_Table 11: Estimates by long-run growth rate category._

|Dependent Variable|||∆GDPpcrt|||
|---|---|---|---|---|---|
|High- vs. Not High-Income|High-I|ncome||Not High-Income||
|Long-Run Growth Rate|High-Growth|Low-Growth|High-Growth|Low-|Growth|
||(1)|(2)|(3)|(4)|(5)|
|log(GDPpcrt−1)|-0.342****|-0.374****|-0.233****|-0.254****|-0.255****|
||(0.017)|(0.017)|(0.009)|(0.017)|(0.018)|
|Population Changert||||||
|< 0|Ref.|Ref.|Ref.|Ref.|Ref.|
|≥0|0.002|0.002|0.005**|0.003|0.003|
||(0.002)|(0.003)|(0.002)|(0.003)|(0.003)|
|log(Employment Densityrt−1)|<br>0.087****|<br>0.015|<br>0.054****|<br>0.062***|<br>0.063***|
||(0.019)|(0.020)|(0.013)|(0.021)|(0.021)|
|log(Share GVA Agriculturert−1)|0.251|0.094|-0.135**|0.036|0.030|
||(0.164)|(0.210)|(0.067)|(0.124)|(0.124)|
|lSh GVA Idt|0040****|0035*|0010|0018|0019|
|og(are nusryrt−1)|.|.|.|.|.|
||(0.008)|(0.018)|(0.008)|(0.013)|(0.013)|
|log(Share GVA Constructionrt−1)|0.026****|0.042****|-0.000|0.045****|0.045****|
||(0.005)|(0.008)|(0.005)|(0.006)|(0.006)|
|log(Share GVA Market Servicesrt−1)|0.095****|0.046|0.014|0.028|0.031|
||(0.012)|(0.042)|(0.011)|(0.038)|(0.038)|
|log(Share GVA NonMarket Servicesrt−1)|-0.062****|-0.049**|-0.007|-0.037|-0.035|
||(0.010)|(0.023)|(0.010)|(0.026)|(0.026)|
|log(Patentsrt−1)|0.002*|0.002|0.001|0.004**|0.003**|
||(0.001)|(0.002)|(0.001)|(0.002)|(0.002)|
|log(Inward FDI)|-0001|0005*|0012****|-0009*||
|rt−1|.<br>(0.001)|.<br>(0.003)|.<br>(0.002)|.<br>(0.005)|...|
|Max Inward FDIrt−1||||||
|None|...|...|...|...|Ref.|
|Headquarter|...|...|...|...|0.013*|
||||||(0.008)|
|Iti|||||0003|
|nnovaon|...|...|...|...|-.|
||||||(0.012)|
|Production|...|...|...|...|-0.001|
||||||(0.003)|
|Logistics, Distribution, Transportation|...|...|...|...|-0.002<br>|
||||||(0.007)|
|Marketing and Sales|...|...|...|...|<br>-0.000|
||||||(0.004)|
|Region FE|Yes|Yes|Yes|Yes|Yes|
|Year FE|Yes|Yes|Yes|Yes|Yes|
|No. Observations|6,720|3,780|5,600|2,394|2,394|
|No. Regions|480|270|400|171|171|
|<br>R<sup>2</sup>|<br>0.39|<br>0.56|<br>0.44|<br>0.41|<br>0.41|
|Adjusted R<sup>2</sup>|0.34|0.52|0.39|0.36|0.35|
|<br>Model F Statistics[p-value]<br>|92.39[0.000]<br>|141.55[0.000]<br>|103.48[0.000]<br>|62.72[0.000]<br>|53.10[0.000]<br>|
|Notes: *G< 0.1; **G< 0.05; ***G< 0.01;<br>regions are those with an average yearly GDP<br>average. High- (low-)growth regions are those<br>or greater than (lower than) the 50% of the sam<br>All variables are defined in logarithm terms, e<br>categorical variable included in specification (<br>which the category used as reference is no inw|****G< 0.001.<br>per capita over the<br>recording a long-r<br>ple average. The va<br>xcept for the dum<br>5) that captures th<br>ard FDI received.|Robust standard er<br>period 2003-2017 e<br>un growth rate of G<br>riables capturing p<br>my variable capturi<br>e most relevant bu|rors are reported in<br>qual to or greater th<br>DP per capita bet<br>atents and inward F<br>ng population chan<br>siness activity of in|parentheses. High-<br>an (lower than) the<br>ween the years 2003<br>DI are defined per 1<br>ge between timesN <br>ward FDI that inte|(not high-)income<br>90% of the sample<br>and 2017 equal to<br>00,000 inhabitants.<br>andN−1, and the<br>rested a region, for|

**Finally, examining differences between rural and non-rural regions, we find that economic growth in rural ‘low-income’ regions is associated with patenting and a move away from agriculture; and growth in non-rural ‘low-income’ regions is associated with a strong role for FDI and of agglomeration.** As a final exercise, we have focused on lagging regions characteristics in terms of urbanization level. All NUTS-3 regions are classified as urban,

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