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Author: | Fingleton, B. |
Title: | The new economic geography versus urban economics: an evaluation using local wage rates in Great Britain |
Journal: | Oxford Economic Papers
2006 : JUL, VOL. 58:3, p. 501-530 |
Index terms: | economic geography pay differentials urban development United Kingdom |
Language: | eng |
Abstract: | The article tests two key competing theories explaining the spatial concentration of economic activity, namely new geography theory (NEG) which emphasizes varying market potential, and urban economics theory (UE) in which the main emphasis is on producer service linkages. Using wage rate variations across small regions of Great Britain, the article finds that it is UE theory rather than NEG theory that has most explanatory power. Evidence for this comes from encompassing both models within an artificial nesting model. |
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