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Title: Endogenous spatial technological clubs across Europe: A 3D panel data model with cross sectional dependence Authors:  Camilla Mastromarco - University of Salento - Lecce (Italy) [presenting]
Abstract: By proposing a new approach which merges previous methodologies, both strong and weak spatial dependence is considered, and European regions spatial clusters endogenously are modelled in a three-dimension panel data model. The aim is to study whether the European regions form regional clusters that differ from the political borders. We analyse interdependence across regions of production technology clusters and estimate the degree of regional technological interdependence generated by the level of spatial externalities. The net effect of these spatial externalities on the level of productivity of each region depends on the relative connectivity between this region and its neighbors. The more a given region is connected to its neighbors, the more it benefits from spatial externalities. The more efficient is a region, the more it profits from technological externalities. Further, we investigate the regional patterns of those clusters over time. We use data from Cambridge Econometrics European Regional Database contains annual observations for the period 1980-2015 for NUTS3 EU 27 regions and Norway on: employment (thousands of people); hours worked; gross fixed capital formation in millions of Euros 2005 prices; gross value added in millions of Euros 2005 prices.