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How market access shapes human capital investment in a peripheral country

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Author Info

  • Anna Matas

    ()
    (Dpt. Economia Aplicada, Universitat Autònoma de Barcelona and Institut d’Economia de Barcelona (IEB))

  • Josep Lluís Raymond

    ()
    (Dpt. Economia Aplicada, Universitat Autònoma de Barcelona and Institut d’Economia de Barcelona (IEB))

  • José Luis Roig

    ()
    (Dpt. Economia Aplicada, Universitat Autònoma de Barcelona, Barcelona, Spain.)

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    Abstract

    Human capital endowment is one of the main factors influencing the level of development of a region. This paper analyses whether remoteness from economic activity has a negative effect on human capital accumulation and, consequently, on economic development. Making use of microdata this research proves that remoteness from economic activity has contributed to explain the divergences in the level of education observed across Spanish provinces over the last 50 years. The effect is significant even when controlling for the improvement of education supply. Nonetheless, the accessibility effect has been petering out since the 1960s due to the decreasing barriers to mobility.

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    File URL: http://www.pcb.ub.edu/xreap/aplicacio/fitxers/XREAP2013-06.pdf
    File Function: First version, 2013
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    File URL: http://www.pcb.ub.edu/xreap/aplicacio/fitxers/XREAP2013-06.pdf
    File Function: Revised version, 2013
    Download Restriction: no

    Bibliographic Info

    Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number XREAP2013-06.

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    Length: 43 pages
    Date of creation: Oct 2013
    Date of revision: Oct 2013
    Handle: RePEc:xrp:wpaper:xreap2013-06

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    Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques i Empresarials, Universitat de Barcelona, c/ Tinent Coronel Valenzuela, 1-11, 08034 Barcelona
    Phone: +34+934039653
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    Web page: http://www.pcb.ub.edu/xreap
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    Related research

    Keywords: Regional development; human capital; market access;

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    References

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    1. Redding, Stephen J & Venables, Anthony J., 2000. "Economic Geography and International Inequality," CEPR Discussion Papers 2568, C.E.P.R. Discussion Papers.
    2. Mion, Giordano, 2004. "Spatial externalities and empirical analysis: the case of Italy," Journal of Urban Economics, Elsevier, vol. 56(1), pages 97-118, July.
    3. Keith Head & Thierry Mayer, 2005. "Regional Wage and Employment Responses to Market Potential in the EU," Bruges European Economic Research Papers 3, European Economic Studies Department, College of Europe.
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    5. Steven Brakman & Harry Garretsen & Marc Schramm, 2004. "The Spatial Distribution of Wages: Estimating the Helpman-Hanson Model for Germany," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 437-466.
    6. repec:hal:cesptp:halshs-00096277 is not listed on IDEAS
    7. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
    8. Head, Charles Keith & Mayer, Thierry, 2002. "Market Potential and the Location of Japanese Investment in the European Union," CEPR Discussion Papers 3455, C.E.P.R. Discussion Papers.
    9. Hanson, G.H., 1999. "`Market Potential, Increasing Returns, and Geographic Concentration," Working Papers 439, Research Seminar in International Economics, University of Michigan.
    10. Matthieu Crozet, 2004. "Do migrants follow market potentials? An estimation of a new economic geography model," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 439-458, August.
    11. Mª del Pópulo Pablo-Romero Gil-Delgado & Mª Palma Gómez-Cañero Valdés, 2008. "Análisis por provincias de la contribución del capital humano a la producción en la década de los noventa," Investigaciones Economicas, Fundación SEPI, vol. 32(1), pages 27-52, January.
    12. Jesus Lopez-Rodriguez & J. Andres Faina & Jose Lopez-Rodriguez, 2007. "Human Capital Accumulation and Geography: Empirical Evidence from the European Union," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 217-234.
    13. Elisenda Paluzie & Jordi Pons & Javier Silvestre & Daniel Tirado, 2009. "Migrants and market potential in Spain over the twentieth century: a test of the new economic geography," Spanish Economic Review, Springer, vol. 11(4), pages 243-265, December.
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