Sci

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“…Research results by Such a cek et al (2017) concerning the spatial distribution of the 100 largest company headquarters in the Czech Republic shows a distinct dominance of the whole Central Bohemian territory, with especially pronounced position of the capital city. Also, the results of a study by Ezcurra and Rios (2020), that covered the European Union, showed that the quality of government in neighbouring regions exerts a positive and statistically significant effect on a region's quality of government, confirming the relevance of spatial effects in this context, which are in their nature limited. Similarly, in our case, we find diminishing effects of the role of certain institutions as the distance to their establishments increases.…”

Section: Results and Discussion Of Findingsmentioning

confidence: 82%

Institutions versus location of new firms: does distance matter? Evidence from the Polish economy

Marks-Bielska

Nazarczuk

Rogalska

2021

Economic Research-Ekonomska Istraživanja

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The research aim was to identify the effects of the institutional environment-supporting business activity on new firms' location. Using a series of negative binomial models, coupled with Hausman-Taylor estimations and Granger causality tests we studied the role of quality of institutions and distances to various types of institutions on the spatial distribution of new firms. The analysis also takes into consideration other location criteria, arising from the geographical location and socio-economic conditions in Poland's smallest administrative division unit, i.e., a municipality. The results revealed a positive role in the quality of institutions as firms' location criteria. Furthermore, the distance of firms to different institutions tended to be significant, albeit depending on these institutions' type. In this regard, the distance of numerous local institutions performing a broader spectrum of activities was a significant location criterion, while the distance to institutions focusing on a narrow range of activities (e.g., supporting innovations, R&D), dedicated to selected or supra-regional groups of clients, more frequently proved to be insignificant. Implications arising from the research can help local authorities, which take measures to improve the institutional environment supporting firms.

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“…More recently, there has been a growing interest in how the government performance of one region is affected by that of its neighbours (e.g. Bubbico et al, 2017; Ezcurra and Rios, 2020). Ezcurra and Rios (2020) propose that the mechanism through which this takes place is competitive learning: regions neighbouring others with efficient governments have enhanced opportunities to learn and copy the successful policies adopted elsewhere.…”

Section: Methodsmentioning

confidence: 99%

The economic returns of decentralisation: Government quality and the role of space

Rodríguez‐Pose

Muštra

2022

Environ Plan A

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Research on the impact of decentralisation has generally overlooked the fact that the economic returns of transferring powers and resources to subnational tiers of government greatly depend on the quality of the devolved government. Scholarly literature has also neglected that these returns may be similarly affected by the autonomy of neighbouring areas and their government quality. In this paper, we use panel data fixed effects analyses and spatial Durbin econometric models to assess the extent to which the economic returns of political and fiscal decentralisation in the European Union between 2000 and 2015 are mediated by local government quality and that of neighbouring regions. The results suggest that the economic benefits of regional autonomy are greater in regions with a better government quality, while regions with a low quality of government grow less, regardless of their level of decentralisation. The gains of decentralisation mainly accrue through indirect effects, as regions grow more if surrounded by other, more decentralised regions than through their own level of decentralisation. In all cases, local government quality is a powerful driver of growth, irrespective of whether a region is considered individually or in relationship to its neighbours.

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Quality of government in European regions: do spatial spillovers matter?

Cited by 18 publications

References 36 publications

Globalization and spatial inequality: Does economic integration affect regional disparities?

Globalization and spatial inequality: Does economic integration affect regional disparities?

Institutions versus location of new firms: does distance matter? Evidence from the Polish economy

The economic returns of decentralisation: Government quality and the role of space

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