nep-geo New Economics Papers
on Economic Geography
Issue of 2008‒06‒27
nine papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. The Distribution of Firm Start-Up Size Across Geographic Space By Audretsch, David B; Tamvada, Jagannadha Pawan
  2. Vertical Disintegration in Marshallian Industrial Districts By Octávio Figueiredo; Paulo Guimarães; Douglas Woodward
  3. Nature or Nurture? Learning and the Geography of Female Labor Force Participation By Alessandra Fogli; Laura Veldkamp
  4. Financial centres in peripheral regions: the effect of the financial services industry on regional economy - the case of the Scottish Financial cluster By Mikel Larreina
  5. Show me the code: Spatial analysis and open source By Rey, S.J.
  6. Non interference in the creation of French metropolitan areas: an indirect way to implicitly merge cities? (In French) By Olivier THOMAS (LEREPS-GRES)
  7. Infrastructure Development of Railway in Cambodia: A Long Term Strategy By Chap Moly
  8. The OECD REGPAT Database: A Presentation By Stéphane Maraut; Hélène Dernis; Colin Webb; Vincenzo Spiezia; Dominique Guellec
  9. A Comparison of Results From MRIO and Interregional Computable General Equilibrium (CGE) Analyses of the Impacts of a Positive Demand Shock on the ‘CO2 Trade Balance’ Between Scotland and the Rest of the UK By Michelle Gilmartin; Kim Swales; Karen Turner

  1. By: Audretsch, David B; Tamvada, Jagannadha Pawan
    Abstract: A growing body of literature shows that geographic location plays an important role in influencing economic phenomena. Despite the renewed interest in economic geography, the existing literature on the firm size distribution (FSD) has ignored the impact of geographic location. A wave of recent studies has examined the determinants and evolution of FSD (Cabral and Mata, 2003; Angelini and Generale 2008, AER) and a component of this literature has focused on the size of the new firm start-ups. However, while the impact of firm-specific and industry-specific characteristics on size of new firms has been analyzed, the role of geographic location has been largely neglected. Using Bayesian semi-parametric geoadditive models, we estimate geographic location as a micro-determinant of firm start-up size. The estimations based on a comprehensive database of firm start-ups in India suggest that the size distribution of new firms exhibits distinct regional patterns, even after controlling for firm and industry characteristics. These residual spatial patterns are found to be attributable, to some extent, to the level of economic and financial development in the regions.
    Keywords: Bayesian Methods; Developing Countries; Firm Size Distribution; Geoadditive Models; Geography; Start-Up Size
    JEL: L11 L60 R12
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:6846&r=geo
  2. By: Octávio Figueiredo (Universidade do Porto and CEMPRE); Paulo Guimarães (University of South Carolina and CEMPRE); Douglas Woodward (University of South Carolina)
    Abstract: This paper uses a novel measure and detailed plant-level Portuguese data to reexamine the Marshallian hypothesis that specialization and the vertical disintegration of firms should be greater in areas where an industry concentrates. Our measure of firm specialization and vertical disintegration employs a Herfindhal index constructed with occupational shares for all workers within the firm. Controlling for firm size and sector of activity, we find that vertical disintegration is around three percent higher in areas where industries agglomerate. Sensitivity tests reveal that this positive relation is remarkably robust across different specifications.
    Keywords: Vertical Disintegration of Firms; Agglomeration; Localization Economies
    JEL: R12 R39 L25
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:280&r=geo
  3. By: Alessandra Fogli; Laura Veldkamp
    Abstract: One of the most dramatic economic transformations of the past century has been the entry of women into the labor force. While many theories explain why this change took place, we investigate the process of transition itself. We argue that local information transmission generates changes in participation that are geographically heterogeneous, locally correlated and smooth in the aggregate, just like those observed in our data. In our model, women learn about the effects of maternal employment on children by observing nearby employed women. When few women participate in the labor force, data is scarce and participation rises slowly. As information accumulates in some regions, the effects of maternal employment become less uncertain, and more women in that region participate. Learning accelerates, labor force participation rises faster, and regional participation rates diverge. Eventually, information diffuses throughout the economy, beliefs converge to the truth, participation flattens out and regions become more similar again. To investigate the empirical relevance of our theory, we use a new county-level data set to compare our calibrated model to the time-series and geographic patterns of participation.
