IDEAS home Printed from https://ideas.repec.org/p/hhs/cbsnow/2021_017.html
   My bibliography  Save this paper

The Impact of the Spatial Population Distribution on Economic Growth

Author

Listed:

Abstract

We look at the spatial angle of economic growth. Specifically, we assess whether areas where people live closer together experience faster growth. Traditional measures like population density or urbanization are not optimal, as they are affected by large uninhabited areas or capped, respectively. We thus introduce a new measure Spatial Population Concentration (SPC) that captures how many people live on average within a given radius of every person within a geographic area. This measure allows for a more accurate measurement of the population concentration than traditional measures, as it does not share some of their short comings. Next, we show for U.S. counties that areas with a high spatial population concentration experience faster growth. We find that counties with a low value of SPC measure in 1990 experienced substantially lower GDP growth over the next 25 years.

Suggested Citation

  • Burgi, Constantin & Gorgulu, Nisan, 2021. "The Impact of the Spatial Population Distribution on Economic Growth," Working Papers 17-2021, Copenhagen Business School, Department of Economics.
  • Handle: RePEc:hhs:cbsnow:2021_017
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10398/22b64617-464d-4c0c-bb49-699753100552
    File Function: Full text
    Download Restriction: Full text not avaiable
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nicholas Bloom & Charles I. Jones & John Van Reenen & Michael Webb, 2020. "Are Ideas Getting Harder to Find?," American Economic Review, American Economic Association, vol. 110(4), pages 1104-1144, April.
    2. Charlot, Sylvie & Duranton, Gilles, 2004. "Communication externalities in cities," Journal of Urban Economics, Elsevier, vol. 56(3), pages 581-613, November.
    3. Donald R. Davis & Jonathan I. Dingel, 2019. "A Spatial Knowledge Economy," American Economic Review, American Economic Association, vol. 109(1), pages 153-170, January.
    4. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    5. Lisa Morhaim & Charles-Henri Dimaria & Cuong Le Van, 2002. "The discrete time version of the Romer model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 20(1), pages 133-158.
    6. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 43-61.
    7. Joseph Zeira, 2011. "Innovations, patent races and endogenous growth," Journal of Economic Growth, Springer, vol. 16(2), pages 135-156, June.
    8. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    9. Ryuichi Tamura, 2017. "The Effect of High-speed Railways on Knowledge Transfer: Evidence from Japanese Patent Citations," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 13(3), pages 325-342, November.
    10. Adelheid Holl & Bettina Peters & Christian Rammer, 2023. "Local knowledge spillovers and innovation persistence of firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(6), pages 826-850, August.
    11. Meng‐chun Liu & Gee San, 2006. "Social Learning and Digital Divides: A Case Study of Internet Technology Diffusion," Kyklos, Wiley Blackwell, vol. 59(2), pages 307-321, May.
    12. Douglas Gollin & Remi Jedwab & Dietrich Vollrath, 2016. "Urbanization with and without industrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 35-70, March.
    13. Sasan Bakhtiari & Robert Breunig, 2018. "The role of spillovers in research and development expenditure in Australian industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(1), pages 14-38, January.
    14. Filipe Campante & David Yanagizawa-Drott, 2018. "Long-Range Growth: Economic Development in the Global Network of Air Links," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1395-1458.
    15. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    16. Andrew Perumal, 2017. "42 Years of Urban Growth and Industry Composition," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(2), pages 133-147, June.
    17. Sandra Vinciguerra & Koen Frenken & Jarno Hoekman & Frank van Oort, 2011. "European infrastructure networks and regional innovation in science-based technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 517-537.
    18. Amitrajeet A. Batabyal & Peter Nijkamp, 2016. "Digital technologies, knowledge spillovers, innovation policies, and economic growth in a creative region," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(5), pages 470-484, July.
    19. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    20. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
    21. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
    22. Jedwab, Remi & Vollrath, Dietrich, 2015. "Urbanization without growth in historical perspective," Explorations in Economic History, Elsevier, vol. 58(C), pages 1-21.
    23. Klaus Desmet & Avner Greif & Stephen L. Parente, 2020. "Spatial competition, innovation and institutions: the Industrial Revolution and the Great Divergence," Journal of Economic Growth, Springer, vol. 25(1), pages 1-35, March.
    24. Mingxing Chen & Hua Zhang & Weidong Liu & Wenzhong Zhang, 2014. "The Global Pattern of Urbanization and Economic Growth: Evidence from the Last Three Decades," PLOS ONE, Public Library of Science, vol. 9(8), pages 1-15, August.
    25. Blazek, David & Sickles, Robin C., 2010. "The impact of knowledge accumulation and geographical spillovers on productivity and efficiency: The case of U. S. shipbuilding during WWII," Economic Modelling, Elsevier, vol. 27(6), pages 1484-1497, November.
