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An Evolutionary Approach to Regional Development Traps in European Regions

Pierre-Alex Balland and Ron Boschma ()

No 2420, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: This paper proposes an evolutionary take on regional development traps. Our definition of regional traps centers around the structural inability of regions to develop new complex activities. We distinguish between several different traps. Using industry data, we follow European regions over time and provide evidence on which regions in the EU are trapped, and what kinds of traps they have fallen into. Our econometric analysis shows that being trapped has a negative impact on employment and wage growth in regions. We also find evidence that our development trap indicator explains well whether regions are stuck in a regional development trap, as defined by Iammarino et al. (2020).

Date: 2024-07, Revised 2024-07
New Economics Papers: this item is included in nep-eec, nep-evo, nep-geo, nep-hme, nep-sbm, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:2420

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