    JEL: E2 J16 N32 R1
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:14097&r=geo
  4. By: Mikel Larreina
    Abstract: In recent times the financial services industry has experienced a major transformation, in which markets and players have been globalised and consolidated. Certain financial centres have concentrated on financial firms and markets, engendering considerable research on the foundations of their pre-eminence. Nevertheless, the growth of financial centres in peripheral regions has not been conveniently analysed, despite the fact that financial activity may play a major role in some economies. This paper provides a thorough survey of state-of-the-art literature, both on the transformation of the financial marketplace, and on the rise of global financial centres, devoting especial attention to the appearance of peripheral financial centres. The Scottish case is studied, among other aspects, through the use of Input-Output multipliers, to determine the dramatic role financial services have to play in this region’s economy. This approach advanced may be adapted to other locations, to help to assess the specific impact of financial centres and to draw attention to possible problems arising from overdependence on their activity.
    Keywords: Financial centres, Scotland, financial cluster, Input-Output, regional economy.
    JEL: R11 R15 G29
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:san:crieff:0805&r=geo
  5. By: Rey, S.J.
    Abstract: This paper considers the intersection of academic spatial analysis with the open source revolution. Its basic premise is that the potential for cross-fertilization between the two is rich, yet some misperceptions about these two communities pose challenges to realizing these opportunities. The paper provides a primer on the open source movement for academicians with an eye towards correcting these misperceptions. It identifies a number of ways in which increased adoption of open source practices in spatial analysis can enhance the development of the next generation of tools and the wider practice of scientific research and education.
    Keywords: open source; spatial analysis
    JEL: C21 C60
    Date: 2008–06–21
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:9260&r=geo
  6. By: Olivier THOMAS (LEREPS-GRES)
    Abstract: Considering that the French metropolitan area makers decided not to respect the 1999’s law and its spirit, this paper intends to highlight the reasons why the French State accepted this situation so easily. First, the degrees of freedom taken by local elected actors are stressed thanks to two examples : the determination of the list of common tasks on the one hand, and the choice of the boundaries of the metropolitan area on the other hand. Then, the idea that the French State, thanks to its non interference and to fiscal incentives, has chosen to go round local inertia with a tacit and indirect strategy is contended. The final long term goal would concern the will to reduce, in spite of the numerous opponents, the number of French cities.
    Keywords: French metropolitan areas; urban communities with own taxes; local public economics; merger; fiscal incentives
    JEL: H30 H73 R51
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:grs:wpegrs:2008-12&r=geo
  7. By: Chap Moly
    Abstract: Infrastructure development means for the making of living environment, transport and communications, disaster prevention and national land conservation, agriculture, forestry and fisheries, and energy production and supply. Transport infrastructure development in Cambodia involved with (1) road, (2) railway, (3) port, inland-water way and (4) aviation. All model of transport infrastructure have special different kinds of importance. Railway is different from other base important of railways are transport passengers and traffic freight especially transport for heavy goods in huge capacity and in long distance by safer and faster. Transport in Cambodia for traffic freight export import base from Thailand and other via Sisophon and Shihanoukvill port. Traffic is increasing rapidly during nowadays railway condition in adequate of demand required. This is why Railway is selected as the topic of this paper to prevent monopoly of road transport. This paper, does review about infrastructure development plan for Railway in Cambodia as a long term strategy by review and analysis forecast on the previous performance of Royal Railways of Cambodia (RRC) transport traffic involved with condition of infrastructure development of railway in Cambodia. And also review the plan of development RRC but just only detail a plan of rehabilitation that is immediately needed. Suggest some recommendation at the last part. As Cambodia is a member country of ASEAN and also Mekong sub-region. For make sure that transport networks work effectively with a progress of economic integration, we make clear what is important for infrastructure development of railway in Cambodia from the standpoint of the development plan of Mekong sub-region. This paper is organized by 4 sections. Section 1 review about Infrastructure Development of Railway in Cambodia (IDRC) Historical Background, Follow by Section 2 will review the Current Situation of IDRC and some analysis of transport performance from previous years, Then Section 3 review of the focusing on traffic transport of RRC in the future, Section 4 review Infrastructure Development of Railway in Cambodia Future plans in long term; at last conclusion and recommendation. In section 1 does review history background of RRC from the rail first begun. But why is needed to review? Because of history background is involved infrastructure development of RRC in present time. History background made big gaps constraint and obstacle for socioeconomic development and poverty reduction, also left Cambodia with tragedy and left developed behind. After that remain infrastructure development needs huge fund and long time for restoration, reconstruction, rehabilitation and development into new technology as most of world practice.
