engleski

Spatio – temporal determinants of structural and productive transformation of regions in Central and East European Countries

This paper investigates the determinants of structural (between-sectoral) and productive (within- sectoral) transformation of 56 NUTS2 regions in Central and East European (CEE) countries over 2008- 2014 period. Over analysed period transformation of analysed regions has taken place towards tertiary sector and high value added activities. Results from spatial panel Durbin analysis reveal existence of product space linkages and point to the productive transformation towards high technology intensive activities as an important driver of industrial development. Equal access to digital infrastructure in urban and rural areas and transfer of skills, knowledge and resources through inflow of foreign investment and imports of production inputs increase contribution of manufacturing to regional employment. Effect of profit tax reductions on manufacturing employment share is about four times larger than the effect of government subsidies to production.

productive transformation ; structural transformation ; regions ; spatial analysis

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