Non-linearities in regional growth: A non-parametric approach.

This paper analyses the determinants of regional economic growth in the European Union adopting a non-parametric approach. Although the local-linear kernel estimator applied does not explicitly take into account the spatial dimension of the data, it is found to be consistent in our context. In addition, the geographically weighted regression turns out to be less efficient. We obtain evidence of a non-linear relationship between regional growth and its determinants in the form of parameter heterogeneity and threshold effects. These non-linearities mainly affect the initial productivity of labour, the human capital endowment and, as a novelty, the level of infrastructures. [ABSTRACT FROM AUTHOR]