A Spatial Econometric Analysis of Regional Specialization Patterns across EU Regions

In this paper, I perform a spatial econometric analysis of the determinants of regional specialization patterns across EU regions. Spatial correlation is evident, but this is due mostly to spatial error autocorrelation. Spatial interaction caused by positive economic interdependencies might be present for a very few labor-intensive sectors, yet it is inconsistent across different spatial weights matrices. No clear, disadvantageous spatial interdependencies of specialization in the periphery or increasing core-periphery tendencies were identified.