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Regional Interaction & Economic Diversity - exploring the role of geographically overlapping markets for a municipality’s diversity in retail and durables

Author

Listed:
  • Andersson, Martin

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Klaesson, Johan

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper is devoted to the study of municipal diversity in retail and durables. Specifically, it analyzes how a region’s relative market-accessibility in a system (or hierarchy) of municipalities affects the extent of diversity. In the theoretical part of the paper a simple modelmunicipal diversity in retail and durables is introduced, which incorporates the municipality’s position in a system of municipalities. Using this model as a point of reference, the paper explores the relationship between market-size and diversity in Swedish regions from 1993 to 2001 by means of a panel data approach. Three types of market-sizes are considered: (i) intramunicipal,(ii) intra-regional and (iii) extra-regional. It is shown that the relationships between diversity and the three types of market-sizes differ between different types of municipalities in the hierarchy, implying that such a classification is warranted. One particular finding that corresponds to the agglomeration shadow-effects usually discussed in NEG-theories is that large municipalities gain from proximity to surrounding municipalities while small municipalities do not.

Suggested Citation

  • Andersson, Martin & Klaesson, Johan, 2006. "Regional Interaction & Economic Diversity - exploring the role of geographically overlapping markets for a municipality’s diversity in retail and durables," Working Paper Series in Economics and Institutions of Innovation 49, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0049
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    Citations

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    Cited by:

    1. Johan P Larsson, 2012. "Disaggregating Density A Knowledge Spillover Analysis Using Geo-Coded Data," ERSA conference papers ersa12p930, European Regional Science Association.
    2. Sofia Wixe, 2011. "Skills, Education and Productivity in the Service Sector - Firm Level Evidence on the Presence of Externalities," ERSA conference papers ersa11p754, European Regional Science Association.
    3. Öner, Özge & Larsson, Johan P., 2013. "Location and Co-location in Retail - A Probabilistic Approach Using Geo-coded Data for Swedish Metropolitan Retail Markets," HUI Working Papers 80, HUI Research.
    4. Johansson, Börje & Warda, Peter, 2013. "Internal and External Knowledge Sources of New Export Products," Working Paper Series in Economics and Institutions of Innovation 331, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. Johan Larsson & Özge Öner, 2014. "Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 385-408, March.

    More about this item

    Keywords

    diversity; accessibility; retail; durables; market potential; market size; hierarch systems; management; technological change; trade unions.;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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