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Title:What makes regions in Eastern Europe catching up? The role of foreign investment, human resources and geography PDF Logo
Authors:Tondl, Gabriele
Vuksic, Goran
Issue Date:2003
Series/Report no.:ZEI working paper B 12-2003
Abstract:This paper analyses regional growth in Eastern Europe in the second half of the 1990s, when regional disparities sharply increased. We aim to identify the factors behind growth and investigate in particular the role of (foreign) investment, education and innovation as well as geographical factors in a model of economic growth. The key relationships are estimated with spatial econometric tools on empirical data for the period 1995-2000. We find that foreign direct investment was paramount for growth in that period. EU border regions and capital areas clearly outperformed others. Further, regional growth clusters have appeared. Surprisingly, the high level of secondary education played no role to growth. Higher education, in contrast, was important, also for technology transfer.
Subjects:Regional growth
Eastern Europe
foreign direct investment
spatial econometrics
Document Type:Working Paper
Appears in Collections:ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn

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