Chapter 64 The spatial distribution of economic activities in the European Union

Combes, Pierre-Philippe; Overman, Henry G.

doi:10.1016/s1574-0080(04)80021-x

Cited by 209 publications

(210 citation statements)

References 39 publications

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“…In this type of system, there could be improvements in welfare equality if the subsidy is directed towards the regions that would have the lowest welfare levels in the long-run equilibrium. Returning to the analogy of these regions as the countries of Europe, this interpretation fits with empirical findings that convergence has occurred in the EU at a national level when subsidies are predominately provided to poor countries (Combes and Overman, 2004).…”

Section: Now Consider the High Transportation Costs Case Illustrated Insupporting

confidence: 79%

“…Despite the extensive spending on the Structural and Cohesion Funds, empirical research suggests that there has not been any significant impact in reducing inter-regional economic inequality (Boldrin and Canova, 2001;Combes and Overman, 2004;. While inequalities at the national level have been declining, there is little evidence to suggest convergence at the regional level.…”

Section: Introductionmentioning

confidence: 99%

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Regional policy in a multiregional setting: when the poorest are hurt by subsidies

Sheard

2012

Rev World Econ

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Despite the allocation of more than a third of the EU budget to the Structural and Cohesion Funds, which are intended to bring about convergence in economic opportunity across regions, evidence of these policies' effectiveness is at best mixed. Though convergence is occurring between countries, it is not occurring between regions. This paper demonstrates a possible explanation for the ineffectiveness of EU policies that results from the effect that these policies have on the long-term distribution of manufacturing activity. By seeking to encourage manufacturing throughout a large, underdeveloped area, the probability that manufacturing survives in small clusters that would otherwise act as natural 'regional centres' is reduced, which reduces the overall level of manufacturing in the subsidised area and adds to its deprivation. On this analysis, the Structural and Cohesion Funds should have a greater focus on encouraging clusters of manufacturing in poorer areas when this is feasible.

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Section: Now Consider the High Transportation Costs Case Illustrated Insupporting

confidence: 79%

Section: Introductionmentioning

confidence: 99%

Regional policy in a multiregional setting: when the poorest are hurt by subsidies

Sheard

2012

Rev World Econ

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“…In addition, to reflect firm-and market-specific knowledge, we Storper (2012) for the adoption of a similar spillover measure in the analysis of R&D spillovers. 17 The relevance of spillovers through backward linkages as dependent on the distance is verified in the literature on the more general topic of spillover effects from competitiveness and innovation (Bottazzi & Peri, 2003) and mimics the concept of market potential exploited by the New Economic Geography as the source of cross-border -in our context, cross-region -demand linkages (Combes & Overman, 2004;Midelfart, Overman, & Redding, 2004). 18 While service sectors are defined at two-digit NACE level, manufacturing sectors are defined at sub-section NACE level.…”

Section: Control Variablesmentioning

confidence: 65%

Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms

Conti¹,

Turco²,

Maggioni³

2014

International Business Review

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We provide evidence on the role of spillovers through vertical linkages in service firms' internationalisation process. We combine input-output coefficients with region-level information on downstream manufacturing sector exports to build a measure of spillovers through backward linkages, which we assess as a systematic determinant of Italian BS firms' export status. Once considered firm and sector specificities, export spillovers especially matter for exporting to high-income economies outside Europe. This finding originates from higher sunk costs stemming from greater distance to the destination market and tougher competition within the destination market. Furthermore, the spillovers' geographical scope is mainly local. We thus contribute to international business theory by generalising existing evidence from case studies on the importance of buyer-supplier relationships for service firms' internationalisation across several BS sectors. Our research carries important implications for international business practices as well, as joining networks with internationalised customers may play an important role in enhancing BS firms' exports, regardless of the BS supplied. © 2013 Elsevier Ltd

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“…16 We consider 191 regions (Nuts-2) belonging to 13 EU countries (countries are the Good reviews of these indices (with applications to Europe) are Aiginger and Davies (2004), Cutrini (2006). Combes and Overman (2004) list seven properties which concentration indices should satisfy. They acknowledge that no measure meets all those criteria simultaneously and that the choice of one index implies neglecting some criteria.…”

Section: Geographic Concentration Of Production In Europementioning

confidence: 99%

Sectoral border effects and the geographic concentration of production

Cafiso

2011

Rev World Econ

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The object of this paper is to study the relationship between the border effect and the geographic concentration of production. We explain this relationship through the home market effect and test the robustness of this explanation by using an analysis that considers the European single market. A sectoral gravity equation is estimated with different econometric estimators; in particular, we discuss a recently suggested estimator for log-linear CES models. Overall, our findings suggest a steady relationship between the border effect and the concentration of production. Furthermore, the analysis of concentration through a synthetic index provides us with valuable insights into the structure of the European industry.

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Chapter 64 The spatial distribution of economic activities in the European Union

Cited by 209 publications

References 39 publications

Regional policy in a multiregional setting: when the poorest are hurt by subsidies

Regional policy in a multiregional setting: when the poorest are hurt by subsidies

Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms

Sectoral border effects and the geographic concentration of production

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