Implications for Regions and Industries
Edited by Charlie Karlsson, Andreas P. Cornett and Tina Wallin
Chapter 11: Employment and economic activity in different Swedish border regions
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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