Cross-region analysis through a myopic leader-follower model

P. Csillik; T. Tarján

doi:10.1556/aoecon.60.2010.2.2

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Acta Oeconomica

Volume/Issue:: Volume 60: Issue 2

Cross-region analysis through a myopic leader-follower model

Authors:

P. Csillik

P. Csillik
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T. Tarján

T. Tarján Institute of Economics of the Hungarian Academy of Sciences Budaörsi út 45 H-1112 Budapest Hungary

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Pages:: 143–159

Online Publication Date:: 25 May 2010

Publication Date:: 01 Jun 2010

Article Category:: Journal Article

DOI:: https://doi.org/10.1556/aoecon.60.2010.2.2

Keywords:: endogenous growth theory; leader-follower model; technological frontier; beta-convergence; globalisation; cross-region analysis; technological change; diffusion of technology; O11; O18; O33; O47; N10

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The paper is a contribution to the empirics of cross-country and cross-region literature on growth economics. Its aim is to assess the role of the global component in the development of European regions during the period 2000–2005. For this purpose a simple leader-follower model is set up in which all countries imitate the technology of the leader. The model is applied to cross-country data of the period 1870–2003 as corroboration and to the cross-region data. This approach makes it possible to rank the regions based on the rate of return of broadly understood capital and the impact of global forces as compared to local ones. Finally, a conclusion is drawn on the extent of the role of imitations in the growth of European regions.

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Acta Oeconomica Periodical of the Hungarian Academy of Sciences

Print ISSN:: 0001-6373

Online ISSN:: 1588-2659

Associate Editors

Péter Benczúr, Joint Joint Research Center, European Commission
Dóra Benedek, International Monetary Fund
Balázs Égert, OECD
Dániel Prinz, World Bank
Rok Spruk, University of Ljubljana, School of Economics and Business, Slovenia

Editorial Board

Anders Åslund, Georgetown University and Advisory Council of CASE, USA
István Benczes, Corvinus University of Budapest, Hungary
Agnieszka Chłoń-Domińczak, SGH Warsaw School of Economics, Poland
Fabrizio Coricelli, University of Siena, Italy
László Csaba, Corvinus University of Budapest, Hungary and Central European University, Austria
Beáta Farkas, Faculty of Economics and Business Administration, University of Szeged, Hungary
Péter Halmai, Budapest University of Technology and Economics, and National University of Public Service, Hungary
Martin Kahanec, Central European University, Austria
Michael Landesmann, The Vienna Institute for International Economic Studies (WIIW), Austria
Péter Mihályi, Corvinus University of Budapest, Hungary
Debora Revoltella, European Investment Bank

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: judit.kalman@uni-corvinus.hu

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Acta Oeconomica
Language	English
Size	B5
Year of Foundation	1966
Volumes per Year	1
Issues per Year	4
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ISSN	0001-6373 (Print)
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