Globalization, International Spillovers and Sectoral Changes
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Globalization, International Spillovers and Sectoral Changes

Implications for Regions and Industries

Edited by Charlie Karlsson, Andreas P. Cornett and Tina Wallin

As a consequence of globalization, news, ideas and knowledge are moving quickly across national borders and generating international spillovers. So too, however, are economic and financial crises. Combining a variety of methods, concepts and interdisciplinary approaches, this book provides an in-depth examination of these structural changes and their impact. Assessing the implications of globalization for businesses and sectors, chapters focus on the interdependencies between different economic and political layers, and explore topics such as human capital, creativity, innovation, networks and collaboration.
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Chapter 11: Employment and economic activity in different Swedish border regions

Tobias Arvemo and Urban Gråsjö

Abstract

This chapter investigates the importance of cross-border activities for border regions in Sweden. We acknowledge the heterogeneity between regions by dividing them into three categories depending on the population density on each side of the national border. A spatial model is estimated using data from 2014 that takes into account geographical proximity and spatial correlation. The model examines the difference in gross pay per inhabitant and employment rate between municipalities belonging to a border region and an average comparable Swedish municipality. The results show that the largest positive effect can be found for municipalities belonging to sparsely populated regions bordering a densely populated region. For municipalities in densely populated regions bordering a densely populated region comparable improvements are revealed, although not of the same magnitude. For municipalities in sparsely populated areas bordering rural areas, no statistically significant differences are discovered between them and the Swedish average.

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