Advanced Search
MyIDEAS: Login to save this paper or follow this series

New Economic Geography, Empirics, and Regional Policy

Contents:

Author Info

  • Joeri Gorter

    ()

  • Albert Van der Horst

    ()

Abstract

There are doubts about the effectiveness of regional policy. Well known are the vain attempts of Italy to bridge the gap between the Mezzogiorno and the North, of Germany to bridge the gap between the Neue Länder and the West, and of the European Commission to reduce regional disparities in general. We validate a salient explanation for the lack of effectiveness: agglomeration advantages lock business activity in relatively prosperous core regions, even though wages and production costs tend to be higher there. On the basis of the `New Economic Geography' - a set of general equilibrium models that focus on location choice - in combination with descriptive statistics and econometric analysis, we conclude that the European economic geography is characterized by a network of local and stable core-periphery systems. Since regional policy tend to be insufficient to counter centripetal market forces, disparities between cores and their peripheries at a subprovincial level of regional aggregation are with us to stay. Moreover, if regional policy does have an impact, it may be adverse as some policies targeted on peripheral regions trigger location choices in favour of core regions.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa05/papers/236.pdf
Download Restriction: no

Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p236.

as in new window
Length:
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa05p236

Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Yamamoto, Kazuhiro, 2003. "Agglomeration and growth with innovation in the intermediate goods sector," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 33(3), pages 335-360, May.
  2. Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," International Trade, EconWPA 0103003, EconWPA.
  3. Sjed Ederveen & Joeri Gorter & Ruud de Mooij & Richard Nahuis, 2003. "Funds and Games: The Economics of European Cohesion Policy," Occasional Papers, European Network of Economic Policy Research Institutes 03, European Network of Economic Policy Research Institutes.
  4. OTTAVIANO, Gianmarco & THISSE, Jacques-François, 1999. "Agglomeration and trade revisited," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1999041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Thierry Mayer & Keith Head, 2003. "The Empirics of Agglomeration and Trade," Working Papers, CEPII research center 2003-15, CEPII research center.
  6. Marius BRÜLHART & Matthieu CROZET & Pamina KOENIG, 2004. "Enlargement and the EU Periphery: The Impact of Changing Market Potential," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 04.02, Université de Lausanne, Faculté des HEC, DEEP.
  7. Donald R. Davis & David E. Weinstein, 2002. "Bones, bombs and break points: The geography of economic activity," Discussion Papers, Columbia University, Department of Economics 0102-02, Columbia University, Department of Economics.
  8. Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
  9. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 1998. "Global Income Divergence, Trade and Industrializatiion: The Geography of Growth Take-Offs," NBER Working Papers 6458, National Bureau of Economic Research, Inc.
  10. Philippe Martin & Gianmarco Ottaviano, 1996. "Growth and Agglomeration," Working Papers, CEPII research center 1996-14, CEPII research center.
  11. Combes, Pierre-Philippe & Overman, Henry G., 2003. "The Spatial Distribution of Economic Activities in the EU," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3999, C.E.P.R. Discussion Papers.
  12. Brülhart, Marius & Trionfetti, Federico, 2009. "A test of trade theories when expenditure is home biased," European Economic Review, Elsevier, Elsevier, vol. 53(7), pages 830-845, October.
  13. Venables, Anthony J., 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers, C.E.P.R. Discussion Papers 802, C.E.P.R. Discussion Papers.
  14. Lammers, Konrad & Stiller, Silvia, 2000. "Regionalpolitische Implikationen der neuen ökonomischen Geographie," HWWA Discussion Papers, Hamburg Institute of International Economics (HWWA) 85, Hamburg Institute of International Economics (HWWA).
  15. Diego Puga, 1996. "The Rise and Fall of Regional Inequalities," CEP Discussion Papers, Centre for Economic Performance, LSE dp0314, Centre for Economic Performance, LSE.
  16. Ron Martin, 2000. "Emu Versus The Regions? Regional Convergence And Divergence In Euroland," ESRC Centre for Business Research - Working Papers, ESRC Centre for Business Research wp179, ESRC Centre for Business Research.
