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Technology adoption and club convergence

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  • Alexiadis, Stilianos
  • Tomkins, Judith

Abstract

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.

Suggested Citation

  • Alexiadis, Stilianos & Tomkins, Judith, 2010. "Technology adoption and club convergence," MPRA Paper 21260, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:21260
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    Cited by:

    1. Ewa Lechman, 2012. "Technology convergence and digital divides. A country-level evidence for the period 2000–2010," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 31.
    2. Ewa Lechman, 2012. "Catching-Up And Club Convergence From Cross-National Perspective A Statistical Study For The Period 1980-2010," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 7(3), pages 95-109, September.
    3. Gianni Guastella & Francesco Timpano, 2012. "Increasing Returns, Decreasing Returns and Regional Economic Convergence in the EU," ERSA conference papers ersa12p344, European Regional Science Association.
    4. Gianni Guastella & Francesco Timpano, 2016. "Knowledge, innovation, agglomeration and regional convergence in the EU: motivating place-based regional intervention," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(2), pages 121-143, October.

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    More about this item

    Keywords

    Convergence-club; Technological Gap; European Regions;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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