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Related variety, unrelated variety and regional economic growth
[Zeitschriftenartikel]
Abstract
In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. We argue that Jacobs externalities are best measured by related variety (within sectors), while the ... mehr
In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. We argue that Jacobs externalities are best measured by related variety (within sectors), while the portfolio argument is better captured by unrelated variety (between sectors). We introduce a methodology based on entropy measures to compute related variety and unrelated variety. Using data at the NUTS-3 level in the Netherlands for the period 1996-2002 we find that Jacobs externalities enhance employment growth, while unrelated variety dampens unemployment growth. Productivity growth can be explained by traditional determinants including investments and R&D expenditures. Implications for regional policy follow... weniger
Klassifikation
Raumplanung und Regionalforschung
Volkswirtschaftslehre
Sprache Dokument
Englisch
Publikationsjahr
2007
Seitenangabe
S. 685-697
Zeitschriftentitel
Regional Studies, 41 (2007) 5
DOI
https://doi.org/10.1080/00343400601120296
Status
Postprint; begutachtet (peer reviewed)
Lizenz
PEER Licence Agreement (applicable only to documents from PEER project)