The paper explores the linkage between income growth rates and foreign direct investment (FDI) inflows. So far the evidence is rather mixed, as no robust relationship between FDI and income growth has been established. We argue that countries need a sound business environment in the form of good...

The tradition of gravity models is in the analysis of trade flows with market size and geographic or economic distance as core variables. Both these variables can be important determinants of FDI, too. However, when such models are used to explain FDI, there can be differences in the mode of...

We investigate the convergence process among EU regions between 1980-2002 taking into account the effects of spatial heterogeneity and spatial spillover effects. The spatial regimes model allows for different steady-state growth paths. In contrast to previous analyses, the regimes in this paper...

This paper tests a geography and growth model using regional data for Europe, the US, and Japan. We set up a standard geography and growth model with a poverty trap and derive a log-linearized growth equation that corresponds directly to a threshold regression technique in econometrics. In...

Many regions on the EU Eastern borders have developed favourably after the opening up of the border and the implementation of association agreements with the CEECs. This was often seen as a positive sign for the further perspectives of these regions after EU enlargement. In this paper we take a...

We study an overlapping generations model of human capital accumulation with threshold effects using regional data for West Germany. Our basic goal is to shed light on the growth of West German regions. The paper finds that the relative income distribution appears to be stratifying into a...

The present paper examines the economic development perspectives of the manufacturing sector of 31 major West German regions in the process of globalisation. Public statistics do not provide FDI data on a regional basis. Therefore our study was based on indicators based on the data from the...

Since the beginning of the 1990s, the issue of income convergence has received considerable attention in economic research. Although a vast number of empirical studies has emerged, evidence on the role of spatial interaction is still rather scarce. The present paper is an attempt to provide...

The paper bases itself on recent theoretical writings in growth economics that empha-size the effects of both own R&D efforts and of interregional technology spillovers on regions´ productivity. We propose robust estimation techniques to evaluate the R&D spillovers across West German functional...

Die vorliegende Studie beschäftigt sich mit Wachstumsabhängigkeiten zwischen räumlich benachbarten Gebieten in Westdeutschland im Zeitraum von 1976 bis 1996. Die Hypothese für derartige Wachstumsabhängigkeiten leitet sich aus der räumlichen Dimension von Mechanismen ab, denen ein...