The ‘fractal dimension’ of the market potential–human capital relation

Jesus Lopez-Rodriguez, Guillermo Manso-Fernández and Jose M. Barreiro-Viñan

Applied Economics Letters, 2022, vol. 29, issue 8, 723-730

Abstract: The empirical analysis of the impact of market potential on the spatial distribution of human capital has often taken the approach of using samples of large economic areas (world sample of countries, Europe, single countries). This paper proposes to strengthen the analysis of the potential ‘fractal dimension’ of the market potential–human capital relation by estimating econometric specifications which relate educational attainment levels to market potential for the 53 Galician counties using yearly data over the period 2005–2012 and census data for 2001 and 2011. We find evidence that market potential exerts a positive impact on the spatial distribution of human capital across the Galician counties, concluding therefore in favour of the fractal dimension. These results could also help to explain the (lack of) convergence in terms of income between the Western and Eastern parts of Galicia.

Date: 2022
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DOI: 10.1080/13504851.2021.1884833

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