IDEAS home Printed from https://ideas.repec.org/p/gbl/wpaper/2013-10.html
   My bibliography  Save this paper

Modeling the industrial dynamics of the European metropolitan areas during the process of economic integration: a semiparametric approach

Author

Listed:
  • Longhi, C.
  • Musolesi, A.
  • Baumont, C.

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".

Suggested Citation

  • Longhi, C. & Musolesi, A. & Baumont, C., 2013. "Modeling the industrial dynamics of the European metropolitan areas during the process of economic integration: a semiparametric approach," Working Papers 2013-10, Grenoble Applied Economics Laboratory (GAEL).
    • Handle: RePEc:gbl:wpaper:2013-10
    as

    Download full text from publisher

    File URL: https://gael.univ-grenoble-alpes.fr/sites/gael/files/doc-recherche/WP/A2013/gael2013-11.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brulhart, Marius & Traeger, Rolf, 2005. "An account of geographic concentration patterns in Europe," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 597-624, November.
    2. Behrens, Kristian & Thisse, Jacques-Francois, 2007. "Regional economics: A new economic geography perspective," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 457-465, July.
    3. Azomahou, Théophile T. & El ouardighi, Jalal & Nguyen-Van, Phu & Pham, Thi Kim Cuong, 2011. "Testing convergence of European regions: A semiparametric approach," Economic Modelling, Elsevier, vol. 28(3), pages 1202-1210, May.
    4. Yannis M. Ioannides & Henry G. Overman, 2004. "Spatial evolution of the US urban system," Journal of Economic Geography, Oxford University Press, vol. 4(2), pages 131-156, April.
    5. Anthony J. Venables, 2008. "Rethinking Economic Growth in a Globalizing World," World Bank Publications - Books, The World Bank Group, number 28041, December.
    6. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2006. "Putting new economic geography to the test: Free-ness of trade and agglomeration in the EU regions," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 613-635, September.
    7. Azomahou, Théophile & Mishra, Tapas, 2008. "Age dynamics and economic growth: Revisiting the nexus in a nonparametric setting," Economics Letters, Elsevier, vol. 99(1), pages 67-71, April.
    8. Leamer, Edward E. & Levinsohn, James, 1995. "International trade theory: The evidence," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 26, pages 1339-1394, Elsevier.
    9. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    10. Philippe Martin, 2005. "The geography of inequalities in Europe," Sciences Po publications info:hdl:2441/9283, Sciences Po.
    11. Torres,Francisco & Giavazzi,Francesco (ed.), 1993. "Adjustment and Growth in the European Monetary Union," Cambridge Books, Cambridge University Press, number 9780521440196.
    12. Salvador Barrios & Marius Brülhart & Robert J.R. Elliott & Marianne Sensier, 2003. "A Tale of Two Cycles: Co‐Fluctuations Between UK Regions and the Euro Zone," Manchester School, University of Manchester, vol. 71(3), pages 265-292, June.
    13. Simon N. Wood, 2003. "Thin plate regression splines," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(1), pages 95-114, February.
    14. Abdel-Rahman Hesham M. & Fujita Masahisa, 1993. "Specialization and Diversification in a System of Cities," Journal of Urban Economics, Elsevier, vol. 33(2), pages 189-222, March.
    15. Jean Imbs, 2004. "Trade, Finance, Specialization, and Synchronization," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 723-734, August.
    16. Simon N. Wood, 2011. "Fast stable restricted maximum likelihood and marginal likelihood estimation of semiparametric generalized linear models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 73(1), pages 3-36, January.
    17. Jens Suedekum, 2006. "Concentration and Specialization Trends in Germany since Re-unification," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 861-873.
    18. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
    19. Hoderlein, Stefan & White, Halbert, 2012. "Nonparametric identification in nonseparable panel data models with generalized fixed effects," Journal of Econometrics, Elsevier, vol. 168(2), pages 300-314.
    20. Joeri Gorter & S. Brakman & Albert van der Horst & H.F.L. Garretsen & M. Schram, 2005. "New economic geography, empirics, and regional policy," CPB Special Publication 56, CPB Netherlands Bureau for Economic Policy Analysis.
    21. Nicole Palan, 2010. "Measurement of Specialization – The Choice of Indices," FIW Working Paper series 062, FIW.
