Regional growth and spatial spillovers: Evidence from an SpVAR for the Spanish regions

Abstract

This paper provides a spatial vector autoregressive (SpVAR) analysis of growth spillovers for the Spanish regions over the period . First, a spatial Granger causality analysis is performed that indicates the relevant impact of spatial spillover effects across regions in Spain. Second, the empirical research offers a contribution in the context of the SpVAR modelling estimating the push-in (from the neighbours to the region) and push-out (from the region to its neighbours) effects of growth spillovers within a regional economic system. Finally, the proposed methodology reveals empirical evidence about both the short-run and long-term regional growth adjustment processes in space and time. The results for the Spanish regional panel data suggest the existence of strong spatiotemporal regional spillovers of growth output. This has important implications for the choice of regional policy goals and regional policy instruments.JEL classification: C32, E6, H54, R58 * The comments of the participants of the EU-REAL/WIFO Workshop 'European Integration and Regional Modelling' (Vienna 2010) and the EU-REAL (CRENoS/University of Sassari Workshop 'Economic Development in Peripheral Regions' (Sardinia 2011) are greatly appreciated. The comments and suggestions of Jesús Crespo, Peter Huber and Enrique López-Bazo are particularly appreciated. The authors acknowledge the funding received from the Ministry of Science and Innovation of Spain through the project ECO2009-12506. The usual disclaimer applies.

Long‐run processes of geographical concentration and dispersion: Evidence from Germany

“…We thus compare the values of the EG index between different levels of sectoral and/or regional aggregation. Márquez et al () show that there can be substantial inter‐regional spillovers in growth rates across regions. We hence acknowledge that agglomerative forces may transcend given administrative boundaries and explicitly integrate neighbourhood effects.…”

Regional Public Stock Reductions in Spain: Estimations from a Multiregional Spatial Vector Autorregressive Model

“…Due to the very large number of regressions, as well as preliminary or intermediate results involved in the estimation, only the main estimation and specification test results are presented (see Ramajo et al, 2015, for details). In summary, given that all the conditions for the Global VAR approach are accomplished, the estimation of the MultiREG-SpVAR is justified, and the dynamic properties of the model can be investigated 10 .…”

“…The MultiREG-SpVAR model extends the traditional VAR models applied in the economics literature (see Kamps 2005) to assess the effects of public capital at aggregate national level. Thus, the proposed approach encompasses both the VAR methodology, that specifies the single-region temporal dynamics (see Márquez et al 2011), the bi-regional VAR approach (see Márquez et al 2010a), and the uni-regional Spatial VAR approach (Márquez et al 2015), combining different region-specific VAR models in a global specification in which the state variables of each region are related to the state variables of the rest of the regions.…”

Spatiotemporal Analysis of Regional Systems

“…As a result, a new class of spatial VAR (SpVAR) models has recently appeared in the spatial econometrics literature (see, e.g., Beenstock and Felsenstein 2007;Canova and Ciccarelli 2009;Di Giacinto 2010;Dewachter, Houssa, and Toffano 2012;Márquez, Ramajo, and Hewings 2010, 2013, 2014a. SpVARs are a general type of multivariate vector autoregressions that include spatial as well as temporal lags of the state variables.…”