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Is insularity a locational disadvantage? Insights from the New Economic Geography

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  • F. Cerina

Abstract

This paper investigates the economic implications of being an island from the perspective of the New Economic Geography (NEG) literature. We review and discuss some existing NEG models which can be useful to generate empirical predictions for the insular territories and we outline a theoretical framework aiming at explicitly modeling the problem of insularity. We propose answers to the following research questions - Is insularity a threat for economic performances? In which cases and why does it represent a disadvantage? Which are, if any, the optimal policies able to compensate for this disadvantage?

Suggested Citation

  • F. Cerina, 2015. "Is insularity a locational disadvantage? Insights from the New Economic Geography," Working Paper CRENoS 201521, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:201521
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    File URL: https://crenos.unica.it/crenos/node/6554
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    References listed on IDEAS

    as
    1. Kristian Behrens & Carl Gaigné & Gianmarco I.P. Ottaviano & Jacques-François Thisse, 2006. "Is remoteness a locational disadvantage?," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 347-368, June.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    3. Faini, Riccardo, 1983. "Cumulative processes of de-industrialisation in an open region : The case of Southern Italy, 1951-1973," Journal of Development Economics, Elsevier, vol. 12(3), pages 277-301, June.
    4. Moro, Alessio & Stucchi, Rodolfo, 2015. "Heterogeneous productivity shocks, elasticity of substitution and aggregate fluctuations," Journal of Macroeconomics, Elsevier, vol. 45(C), pages 45-53.
    5. Anna Maria Pinna & Vania Licio, 2013. "Measuring insularity as a state of nature. Is there a case of bad geography," ERSA conference papers ersa13p706, European Regional Science Association.
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    Keywords

    trade; New Economic Geography; Insularity; Industry Location;
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