    Keywords: Asia, Developing countries, Service sector, Networks, Cambodia, Railway, Infrastructure
    JEL: R41 R49
    Date: 2008–04
    URL: http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper150&r=geo
  8. By: Stéphane Maraut; Hélène Dernis; Colin Webb; Vincenzo Spiezia; Dominique Guellec
    Abstract: The OECD REGPAT database presents patent data that have been linked to regions according to the addresses of the applicants and inventors. The data have been 'regionalised' at a very detailed level so that more than 2 000 regions are covered across OECD countries. REGPAT allows patent data to be used in connection with other regional data such as GDP or labour force statistics, and other patent-based information such as citations, technical fields and patent holder's characteristics (industry, university, etc.), thus providing researchers with the means to develop a rich set of new indicators and undertake a broad range of analyses to address issues relating to the regional dimension of innovation. By making regionalised patent data available to all students interested in the field, the OECD aims to stimulate research and contribute to a better understanding of the regional dimension of innovation. In addition, the methodology used for the construction of REGPAT is published, to give users the opportunity to suggest modifications and thus contribute to improvements in the quality of REGPAT. The full technical description of the REGPAT database as accessible to users is provided in annex. Patent data provide unique insights into the outcome and characteristics of inventive activities, including at regional level. They have limitations however, like all data sources, and should be handled with methodological care. <P>Base de données REGPAT de l’OCDE : Présentation <BR>La base REGPAT de l'OCDE présente des données relatives aux brevets appariées à des régions en fonction des adresses des demandeurs et inventeurs. Le niveau de détail de cette « régionalisation » est très poussé, de sorte que plus de 2 000 régions de toute la zone OCDE sont couvertes. REGPAT permet d'utiliser les données concernant les brevets en relation avec d'autres données régionales telles que le PIB ou les statistiques sur la main-d'oeuvre, et avec d'autres informations propres aux brevets - citations, domaines techniques, caractéristiques du détenteur du brevet (secteur d'activité, université, etc.) ; les chercheurs peuvent ainsi agencer à leur guise un ensemble élargi d'indicateurs nouveaux et se livrer à des analyses très diverses portant sur les questions liées à la dimension régionale de l'innovation. En mettant des données régionalisées sur les brevets à la disposition de tous les analystes qui s'intéressent à ce domaine, l'OCDE a pour objectif de stimuler la recherche et de concourir à mieux faire appréhender cette dimension. Par ailleurs, la méthodologie présidant à la construction de REGPAT est rendue publique, de sorte que ses utilisateurs peuvent suggérer des modifications et, par là, contribuer à son amélioration qualitative. La description technique complète de la base telle qu'y accède l'usager est fournie en annexe. Les données relatives aux brevets livrent des enseignements sans équivalents sur les résultats et les caractéristiques des activités d'invention, y compris au niveau régional. Comme toutes les sources de données, elles comportent toutefois des limites et doivent être manipulées avec les précautions méthodologiques d'usage.
    Date: 2008–06–03
    URL: http://d.repec.org/n?u=RePEc:oec:stiaaa:2008/2-en&r=geo
  9. By: Michelle Gilmartin (Department of Economics, University of Strathclyde); Kim Swales (Department of Economics, University of Strathclyde); Karen Turner (Department of Economics, University of Strathclyde)
    Abstract: In previous work we have applied the environmental multi-region input-output (MRIO) method proposed by Turner et al (2007) to examine the ‘CO2 trade balance’ between Scotland and the Rest of the UK. In McGregor et al (2008) we construct an interregional economy-environment input-output (IO) and social accounting matrix (SAM) framework that allows us to investigate methods of attributing responsibility for pollution generation in the UK at the regional level. This facilitates analysis of the nature and significance of environmental spillovers and the existence of an environmental ‘trade balance’ between regions. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, we argue that the use of such a framework allows us to begin to consider questions such as the extent to which a devolved authority like the Scottish Parliament can and should be responsible for contributing to national targets for reductions in emissions levels (e.g. the UK commitment to the Kyoto Protocol) when it is limited in the way it can control emissions, particularly with respect to changes in demand elsewhere in the UK. However, while such analysis is useful in terms of accounting for pollution flows in the single time period that the accounts relate to, it is limited when the focus is on modelling the impacts of any marginal change in activity. This is because a conventional demand-driven IO model assumes an entirely passive supply-side in the economy (i.e. all supply is infinitely elastic) and is further restricted by the assumption of universal Leontief (fixed proportions) technology implied by the use of the A and multiplier matrices. In this paper we argue that where analysis of marginal changes in activity is required, a more flexible interregional computable general equilibrium approach that models behavioural relationships in a more realistic and theory-consistent manner, is more appropriate and informative. To illustrate our analysis, we compare the results of introducing a positive demand stimulus in the UK economy using both IO and CGE interregional models of Scotland and the rest of the UK. In the case of the latter, we demonstrate how more theory consistent modelling of both demand and supply side behaviour at the regional and national levels affect model results, including the impact on the interregional CO2 ‘trade balance’.
    Keywords: CGE modelling, MRIO, CO2 trade balance, environmental responsibility
    JEL: D57 D58 R15 Q56
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:str:wpaper:0807&r=geo

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