    26. Yener Altunbaş & Edward Jones & John Thornton, 2013. "Knowledge spillovers and the growth of British cities," Applied Economics Letters, Taylor & Francis Journals, vol. 20(2), pages 162-166, February.
    27. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
    28. John Baldwin & Desmond Beckstead & W. Mark Brown & David Rigby, 2008. "Agglomeration and the Geography of Localization Economies in Canada," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 117-132.
    29. Barrios, Salvador & Bertinelli, Luisito & Heinen, Andreas, 2007. "Exploring The Link Between Local And Global Knowledge Spillovers," MPRA Paper 6239, University Library of Munich, Germany.
    30. Jedwab, Remi & Christiaensen, Luc & Gindelsky, Marina, 2017. "Demography, urbanization and development: Rural push, urban pull and…urban push?," Journal of Urban Economics, Elsevier, vol. 98(C), pages 6-16.
    31. Zahra Dehghan Shabani & Sima Safaie, 2018. "Do transport infrastructure spillovers matter for economic growth? Evidence on road and railway transport infrastructure in Iranian provinces," Regional Science Policy & Practice, Wiley Blackwell, vol. 10(1), pages 49-63, March.
    32. Gang Gong & Alfred Greiner & Willi Semmler, 2004. "Endogenous Growth: Estimating the Romer Model for the US and Germany," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(2), pages 147-164, May.
    33. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    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. Constantin Bürgi & Nisan Gorgulu, 2022. "The Impact of the Spatial Population Distribution on Economic Growth: Evidence from the United States," CESifo Working Paper Series 10008, CESifo.
    2. Fulvio Castellacci, 2007. "Evolutionary And New Growth Theories. Are They Converging?," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 585-627, July.
    3. Turnovsky, S., 2000. "Growth in an Open Economy: some Recent Developments," Papers 5, Warwick - Development Economics Research Centre.
    4. Adriana Di Liberto, 2007. "Convergence and Divergence in Neoclassical Growth Models with Human Capital," Economia politica, Società editrice il Mulino, issue 2, pages 289-322.
    5. Jeon, Heesang, 2015. "Knowledge and Contemporary Capitalism in Light of Marx's Value Theory," Thesis Commons g5njk, Center for Open Science.
    6. Bloom, David E. et.al., 2013. "Economic impact of non-communicable disease in China and India: Estimates, projections and comparisons," Working Papers 300, Institute for Social and Economic Change, Bangalore.
    7. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    8. Baldanzi, Annarita & Bucci, Alberto & Prettner, Klaus, 2021. "Children’S Health, Human Capital Accumulation, And R&D-Based Economic Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 25(3), pages 651-668, April.
    9. Eaton, Jonathan & Kortum, Samuel, 1997. "Engines of growth: Domestic and foreign sources of innovation," Japan and the World Economy, Elsevier, vol. 9(2), pages 235-259, May.
    10. Bloom, David E. & Cafiero-Fonseca, Elizabeth T. & McGovern, Mark E. & Prettner, Klaus & Stanciole, Anderson & Weiss, Jonathan & Bakkila, Samuel & Rosenberg, Larry, 2014. "The macroeconomic impact of non-communicable diseases in China and India: Estimates, projections, and comparisons," The Journal of the Economics of Ageing, Elsevier, vol. 4(C), pages 100-111.
    11. Bayraktar-Sağlam, Bahar & Yetkiner, Hakan, 2014. "A Romerian contribution to the empirics of economic growth," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 257-272.
    12. Papell, David H. & Prodan, Ruxandra, 2014. "Long run time series tests of constant steady-state growth," Economic Modelling, Elsevier, vol. 42(C), pages 464-474.
    13. Barbara Annicchiarico & Valentina Antonaroli & Alessandra Pelloni, 2022. "Optimal factor taxation in a scale free model of vertical innovation," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 794-830, April.
    14. Ilkhom SHARIPOV, 2016. "ECONOMIC GROWTH IN THE EU’S EaP COUNTRIES: DETERMINANTS AND PROSPECTS," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 169-187.
    15. repec:ebl:ecbull:v:15:y:2007:i:8:p:1-7 is not listed on IDEAS
    16. Nowak-Lehmann D., Felicitas, 2000. "Was there endogenous growth in Chile (1960 - 1998)? A test of the AK-model," University of Göttingen Working Papers in Economics 7, University of Goettingen, Department of Economics.
    17. Voosholz, Frauke, 2014. "A survey on modeling economic growth. With special interest on natural resource use," CAWM Discussion Papers 69, University of Münster, Münster Center for Economic Policy (MEP).
    18. Long, N.V. & Wong, K.Y., 1996. "Endogenous Growth and International Trade: A Survey," Working Papers 96-07, University of Washington, Department of Economics.
    19. Callaghan, Christian William, 2021. "Growth contributions of technological change: Is there a burden of knowledge effect?," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    20. Klaus Prettner, 2013. "Population aging and endogenous economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 811-834, April.
    21. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.

    More about this item

    Keywords

    spatial population concentration; endogeneous growth; spillover; the United States;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hhs:cbsnow:2021_017. 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: CBS Library Research Registration Team (email available below). General contact details of provider: https://edirc.repec.org/data/incbsdk.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.