IDEAS home Printed from https://ideas.repec.org/a/vrs/eurcou/v4y2012i3p217-239n4.html
   My bibliography  Save this article

Root causes of rural decline in economic well-being in Finland

Author

Listed:
  • Lehtonen Olli

    (Olli Lehtonen, Finland Department of Geographical and Historical Studies, University of Eastern, P.O. Box 111 80101 Joensuu)

  • Tykkyläinen Markku

    (Finland Department of Geographical and Historical Studies, Markku Tykkyläinen University of Eastern, P.O. Box 111 80101 Joensuu)

  • Voutilainen Olli

    (Olli Voutilainen MTT Economic Research Agrifood Research Finland Helsinki)

Abstract

This paper analyses how dependence on primary production, distance, climatic conditions and the intensity of land use bring about variations in economic well-being in rural areas. The conventional interpretation in Finland often concludes that economic well-being declines as dependence on primary production increases. The potential oversimplification implied by this statement was studied by testing the explanatory power of distance from the nearest large city, effective temperature sum and the proportion of fields in a comparative setting. The results revealed that economic well-being in rural Finland is best explained by the effective temperature sum, followed by distance, dependence on primary production and the proportion of fields. The only element of well-being which is determined chiefly by dependence on primary production is educational capital, causing a bottleneck preventing rural areas from becoming competitive and hence attractive to new knowledge-intensive industries. These results cast light on the spatial conditions under which the current economic evolution towards a service and knowledge society is taking place and on the spatial manifestations of remnant economic structures in disadvantageous locations.

