Cross-national neighbouring effects on European regional specialization

Abstract

In undertaking an analysis of neighbouring effects on European regional patterns of specialization, this paper makes two main contributions to the literature. First, we use a spatial weight matrix that takes into consideration membership of an EU cross-border regional association. We then compare our results with those obtained using a contiguity matrix and constitute an upper bound for our parameter of interest. In a further stage, we divide the CBR associations on the basis of their longstanding and the intensity of their cooperation to determine whether the association type has a significant impact. Second, we examine the sensitivity of our results to the use of alternative relative specialization indices.