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on Economic Geography |
| By: | Christ, Julian P. |
| Abstract: | Despite the increasing and newly inspired interests in geographical economics and industry location theory, the majority of existing New Economic Geography models ignores the interdependence between spatial concentration, knowledge diffusion, invention and growth. For this reason, the paper exclusively surveys the emergence and development of New Economic Geography Growth models in the context of the existing geography of innovation literature. The first part of the paper contributes with a classification of first- and second-nature causes of agglomeration and clustering. This part will also discriminate between static and dynamic externalities. Therefore, the chapter particularly compiles the differences between urbanization and localization externalities, and MAR, Jacobian and Porter externalities. A second concern of the paper is to highlight the modeling peculiarities of New Economic Geography Growth models. Besides approaching the main differences and similarities between first- and second-generation NEG models, the paper additionally reviews and discloses complemental contributions to the geography of innovation literature in the course of time. For this purpose, the paper examines in a meta-study 61 empirical contributions, which are related to the knowledge production function, the concept of spatial dependence and knowledge spillovers. The meta-study is complemented by bibliometric research. The paper ultimately concludes that the empirical studies that are related to the concept of (localized) knowledge spillovers and spatial association have caused a fundamental upgrading of the New Economic Geography literature towards non-pecuniary externalities. Consequently, the paper shows that recently developed second-generation NEG models offer alternative backward and forward linkages, which similarly determine centripetal and centrifugal forces, circular causality and finally the geography of innovation. |
| Keywords: | New Economic Geography Growth,geography of innvation,localized knowledge spillovers,dynamic externalities,core-periphery |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:200901&r=geo |
| By: | Hein Roelfsema; Martijn Boermans; Yi Zhang |
| Abstract: | We empirically investigate the factors that drive the uneven regional distribution of foreign direct investment (FDI) inflows to China.s 31 provinces from 1995 to 2006. The aim of this paper is to explain the investment patterns in (partly) foreign funded firms across these provinces. We use factor analysis and derive four factors that may drive FDI: institutions, labor costs, market potential, and geography. The factor analysis then structures our dataset to concentrate on these four clusters consisting of 42 province specific and time-varying items. Factor analysis not only helps us to identify the latent dimensions which are not apparent from direct study, but also facilitates econometrics with reduced number of variables. We apply fixed effects panel estimation and GMM to account for endogeneity. In line with theoretical predictions we find that foreign investors choose and invest more in provinces with better institutions, lower labor costs, and larger market size. Nonlinear results denote that the positive effects of infrastructure and market potential on FDI are complementary to each other, which is in line with the economic geography literature. In particular the effect of market size on FDI is larger in provinces with better institutions. Sub-sample study confirms the existences of a large disparity between East and West. In the poorer large western provinces FDI is strongly driven by the geographical factor in contrast to the east of China where institutions play a significant role to build the .factory of the world.. Robustness tests indicate that two sub-dimensions of institutions, namely infrastructure and governance, are important to determine the location choice of FDI in China. |
| Keywords: | FDI, China, factors analysis, regional and spatial distribution of FDI, location choice |
| JEL: | F21 F23 O18 O53 R11 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:0923&r=geo |
| By: | Klaus Desmet; Esteban Rossi-Hansberg |
| Abstract: | We present a theory of spatial development. A continuum of locations in a geographic area choose each period how much to innovate (if at all) in manufacturing and services. Locations can trade subject to transport costs and technology diffuses spatially across locations. The result is an endogenous growth theory that can shed light on the link between the evolution of economic activity over time and space. We apply the model to study the evolution of the U.S. economy in the last few decades and find that the model can generate the reduction in the employment share in manufacturing, the increase in service productivity in the second part of the 1990s, the increase in land rents in the same period, as well as several other spatial and temporal patterns. |
| JEL: | E32 O11 O18 O33 R12 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15349&r=geo |
| By: | O. Ashton Morgan; Stuart E. Hamilton |
| Abstract: | Beach nourishment projects are common methods for coastal states to protect beaches and property from the natural erosive process. However, while the beneficiaries of beach nourishment tend to be local property owners and recreators, projects are typically funded at the state level. Based on the benefit principle, as local residents receive more of the erosion protection benefits of the nourishment projects, we estimate a value capture tax, designed to levy the financing burden in a manner that approximates the distribution of benefits. The benefits of nourishment projects to coastal property owners are estimated using the results from a spatial-lag hedonic model that controls for viewshed effects. Key Words: |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:09-23&r=geo |
