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Human Capital and Productivity in a Spatial Economic System - Relating the Extent of Spatial Dependence to Localities' Position

Martin Andersson, Urban Grasjo and Charlie Karlsson ()

Annals of Economics and Statistics, 2007, issue 87-88, 125-143

Abstract: Focusing on the role of human capital for productivity, a locality's position in a hierarchical spatial economic system is likely to alter the importance of the human capital in surrounding localities for its productivity level. By estimating a spatial cross-regressive model on Swedish municipal data, we show that the relative importance of external human capital for localities with low position in a hierarchy is significantly larger than for localities with high position.

Date: 2007
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