The Determinants of Economic Growth in European Regions

Abstract

Crespo Cuaresma J., Doppelhofer G. and Feldkircher M. The determinants of economic growth in European regions, Regional Studies. This paper uses Bayesian model averaging (BMA) to find robust determinants of economic growth between 1995 and 2005 in a new data set of 255 European regions. It finds that income convergence between countries is dominated by the catching-up of regions in new member states in Central and Eastern Europe, whereas convergence within countries is driven by regions in old European Union member states. Regions containing capital cities are growing faster, particularly in Central and Eastern European countries, as do regions with a large share of workers with a higher education. The results are robust when allowing for spatial spillovers among European regions.

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