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Determining the Labour-Market Areas of Cyprus from the 2001 Commuting Flows

2009, Cyprus Economic Policy Review

Abstract

The article utilises the 2001 inter-municipal travel-to-work flows in Cyprus and for the first time delineates the country's labour market areas (LMAs) on the basis of the 25% commuting threshold (the average used by EU member states in such studies). The findings suggest that the country consists of five economically integrated areas of over 40 thousand inhabitants as well as 26 somewhat isolated clusters of communities or individual communities that collectively host 14 thousand people (2% of the country's population). Situated on mountainous terrain or along a meandering part of the buffer zone established in the wake of the 1974 Turkish invasion, most of these communities are incorporated into the main LMAs at the (lower) commuting threshold of 20%. The resulting spatial formations bear a rough resemblance to the country's administrative districts. Overall, the findings enhance our understanding of how the country functions at the sub-national level, which, in turn, permits the formulation of better-targeted economic policy interventions.