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

Claude Diebolt and Ralph Hippe
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Ralph Hippe: Directorate for Growth and Innovation - JRC - European Commission - Joint Research Centre [Ispra]

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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: New Economic Geography; Regional Development; Market Access; Human Capital (search for similar items in EconPapers)
Date: 2018
Note: View the original document on HAL open archive server: https://hal.science/hal-04315216v1
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Published in Education Economics, 2018, 26 (3), pp.285-304. ⟨10.1080/09645292.2017.1401979⟩

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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 (2016)
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:hal:journl:hal-04315216

DOI: 10.1080/09645292.2017.1401979

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