Neighboring Regions' Growth Boosts Local Economies by 6%
The article discusses how the growth of a region can be influenced by its neighbors through external factors. By studying European regions, the researchers found that when neighboring regions grow, it can lead to a significant increase in the growth rate of a region. They also discovered that different factors like capital stocks and human capital in neighboring regions can impact a region's growth. This shows that regional externalities play a crucial role in explaining economic growth.