Dirk Stelder, University of Groningen, Groningen, The Netherlands
Endogenous agglomeration in an interregional I-O framework (assigned to theme
This paper examines the options for modelling endogenous agglomeration at the subregional level of an interregional I-O model. The implementation options are specific for the case of provinces in the Netherlands, but the policy relevance is more general. If the I-O model is used for making regional forecasts or simulations, can we transfer the endogenous results by region and sector to the main agglomerations inside the regions? In addition: what can be the reverse feedback of agglomeration modelling to the regional level? In the paper a prototype model is presented that combines the interregional I-O approach with an NEG model for the main agglomerations. It is shown that such a model can provide useful insights for regional policy, in particular when - as is the case in the Netherlands – this policy is increasingly focussing on concentrating economic development in specific industrial areas and agglomeration zones.
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