Regional Economic Growth and Steady States with Free Factor Movement: Theory and Evidence from Europe

Sascha Sardadvar

    Publication: Working/Discussion PaperWU Working Paper


    This paper develops a spatial theoretical growth model in order to study the impact of physical and human capital relocations on the growth of open economies. Analytical and simulation results show how the respective neighbours determine an economy's development, why convergence and divergence may alternate in the medium-run, and that interregional migration as a consequence of wage inequalities causes disparities to prevail in the long-run. The empirical part applies spatial econometric specifications for European regions on the NUTS2 level for the observation period 2000-2010. The estimations underline the importance of human capital endowments and its relation with spatial location. (author's abstract)
    Original languageEnglish
    Place of PublicationVienna
    PublisherWU Vienna University of Economics and Business
    Publication statusPublished - 2015

    Publication series

    NameWorking Papers in Regional Science

    WU Working Paper Series

    • Working Papers in Regional Science

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