How Market Access Shapes Human Capital Investment in a Peripheral Country
XREAP Working paper 2013-06
43 Pages Posted: 31 Oct 2013
Date Written: October 31, 2013
Human capital endowment is one of the main factors influencing the level of development of a region. This paper analyses whether remoteness from economic activity has a negative effect on human capital accumulation and, consequently, on economic development. Making use of microdata this research proves that remoteness from economic activity has contributed to explain the divergences in the level of education observed across Spanish provinces over the last 50 years. The effect is significant even when controlling for the improvement of education supply. Nonetheless, the accessibility effect has been petering out since the 1960s due to the decreasing barriers to mobility.
Keywords: regional development, human capital, market access
JEL Classification: O10; R11; R40
Suggested Citation: Suggested Citation