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Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions

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  • Frank Van Oort

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  • Stefan de Geus
  • Teodora Dogaru

Abstract

This paper introduces indicators of regional related variety and unrelated variety to conceptually overcome the current impasse in the specialisation-diversity debate in agglomeration economics. Although various country-level studies have been published on this conceptualisation in recent years, a pan-European test has until now been missing from the literature. A pan-European test is more interesting than country-level tests, as newly defined cohesion policies, smart-specialisation policies, place-based development strategies and competitiveness policies may be especially served by related and unrelated variety conceptualisations. We test empirically for the significance of variables based on these concepts, using a cross-sectional dataset for 205 European regions during the period 2000- 2010. The results confirming our hypotheses are that related variety is significantly related to employment growth and that specialisation is significantly related to productivity growth. We do not find robust relationships that are hypothesised between unrelated variety and unemployment growth. Our analyses show that evolutionary economic geography and institutional and policy-based regional development may be integrated fruitfully at the European level.

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File URL: http://econ.geo.uu.nl/peeg/peeg1312.pdf
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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1312.

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Length: 18 pages
Date of creation: Aug 2013
Date of revision: Aug 2013
Handle: RePEc:egu:wpaper:1312

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  8. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
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  16. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
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  19. Teodora Dogaru & Frank Van Oort & Mark Thissen, 2011. "Agglomeration Economies In European Regions: Perspectives For Objective 1 Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 102(4), pages 486-494, 09.
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