    22. Karl Aiginger & Esteban Rossi-Hansberg, 2006. "Specialization and concentration: a note on theory and evidence," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 33(4), pages 255-266, September.
    23. Roberto Ezcurra & Pedro Pascual & Manuel Rapun, 2006. "Regional Specialization in the European Union," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 601-616.
    24. Mammen, Enno & Støve, Bård & Tjøstheim, Dag, 2009. "Nonparametric Additive Models For Panels Of Time Series," Econometric Theory, Cambridge University Press, vol. 25(2), pages 442-481, April.
    25. Karen‐Helene Midelfart & Henry G. Overman & Anthony J. Venables, 2003. "Monetary Union and the Economic Geography of Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 41(5), pages 847-868, December.
    26. Augustin, Nicole H. & Musio, Monica & von Wilpert, Klaus & Kublin, Edgar & Wood, Simon N. & Schumacher, Martin, 2009. "Modeling Spatiotemporal Forest Health Monitoring Data," Journal of the American Statistical Association, American Statistical Association, vol. 104(487), pages 899-911.
    27. Young‐Ju Kim & Chong Gu, 2004. "Smoothing spline Gaussian regression: more scalable computation via efficient approximation," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 66(2), pages 337-356, May.
    28. Théophile T. Azomahou & Micheline Goedhuys & Phu Nguyen Van, 2016. "A Structural Nonparametric Reappraisal of the co 2 Emissions–Income Relationship," Revue économique, Presses de Sciences-Po, vol. 67(1), pages 167-174.
    29. Carlos Ordás Criado & Simone Valente & Thanasis Stengos, 2009. "Growth and the pollution convergence hypothesis: a nonparametric approach," CEPE Working paper series 09-66, CEPE Center for Energy Policy and Economics, ETH Zurich.
    30. Masahisa Fujita & Tomoya Mori, 2005. "Frontiers of the New Economic Geography," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 377-405, August.
    31. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April.
    32. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    33. Simon N. Wood, 2004. "Stable and Efficient Multiple Smoothing Parameter Estimation for Generalized Additive Models," Journal of the American Statistical Association, American Statistical Association, vol. 99, pages 673-686, January.
    34. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    35. Fayolle,J. & Lecuyer,A., 2000. "Regional growth, national membership and European structural funds : an empirical appraisal," Documents de Travail de l'OFCE 2000-02, Observatoire Francais des Conjonctures Economiques (OFCE).
    36. Christian Longhi & Antonio Musolesi, 2007. "European cities in the process of economic integration: towards structural convergence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(2), pages 333-351, June.
    37. Charles I. Jones & Paul M. Romer, 2010. "The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 224-245, January.
    38. Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 285-296.
    39. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    40. Huriot,Jean-Marie & Thisse,Jacques-François (ed.), 2000. "Economics of Cities," Cambridge Books, Cambridge University Press, number 9780521641906.
    41. Mohl, P. & Hagen, T., 2010. "Do EU structural funds promote regional growth? New evidence from various panel data approaches," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 353-365, September.
    42. repec:hal:spmain:info:hdl:2441/9283 is not listed on IDEAS
    43. Huriot,Jean-Marie & Thisse,Jacques-François (ed.), 2009. "Economics of Cities," Cambridge Books, Cambridge University Press, number 9780521118279.
    44. Simon N. Wood, 2008. "Fast stable direct fitting and smoothness selection for generalized additive models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 70(3), pages 495-518, July.
    45. F. A. Lutz, 1961. "The Theory of Capital," International Economic Association Series, Palgrave Macmillan, number 978-1-349-08452-4 edited by D. C. Hague, December.
    46. Henderson, J. Vernon, 2005. "Urbanization and Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 24, pages 1543-1591, Elsevier.
    47. Traistaru, Iulia & Nijkamp, Peter & Longhi, Simonetta, 2002. "Regional specialisation and location of industrial activity in accession countries," ERSA conference papers ersa02p136, European Regional Science Association.
    48. repec:dgr:rugccs:200502 is not listed on IDEAS
    49. Abdel-Rahman, Hesham M., 1994. "Economies of scope in intermediate goods and a system of cities," Regional Science and Urban Economics, Elsevier, vol. 24(4), pages 497-524, August.
