DP9425 Productivity Growth, Human Capital, and Technology Spillovers: Nonparametric Evidence for EU Regions

Author(s): Harald Badinger, Peter Egger, Maximilian von Ehrlich
Publication Date: April 2013
Keyword(s): Absorptive capacity, Nonparametric estimation, Technology spillovers, Total factor productivity
JEL(s): C14, N10, N14, O33, O47, R11
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=9425

This paper assesses the strength of productivity spillovers non-parametrically in a data-set of 12 industries and 231 NUTS2 regions in 17 European Union member countries between 1992 and 2006. It devotes particular attention to measuring catching up through spillovers depending on the technology gap of a unit to the industry leader and the local human capital endowment. We find evidence of a non-monotonic relationship between the technology gap to the leader as well as human capital and growth. Spillovers are strongest for units with a small technology gap to the leader and with abundant human capital.