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Specialization and Agglomeration Patterns in Eastern Europe

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  • Sheila A. Chapman

Abstract

The paper investigates specialization and agglomeration trends in EU-27 NUTS2 regions over 1991-2011 by means of two versions of the relative Theil indicator that use employment data. The paper’s main focus is on Central and Eastern European Countries (CEECs) regions. As a legacy of central planning, in the early ‘Nineties these regions presented significantly above-average specialization and agglomeration. The paper shows that over 1991-2011 these features change very little; moreover, while disproportions fall in the other EU members, they rise in CEECs, implying growing divergence among the two groups in real terms, notwithstanding EU emphasis on real convergence. Indicators disaggregated by sectors show that for CEECs specialization/agglomeration change most in agriculture, market services and manufacturing. The paper focuses on the last two sectors. It argues that performance in the service sector is largely due to capital regions catching up on previous underdevelopment in the sector, therefore getting closer to Western regions. Non-capital regions instead lag behind, moving away from the EU sectoral average. As far as manufacturing is concerned, CEECs regions continue to specialize in the more traditional lines of production, for which also agglomeration remains extremely high. Consideration of the changes over time gives a partially different picture and shows that the higher specialization in overall manufacturing results from the development of a small but dynamic medium-high technology sub-sector that is significantly disseminated across regions, thus appearing to result from successful industrial restructuring and reconversion.

Suggested Citation

  • Sheila A. Chapman, 2013. "Specialization and Agglomeration Patterns in Eastern Europe," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(1), pages 49-79, April.
  • Handle: RePEc:liu:liucej:v:10:y:2013:i:1:p:49-79
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    Citations

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    Cited by:

    1. Simplice A. Asongu, Nicholas M. Odhiambo, 2021. "Taxation, foreign aid and political governance in Africa," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 18(2), pages 217-249, December.
    2. Berumen, Sergio A. & Pérez-Megino, Luis P., 2016. "Ranking Socioeconómico para el Desarrollo de las Regiones Carboníferas en Europa || Socioeconomic Ranking for the Development of coal-mining regions in Europe," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 21(1), pages 39-57, June.
    3. Shuju Hu & Wei Song & Chenggu Li & Charlie H. Zhang, 2019. "The Evolution of Industrial Agglomerations and Specialization in the Yangtze River Delta from 1990–2018: An Analysis Based on Firm-Level Big Data," Sustainability, MDPI, vol. 11(20), pages 1-21, October.
    4. Asongu Simplice, 2014. "Taxation, foreign aid and political governance: figures to the facts of a celebrated literature," Working Papers of the African Governance and Development Institute. 14/022, African Governance and Development Institute..

    More about this item

    Keywords

    Regions; European Union; Theil indicator; specialization; agglomeration;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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