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Economic linkages across space

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  • Overman, Henry G.
  • Rice, Patricia
  • Venables, Anthony J.

Abstract

A diagrammatic framework is developed to study the economic linkages between regions or cities. Hitherto, such linkages have not been a focus of the literature. The framework is used to analyse the impact of shocks that occur in one region (for example, productivity improvements or increases in housing supply) on other regions, highlighting the key adjustment mechanisms and their long-run implications for incomes, the cost of living, and the spatial distribution of population. The approach is linked to both the New Economic Geography and urban systems literatures and empirical studies are reviewed that quantify the key mechanisms that are identified.

Suggested Citation

  • Overman, Henry G. & Rice, Patricia & Venables, Anthony J., 2010. "Economic linkages across space," LSE Research Online Documents on Economics 30779, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:30779
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    6. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
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    16. Anthony J. Venables, 2008. "Rethinking Economic Growth in a Globalizing World," World Bank Publications - Books, The World Bank Group, number 28041, December.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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