Regional convergence studies have relied on net migration data in assessing the impact of migration. With heterogeneous labour, the implied symmetrical treatment of immigration and emigration cannot be justified a priori.. Because of heterogeneity among migrants, gross migration flows may lead to considerable interregional redistribution of human capital even when net migration is zero. Moreover, the effects of regional economic conditions on gross in-and outmigration flows may not be symmetric.. In this comparative study of regional growth and migration, the net and the gross migration approaches are compared. The results confirm ex post that the net approach cannot be justified and, despite Sweden and Norway being similar in many ways, migration has very different effects on convergence in these two countries.Key words: regional growth, comparative study, Nordic countries, convergence, gross migration 3 IntroductionOne of the substantial features that often distinguish models of regional economics from models of international economics is the presence or absence of migration, reflecting the view that migration between countries is unimportant in comparison to internal migration within one country. 1 Accordingly, regional economic growth studies should allow for internal migration effects and be based on models that take into account the possible interdependence between migration and growth. In this study, the effect of migration on economic convergence of regions is examined. The empirical analysis is based on a panel data set forNorwegian and Swedish counties, and the results are interpreted in terms of a neoclassical model. 2 In the neoclassical growth model, diminishing returns to scale imply that out of steady state, regions with low capital intensity will grow faster than those with high intensity, ceteris paribus. When labour is homogeneous, migration adds to this convergence process by increasing the capital intensity in regions with net out-migration and decreasing it in regions with net in-migration. When labour is heterogeneous, the effect of migration on convergence is unclear as the migrants embody human capital. If the migrants are more productive than the non-migrants, the loss in human capital per worker may outweigh the increase in physical capital per worker and slow down growth. Moreover, if the migrants possess more human capital than workers in the host region, the increase in human capital per worker in the host region may dominate the effect of the decrease in physical capital per worker. Migration will then boost growth in the host region and thereby counteract convergence between regions, and may even result in economic divergence. The ambiguous effect of migration on growth and convergence, once labour heterogeneity is taken into account, has been recognized as 4 important in order to mitigate the gap between theory and previous empirical research (Dolado, Goria and Ichino, 1993, Friedberg andHunt, 1995). However, there is some skepticism as to whether the shifts in human ca...
Purpose: This study examines the effect of absorptive capacity (ACAP) and co-creation on innovation performance (INN). Design/methodology/approach: We use survey data from Swedish and Norwegian companies (N = 1102) and establish a cross-national equivalence between Sweden and Norway. Findings: The subsequent structural model revealed interesting differences. For Sweden, co-creation fully mediates the effect of ACAP on INN, whereas for Norway, ACAP has a direct effect on INN with no mediation. Subsequent regressions including control variablesshowed that the structural model is reasonably robust. We conclude that, despite the many common national features conducive to innovation between these two countries, sufficient differences remain to create substantial variation in the innovation processes. Originality:The study presents a second-order model of ACAP that permits a unique test of cross country differences.
Regional adjustment models are applied to explore causal interaction between two types of people distinguished by educational attainment, and two types of jobs, creative class jobs and other jobs. Data used are for labour market regions in Finland, Norway and Sweden from the 2000s. Creative class jobs follow people with high educational attainment (one way causation), but creative class jobs also follow other jobs and vice versa (circular causation). The results suggest that stimulating creative class job growth could be accomplished through attracting people with higher education, but also through attracting other jobs with the added benefit that the initial stimulus would be reinforced through circular and cumulative causation between job creation in the two sectors.
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