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Modeling structural change in the European metropolitan areas during the process of economic integration

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  • Longhi, Christian
  • Musolesi, Antonio
  • Baumont, Catherine

Abstract

The specialization patterns of metropolitan areas are crucial in characterizing the effects of economic integration in Europe. This paper aims to provide and estimate an econometric model that explains both sectoral specialization and sectoral dissimilarity, measured with the GINI and the KRUGMAN indexes, respectively, for 35 European metro areas during the period 1980–2005. A semiparametric approach is proposed to address the issues of non-linearity and separability. The econometric analysis indicates how the deepening of the processes of development and integration occurred in the last decades affected both specialization and similarity of the sectoral metropolitan structure, finally supporting a “specializing alike hypothesis”.

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  • Longhi, Christian & Musolesi, Antonio & Baumont, Catherine, 2014. "Modeling structural change in the European metropolitan areas during the process of economic integration," Economic Modelling, Elsevier, vol. 37(C), pages 395-407.
    • Handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:395-407
    DOI: 10.1016/j.econmod.2013.10.028
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    More about this item

    Keywords

    Specialization; European economic integration; Metropolitan areas; Semiparametric models; Generalized additive models; Interaction models; Tensor product smooths;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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