Spatial Productivity Spillovers, Entrepreneurship Capital and Regional Productivity : A Spatial Autoregressive Dynamic Panel Model

The present paper examines the effect of entrepreneurship capital and spatial productivity spillovers on Greek regional labour productivity during Greek financial crisis. A spatial autoregressive (SAR) dynamic panel data model using the robust Blundell and Bond GMM estimator suggests that entrepreneurship, spatial productivity spillovers and R&D capital have a positive and significant effect on regional labour productivity only in prosperity periods. However, their effect during crises is insignificant. Entrepreneurship capital concerning high-tech services positively affects regional labour productivity in a crisis period, while this effect becomes insignificant during prosperity periods. On the other hand, the influence of high-tech manufacturing entrepreneurship capital on regional value added per employee is always insignificant, regardless of the type of period