Suggested Citation

  • Lehtonen Olli & Tykkyläinen Markku & Voutilainen Olli, 2012. "Root causes of rural decline in economic well-being in Finland," European Countryside, Sciendo, vol. 4(3), pages 217-239, January.
    • Handle: RePEc:vrs:eurcou:v:4:y:2012:i:3:p:217-239:n:4
    DOI: 10.2478/v10091-012-0025-4
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/v10091-012-0025-4
    Download Restriction: no
    File URL: https://libkey.io/10.2478/v10091-012-0025-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008. "Lost in space: population growth in the American hinterlands and small cities," Journal of Economic Geography, Oxford University Press, vol. 8(6), pages 727-757, November.
    2. Hannu Tervo, 1998. "The development of regional unemployment differentials in Finland in the 1990s," Finnish Economic Papers, Finnish Economic Association, vol. 11(1), pages 37-49, Spring.
    3. Aki Kangasharju & Sari Pekkala, 2004. "Increasing Regional Disparities in the 1990s: The Finnish Experience," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 255-267.
    4. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1999. "Geography and Economic Development," International Regional Science Review, , vol. 22(2), pages 179-232, August.
    5. Jaakko Pehkonen & Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 445-458.
    6. Jarmo Rusanen & Toivo Muilu & Alfred Copaert & Arvo Naukkarinen, 2001. "Finnish Socio‐Economic Grid Data, GIS and the Hidden Geography of Unemployment," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 92(2), pages 139-147, May.
    7. Luc Anselin & Attila Varga & Zoltan Acs, 2008. "Local Geographic Spillovers Between University Research and High Technology Innovations," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 9, pages 95-121, Edward Elgar Publishing.
    8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    9. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    10. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
    11. Mark Partridge & Ray D. Bollman & M. Rose Olfert & Alessandro Alasia, 2007. "Riding the Wave of Urban Growth in the Countryside: Spread, Backwash, or Stagnation?," Land Economics, University of Wisconsin Press, vol. 83(2), pages 128-152.
    12. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    13. Joaquin Andaluz & Luis Fernando Lanaspa & Fernando Sanz, 2002. "Geographical Dynamics: A Sectoral Comparison Between the Economic Landscapes of the United States and Europe," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 321-332.
    14. Jalava, Jukka & Pohjola, Matti, 0. "ICT as a source of output and productivity growth in Finland," Telecommunications Policy, Elsevier, vol. 31(8-9), pages 463-472, September.
    15. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 01A, Center for International Development at Harvard University.
    16. Mark D. Partridge, 2010. "The duelling models: NEG vs amenity migration in explaining US engines of growth," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 513-536, August.
    17. Gallup, John & Sachs, Jeffrey, 1999. "Geography and Economic Development," Harvard Institute for International Development (HIID) Papers 294434, Harvard University, Kennedy School of Government.
    18. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    19. Mario Polèse & Richard Shearmur, 2004. "Is Distance Really Dead? Comparing Industrial Location Patterns over Time in Canada," International Regional Science Review, , vol. 27(4), pages 431-457, October.
    20. Hannu Tervo, 2009. "Centres and Peripheries in Finland: Granger Causality Tests Using Panel Data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(4), pages 377-390.
    21. Kirsi Mukkala, 2004. "Agglomeration economies in the finnish manufacturing sector," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2419-2427.
    22. Parker, Timothy S. & Kusmin, Lorin D. & Marre, Alexander W., 2010. "Economic Recovery: Lessons Learned From Previous Recessions," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-6.
    23. Eleonora Cutrini, 2010. "Specialization and Concentration from a Twofold Geographical Perspective: Evidence from Europe," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 315-336.
    24. Philip Cooke & Loet Leydesdorff, 2006. "Regional Development in the Knowledge-Based Economy: The Construction of Advantage," The Journal of Technology Transfer, Springer, vol. 31(1), pages 5-15, January.
    25. Alessandra Colecchia & Paul Schreyer, 2002. "ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 408-442, April.
    26. Papyrakis, Elissaios & Gerlagh, Reyer, 2007. "Resource abundance and economic growth in the United States," European Economic Review, Elsevier, vol. 51(4), pages 1011-1039, May.
    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. Lehtonen Olli & Tykkyläinen Markku, 2014. "Potential Job Creation and Resource Dependance in Rural Finland," European Countryside, Sciendo, vol. 6(3), pages 202-224, September.
    2. Halonen Maija & Kotilainen Juha & Tykkyläinen Markku & Vatanen Eero, 2015. "Industry life cycles of a resource town in Finland – the case of Lieksa," European Countryside, Sciendo, vol. 7(1), pages 16-41, March.
    3. Burhan Can Karahasan & Firat Bilgel, 2018. "Economic Geography, Growth Dynamics and Human Capital Accumulation in Turkey: Evidence from Regional and Micro Data," Working Papers 1233, Economic Research Forum, revised 10 Oct 2018.
    4. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    5. Pelzl, Paul & Poelhekke, Steven, 2021. "Good mine, bad mine: Natural resource heterogeneity and Dutch disease in Indonesia," Journal of International Economics, Elsevier, vol. 131(C).
    6. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    7. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    8. Adam Storeygard, 2016. "Farther on down the Road: Transport Costs, Trade and Urban Growth in Sub-Saharan Africa," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(3), pages 1263-1295.
    9. Quamrul Ashraf & Oded Galor, 2008. "Human Genetic Diversity and Comparative Economic Development," 2008 Meeting Papers 617, Society for Economic Dynamics.
    10. Donald R. Davis & David E. Weinstein, 2002. "Bones, Bombs, and Break Points: The Geography of Economic Activity," American Economic Review, American Economic Association, vol. 92(5), pages 1269-1289, December.
    11. Matthew Delventhal, 2019. "The Globe as a Network: Geography and the Origins of the World Income Distribution," 2019 Meeting Papers 840, Society for Economic Dynamics.
    12. Sylvie Démurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," Asian Economic Papers, MIT Press, vol. 1(1), pages 146-197.
    13. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
    14. Donald R. Davis & David E. Weinstein, 2008. "A Search For Multiple Equilibria In Urban Industrial Structure," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 29-65, February.
    15. Oasis Kodila-Tedika & Simplice A. Asongu, 2015. "The Effect of Intelligence on Financial Development: A Cross-Country Comparison," Research Africa Network Working Papers 15/002, Research Africa Network (RAN).
    16. Rhys Andrews & Malcolm J. Beynon, 2019. "Configurational Analysis of Access to Basic Infrastructure Services: Evidence from Turkish Provinces," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1341-1370, December.
    17. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
    18. You, Jong-Sung & Khagram, Sanjeev, 2004. "Inequality and Corruption," Working Paper Series rwp04-001, Harvard University, John F. Kennedy School of Government.
    19. Natalia Zugravu-Soilita, 2019. "Trade in Environmental Goods and Air Pollution: A Mediation Analysis to Estimate Total, Direct and Indirect Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1125-1162, November.
    20. James B. Ang, 2015. "Agricultural Legacy, Individualistic Culture, and Techology Adoption," Economic Growth Centre Working Paper Series 1506, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.

    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:vrs:eurcou:v:4:y:2012:i:3:p:217-239:n:4. 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    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.