In this paper, the process of productivity convergence is investigated for the enlarged European Union using regional (NUTS-2) data. The Solow model extended by human capital is employed as a workhorse. Alternative strategies are proposed to control for spatial effects. All specifications...

In this paper, the process of productivity convergence is investigated for the enlarged European Union using regional (NUTS-2) data. The Solow model extended by human capital is employed as a workhorse. Alternative strategies are proposed to control for spatial effects. All specifications...

The development state of regions depends not only on the own efficiency, but also on spatial spillovers. Positive (backward linkages, use of the infrastructure in neighbouring economic areas etc.) and negative (e. g. environmental effects) spillovers give reasons for a mutual economic influence...