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Abstract:

cover
CEP Discussion Paper
Economic Linkages Across Space
Henry Overman, Patricia Rice and Anthony J. Venables
June 2007
Paper No' CEPDP0805:
Full Paper (pdf)

JEL Classification: R00; R58


Tags: spatial linkages; urban systems; new economic geography; urban and regional policy

We develop a diagrammatic framework that can be used to study the economic linkages between regions or cities. Hitherto, such linkages have not been the primary focus of either the theoretical or empirical literatures. We show that our general framework can be used to interpret both the New Economic Geography and Urban Systems literatures to help us understand spatial economic linkages. We then extend the theoretical framework to allow us to consider a number of additional issues which may be particularly important for analyzing the impact of policy. Such policy analysis will also require empirical work to identify the nature of key relationships. In a final section, we consider what the existing empirical literature can tell us about these relationships.