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Internal versus external economies in European countries

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Abstract:

In this paper sectoral production functions are estimated with a two digit disaggregation for eight European countries corresponding to the period 1978-1992, distinguishing between internal economies of scale and intersectoral external effects. In order to avoid the possibility that the regressions, carried out by way of panel data techniques, are spurious, the integration order of each variable has been identified using unit root. Similarly, the Hausman procedure has been applied to test the exogeneity of the variables and determine whether the most appropriate estimations should be SUR or three stage least squares.

Document Type: Research Article

DOI: https://doi.org/10.1080/0003684042000307030

Affiliations: University of Zaragoza Departamento de Estructura e Historia Económica y Economía Pública Gran Vía, 2 50005 Zaragoza Spain

Publication date: 2005-03-01

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