Geographies of Growth
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Geographies of Growth

Innovations, Networks and Collaborations

Edited by Charlie Karlsson, Martin Andersson and Lina Bjerke

Today we can observe an increasing spatial divide as some large urban regions and many more medium-sized and small regions face growing problems such as decreasing labour demand, increasing unemployment and an ageing population. In view of these trends, this book offers a better understanding of the general characteristics and specific drivers of the geographies of growth. It shows how these may vary in different spatial contexts, how hurdles and barriers to growth in different types of regions can be dealt with, how and to what extent resources in different areas can develop, and how the potential of these resources to stimulate growth can be realized.
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Chapter 3: Productivity and cross-border accessibility to human capital: a study comparing Norwegian and Swedish border regions

Innovations, Networks and Collaborations

Tobias Arvemo and Urban Gråsjö

Extract

While border regions are peripheral areas on a national scale, they gain a more central position in the actual border region, due to their location at the interface of domestic and foreign markets. In national statistics only the income generated within the country is taken into account. This results in an unfair treatment of the border regions since a non-negligible part of the economy is generated abroad. It is a specific location advantage for firms located in border regions that they are close to foreign labor markets making it easier to employ workers from abroad. An increased labor mobility results in a pooling of workers from both sides of the border. With few border impediments, the labor markets located on the two sides of the border might melt into a common labor market, allowing a more efficient allocation of labor. The aim of this study is to examine to what extent productivity (gross pay per employee) in the border regions between Sweden and Norway is affected by accessibility to human capital, defined as people with university schooling. We will model productivity on each side of the border and compare the models as well as examine the structural differences between the countries. Specifically, we aim to test whether accessibility to Norwegian/Swedish human capital affects productivity in Swedish/Norwegian border regions.

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