Alexiadis, Stilianos and Tomkins, Judith (2010): Technology adoption and club convergence.
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Although the importance of technology adoption has been acknowledged, nevertheless, at a more general level, a critical question arises: how do the overall infrastructure conditions affect the absorptive ability of a regional economy? This question can be stated alternatively as: what are the implications of a ‘poor’ or a ‘superior’ infrastructure for regional convergence? It is possible to provide some answers to these questions by constructing a model of regional convergence that encapsulates the impact of infrastructure in the absorptive ability of a regional economy. In this model the possibility that high technological gaps might act as obstacles to convergence is taken explicitly into consideration. The model developed in this paper indicates that convergence towards leading regions is feasible only for regions with sufficient absorptive capacity, which is assumed to be a function of infrastructure conditions in a regional economy. The model is tested using data for the NUTS-2 regions of the EU-27 during the time period 1995-2006. The results suggest that adoption of technology has a significant effect on regional growth patterns in Europe.
|Item Type:||MPRA Paper|
|Original Title:||Technology adoption and club convergence|
|Keywords:||Convergence-club, Technological Gap, European Regions|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
|Depositing User:||Stilianos Alexiadis|
|Date Deposited:||11. Mar 2010 01:43|
|Last Modified:||08. Jan 2014 00:57|
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