Physical Capital Investment and Growth: Panel Data Evidence from European Regions

9 Pages Posted: 26 May 2016

See all articles by Marcos Sanso-Navarro

Marcos Sanso-Navarro

Universidad de Zaragoza

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza

Date Written: April 07, 2016

Abstract

This article empirically assesses the validity of alternative growth models at regional level. This is done by comparing the stochastic properties of physical capital investment and growth using a panel unit root test statistic that is robust to cross-sectional dependence of a spatial nature. Our results for European NUTS 2 regions provide evidence more favorable to the predictions of AK-type endogenous growth models.

Keywords: Growth models, panel data, unit roots, cross-sectional dependence

JEL Classification: C31, C33, O18, R11

Suggested Citation

Sanso-Navarro, Marcos and Vera-Cabello, María, Physical Capital Investment and Growth: Panel Data Evidence from European Regions (April 07, 2016). Available at SSRN: https://ssrn.com/abstract=2783678 or http://dx.doi.org/10.2139/ssrn.2783678

Marcos Sanso-Navarro (Contact Author)

Universidad de Zaragoza ( email )

Facultad de Economía y Empresa
Departamento de Análisis Económico
Zaragoza, 50005
Spain
+34 876 554 629 (Phone)

HOME PAGE: http://personal.unizar.es/marcossn

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza ( email )

Academia General Militar, Ctra. de Huesca, s/n
Zaragoza, Zaragoza 50009
Spain

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