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Some alternative geo-economics for Europe's regions

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  • Bernard Fingleton

Abstract

In recent years we have seen major advances in economic geography theory, but only limited empirical analysis. This paper focuses on a spatial econometric modelling approach, informed by recent theoretical advances, to simulate possible economic geographies of the European Union. In the paper I show that a policy-induced boost to demand in peripheral economies could increase manufacturing productivity growth rates and levels across all regions, including the EU core as a result of spillover effects across regions. On the other hand faster core growth also spills over to the periphery raising productivity growth and levels, but is associated with diminishing rather than increasing periphery employment levels and with increased inequality. The best strategy seems therefore to encourage higher periphery growth rates, but not so high that they are unsustainable and themselves the cause of increased regional inequality. Copyright 2004, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 4 (2004)
Issue (Month): 4 (August)
Pages: 389-420

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Handle: RePEc:oup:jecgeo:v:4:y:2004:i:4:p:389-420

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Cited by:
  1. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2005. "Putting new economic geography to the test: free-ness of trade and agglomeration in the EU regions," CCSO Working Papers 200502, University of Groningen, CCSO Centre for Economic Research.
  2. J. Kim Swales & David Learmonth, 2005. "Policy Spillovers in a Regional Target-Setting Regime," ERSA conference papers ersa05p341, European Regional Science Association.
  3. GUILLAIN, Rachel & DALL'ERBA, Sandy & LE GALLO, Julie, 2007. "Politiques de développement et croissance régionale en Europe : le rôle des rendements croissants et des dépendances spatiales," LEG - Document de travail - Economie 2007-02, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.

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