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The economic growth literature suggests that knowledge spillovers are subject to distance decay effects. In this paper the main aim is to provide a theoretical framework and empirical evidence on the role played by other kinds of proximities, namely relational, social and technological proximity, in explaining productivity growth. Using a sample of 249 EU 27 NUTS 2 regions in the period 1990-2004, semiparametric spatial autoregressive models are estimated. Results provide evidence of a positive role of social and relational proximities as important channels of knowledge spillovers, and on the fact that, when simultaneously present, different kinds of proximities generate synergic effects on growth. Resumen La literatura sobre el crecimiento económico sugiere que los spillovers de conocimiento están sujetos a efectos de deterioro por distancia. El objetivo principal de este artículo es proporcionar un marco teórico y pruebas empíricas sobre el papel desempeñado por otros tipos de proximidades (relacional, social y tecnológica), a la hora de explicar el crecimiento de la productividad. Utilizando una muestra de 249 regiones NUTS 2 de la UE 27 para el período 1990-2004, se estiman modelos autorregresivos espaciales semiparamétricos. Los resultados aportan pruebas del papel positivo de las proximidades sociales y relacionales como canales importantes de spillovers de conocimientos, y del hecho de que, cuando se presentan simultáneamente, los diferentes tipos de proximidades generan efectos sinérgicos sobre el crecimiento. [ABSTRACT FROM AUTHOR]

This paper provides a spatial neoclassical growth model for a system of N regional economies. Regional output growth is determined by interregional fixed capital relocations which depend on initial factor endowments as well as a region's relative location in space. The dynamics of the model are captured by a Taylor approximation, which provides a testable spatial econometric model specification that is applied for European regions on the NUTS 2 level. Both theoretical and empirical results show how relatively high human capital endowments are beneficial to growth if found within one region, but disadvantageous if found in neighbouring regions. Este artículo proporciona un modelo de crecimiento neo-clásico espacial para un sistema de N economías regionales. El crecimiento del producto regional viene determinado por deslocalizaciones interregionales de capital fijo que dependen de la dotación de factores inicial, así como de la relativa localización espacial de una región. Las dinámicas del modelo son capturadas mediante una aproximación de Taylor, que proporciona una especificación comprobable de modelo econométrico espacial que se aplica a regiones europeas a nivel NUTS 2. Tanto los resultados teoréticos como los empíricos muestran como las dotaciones relativamente elevadas de capital humano son ventajosas para el crecimiento cuando se concentran en una región, pero una desventaja si se encuentran en regiones vecinas. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this paper is to shed light on the controversial issue of regional development incentives. Although extensive research has been conducted, a review of the literature gives an inconclusive answer to whether economic incentives are effective. Why do researchers arrive at different conclusions, even after analysing the same programmes? Among the problems that we find, for example, is the fact that for some researchers ‘effective’ means the significant location of new firms in targeted areas, while for others the creation of jobs regardless of whether new firms are arriving in a significant fashion. Furthermore, as we elaborate, the selection of an econometric model will have a significant impact on expected results. Different models, with different limitations, will lead researchers to evaluate the same incentive programme but arrive at different conclusions regarding its effectiveness. The contribution of the paper is to inform policymakers about the potential opportunities and pitfalls when designing incentive strategies. This is particularly relevant, given that both the US and Europe have been promoting incentives as a tool for regional economic development. [ABSTRACT FROM AUTHOR]

In this article a semiparametric spatial Durbin model is employed to analyse the growth behaviour of 155 European regions in the period 1988–2000. This specification combines the semiparametric approach with the usual parametric spatial econometric technique to accommodate both spatial dependence and nonlinearities as suggested by recent neoclassical growth models with spatial technological interdependence. The results provide evidence of nonlinearities in the effect of initial per capita incomes and human capital investments. Moreover, the specification used allows identifying the effect of the interaction between the characteristics (initial conditions and structural variables) of each region and those of its neighbours. Finally, it shows some indication of global spillovers across-country and local spatial spillovers from domestic neighbours. Resumen En este artículo se emplea un modelo semiparamétrico espacial de Durbin para analizar el comportamiento del crecimiento de 155 regiones europeas durante el periodo 1988–2000. Esta especificación combina el enfoque semiparamétrico con técnicas econométricas espaciales paramétricas habituales para reconciliar la dependencia espacial y las no linealidades, tal y como sugieren los modelos de crecimiento neoclásicos recientes con interdependencia tecnológica espacial. Los resultados ofrecen pruebas de no linealidades en el efecto de ingresos per capita iniciales e inversiones en capital humano. Además, la especificación utilizada permite utilizar el efecto de la interacción entre las características (condiciones iniciales y variables estructurales) de cada región y las de sus vecinos. Finalmente, da una idea de spillovers (efectos de derrame) globales entre países y spillovers espaciales locales de regiones vecinas dentro del país. [ABSTRACT FROM AUTHOR]

