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Location Patterns of Creative Capital and Regional Disparities in Spain

Author

Listed:
  • Burhan Can Karahasan
  • Ebru Kerımoglu
Abstract
‘Creative class’ as a source of growth has gained increasing awareness in recent years. However, creative people are not spread equally; instead tend to concentrate within particular locations across space. According to Florida, a main factor in explaining differences in growth and development is about this diverse location choice of creative people (Florida, 2002; Fritsch and Stuetzer, 2009). Inspired by these contemporary discussions of the creative class theory; this study investigates the spatial distribution of creative capital and its connection with regional disparities by considering the geographical divergence of provincial income in Spain. First to understand the tendency of the dispersion of creative employment and regional income differences, global spatial autocorrelation (Moran’s I) is calculated. Since local realization of the global measure is expected to yield superior set of information regarding the local non-stationarity; both the decomposition of the global measure as well as the computation of local indicator of spatial association (LISA) is carried out. Both the decomposed Moran’s I as well as the individual LISA values of the provinces are used to evaluate the geographical distribution of regional income and creative employment. Second issue of the paper is to explain the geographical differences in regional income by using the regional creative employment of provinces. Two central cross section econometric models that allow for local spillovers are preferred. A spatial lag model and a spatial error model are estimated by also controlling the regional differences in industrial development as well as human capital endowments. Data sources are INE and SABI and cover the period of 1996-2004. The level of regional analysis is NUTS 3 and covers the 47 territorial provinces of Spain (Balaric and Canary Islands as well as the two small provinces in North Africa - Ceuta and Melilla - are not included as they are not in the territorial borders of the country). Our findings indicate that although provinces with low creative capital around 1996 realize an acceleration of creative employment during the 1996-2004 period they still lag behind the northern (especially north eastern) provinces of Spain. More interestingly there are strong spillover effects between the leading and lagging provinces. This spatially diverse location pattern of the creative capital also explains the north-south duality in Spain; our empirical evidence validates that provinces with high creative capital level in northern Spain are still more developed in terms of provincial income even other determinants of the process are controlled for, such as industrial development, regional spillover effects and human capital development.

Suggested Citation

  • Burhan Can Karahasan & Ebru Kerımoglu, 2012. "Location Patterns of Creative Capital and Regional Disparities in Spain," EcoMod2012 4163, EcoMod.
    • Handle: RePEc:ekd:002672:4163
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    Cited by:

