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Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions

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  • Frank van Oort
  • Stefan de Geus
  • Teodora Dogaru

Abstract

This paper introduces indicators of regional related variety and unrelated variety to conceptually overcome the current impasse in the specialization-diversity debate in agglomeration economics. Although various country-level studies have been published on this conceptualization in recent years, a pan-European test has been missing from the literature until now. A pan-European test is more interesting than country-level tests, as newly defined cohesion policies, smart-specialization policies, place-based development strategies and competitiveness policies may be especially served by related variety and unrelated variety conceptualizations. We test empirically for the significance of variables based on these concepts, using a cross-sectional data set for 205 European regions during the period 2000-2010. The results confirming our hypotheses are that related variety is significantly related to employment growth, especially in small and medium-sized city-regions, and that specialization is significantly related to productivity growth. We do not find robust relationships that are hypothesized between unrelated variety and unemployment growth .

Suggested Citation

  • Frank van Oort & Stefan de Geus & Teodora Dogaru, 2015. "Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions," European Planning Studies, Taylor & Francis Journals, vol. 23(6), pages 1110-1127, June.
    • Handle: RePEc:taf:eurpls:v:23:y:2015:i:6:p:1110-1127
    DOI: 10.1080/09654313.2014.905003
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