Path dependence, place dependence, and the evolution of a patchwork economy: Evidence from Western Australia, 1981-2008

Paul Plummer () and Matthew Tonts ()

No 1308, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: This paper contributes to debates about that application and relevance of evolutionary concepts in the analysis of regional economies. In particular, we address the propostion that geography and history matter in shaping regional economic development by drawing on the concepts and methodology of dynamic econometrics, offering an analysis of Western Australia, 1981-2008. More specifically we test for path and place dependence using data on incomes per capita for regions within the State. The results provide evidence of both path and place dependence, although indicate that there is a degree of heterogeneity in how places are evolving and responding to shocks.

Pages: 40 pages
Date: 2013-05, Revised 2013-05
New Economics Papers: this item is included in nep-evo, nep-geo and nep-his
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