externalities that are beyond the control of regional authorities. Specifically, a spatial autoregressive term is included as an … interregional spillovers into the production process.Our findings show that geographical externalities affect both the frontier … differential effect of interregional spillovers depending on the economic size of the neighbors: positive externalities for small …

This paper estimates the aggregate productivity effects of Marshallian externalities generated by foreign direct … externalities and other intra- and inter-regional spillovers generated by domestic firms. The productivity effects of these … externalities may, if not accounted for appropriately, be falsely attributed to FDI. This paper also deals with the potential …