In a two-country model of endogenous growth with international knowledge spillover, corporate income tax competition reproduces the second-best allocation attained by tax harmonization, despite complex externalities. This stems from the positive spillover effect across the border and free...

This paper assesses the robustness of the empirical results in Ertur and Koch (2007), who develop a model, which accounts for technological interdependence among countries through spatial externalities. The original version models interdependence via an interaction matrix based on geographic...

The aim of this paper is to introduce a new model selection mechanism for cross sectional spatial models. This method is more fexible than the approach proposed by Florax et al. (2003) since it controls for spatial dependence as well as for spatial heterogeneity. In particular, Bayesian and...

The beneficial effects of innovation for firms' performance and competitiveness are well documented, but it has been suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely on knowledge generation, their emerging...

Knowledge and technological change are often assumed to be the driving forces for long run economic growth. Regions with a higher level of knowledge compared to other regions exhibit a higher per-capita income on average. Agglomeration effects can lead to a steady increase of income and widen...

The purpose of this paper is to analyze the effect of various proximity dimensions on the innovative capacity of 276 regions in Europe within a knowledge production function model, where R&D and human capital are included as the main internal inputs. We combine the standard geographical...

In the context of China's knowledge economy, cluster-based technological innovation can promote the communication of knowledge among industries, advancing the industrial structure. This study constructs the Ricardian model with the differences in productivity between different sectors to explore...