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Economic Centrality: How Much is Economics and How Much is Geography?

Nuno Crespo, Maria Paula Fontoura and Nadia Simoes

MPRA Paper from University Library of Munich, Germany

Abstract: Proximity to the markets is a key determinant of the location of firms because distance still matters, as recently reported in the literature. Based on an adapted version of the most standard centrality index we propose a decomposition method that 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 work leads to the conclusion that the centrality level of the countries derives from different sources, therefore requiring different policy interventions in order to improve it.

Keywords: centrality; peripherality; economic geography; distance (search for similar items in EconPapers)
JEL-codes: F14 R30 (search for similar items in EconPapers)
Date: 2014-08
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Economic Centrality: How Much is Economics and How Much is Geography? (2014) Downloads
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