    50. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 2008 - 2015 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    51. Giampiero Marra & Simon N. Wood, 2012. "Coverage Properties of Confidence Intervals for Generalized Additive Model Components," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 39(1), pages 53-74, March.
    52. Nicholas Kaldor, 1961. "Capital Accumulation and Economic Growth," International Economic Association Series, in: D. C. Hague (ed.), The Theory of Capital, chapter 0, pages 177-222, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Musolesi Antonio & Mazzanti Massimiliano, 2014. "Nonlinearity, heterogeneity and unobserved effects in the carbon dioxide emissions-economic development relation for advanced countries," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 18(5), pages 1-21, December.
    3. Mazzanti, Massimiliano & Musolesi, Antonio, 2013. "Nonlinearity, Heterogeneity and Unobserved Effects in the CO2-income Relation for Advanced Countries," Climate Change and Sustainable Development 162374, Fondazione Eni Enrico Mattei (FEEM).
    4. Sylvie Charlot & Riccardo Crescenzi & Antonio Musolesi, 2014. "Augmented and Unconstrained: revisiting the Regional Knowledge Production Function," SEEDS Working Papers 2414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2014.
    5. Palan, Nicole & Schmiedeberg, Claudia, 2010. "Structural convergence of European countries," Structural Change and Economic Dynamics, Elsevier, vol. 21(2), pages 85-100, May.
    6. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Ho Yeon KIM & Petra de Jong & Jan Rouwendal & Aleid Brouwer, 2012. "Shrinking population and the urban hierarchy [Housing preferences and attribute importance among Dutch older adults: a conjoint choice experiment]," ERSA conference papers ersa12p350, European Regional Science Association.
    8. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2006. "Putting new economic geography to the test: Free-ness of trade and agglomeration in the EU regions," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 613-635, September.
    9. repec:got:cegedp:75 is not listed on IDEAS
    10. Ageliki Anagnostou & Ioannis Panteladis & Maria Tsiapa, 2015. "Disentangling different patterns of business cycle synchronicity in the EU regions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(3), pages 615-641, August.
    11. Peter Mayerhofer & Oliver Fritz, 2013. "Wiens Stadtwirtschaft. Internationale Spezialisierungschancen, zentrale Wirtschaftsbereiche," WIFO Studies, WIFO, number 57933, April.
    12. Sabyasachi Tripathi, 2013. "Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 176-200, November.
    13. José M. Gaspar, 2018. "A prospective review on New Economic Geography," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 237-272, September.
    14. Mori, Tomoya & Smith, Tony E., 2015. "On the spatial scale of industrial agglomerations," Journal of Urban Economics, Elsevier, vol. 89(C), pages 1-20.
    15. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
    16. Maarten Bosker & Steven Brakman & Harry Garretsen & Marc Schramm, 2007. "Adding Geography to the New Economic Geography," CESifo Working Paper Series 2038, CESifo.
    17. Stefano Schiavo, 2008. "Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas," Economica, London School of Economics and Political Science, vol. 75(297), pages 168-189, February.
    18. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    19. Maria Tsiapa, 2014. "Industrial Concentration Patterns of the European Union," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(3), pages 5-33.
    20. Fujita, Masahisa & Thisse, Jacques-François, 2009. "New Economic Geography: An appraisal on the occasion of Paul Krugman's 2008 Nobel Prize in Economic Sciences," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 109-119, March.
    21. Roberto Basile & Luigi Benfratello & Davide Castellani, 2012. "Geoadditive models for regional count data: an application to industrial location," ERSA conference papers ersa12p83, European Regional Science Association.

    More about this item

    Keywords

    SPECIALIZATION; EUROPEAN ECONOMIC INTEGRATION; METROPOLITAN AREAS; SEMIPARAMETRIC MODELS; GENERALIZED ADDITIVE 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

    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:gbl:wpaper:2013-10. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adrien Hervouet (email available below). General contact details of provider: https://edirc.repec.org/data/inragfr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.