Potencial de mercado y estructura espacial de los Salarios en las regiones espanolas, 1955-1995

Universitat de Barcelona. Espai de Recerca en Economia, Working Papers in Economics 01/2005;
Source: RePEc

ABSTRACT In this paper we examine the relationship between the wages of Spanish regions and their market potential in the period 1955-1995. We prove the existence of a wage spatial structure, where wages decrease when we move away from rich regions. This result reinforces the hypothesis of the existence of an agglomeration dynamics in Spain during the second half of the 20th century. However, the effect of market potential on wages diminished in the second half of the period (1975-1995). This last result is consistent with the redispersion of industrial activity in Spain after the mid seventies.

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    ABSTRACT: This paper presents a spatial analysis on regional dimensions of poverty and economic development across provinces of Iran. It offers the first ever estimation made in developing countries using this strand of "New Economic Geography" (NEG) models and provides a comparison of the results between previously studied developed countries and Iran as a developing country. The goal of this study is to offer an analysis of the effects of agglomeration and dispersion economies on the patterns of regional economic development in Iran. It analyzes the linkages among adjacent provinces as well as effects of agglomeration and dispersion economies on the patterns of Iran's regional economic development through empirical estimation of two of the NEG models. First, it presents an estimation of a "Market Potential Function" (MPF), in which wages are associated with proximity to consumer markets. Second, the paper estimates an augmented MPF derived from the Krugman model of economic geography. The parameters in this model estimate the importance of transportation cost and economies of scale. The estimation results suggest that Iran showed generally good fit to both models and satisfied both MPF and Krugman model specifications. Compared to other similar studies in developed countries, Iran shows smaller returns to scale and consistently higher size of the effect of market potential on wages.
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    ABSTRACT: This paper estimates Krugman’s (J Polit Econ 99:413–499, 1991) economic geography model using data from the Spanish NUTS 3 regions. The econometric formalization endogenously determines wages in a region as a function of income and wages in other regions. The specification adopted also allows us to study the relation between the agglomeration of economic activity, increasing returns and market access. The first result obtained is that the Spanish economy exhibits a spatial wage structure: wages in a region are positively determined by income and wages in neighboring regions. In second place it is found support for the structural relations of the underlying theoretical model, indicating the importance of scale economies and transport costs in shaping the Spanish economic geography.
    Spanish Economic Review 02/2006; 8(2):83-112. · 0.50 Impact Factor

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