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Assessing Regional Economic Performance: Regional Competition in Spain Under a Spatial Vector Autoregressive Approach

  • Miguel A. MárquezEmail author
  • Julián Ramajo
  • Geoffrey J. D. Hewings
Chapter
Part of the Advances in Spatial Science book series (ADVSPATIAL)

Abstract

After a wave of empirical literature on regional competition focused on issues related to regional convergence, work developed recently has tried to address some of the shortcomings of the previous literature, developing a series of alternative approaches that center their attention on the assessment of regional economic performance. These alternative methodologies embrace a complex set of space-time interactions that take into account that a single region’s economic performance affects and is affected by other regions. In this context, and as an original contribution of this chapter, a spatial vector autoregressive (SpVAR) model for the Spanish regions during the period 1955 –2009 is presented. The SpVAR model considers spatial as well temporal lags of the variables. The estimated SpVAR is used to calculate impulse responses that provide insights about the effects of shocks to relative regional productive capacity on different regions. The empirical results suggest that the existence of trade linkages have had different significant impacts on the production shares of the 17 Spanish regions, but competition between regional economies prevails.

Keywords

Regional growth Regional competition Spatial VAR 

Notes

Acknowledgements

The authors acknowledge and appreciate the funding received from the Ministry of Science and Innovation of Spain through the project ECO2009-12506

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Miguel A. Márquez
    • 1
    • 2
    Email author
  • Julián Ramajo
    • 1
    • 2
  • Geoffrey J. D. Hewings
    • 2
  1. 1.Department of EconomicsUniversity of ExtremaduraBadajozSpain-EU
  2. 2.Regional Economics Applications Laboratory (REAL)University of IllinoisUrbana-ChampaignUSA

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