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The Influence of Geography on the Spatial Agglomeration of Production in the European Union

  • Coro Chasco
  • Ana Lopez
  • Rachel Guillain

We investigate the relative impact of geographic features on the location of production in the European Union. Specifically, we attempt to quantify how much of the spatial pattern of GDP can be attributed to exogenous first-nature elements alone and how much can be derived from endogenous second-nature factors. In order to disentangle both effects empirically, we control for second-nature factors. A method based on the decomposition of the per capita GDP variance is applied to a panel of 1,171 European NUTS 3 regions for 2006. We demonstrate that variable and model misspecifications may bias results unless proper allowance is made for spatial autocorrelation and spatial heterogeneity, as well as multicollinearity and endogeneity. R�SUM� L'objectif de cet article est d'analyser l'impact relatif des caractéristiques géographique sur la localisation de la production dans l'Union Européenne. Plus spécifiquement, nous quantifions dans quelle mesure le schéma de répartition spatiale du PIB peut �tre attribué � des causes exog�nes de premi�re nature uniquement et � des facteurs endog�nes de seconde nature. Pour séparer ces deux effets empiriquement, les facteurs de seconde nature sont contr�lés. Une méthode basée sur la décomposition de la variance du PIB par t�te est appliquée sur un panel de 1 171 régions européennes � l'échelle NUTS-3 en 2006. Il est établi que des mauvaises spécifications relatives aux variables ou aux mod�les peuvent biaiser les résultats si une attention particuli�re n'est pas dévolue � l'autocorrélation et l'hétérogénéité spatiales mais aussi � la multicolinéarité et � l'endogénéité. RESUMEN En este artículo, se analiza el impacto relativo que tienen las características geogr�ficas sobre la localizaci�n de la producci�n en la Uni�n Europea. En concreto, se trata de cuantificar qué parte de la localizaci�n espacial del PIB puede ser atribuida �nicamente a elementos ex�genos de primera naturaleza y qué parte se deriva de factores end�genos de segunda naturaleza. Con objeto de separar ambos efectos empíricamente, proponemos controlar por factores de segunda naturaleza. Para ello, se plantea un método basado en la descomposici�n de la varianza del PIB per c�pita de un panel de 1.171 regiones europeas NUT 3, con datos referidos a 2006. Es importante poner de manifiesto que los errores de especificaci�n tanto en el modelo como en las variables pueden sesgar los resultados, a menos que se tengan en cuenta adecuadamente los efectos de autocorrelaci�n y heterogeneidad espacial, y otros problemas, como la multicolinealidad y endogeneidad.

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Article provided by Taylor & Francis Journals in its journal Spatial Economic Analysis.

Volume (Year): 7 (2012)
Issue (Month): 2 (June)
Pages: 247-263

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Handle: RePEc:taf:specan:v:7:y:2012:i:2:p:247-263
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