Recent empirical studies on regional economic growth have extended regressions on convergence to account for externalities and spatial dependencies. Most of these studies, however, set the focus on whether regional output levels display convergence trends and consequently tend to ignore...

This paper employs a spatial Durbin model for analyzing the impact of human capital on regional productivity using for 198 NUTS-2 European regions for the sample period from 1995 to 2004. The study provides evidence for the existence of spatial externalities and interactions of the sort as...