Theoretical economic geography and spatial econometrics: dynamic perspectives

B. Fingleton

Research output: Contribution to journalArticle

57 Citations (Scopus)

Abstract

Theoretical economic geography has received significant new impetus from so-called 'new economic geography' theory, and this provides the basis of the spatial econometric model developed in this paper. The model, which is seen as part of an attempt to bridge the gap that presently exists between this new body of theory and reality, is fitted using 3SLS to data on manufacturing productivity growth data for 178 regions of the EU covering the periods 1975-81, 1981-89, 1989-95. The resulting estimates point to the continued existence over time of increasing returns, and thus provides support for one of the main tenets of new economic geography theory. The results also highlight urbanization, peripherality, the initial level of technology and across-region spillovers as determinants of regional productivity growth variations, operating via the rate of technical progress and labour efficiency variations. There is no evidence that these variables are diminishing in significance systematically over time, leading to the conclusion that spatial polarization in productivity will persist. The paper points to the need for further testing of fundamental assumptions of the underlying theory, and for developments in the theory to accommodate interdependence between model parameters and the socio-economic context within which the process is operating.
LanguageEnglish
Pages201-225
Number of pages24
JournalJournal of Economic Geography
Volume1
Issue number2
DOIs
Publication statusPublished - 2001

Fingerprint

theoretical economics
economic geography
econometrics
productivity
interdependence
polarization
urbanization
manufacturing
labor
EU
Economic geography
Spatial econometrics
determinants
efficiency
evidence
economics

Keywords

  • economic geography
  • spatial econometrics
  • EU manufacturing productivity
  • clustering

Cite this

@article{72a9532800854a8a95c3b20dd7cf8dd1,
title = "Theoretical economic geography and spatial econometrics: dynamic perspectives",
abstract = "Theoretical economic geography has received significant new impetus from so-called 'new economic geography' theory, and this provides the basis of the spatial econometric model developed in this paper. The model, which is seen as part of an attempt to bridge the gap that presently exists between this new body of theory and reality, is fitted using 3SLS to data on manufacturing productivity growth data for 178 regions of the EU covering the periods 1975-81, 1981-89, 1989-95. The resulting estimates point to the continued existence over time of increasing returns, and thus provides support for one of the main tenets of new economic geography theory. The results also highlight urbanization, peripherality, the initial level of technology and across-region spillovers as determinants of regional productivity growth variations, operating via the rate of technical progress and labour efficiency variations. There is no evidence that these variables are diminishing in significance systematically over time, leading to the conclusion that spatial polarization in productivity will persist. The paper points to the need for further testing of fundamental assumptions of the underlying theory, and for developments in the theory to accommodate interdependence between model parameters and the socio-economic context within which the process is operating.",
keywords = "economic geography, spatial econometrics, EU manufacturing productivity, clustering",
author = "B. Fingleton",
year = "2001",
doi = "10.1093/jeg/1.2.201",
language = "English",
volume = "1",
pages = "201--225",
journal = "Journal of Economic Geography",
issn = "1468-2702",
number = "2",

}

Theoretical economic geography and spatial econometrics: dynamic perspectives. / Fingleton, B.

In: Journal of Economic Geography, Vol. 1, No. 2, 2001, p. 201-225.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Theoretical economic geography and spatial econometrics: dynamic perspectives

AU - Fingleton, B.

PY - 2001

Y1 - 2001

N2 - Theoretical economic geography has received significant new impetus from so-called 'new economic geography' theory, and this provides the basis of the spatial econometric model developed in this paper. The model, which is seen as part of an attempt to bridge the gap that presently exists between this new body of theory and reality, is fitted using 3SLS to data on manufacturing productivity growth data for 178 regions of the EU covering the periods 1975-81, 1981-89, 1989-95. The resulting estimates point to the continued existence over time of increasing returns, and thus provides support for one of the main tenets of new economic geography theory. The results also highlight urbanization, peripherality, the initial level of technology and across-region spillovers as determinants of regional productivity growth variations, operating via the rate of technical progress and labour efficiency variations. There is no evidence that these variables are diminishing in significance systematically over time, leading to the conclusion that spatial polarization in productivity will persist. The paper points to the need for further testing of fundamental assumptions of the underlying theory, and for developments in the theory to accommodate interdependence between model parameters and the socio-economic context within which the process is operating.

AB - Theoretical economic geography has received significant new impetus from so-called 'new economic geography' theory, and this provides the basis of the spatial econometric model developed in this paper. The model, which is seen as part of an attempt to bridge the gap that presently exists between this new body of theory and reality, is fitted using 3SLS to data on manufacturing productivity growth data for 178 regions of the EU covering the periods 1975-81, 1981-89, 1989-95. The resulting estimates point to the continued existence over time of increasing returns, and thus provides support for one of the main tenets of new economic geography theory. The results also highlight urbanization, peripherality, the initial level of technology and across-region spillovers as determinants of regional productivity growth variations, operating via the rate of technical progress and labour efficiency variations. There is no evidence that these variables are diminishing in significance systematically over time, leading to the conclusion that spatial polarization in productivity will persist. The paper points to the need for further testing of fundamental assumptions of the underlying theory, and for developments in the theory to accommodate interdependence between model parameters and the socio-economic context within which the process is operating.

KW - economic geography

KW - spatial econometrics

KW - EU manufacturing productivity

KW - clustering

UR - http://www.geo.ntnu.edu.tw/faculty/moise/words/information/economy/e40.pdf

UR - http://dx.doi.org/10.1093/jeg/1.2.201

U2 - 10.1093/jeg/1.2.201

DO - 10.1093/jeg/1.2.201

M3 - Article

VL - 1

SP - 201

EP - 225

JO - Journal of Economic Geography

T2 - Journal of Economic Geography

JF - Journal of Economic Geography

SN - 1468-2702

IS - 2

ER -