Path Dependence in Spatial Distribution of Economic Activity: Bad News for Empiric Research of Agglomeration Effects
AbstractIt is considered that concentrations of economic activity in the market economy are formed according to the balance of agglomeration effects. Actually this scientific idealization is far from a reality. Agglomeration effects change much faster, than spatial distribution of economic activity. This phenomenon can be well described by the path dependency theory. Despite such problems it is supposed in empirical papers that concentration of the enterprises or employment is a good proxy variable for agglomeration effects.
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Bibliographic InfoArticle provided by New Economic Association in its journal Journal of the New Economic Association.
Volume (Year): 14 (2012)
Issue (Month): 2 ()
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spatial distribution of economic activity; agglomeration effects; path dependency;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- B0 - Schools of Economic Thought and Methodology - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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