Borders Matter! - Regional Integration in Europe and North America
AbstractWe analyze the spatial interaction among regions in North America and in Western Europe. We use a gravity model extended by a spatial correlation structure where data allows to evaluate the spatial interaction in two dimensions: level of impact and the length of the spatial tail. This allows us to address to effects external to the gravity model: importance of neighboring regions on the respective region and size of the cluster of regions. We find that the methodology employed improves the statistical quality of results and their economic interpretation. We conclude that national borders matter and that the North American regional structure, i.e. its cluster structure, is more polarized in terms of firm and spatial network structure than that of Europe. We argue that this relates to different types of institutional arrangements with effects on the spatial division of labor.
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Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 223 (2003)
Issue (Month): 5 (September)
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Autocorrelation; border; Europe; gravitation model; integration; North America;
Other versions of this item:
- Blum, Ulrich, 2001. "Borders matter!: Regional integration in Europe and North America," Dresden Discussion Paper Series in Economics 08/01, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- F1 - International Economics - - Trade
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
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