The article comments on the paper "An Economic Theory of the Growth of the Western World," by professors Douglas C. North and Robert Paul Thomas. The paper is related to European economic growth. The theory proposed by North and Thomas relies heavily upon three components. The first is a model for cyclical fluctuations in the pre-industrial economic life of Europe. This model defines the relative changes in the cost of land and labor as changes in population alter the ratio between the two. It incorporates the relative elasticities which have been found in the supply and demand curves for foodstuffs as opposed to those for raw materials and industrial products. North and Thomas then elaborate this last observation into the second major element of their model, a "theory of institutional change." The shifts in factor proportions so heightened the possibilities of profit from production for the market that they exceeded the costs of the institutional innovations needed to change the organization of production and distribution of income. The result was the steady introduction of "secondary" institutional changes such as enclosures, joint-stock companies, government support of certain guilds, and regulation of quality.

This article presents a list of papers related to economic history of Europe. Some of the papers are: "An early Garolingian Mint in the Low Gountries: Bona-Tiel," by M. Metcalf; "Financial Intermediaries and Economic Development, the Belgian Case," by R.J. Morrison; "Middeleeuwse sociale structuren. Enkele kanttekeningen,"by J. Mertems; "Dutch Theology, Trade and War: 1590-1610," by C. Bangs; and others.

ABSTRACT Aim This paper identifies socio-economic driving forces of biodiversity change and analyses their political and economic dynamics by modelling socio-economic parts of three scenario storylines developed for the ALARM (assessing large-scale risks for biodiversity with tested methods) project. In the BAMBU (business-as-might-be-usual) scenario policy decisions already made in the European Union (EU) are implemented and enforced, but no additional measures are introduced. The GRAS (growth applied strategy) scenario describes a future world orientated towards economic growth and complete deregulation. And finally, SEDG (sustainable European development goal) is a normative scenario focusing on the achievement of sustainable development. Methods The GINFORS (global inter-industry forecasting system) model is applied to quantify the effects of different sets of policy measures representing the three scenarios. It allows investigation of the inter-relations between socio-economic driving forces and the state of the environment. Results The presented results for the 25 EU countries focus on the following variables: unemployment, material extraction, energy supply and CO2 emissions. The lowest amount of unemployment is in the SEDG scenario, where it steadily decreases from 2005 to 2020. In BAMBU it falls to a level that is also below that of 2005. In GRAS, the number of unemployed people in 2020 is clearly over the value of 2005. The development of total material extraction from 2005 to 2020 is nearly stable in BAMBU, while it clearly increases in GRAS. Only in SEDG is there a reduction in resource use. None of the scenarios achieves a substantial reduction in energy use. However, the development of CO2 emissions shows a decoupling from energy supply. For BAMBU there is a slight decline in CO2 emissions over time, for GRAS they increase but with a slightly smaller growth rate than energy supply. In SEDG the emissions are reduced. The decoupling trends can be explained by a shift to more renewable energy sources in all scenarios, with the highest share in SEDG. Main conclusions The results indicate that a growth-oriented policy design, such as presented in the GRAS scenario, is not compatible with the conservation of biodiversity. Only in the SEDG scenario do the policy measures support the idea of a sustainable development, but in some respects they are still not ambitious enough. [ABSTRACT FROM AUTHOR]

ABSTRACT During the last decade, economists have shown that the inverse relationship between economic growth and unemployment rate varies over time. Rolling regression has been the main tool used to quantify such a relationship. This methodology suffers from several well-known problems which lead to spurious non-linear patterns in the Okun's coefficient behaviour over time. Here, we take a penalized regression spline approach to estimate the Okun's time-varying effects. As a result, spurious non-linearities are suppressed and hence important time-varying coefficient features revealed. Our empirical results show that the inverse relationship in some Euro area countries is spatially heterogeneous and time-varying. The findings are complemented by the calculation of the rate of output growth needed for a stable unemployment rate, as proposed by Knotek. [ABSTRACT FROM AUTHOR]

Provides an overview of policies for economic growth and employment in the European Union as of October 2005. Background on the Lisbon Agenda; Relative position of Western Europe with regard to economic growth and job; Details of an analytical framework linking growth and jobs.

