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Testing the 'new economic geography': a comparative analysis based on EU regional data

Author

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  • Bernard Fingleton

    (Cambridge University)

Abstract

This paper evaluates 'new economic geography' theory by comparing it with a competing non-nested model derived from urban economics. Using bootstrap inference and the J-test, the paper shows that while NEG theory is supported by the data, it needs to be modified to achieve this, and it is not the only, or even the best or simplest, explanation of regional wage variations across the EU.

Suggested Citation

  • Bernard Fingleton, 2005. "Testing the 'new economic geography': a comparative analysis based on EU regional data," Urban/Regional 0504003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpur:0504003
    Note: Type of Document - pdf; pages: 37. this is a short version of a longer paper presented at the Kiel Institute for World Economics conference on spatial econometrics.
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/urb/papers/0504/0504003.pdf
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    Citations

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    Cited by:

    1. Persyn, Damiaan & Díaz-Lanchas, Jorge & Barbero, Javier, 2022. "Estimating road transport costs between and within European Union regions," Transport Policy, Elsevier, vol. 124(C), pages 33-42.
    2. Knaap, Thijs, 2006. "Trade, location, and wages in the United States," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 595-612, September.
    3. Marius Brülhart & Pamina Koenig, 2006. "New economic geography meets Comecon: Regional wages and industry location in central Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(2), pages 245-267, April.
    4. Bernard Fingleton, 2005. "Towards applied geographical economics: modelling relative wage rates, incomes and prices for the regions of Great Britain," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2417-2428.
    5. Srinivas, Goli, 2014. "Demographic convergence and its linkage with health inequalities in India," MPRA Paper 79823, University Library of Munich, Germany, revised 05 Dec 2014.

    More about this item

    Keywords

    'new economic geography'; urban economics; bootstrap; J test;
    All these keywords.

    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

    NEP fields

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