Economic Centrality: How Much is Economics and How Much is Geography?
Nuno Crespo,
Maria Paula Fontoura and
Nadia Simoes ()
No 2014/09, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa
Abstract:
Proximity to the markets is a key determinant of the location of firms because distance still matters, as recently reported in the literature. In this paper, based on an adapted version of the most standard centrality index we propose a decomposition method which allows isolating the influence of: (i) internal and external factors; (ii) economic and geographical aspects. In order to illustrate our methodology, we consider data for 171 countries. This empirical example leads to the conclusion that the centrality level of the countries derives from different sources, requiring therefore different policy interventions in order to improve it.
Keywords: gcentrality; peripherality; economic geography; distance. (search for similar items in EconPapers)
JEL-codes: F14 F68 R30 (search for similar items in EconPapers)
Date: 2014-06
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
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Citations: View citations in EconPapers (1)
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Working Paper: Economic Centrality: How Much is Economics and How Much is Geography? (2014) 
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Persistent link: https://EconPapers.repec.org/RePEc:ise:isegwp:wp092014
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