Focuses on the impact of information and communication technologies in the economic growth in Europe. Reduction of digital information and communication processing cost; Evaluation of the technologically driven digital convergence between communication and computer technology; Growth in the international electronic networking.

This article comments on a study by Patrick O'Brien related to the economic development in Europe. O'Brien states in his paper that commerce between core and periphery for three centuries after 1450 proceeded on a small scale, was not a uniquely profitable field of enterprise and while it generated some externalities, they could in no way be classified as decisive for the economic growth of Western Europe. According to the author, the concept of supernormal profits implies the concept of a normal rate of profit. However, the normal rate of profit in capitalism is the maximum one can get away with. There may enter into the picture a political pressure which defines for given times and places a conventional profit rate, although such pressures have seldom been efficacious for very long. But the whole point of capitalism is the endless accumulation of capital. Though, at any given time profits may be higher from one investment than from another, always within the continuing underlying pressure towards the equalization of profit rates through the market.

Over the past 30 years, the economies in Europe have undergone major transformations that have been powered by diffusion of information and communication technology (ICT), intensification of innovation, and reforms in the financial sector to support innovative endeavors. The primary objective of this study was to examine the causal relationships among ICT diffusion, innovation diffusion, venture capital investment, and economic growth for 25 countries in Europe for the period from 1989 to 2016. Using a vector error‐correction model, the study examines the underlying short‐run and long‐run relationships for the above variables. The empirical analysis shows that in the long run, venture capital investment, ICT diffusion, and innovation diffusion have significant impacts on economic growth in Europe. However, in the short run, the direction of the causality varies depending on the specific measures of ICT diffusion and innovation diffusion that are utilized. Results from this study provide valuable insights into the types of policies that will contribute to sustainable economic growth in Europe. [ABSTRACT FROM AUTHOR]

In this article the author replies to a comment on one of his research papers related to the economic development in Europe. The author remarks that, if the concept of periphery is widened to include the totality of external and internal trade, its contribution to capital formation would be far greater. That procedure would, however, render the geographical and political concreteness normally associated with notions of core and periphery almost vacuous. Author's remarks on profits were addressed to one specific issue of whether or not European capitalists who invested in commerce with the periphery secured exceptionally high rates of return. To be sure, profits represented only one element of manifold connections between core and periphery. The author states that within the totality of world history, foreign trade formed one and by no means the most important element of the story. Commerce with the periphery mattered far less for capital formation than the New School of Development History is prone to assume.

This study uses price information relating to 12 towns and wage information from 18 towns to develop a real wage index for unskilled urban labourers in Germany during the three-and-a-half centuries preceding the onset of rapid industrialization. Combining the new series with information from other parts of Europe establishes two stages of real wage divergence during the seventeenth to nineteenth century. The first occurred in the middle of the seventeenth century when real wages in centres of trade and finance located on the rim of the North Sea rose far above the level prevailing in their hinterland. The second stage unfolded from the second quarter of the eighteenth century when the real wage in south England, northern and central Italy, and Germany began to diverge; Germany followed a middle path between the other two countries. The second commercial revolution, which improved business techniques and promoted Smithian growth, goes a long way towards accounting for this development. [ABSTRACT FROM AUTHOR]

Was there an agro-ecological crisis in Europe which preceded and contributed to pushing forward the agricultural revolution? This article presents a new theoretical and empirical approach to this controversial perspective on agricultural transformation and relates to an ongoing debate on conditions of growth in pre-industrial societies. The results demonstrate that there were indeed indicators of a crisis, which grew stronger during the eighteenth century and culminated in the early nineteenth century. The crisis was, however, not general, but was rather restricted to areas that stand out due to poor natural conditions for agriculture. In other words, the crisis was conditional. Furthermore, the findings show that the crisis could push forward changes that were important for enabling agricultural transformation and growth. However, both the emergence and reversal of the crisis were connected to new opportunities opened up by market development. Enough differences were found between different types of regions to suggest that there were many development paths within the agricultural transformation process, and that they were not necessarily linear. [ABSTRACT FROM AUTHOR]

