Explaining the Location of Economic Activity. Is there a Spatial Employment Structure in Belgium?
AbstractThis paper focuses on the importance of market access for firms location decisions. I estimate a structural parameters equation, a spatial wage and a spatial employment equation for Belgium, in line with the work of Hanson (1998, 2005) for the US, Mion (2004) for Italy, Garcia Pires (2005) and Paluzie et al (2009) for Spain and Brakman, Garretsen and Schramm (2002, 2004) and Roos (2001) for Germany. The findings suggest that linkages between firms and consumers are important for location decisions, as predicted by the New Economic Geography developed by (Krugman (1991)). However, conducting an Analysis of Variance on the estimation results, I conclude that firm-consumer linkages remain complementary with respect to other location theories. The last contribution of the paper is the estimation of spatial employment equations at regional and sectoral level. Firm-consumer linkages appear more important for the Northern than for the Southern part of Belgium while they turn out to be equally important for the service and manufacturing sector.
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Bibliographic InfoPaper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2009/28.
Length: 30 page
Date of creation: Nov 2009
Date of revision:
location; new economic geography; regions; sectors;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
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