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Explaining the Location of Economic Activity. Is there a Spatial Employment Structure in Belgium?

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  • De Bruyne, Karolien

    () (Hogeschool-Universiteit Brussel (HUB), Belgium)

Abstract

This paper focuses on the importance of market access for firms location decisions. I estimate a structural parameters equation, a spatial wage and a spatial employment equation for Belgium, in line with the work of Hanson (1998, 2005) for the US, Mion (2004) for Italy, Garcia Pires (2005) and Paluzie et al (2009) for Spain and Brakman, Garretsen and Schramm (2002, 2004) and Roos (2001) for Germany. The findings suggest that linkages between firms and consumers are important for location decisions, as predicted by the New Economic Geography developed by (Krugman (1991)). However, conducting an Analysis of Variance on the estimation results, I conclude that firm-consumer linkages remain complementary with respect to other location theories. The last contribution of the paper is the estimation of spatial employment equations at regional and sectoral level. Firm-consumer linkages appear more important for the Northern than for the Southern part of Belgium while they turn out to be equally important for the service and manufacturing sector.

Suggested Citation

  • De Bruyne, Karolien, 2009. "Explaining the Location of Economic Activity. Is there a Spatial Employment Structure in Belgium?," Working Papers 2009/28, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  • Handle: RePEc:hub:wpecon:200928
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909 Elsevier.
    2. Peter Huber & Michael Pfaffermayr & Yvonne Wolfmayr, 2011. "Are There Border Effects in the EU Wage Function?," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 23-41, June.
    3. Xiuyan Liu & Xingmin Yin, 2010. "Spatial externalities and regional income inequality: Evidence from China’s prefecture-level data," Frontiers of Economics in China, Springer;Higher Education Press, vol. 5(2), pages 325-338, June.
    4. Aleh Mazol, 2016. "Spatial wage inequality in Belarus," BEROC Working Paper Series 35, Belarusian Economic Research and Outreach Center (BEROC).
    5. Reinhold Kosfeld & Hans-Friedrich Eckey, 2010. "Market access, regional price level and wage disparities: the German case," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 105-128, September.
    6. Jesús López-Rodríguez & J. Andrés Faíña, "undated". "Regional Income Disparities in Europe: What Role for Location?," Regional and Urban Modeling 283600059, EcoMod.
    7. Hering, Laura & Poncet, Sandra, 2009. "The impact of economic geography on wages: Disentangling the channels of influence," China Economic Review, Elsevier, vol. 20(1), pages 1-14, March.
    8. Jesús López-Rodríguez & Daisuke Nakamura, 2011. "Mind the Remoteness! Income disparities across Japanese Prefectures," Estudios de Economia, University of Chile, Department of Economics, vol. 38(2 Year 20), pages 393-417, December.
    9. Mehmet Burak Turgut, 2014. "Regional Economic Activity in Turkey: A New Economic Geography Approach," Working Papers 2014/5, Turkish Economic Association.
    10. Laura Hering & Sandra Poncet, 2006. "Market Access Impact on Individual Wage: Evidence from China," Working Papers 2006-23, CEPII research center.
    11. Golem Silvia & Mustra Vinko, 2013. "Decentralization of Economic Activities in the Metropolitan Area of Split," European Spatial Research and Policy, De Gruyter Open, vol. 20(2), pages 147-156, December.
    12. Farmanesh, Amir, 2009. "Regional dimensions of economic development in Iran: A new economic geography approach," MPRA Paper 13580, University Library of Munich, Germany.
    13. Laura Hering & Sandra Poncet, 2010. "Market Access and Individual Wages: Evidence from China," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 145-159, February.
    14. Stefan Gruber, 2010. "To Migrate or to Commute?," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 2(1), pages 110-134, January.
    15. Ulrich Zierahn, 2012. "The effect of market access on the labor market: Evidence from German reunification," MAGKS Papers on Economics 201239, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    More about this item

    Keywords

    location; new economic geography; regions; sectors;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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