This article reconsiders the relative growth performance of centrally planned economies in the broader context of postwar growth in Europe. It reports a new dataset of revised estimates for investment rates in eastern European countries between 1950 and 1989. Complemented with data on other growth determinants, this evidence is used to re-evaluate the socialist growth record in a conditional convergence framework with a panel of 24 European countries. After controlling for relative backwardness, investment rates, and improvements in human capital, the findings show that centrally planned economies underperformed due to their relative inefficiency only after the postwar golden age. In the 1950s and 1960s, eastern Europe was falling behind mainly due to relatively low levels of investment and weak reconstruction dynamics. Both are explained, in part, by the lack of labour-supply flexibility that, in turn, resulted from the comparatively much larger negative impact of the war on population growth in eastern Europe. [ABSTRACT FROM AUTHOR]

Wine cooperatives were relatively scarce in Europe before the Second World War, but by the 1980s accounted for more than half of all wines made in France, Italy, and Spain, the three major producer countries. Unlike Danish dairy cooperatives, whose success before the First World War was linked to their ability to improve product quality and compete in high-value niche markets, wine cooperatives are often associated with the production of large volumes of low-quality products. This article argues that the initial slow diffusion of wine cooperatives was caused by the difficulties of improving quality due to environmental conditions in European vineyards ('terroir') and measurement problems, rather than institutional shortcomings. Cooperatives only became widespread when the state found them a useful instrument to regulate markets, especially after 1950. The problems associated with poor wine quality were never resolved, and cooperatives have become increasingly uncompetitive in the market place, especially following the major decline in per capita consumption and shift towards premium wines from the 1980s. [ABSTRACT FROM AUTHOR]

Comments on the paper of economist Hans Genberg analyzing the role of exchange rate policies in offering guidance to the economic policy-makers. Impact of the correlation between monetary integration or degree of stability of exchange rates and financial integration or liberalization of capital movements on the potential gains from the integration; Effect of the current account imbalance between Germany and the rest of Europe on the economic growth of Europe.

This article quantifies the activities of medieval and early modern parliaments. It traces the long-term evolution of this European institution, and offers a first pass at analysing its impact on long-term economic development. Starting in Spain in the twelfth century, parliaments gradually spread over the Latin west between 1200 and 1500. In the early modern period, parliaments declined in influence in southern and central Europe and further gained in importance in the Netherlands and Britain, resulting in an institutional 'Little Divergence' between 1500 and 1800. We discuss the background of this phenomenon in detail. Moreover, by analysing the effects of parliamentary activity on city growth we find that these differences in institutional development help to explain the economic divergence between north-western and southern and central Europe. [ABSTRACT FROM AUTHOR]

. 'Natural rate theory', the Efficient Market Hypothesis and its labour market application dominated interpretations of economic trends and policy prescriptions from the 1970s onwards, with their views of public policy and regulation as distorting otherwise well-functioning free markets. The upheaval of the current crisis is shaking these theories to the core. In this context, Schettkat examines European experience from the 1990s onwards and shows the theories to be unsubstantiated: high unemployment persisted post-recession despite structural reforms to labour market institutions, and the resumption of economic growth was hindered by then-dominant deflationary monetary and fiscal policies inspired by these theories. [ABSTRACT FROM AUTHOR]

The article discusses on the measure used to gauge poverty in the U.S., Europe and other developing countries. It discusses that the present official measure of poverty in the U.S. is flawed and both, the poverty threshold and measurement of available resources should be improved. It reports that European countries provided with sufficient social aid but they face a technical problem of relative poverty threshold. Also mentioned are the levels of economic development in developing and underdeveloped countries.

