Alexandra Lopez Cermeno
Associate senior lecturer
Knowledge shocks diffusion and the resilience of regional inequality
Author
Summary, in English
This paper provides a simplified method of exploring the geographical limits of a knowledge shock over the long run. Using a geographically decomposable distance weighed sum of world GDPs by county, differences in differences regression analysis shows that a new university will not only have a positive impact on the local economy, but also on the GDP of nearby counties. Furthermore, challenging the conventional wisdom that knowledge spillovers affect the local economy, this study provides evidence that the effect expands to the whole national though its strength dilutes with distance. Consistent with the education literature, this investigation provides evidence that the shock will make the relative GDP of foreign competitors worse-off. Results are persistent in the long run, although the effect of time is also decreasing. Resultsare robust to potential endogeneity related to the self-selection of prosperous allocations for new academic institutions.
Publishing year
2016
Language
English
Publication/Series
Working Papers in Economic History
Issue
2016:03
Document type
Working paper
Topic
- Economic History
Keywords
- Economic History
- Universities
- Spillovers
Status
Published
ISBN/ISSN/Other
- ISSN: 2341-2542