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http://ssrn.com/abstract=871804
 
 

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Variety and Regional Economic Growth in the Netherlands


Koen Frenken


University of Utrecht - Urban and Regional Research Centre Utrecht (URU)

Frank G. Van Oort


University of Utrecht

Thijs Verburg


University of Utrecht

Ron A. Boschma


Utrecht University - Faculty of Geographical Sciences

January 2005


Abstract:     
In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. We argue that Jacobs externalities are best measured by related variety (within sectors), while the portfolio argument is better captured by unrelated variety (between sectors). We introduce a methodology based on entropy measures to compute related variety and unrelated variety. Using data at the COROP level for the period 1996-2002, we find that Jacobs externalities enhance employment growth, while unrelated variety dampens unemployment growth. Productivity growth, by contrast, can be explained by traditional determinants including investments and R&D expenditures. Implications for regional policy in The Netherlands follow.

Number of Pages in PDF File: 60

Keywords: variety, Jacobs externalities, regional growth

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Date posted: December 28, 2005  

Suggested Citation

Frenken, Koen and van Oort, Frank G. and Verburg, Thijs and Boschma, Ron A., Variety and Regional Economic Growth in the Netherlands (January 2005). Available at SSRN: http://ssrn.com/abstract=871804 or http://dx.doi.org/10.2139/ssrn.871804

Contact Information

Koen Frenken (Contact Author)
University of Utrecht - Urban and Regional Research Centre Utrecht (URU) ( email )
Vredenburg 138
Utrecht, 3511 BG
Netherlands
HOME PAGE: http://econ.geo.uu.nl/frenken/frenken.html
Frank Van Oort
University of Utrecht ( email )
Vredenburg 138
NL-3508 TC Utrecht, 3511 BG
Netherlands
Thijs Verburg
University of Utrecht ( email )
Vredenburg 138
NL-3508 TC Utrecht, 3511 BG
Netherlands
Ron A. Boschma
Utrecht University - Faculty of Geographical Sciences ( email )
Postbus 80.115
3508 TC Utrecht
Netherlands
+31 30 2532896 (Phone)
+31 30 2532037 (Fax)
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