IDEAS home Printed from https://ideas.repec.org/p/edg/irenen/0005.html
   My bibliography  Save this paper

What Places Grow Faster? An Empirical Analysis of Employment Growth Factors at a Local Level for the Spanish Economy

Author

Listed:
  • Diana Guti�rrez Posada
  • Fernando Rubiera Moroll�n

    ()

  • Ana Vi�uela Jim�mez

    (Regional Economics Laboratory (REGIOlab), University of Oviedo)

Abstract

The objective of this work is to study employment growth and its determinants in Spain at a high degree of spatial disaggregation. The impossibility of accessing data on GDP at local scale makes this a particularly interesting issue, as employment growth can be used as a proxy of local economic growth and can therefore be expected to provide some insights into the factors determining local economic development. Using the 2001 Census database, we have information on several economic variables at local level (municipalities) which we then aggregate into Local Labour Market Areas (LLMs), as we believe these functional regions may be the ideal level of disaggregation to study employment or economic growth. Based on the ideas of New Economic Geography (NEG), we first analyze the influence of size and geographical position of the LLM on employment growth. As well as considering the Euclidean distance from the LLM to the main metropolitan areas we also use a novel approach based on the notion of incremental distances. Once the importance of the NEG approach is confirmed, we also examine the traditional determinants of economic growth used in macroeconomic studies, but in this occasion applied at local level, such as education, diversification and sectoral structure. Finally, to confirm the relevance of location, spatial auto-regressive models are estimated. Our results show that employment growth is mainly driven by geo-economic variables such as size and distance instead of the economic policy variables in the hands of the central or regional governments.

Suggested Citation

  • Diana Guti�rrez Posada & Fernando Rubiera Moroll�n & Ana Vi�uela Jim�mez, 2013. "What Places Grow Faster? An Empirical Analysis of Employment Growth Factors at a Local Level for the Spanish Economy," Documentos de trabajo - IRENe 0005, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  • Handle: RePEc:edg:irenen:0005
    as

    Download full text from publisher

    File URL: http://docs.game-idega.com/documentos_de_traballo/irene/irene_5.pdf
    Download Restriction: no

    More about this item

    Keywords

    local employment growth; local labour markets; NEG; incremental distances; local and regional policies; Spain;

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:edg:irenen:0005. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuel Fernandez Grela). General contact details of provider: http://edirc.repec.org/data/egusces.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.