Growth with heterogenous interdependence

We present a growth model with spatial interdependencies in the heterogeneous technological progress and the stock of knowledge that, under certain conditions, yields agrowth-initial equation that can be taken to the data. We then use data on EU-NUTS2 regions and a correlated random e ects specication to estimate the resulting spatial Durbin dynamic panel model with spatially weighted individual e ects. QML estimatessupport our model against simpler alternatives that impose a homogeneous technology. Also, our results indicate that rich regions tend to have higher (unobserved) productivityand are likely to stay rich because of the strong time and spatial dependence of the GDP per capita. Poor regions, on the other hand, tend to enjoy productivity spillovers but arelikely to stay poor unless they increase their saving rates.This research was funded by grants ECO2014-55553-P and ECO2016-78652 (Ministerio de Econom a y Competitividad), ECO2018-88888-P (AEI/FEDER, UE) and 2014FI B00301 (Agaur, Generalitat de Catalunya). We thank participants at the 59th ERSA Congress (Lyon), 21st INFER Annual Conference (Vrije Universiteit Brussel), UCLouvain Saint-Louis and the 6th Workshop in Industrial and Public Economics (Universitat Rovira i Virgili) for useful comments. Usual caveats apply

The determinants of exit in a developing country: core and peripheral regions

This paper analyses the regional determinants of exit in developing countries, using Argentina as an illustrative case. We find evidence of a dynamic revolving door by which past entrants increase current exits, particularly in the peripheral regions. In the central regions, current and past incumbents cause an analogous displacement effect. Also, exit shows a U-shaped relationship with respect to the informal economy, although the positive effect is weaker in the central regions. These findings point to the existence of a core-periphery structure in the spatial distribution of exits.Fil: Calá, Carla Daniela. Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales; Argentina.Fil: Arauzo-Carod, Josep-Maria. Institut d'Economia de Barcelona; España.Fil: Manjón-Antolín, Miguel. Universitat Rovira i Virgili. Departamento de Economía; España

The effects of the 2007 global economic crisis on firm relocation factors: SME movements from Greece to Bulgaria

This chapter examines the ways in which the 2007 global economic crisis has influenced firm relocation factors. Firm mobility constitutes a dynamic process, with its aspects changing in response to significant broader processes, such as globalisation. Specifically, the recent crisis has modified the socio-economic conditions under which firms operate. In order to examine the crisis-driven changes in firm mobility, this chapter employs a comparative analysis of the pre- and post-crisis relocation of Greek small and medium-sized companies to Bulgaria, which has recently increased. Greece is at the epicentre of academic and political debate in Europe, being the European Union member state mostly affected by the crisis. In the context of the changing economic and institutional conditions, it is demonstrated that the significance of the firm relocation factors, such as labour cost and level of demand, records considerable differences between the pre- and the post-crisis period