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Interaction Effects of Specialization and Relatedness on Regional Productivity: A Long-term Study on Swedish Labor Market Regions between 1975 and 2010
Umeå University, Faculty of Social Sciences, Department of Geography and Economic History, Economic and social geography.
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The key factors that are driving the economic development of regions are a vital question in economic geography, urban planning, and regional policy. Both specialization and relatedness are assumed to boost regional productivity. Specialization means the focus on a limited range of employment sectors while relatedness describes the extent to which the expertise and skills that are necessary in one sector can be translated to other sectors in a region. This thesis studies the combined effects of specialization and relatedness on productivity of Swedish labor-market regions between 1975 and 2010. It is shown that an increase in absolute as well as in relative specialization is accompanied by an increase in regional productivity. However, the positive effect of relative specialization is not observed in unrelated sectors. My results suggest that regional policy should generally aim at specialization in related, rather than unrelated, industries to support sustainable economic growth.

Place, publisher, year, edition, pages
2015. , 51 p.
Keyword [en]
Diversification, Specialization, Relatedness, Labor flows, Skills, Regional economic development, Agglomeration
National Category
Geosciences, Multidisciplinary
URN: urn:nbn:se:umu:diva-105432OAI: diva2:825379
Educational program
Master's Program in Spatial Planning and Development
Available from: 2015-06-23 Created: 2015-06-23 Last updated: 2015-06-23Bibliographically approved

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Economic and social geography
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