This special issue is concerned with the development of the Single European Market (SEM) and its likely impact on industrial relations in the member-states of the European Community (EC). The articles that follow present new empirical material, analysis and speculation on the development of industrial relations arrangements at the level of both the EC and the member-states.
The articles fall into three groups. The first provides a general overview of EC developments and the establishment of the Single Market. The second group then focuses on the structure and governance of firms within the EC and on channels of representation of workers' interests at enterprise level. The third part of the issue deals with likely economic problems and possible economic outcomes of the SEM. [ABSTRACT FROM AUTHOR]

The article focuses on the economic, social, and political changes that occurred as European societies ceased to be primarily agrarian in economic structure and devoted proportionately more of their resources and labor to the production of non-agricultural commodities and services. Industrialization is not identical either with economic growth or economic development, although it is closely associated with both. The process of economic growth, including in the modern era the special case of industrialization, involves the interaction of four broad classes or categories of factors--population, resources, technology, and institutions. In conclusion, there was not one model for industrialization in the nineteenth century. Coal and human capital were the two basic ingredients, but in combination with one another and with other elements they produced a variety of patterns of industrialization. The customary depiction of an industrial revolution in Great Britain and its repetition in continental Europe and elsewhere distorts the historical record.

The article examines the history of European economic growth during the period 1450-1750. According to the new school of development history, the critical period when different parts of the world set off along contrasting paths of economic growth occurred between 1450 and 1750, three centuries which witnessed the emergence and consolidation of European world economy based upon the capitalist mode of production. The evolution of trade and commerce under this old international economic order created conditions for development and underdevelopment in the nineteenth and twentieth centuries. A striking feature of the new history of development is the absence of systematic statistical underpinning for several of its basic hypotheses. An important omission is its failure to measure the economic significance of intercontinental trade. External trade formed only a small share of economic activity. Around 1780-1790 when something like 4 percent of Europe's gross national output was exported across national frontiers, perhaps less than 1 percent would have been sold to Africa, Asia, Latin America, the Caribbean and the southern plantations of the young U.S.

This article compares the levels and associated factors of the industrial revolution in England and France in the eighteenth century, based on recent literature on economic history of these countries. Some of the major issues that are emphasized here are that why did the industrial revolution occurred in the eighteenth century and why England was comparatively advanced than any other country in the revolution. The underlying view of industrialization adopted here is that economic development in general and technological progress in particular in eighteenth-century Europe should, suggestively, be regarded as stochastic processes. According to the author industrial revolution will be understood as a period of accelerated structural change in the economy, involving a rapid rise in industrial output, in the share of manufacturing in national product, and in factory-based activity, based on major technological innovations. There are two important problems which can, suggestively, be perceived in the current attempts to explain England's primacy: the danger of perpetrating post hoc ergo proper hoc fallacies and the failure to assess the relative magnitudes of the impacts of the putative causal factors.

The article focuses on typologies and evidence that serve as a guide to economic growth in Europe during the nineteenth century. There has also been increased reliance on comparative methods by historians seeking to achieve a cross-fertilization of explanatory ideas. For both purposes it is desirable, for the first purpose essential, that any historical generalizations called into aid should be not only true of several particular instances but also should be very widely applicable. It could be harmfully misleading if what looked to be proclamations of universal relationships turned out to be no more than accounts of one or two highly individual cases, disguised in the language of generality. All the chief schemes expounding alleged universalities in the history of economic growth have received plenty of criticism, both appreciative and hostile, but it is doubtful whether they have often been starkly confronted by the question whether the evidence they use is comprehensive enough to provide a secure foundation of genuine history for edifices as vast as they have grown to be. They have been challenged on grounds of unclarity or inappropriateness in their basic concepts, or because they have been inaccurate on some specific points, or because some particular case may be more convincingly interpreted by postulating a different chain of causation.

A 'revisionist' view of the European fertility transition has challenged the previously accepted causal roles of economic forces. Our contribution has been to construct and test an econometric model in which economic growth causes fertility change. We find that rising per capita incomes raised birth rates, up to estimated turning points, and thereafter exerted negative effects. This finding is partly consistent with the revisionist view: economic growth apparently did not cause the emergence of historical fertility declines, which antedated the turning points. However, in the later phases of the transition, economic growth accelerated the fertility down-trend. [ABSTRACT FROM AUTHOR]

Presents information on the economic condition of Europe. Recovery of European economies in the third quarter of 1997; Increase in the exports of Germany; Reduction in the budget deficit of Italy.