Working Paper: CEPR ID: DP7017
Authors: Pierre-Philippe Combes; Miren Lafourcade; Jacques-François Thisse; Jean-Claude Toutain
Abstract: This paper uses a unique database that provides value-added, employment, and population levels for the entire set of French departments for the years 1860, 1930, and 2000. These data cover three sectors: agriculture, manufacturing, and services. This allows us to study the evolution of spatial inequalities within France and to test the empirical relevance of economic geography predictions over the long run. The evidence confirms the existence of a bell-shaped evolution of the spatial concentration of manufacturing and services. In contrast, labor productivity has been converging across departments. Last, our study also confirms the presence of strong agglomeration economies during the full time-period. Market potential during the first sub-period (1860-1930), and higher education during the second (1930-2000), together with sectoral diversity, account for the spatial distribution of these gains.
Keywords: Agglomeration Economies; Economic Geography; Economic History; Human Capital
JEL Codes: N93; N94; O18; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| decreasing transport costs (R41) | initial agglomeration (R32) |
| initial agglomeration (R32) | spatial concentration of manufacturing and services (R32) |
| initial agglomeration (R32) | redispersion of economic activity (R11) |
| agglomeration economies (R11) | labor productivity (J24) |
| employment density (J69) | labor productivity (J24) |
| market access (L17) | spatial productivity gains (O49) |
| higher education levels (I23) | spatial productivity gains (O49) |