Market potential, spatial theories and spatial trends

Fernando Bruna

Spatial Economic Analysis, 2024, vol. 19, issue 4, 527-548

Abstract: Previous literature on European regions has shown that structural estimation of New Economic Geography (NEG) wage-type equations obtains results similar to those obtained using old regional economics techniques. I show that this similarity is due to the presence of global spatial trends in the variables (first-order non-stationarity), which produce spurious regressions. Formal tests and graphical models confirm that any variable displaying a core–periphery spatial pattern produces similar predictions for European regional per capita income. Empirical tests of spatial theories should thus pay attention to the geographical features of the administrative units and the global spatial trends of the variables analysed.

Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/17421772.2024.2325517 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:specan:v:19:y:2024:i:4:p:527-548

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RSEA20

DOI: 10.1080/17421772.2024.2325517

Access Statistics for this article

Spatial Economic Analysis is currently edited by Bernie Fingleton and Danilo Igliori

More articles in Spatial Economic Analysis from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().