    1. Amitrajeet A. Batabyal & Peter Nijkamp, 2019. "Creative capital, information and communication technologies, and economic growth in smart cities," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(2), pages 142-155, February.
    2. Jordi Perdiguero & Juan Luis Jiménez, 2012. "“Policy options for the promotion of electric vehicles: a review”," IREA Working Papers 201208, University of Barcelona, Research Institute of Applied Economics, revised Mar 2012.
    3. Mar𨁌orena Mar𑁥l Cristo & Marta G -Puig, 2013. "Pass-through in dollarized countries: should Ecuador abandon the US dollar?," Applied Economics, Taylor & Francis Journals, vol. 45(31), pages 4395-4411, November.
    4. Erika Badillo & Rosina Moreno, 2012. "“What Drives the Choice of Partners in R&D Cooperation? Heterogeneity across Sectors”," AQR Working Papers 201206, University of Barcelona, Regional Quantitative Analysis Group, revised Jul 2012.
    5. Joan Calzada & Anton Costas, 2013. "“La liberalización de las telecomunicaciones en España: control de la inflación y universalización del servicio”," IREA Working Papers 201310, University of Barcelona, Research Institute of Applied Economics, revised May 2013.
    6. Jordi López-Tamayo & Vicente Royuela & Jordi Suriñach, 2012. "“Building a “quality in work” index in Spain”," AQR Working Papers 201204, University of Barcelona, Regional Quantitative Analysis Group, revised Feb 2012.
    7. Peter Claeys & Luis Costa, 2012. "“A Note on the Relationship Between the Cyclicality of Markups and Fiscal Policy”," IREA Working Papers 201215, University of Barcelona, Research Institute of Applied Economics, revised Sep 2012.
    8. Fageda, Xavier & Rubio-Campillo, Rafael & Termes-Rifé, Montserrat, 2014. "Determinants of broadband access: Is platform competition always the key variable to success?," Information Economics and Policy, Elsevier, vol. 26(C), pages 58-67.
    9. Daniel Albalate & Germà Bel & R. Richard Geddes, 2012. "“The determinants of contractual choice for private involvement in infrastructure projects in the United States”," IREA Working Papers 201220, University of Barcelona, Research Institute of Applied Economics, revised Dec 2012.
    10. Javier Campos & Juan Luis Jiménez & Ancor Suárez-Alemán, 2012. "“Not always sunny in paradise: prices and brand diversity in touristic areas supermarkets”," IREA Working Papers 201211, University of Barcelona, Research Institute of Applied Economics, revised May 2012.
    11. Ernest Miguélez & Rorina Moreno, 2012. "“What attracts knowledge workers? The role of space, social connections, institutions, jobs and amenities”," AQR Working Papers 201203, University of Barcelona, Regional Quantitative Analysis Group, revised Feb 2012.
    12. Xavier Fageda & Marta Gonzalez-Aregall, 2012. "“Regulation of Port Charges in Spain: Global versus Local Competition”," IREA Working Papers 201217, University of Barcelona, Research Institute of Applied Economics, revised Oct 2012.
    13. Daniel Albalate, 2012. "“The Institutional, Economic and Social Determinants of Local Government Transparency”," IREA Working Papers 201210, University of Barcelona, Research Institute of Applied Economics, revised May 2012.
    14. Manuela Alcañiz & Montserrat Guillén & Daniel Sánchez-Moscona & Miguel Santolino & Oscar Llatje & Lluís Ramon, 2013. "Prevalence of alcohol-impaired drivers based on random breath tests in a roadside survey," Working Papers XREAP2013-05, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2013.
    15. Jaume Belles-Sampera & Montserrat Guillén & Miguel Santolino, 2013. "“Beyond Value-at-Risk: GlueVaR Distortion Risk Measures”," IREA Working Papers 201302, University of Barcelona, Research Institute of Applied Economics, revised Feb 2013.
    16. Calzada, Joan & Martínez-Santos, Fernando, 2014. "Broadband prices in the European Union: Competition and commercial strategies," Information Economics and Policy, Elsevier, vol. 27(C), pages 24-38.
    17. Adrian-Gheorghe Florea & Diana-Cristina Sava & Olivia Andreea Marcu, 2022. "Testing the Catalysts of the Romanian Creative Economy—A Panel Data Analysis Approach," Sustainability, MDPI, vol. 14(21), pages 1-18, November.
    18. Jaume Belles-Sampera & Montserrat Guillén & José M. Merigó & Miguel Santolino, 2013. "“Indicators for the characterization of discrete Choquet integrals”," IREA Working Papers 201311, University of Barcelona, Research Institute of Applied Economics, revised May 2013.
    19. Juan Luis Jiménez & Jordi Perdiguero, 2018. "Mergers and difference-in-difference estimator: Why firms do not increase prices?," European Journal of Law and Economics, Springer, vol. 45(2), pages 285-311, April.
    20. María Lorena Marí del Cristo & Marta Gómez-Puig, 2013. "“Fiscal sustainability and fiscal shocks in a dollarized and oil-exporting country: Ecuador”," IREA Working Papers 201306, University of Barcelona, Research Institute of Applied Economics, revised Apr 2013.
    21. Esther Goya & Esther Vayá & Jordi Suriñach, 2012. "“Do intra- and inter-industry spillovers matter? CDM model estimates for Spain”," AQR Working Papers 201207, University of Barcelona, Regional Quantitative Analysis Group, revised Sep 2012.
    22. Batabyal, Amitrajeet A. & Beladi, Hamid, 2018. "Artists, engineers, and aspects of economic growth in a creative region," Economic Modelling, Elsevier, vol. 71(C), pages 214-219.
    23. Juan Luis Jiménez & Carmen García, 2012. "“Corruption and local politics: does it pay to be a crook?”," IREA Working Papers 201212, University of Barcelona, Research Institute of Applied Economics, revised Jun 2012.

    More about this item

    Keywords

    Spain; Regional modeling; Growth;
    All these keywords.

    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • O - Economic Development, Innovation, Technological Change, and Growth
    • E - Macroeconomics and Monetary Economics

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