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

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  • Claude Diebolt
  • Ralph Hippe

Abstract

In a recent contribution, Redding and Schott [2003. “Distance, Skill Deepening and Development: Will Peripheral Countries Ever Get Rich?” Journal of Development Economics 72 (2): 515–541. doi:10.1016/S0304-3878(03)00118-4] 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.

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  • Claude Diebolt & Ralph Hippe, 2018. "Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run," Education Economics, Taylor & Francis Journals, vol. 26(3), pages 285-304, May.
    • Handle: RePEc:taf:edecon:v:26:y:2018:i:3:p:285-304
    DOI: 10.1080/09645292.2017.1401979
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    1. Cinnirella, Francesco & Hornung, Erik, 2016. "Landownership concentration and the expansion of education," Journal of Development Economics, Elsevier, vol. 121(C), pages 135-152.
    2. Harald Badinger & Gabriele Tondl, 2003. "Trade, Human Capital and Innovation: The Engines of European Regional Growth in the 1990s," Advances in Spatial Science, in: Bernard Fingleton (ed.), European Regional Growth, chapter 7, pages 215-239, Springer.
    3. A'Hearn, Brian & Baten, Jörg & Crayen, Dorothee, 2009. "Quantifying Quantitative Literacy: Age Heaping and the History of Human Capital," The Journal of Economic History, Cambridge University Press, vol. 69(3), pages 783-808, September.
    4. Bernard Fingleton (ed.), 2003. "European Regional Growth," Advances in Spatial Science, Springer, number 978-3-662-07136-6.
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    Cited by:

    1. Claude Diebolt & Charlotte Le Chapelain, 2019. "Human Capital and Economic Growth," Working Papers 02-19, Association Française de Cliométrie (AFC).
    2. Julio Martinez-Galarraga & Elisenda Paluzie & Jordi Pons & Javier Silvestre & Daniel A. Tirado, 2021. "New economic geography and economic history: a survey of recent contributions through the lens of the Spanish industrialization process," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(3), pages 719-751, September.
    3. Ralph Hippe & Roger Fouquet, 2018. "The Knowledge Economy in Historical Perspective," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 19(1), pages 75-108, January.
    4. Ralph Hippe & Damien Demailly & Claude Diebolt, 2022. "The Digital Transition for a Sustainable Mobility Regime? A Long-Run Perspective," Working Papers of BETA 2022-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. Ralph Hippe & Maciej Jakubowski & Luisa De Sousa Lobo Borges de Araujo, 2018. "Regional inequalities in PISA: the case of Italy and Spain," JRC Research Reports JRC109057, Joint Research Centre.
    6. Claude Diebolt & Roger Fouquet & Ralph Hippe, 2020. "Cliometrics and the Evolution of Human Capital," Post-Print hal-02920429, HAL.
    7. Herscovici Arie & Akirav Osnat, 2024. "Regional development policy in Galilee periphery in Israel," Growth and Change, Wiley Blackwell, vol. 55(2), June.
    8. Mikołaj Szołtysek & Radosław Poniat & Sebastian Klüsener & Siegfried Gruber, 2017. "Family organisation and human capital inequalities in historic Europe: testing the association anew," MPIDR Working Papers WP-2017-012, Max Planck Institute for Demographic Research, Rostock, Germany.
    9. Virginija Januškaitė & Lina Užienė, 2018. "Intellectual Capital as a Factor of Sustainable Regional Competitiveness," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    10. Burhan Can Karahasan & Fırat Bilgel, 2020. "Market access and regional dispersion of human capital accumulation in Turkey," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 1073-1101, August.
    11. Le Zhang & Chuanqing Liao & Huan Zhang & Xiaobo Hua, 2018. "Multilevel Modeling of Rural Livelihood Strategies from Peasant to Village Level in Henan Province, China," Sustainability, MDPI, vol. 10(9), pages 1-13, August.
    12. Rafael González-Val & Pau Insa-Sánchez & Julio Martinez-Galarraga & Daniel A. Tirado-Fabregat, 2022. "Market access, the skill premium and human capital in Spain (1860-1930)," Working Papers 0229, European Historical Economics Society (EHES).
    13. Ralph Hippe, 2014. "Human Capital in European Regions since the French Revolution," Working Papers 04-14, Association Française de Cliométrie (AFC).
    14. Shawn Blankinship & Laura Lamb, 2022. "Exploring First Nation Community Well‐being in Canada: The Impact of Geographic and Financial Factors," Economic Papers, The Economic Society of Australia, vol. 41(2), pages 128-154, June.

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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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