Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run

Claude Diebolt and Ralph Hippe

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: In a recent contribution, Redding and Schott (2003) add human capital to a two sector NEG model, highlighting that remoteness represents a penalty that gives disincentives to invest in human capital. But is this hypothesis consistent with long-term evidence? We test the persistence of this effect at the regional level in an historical setting. The results show that market access has a significant positive influence on human capital in OLS, Tobit and IV regression models. Thus, the paper confirms the ‘penalty of remoteness’ hypothesis for Europe in the long run.

Keywords: Human Capital; New Economic Geography; Regional Development; Market Access. (search for similar items in EconPapers)
JEL-codes: I21 N33 N93 R11 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-geo, nep-gro, nep-his, nep-lma and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://beta.u-strasbg.fr/WP/2016/2016-32.pdf (application/pdf)

Related works:
Journal Article: Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run (2018)
Working Paper: Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run (2018)
Working Paper: Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2016-32

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