IDEAS home Printed from https://ideas.repec.org/a/seb/journl/v11y2013i2p177-185.html
   My bibliography  Save this article

Using Gravity Models for the Effective Determination of Socioeconomic Locality: Local Labour Markets in Central Macedonia

Author

Listed:
  • Zacharias Sartzetakis

    (Aristotle University of Thessaloniki, Greece)

  • Grigoris Zarotiadis

    (Aristotle University of Thessaloniki, Greece)

Abstract

The discussion about the effectiveness of active policy measures that consider spatial socioeconomic aspects has become especially important in light of recent socio-economic developments. The paper presents an alternative methodology for the determination of spatial boundaries for any socioeconomic locality, based on the gravity models tradition. We apply the described methodology to the Region of Central Macedonia and show that there are significant discontinuities between administrative spatial segregation on the one hand and socioeconomic on the other. The latter provides evidence for the inappropriateness of simply following the administrative boundaries and reveals the usefulness of our proposal.

Suggested Citation

  • Zacharias Sartzetakis & Grigoris Zarotiadis, 2013. "Using Gravity Models for the Effective Determination of Socioeconomic Locality: Local Labour Markets in Central Macedonia," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 11(2), pages 177-185.
    • Handle: RePEc:seb:journl:v:11:y:2013:i:2:p:177-185
    as

    Download full text from publisher

    File URL: http://www.asecu.gr/Seeje/issue21/issue21-sartzetakis-zarotiadis.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leamer, Edward E. & Levinsohn, James, 1995. "International trade theory: The evidence," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 26, pages 1339-1394, Elsevier.
    2. Alan V. Deardorff, 2011. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 24, pages 267-293, World Scientific Publishing Co. Pte. Ltd..
    3. Andrzej Cieślik, 2009. "Bilateral trade volumes, the gravity equation and factor proportions," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 37-59.
    4. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(30), pages 08-45.
    5. J. M. Casado-Diaz, 2000. "Local Labour Market Areas in Spain: A Case Study," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 843-856.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oxana Babecká Kucharčuková & Jan Babecký & Martin Raiser, 2012. "Gravity Approach for Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions," Open Economies Review, Springer, vol. 23(2), pages 277-301, April.
    2. Melitz, Jacques, 2007. "North, South and distance in the gravity model," European Economic Review, Elsevier, vol. 51(4), pages 971-991, May.
    3. Daniel J. Henderson & Daniel L. Millimet, 2008. "Is gravity linear?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(2), pages 137-172.
    4. Schaefer Kurt C & Anderson Michael A & Ferrantino Michael J, 2008. "Monte Carlo Appraisals of Gravity Model Specifications," Global Economy Journal, De Gruyter, vol. 8(1), pages 1-26, February.
    5. Gert-Jan M. Linders & Henri L.F. de Groot & Raymond J.G.M. Florax & Peter Nijkamp, 2011. "Persistent Distance Decay Effects in International Trade," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 14, Edward Elgar Publishing.
    6. Juan Felipe Mejía Mejía & Andrés Ramírez Hassan, 2013. "Solving the Puzzle: A New Measure of Trade Distance In The Gravity Equation," Documentos de Trabajo de Valor Público 11556, Universidad EAFIT.
    7. Kareem, Fatima O., 2014. "Modeling and Estimation of Gravity Equation in the Presence of Zero Trade: A Validation of Hypotheses Using Africa's Trade Data," 140th Seminar, December 13-15, 2013, Perugia, Italy 163341, European Association of Agricultural Economists.
    8. Fetzer, James J. & Rivera, Sandra A., 2005. "Modeling Modifications in Rules of Origin: A Partial Equilibrium Approach," Conference papers 331372, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Wu, Po-Chin & Liu, Shiao-Yen & Pan, Sheng-Chieh, 2013. "Nonlinear bilateral trade balance-fundamentals nexus: A panel smooth transition regression approach," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 318-329.
    10. Michele FRATIANNI & Chang HOON HO, 2007. "On the Relationship Between RTA Expansion and Openness," Working Papers 288, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    11. repec:ilo:ilowps:369300 is not listed on IDEAS
    12. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    13. Subramanian Rangan & Robert Z. Lawrence, 1999. "Search and Deliberation in International Exchange: Learning from Multinational Trade About Lags, Distance Effects, and Home Bias," NBER Working Papers 7012, National Bureau of Economic Research, Inc.
    14. Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2014. "Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion?," Journal of International Economics, Elsevier, vol. 92(1), pages 111-123.
    15. Chen, Natalie & Novy, Dennis, 2008. "International Trade Integration: A Disaggregated Approach," CEPR Discussion Papers 7103, C.E.P.R. Discussion Papers.
    16. Longhi, Christian & Musolesi, Antonio & Baumont, Catherine, 2014. "Modeling structural change in the European metropolitan areas during the process of economic integration," Economic Modelling, Elsevier, vol. 37(C), pages 395-407.
    17. Mireille NTSAMA ETOUNDI, 2014. "Impact de la rente pétrolière sur la demande des pays frontaliers du Cameroun," Working Papers 201417, CERDI.
    18. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
    19. Mr. Rikhil Bhavnani & Ms. Natalia T. Tamirisa & Mr. Arvind Subramanian & Mr. David T. Coe, 2002. "The Missing Globalization Puzzle," IMF Working Papers 2002/171, International Monetary Fund.
    20. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
    21. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.

    More about this item

    Keywords

    Spatial Socioeconomic Policy; Local Labour Market; Gravity Model;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:seb:journl:v:11:y:2013:i:2:p:177-185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ms. Melina Petromelidou (email available below). General contact details of provider: https://edirc.repec.org/data/asecuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.