Agglomeration economies in European regions: perspectives for objective 1 regions

Economic growth is one of the main European policy objectives of structural funds targeted at objective 1 regions, where development is lagging behind. An empirical analysis on growth differentials over 219 European regions between 2000 and 2010, finds that – controlled for other determinants – objective 1 regions grow in productivity due to higher degrees of specialisation, while other regions grow faster in employment, being embedded in a diverse economic environment.

The type of agglomeration economies, in combination with the structure of the economy, is crucial for future long-term development prospects of regions. Especially the larger objective 1 regions should diversify their economy more to reap long-term convergence prospects. This outcome favours a focus on place-based development, as advocated recently by the European Union.

Authors

Teodora Dogaru, Frank van Oort, Mark Thissen

Specifications

Publication title
Agglomeration economies in European regions
Publication date
15 August 2011
Publication type
Publication
Magazine
Tijdschrift voor Economische en Sociale Geografie, 102(4), pp 486-494
Product number
92604