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Employment, transport infrastructure and rural depopulation: a new spatial equilibrium model

Author

Listed:
  • McArthur, David Philip

    (Dept. of Health Management and Health Economics, University of Oslo)

  • Thorsen, Inge

    (Dept. of Economics, Stord/Haugesund University College)

  • Ubøe, Jan

    (Dept. of Business and Management Science, Norwegian School of Economics)

Abstract

In this paper we propose a new spatial equilibrium model, and use it to discuss issues related to rural depopulation. The discussion focuses on how investments in transport infrastructure and the spatial distribution of basic sector jobs can promote a relatively balanced growth of peripheral and central areas of a region. Through interdependencies in individual migration decisions and an economic base multiplier mechanism, negative exogenous shocks may take a peripheral zone beyond a bifurcation point, into an equilibrium of dramatically lower population and employment. We study how the location of bifurcation points depend on spatial interaction behavioural parameters and variables subject to regional policy. We also discuss the issue of the timing of interventions intended to prevent a process of rural depopulation.

Suggested Citation

  • McArthur, David Philip & Thorsen, Inge & Ubøe, Jan, 2013. "Employment, transport infrastructure and rural depopulation: a new spatial equilibrium model," Discussion Papers 2013/9, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2013_009
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    References listed on IDEAS

    as
    1. Mitch Renkow, 2007. "Employment Growth and the Allocation of New Jobs: Spatial Spillovers of Economic and Fiscal Impacts," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 396-402.
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    4. Kent Eliasson & Urban Lindgren & Olle Westerlund, 2003. "Geographical Labour Mobility: Migration or Commuting?," Regional Studies, Taylor & Francis Journals, vol. 37(8), pages 827-837.
    5. Mark D. Partridge & Kamar Ali & M. Rose Olfert, 2010. "Rural‐to‐Urban Commuting: Three Degrees of Integration," Growth and Change, Wiley Blackwell, vol. 41(2), pages 303-335, June.
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    9. Glenn, Paul & Thorsen, Inge & Ubøe, Jan, 2004. "Wage payoffs and distance deterrence in the journey to work," Transportation Research Part B: Methodological, Elsevier, vol. 38(9), pages 853-867, November.
    10. Handy, Susan L., 1992. "Regional Versus Local Accessibility: Neo-Traditional Development and Its Implications for Non-work Travel," University of California Transportation Center, Working Papers qt7gs0p1nc, University of California Transportation Center.
    11. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-359, May.
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    Cited by:

    1. Thorsen, Helge Sandvig & Thorsen, Inge, 2017. "Effects of transportation barriers on geographic asymmetries in labour markets," Research in Transportation Economics, Elsevier, vol. 63(C), pages 27-37.

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    More about this item

    Keywords

    Employment; transport infrastructure; rural depopulation; spatial equilibrium model;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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