  17. Baldwin, Richard & Martin, Philippe, 2003. "Agglomeration and Regional Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3960, C.E.P.R. Discussion Papers.
  18. Ottaviano, Gianmarco I. P., 2002. "Regional policy in the global economy : insights from new economic geography," HWWA Discussion Papers, Hamburg Institute of International Economics (HWWA) 211, Hamburg Institute of International Economics (HWWA).
  19. Andres RodrIguez-Pose & Ugo Fratesi†, 2004. "Between Development and Social Policies: The Impact of European Structural Funds in Objective 1 Regions," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(1), pages 97-113.
  20. Annekatrin Niebuhr, 2006. "Market access and regional disparities," The Annals of Regional Science, Springer, Springer, vol. 40(2), pages 313-334, June.
  21. James Harrigan, 2001. "Specialization and the volume of trade: do the data obey the laws?," Staff Reports, Federal Reserve Bank of New York 140, Federal Reserve Bank of New York.
  22. Forslid, R. & Haaland, J.I. & Knarvik, K.H.M., 1999. "A U-Shaped Europe? A Simulation Study of Industrial Location," Papers, Norwegian School of Economics and Business Administration- 19/99, Norwegian School of Economics and Business Administration-.
  23. BARRIOS, Salvador & STROBL, Eric, 2003. "Industry mobility and geographic concentration in the European Union," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2003043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  24. Karen Helen Midelfart-Knarvik & Henry G. Overman & Stephen Redding & Anthony J. Venables, 2002. "Integration and Industrial. Specialisation in the European Union," Revue économique, Presses de Sciences-Po, Presses de Sciences-Po, vol. 53(3), pages 469-481.
  25. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, Elsevier, vol. 47(4), pages 687-710, August.
  26. Karen Helene Midelfart-Knarvik & Henry G. Overman & Anthony Venables, 2003. "Monetary union and the economic geography of Europe," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 582, London School of Economics and Political Science, LSE Library.
  27. Davis, Donald R. & Weinstein, David E., 2003. "Market access, economic geography and comparative advantage: an empirical test," Journal of International Economics, Elsevier, Elsevier, vol. 59(1), pages 1-23, January.
  28. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
  29. Ulltveit-Moe, Karen Helene, 2007. "Regional policy design: An analysis of relocation, efficiency and equity," European Economic Review, Elsevier, Elsevier, vol. 51(6), pages 1443-1467, August.
  30. Karl Aiginger & Stephen W. Davies, 2004. "Industrial specialisation and geographic concentration: Two sides of the same coin? Not for the European Union," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 231-248, November.
  31. Vincent Dupont & Philippe Martin, 2006. "Subsidies to poor regions and inequalities: some unpleasant arithmetic," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 6(2), pages 223-240, April.
  32. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission 142, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  33. Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2767, C.E.P.R. Discussion Papers.
  34. Matthieu Crozet, 2004. "Do Migrants Follow Market Potentials? An Estimation of a New Economic Geography Model," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers), HAL halshs-00096277, HAL.
  35. Karl Aiginger & Wolfgang Leitner, 2002. "Regional concentration in the United States and Europe: Who follows whom?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 138(4), pages 652-679, December.
  36. Lammers, Konrad & Stiller, Silvia, 2000. "Regionalpolitische Implikationen der neuen ökonomischen Geographie," HWWA Discussion Papers, Hamburg Institute of International Economics (HWWA) 85, Hamburg Institute of International Economics (HWWA).
  37. Tabuchi, Takatoshi & Thisse, Jacques-François, 2002. "Regional Specialization and Transport Costs," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3542, C.E.P.R. Discussion Papers.
  38. Sergio Nardis & Alessandro Goglio & Marco Malgarini, 1996. "Regional specialization and shocks in Europe: Some evidence from regional data," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 132(2), pages 197-214, September.
  39. Ottaviano, Gianmarco Ireo Paolo & Robert-Nicoud, Frédéric, 2004. "The 'Genome' of NEG Models with Vertical Linkages: A Positive and Normative Synthesis," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4600, C.E.P.R. Discussion Papers.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p236. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.