New economic geography meets Comecon : regional wages and industry location in Central Europe/ created by Marius Brülhart and Pamina Koenig

By:

Brülhart, Marius [author]

Contributor(s):

Koenig, Pamina [author]

Material type: Text

TextSeries: Economics of transition ; Volume 14, number 2Los Angles: Blackwell Publishing, 2006Content type:

text

Media type:

unmediated

Carrier type:

volume

ISSN:

09670750

Subject(s):

Regional wages -- Industry location -- Transition economies -- Central Europe

LOC classification:

HC244 ECO

Online resources:

Click here to access online

Abstract: We analyze the internal spatial wage and employment structures of the Czech Republic, Hungary, Poland, Slovenia and Slovakia, using regional data for 1996-2000. A new economic geography model predicts wage gradients and specialization patterns that are smoothly related to regions' relative market access. As an alternative, we formulate a "Comecon hypothesis", according to which wages and sectoral location are not systematically related to market access except for discrete concentrations in capital regions. Our estimations confirm the ongoing relevance of the Comecon hypothesis: compared to pre-2004 EU members, Central European countries' average wages and service employment were still discretely higher in capital regions. Our results point towards an increase in relative wages and employment shares of Central Europe's provincial regions, favoring particularly those that are proximate to the large markets of incumbent EU members.

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Holdings
Item type	Current library	Call number	Vol info	Copy number	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HC244 ECO (Browse shelf(Opens below))	Vol. 14, no.2 (pages 245-268)	SP667	Not for loan	For in house use only

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We analyze the internal spatial wage and employment structures of the Czech Republic, Hungary, Poland, Slovenia and Slovakia, using regional data for 1996-2000. A new economic geography model predicts wage gradients and specialization patterns that are smoothly related to regions' relative market access. As an alternative, we formulate a "Comecon hypothesis", according to which wages and sectoral location are not systematically related to market access except for discrete concentrations in capital regions. Our estimations confirm the ongoing relevance of the Comecon hypothesis: compared to pre-2004 EU members, Central European countries' average wages and service employment were still discretely higher in capital regions. Our results point towards an increase in relative wages and employment shares of Central Europe's provincial regions, favoring particularly those that are proximate to the large markets of incumbent EU members.

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