| By: | Marian Rizov (Middlesex University Business School, UK and Wageningen University, The Netherlands); Patrick Paul Walsh (SPIRe and The Geary Institute University College Dublin) |
| Abstract: | We compute the productivity gaps in manufacturing industries by urban, rural less sparse and rural sparse locations in the UK. This is done by using firm-specific total factor productivities, which are estimated by a semi-parametric algorithm within 4-digit manufacturing industries using FAME data over the period 1994-2001, by each location. We analyse the productivity differentials across locations by decomposing them into firm differences within the same industry and by differences that are explained by industry composition effects. Our analysis indicates that at the end of twentieth century a rural-urban divide in manufacturing productivity still remains but there is a tendency of convergence between rural and urban location categories. Even though industry productivity is different by location, industry composition effects are positively correlated with industry productivity by location suggesting that locations with high productivity are also characterised by industrial structures with higher productivity. |
| Keywords: | Total factor productivity, structural estimation, rural-urban divides, UK manufacturing |
| JEL: | D24 R11 R30 |
| Date: | 2009–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:200927&r=geo |
| By: | Vernon Henderson; Adam Storeygard; David N. Weil |
| Abstract: | GDP growth is often measured poorly for countries and rarely measured at all for cities. We propose a readily available proxy: satellite data on lights at night. Our statistical framework uses light growth to supplement existing income growth measures. The framework is applied to countries with the lowest quality income data, resulting in estimates of growth that differ substantially from established estimates. We then consider a longstanding debate: do increases in local agricultural productivity increase city incomes? For African cities, we find that exogenous agricultural productivity shocks (high rainfall years) have substantial effects on local urban economic activity. |
| Keywords: | economic growth; remote sensing; urbanization; income measurement |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bro:econwp:2009-8&r=geo |
| By: | Gilles Duranton; Matthew A. TUrner |
| Abstract: | Abstract: We investigate the relationship between interstate highways and highway vehicle kilometers traveled (vkt) in us cities. We find that vkt increases proportionately to highways and identify three important sources for this extra vkt: an increase in driving by current residents; an increase in transportation intensive production activity; and an inflow of new residents. The provision of public transportation has no impact on vkt. We also estimate the aggregate city level demand for vkt and find it to be very elastic. We conclude that an increased provision of roads or public transit is unlikely to relieve congestion and that the current provision of roads exceeds the optimum given the absence of congestion pricing. |
| Keywords: | highways, vehiclekilometers traveled, public transport, congestion. |
| JEL: | L91 R41 |
| Date: | 2009–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-370&r=geo |
| By: | Delzeit, Ruth; Britz, Wolfgang; Holm-Müller, Karin |
| Abstract: | Our location model aims to simulate location decisions for biogas plants based on profit maximisation to generate regional demand functions for maize and corresponding plant size structure and transport distances. By linking it with an agricultural sector model we derived regional maize markets. Comparing results for the REA with a scenario applying uniform per unit subsidy and producing the same energy, we see higher subsidy costs with the REA but lower transportation distances. |
| Keywords: | Biogas, environmental effects, transport costs, choice of location, Agricultural Finance, Environmental Economics and Policy, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gaae09:53258&r=geo |
| By: | Antonelli Cristiano (University of Turin); Barbiellini Amidei Federico |
| Abstract: | The paper is an attempt to provide an interpretation of the Italian puzzle in the post-WWII era consisting of very low levels of expenditure in R&D and yet high TFP growth. The research aims to supply the basic tools and the framework for a better understanding of the Italian industry innovation system and of its contribution to the country’s long term growth performance. The study applies the localized echnological change approach to implement the notion of knowledge interactions so as to appreciate: a) the role of external factors in the generation and exploitation of technological knowledge; b) the role of creative adoption in TFP dynamics. The analysis is based on a new dataset containing sectoral and regional series of TFP, capital intensity,wages per labour unit, R&D expenditures, patents granted in the USA, Technological Balance of Payments receipts and expenses, etc. for Italy over the 1950-1990 period. Using a SURE model framework, the impact of user-producer interactions on the dynamic efficiency of the Italian industrial sector is investigated across industries and regions. The significant and distinctive features of Italian innovation dynamics in the post WWII era that result are: i) the emerging and functioning of an innovation system based upon both horizontal dynamics of technological cooperation within industrial districts and vertical dynamic interdependence within industrial filieres; ii) a relevant, albeit incomplete, diffusion/catching up process in Italian regions. |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:200913&r=geo |
| By: | Alboiu, Cornelia |
| Abstract: | The paper intends to make an analysis at regional level in the South-East region of the country in order to determine the present situation of agriculture in this region compared to the whole country. The paper investigates the crop structure, the irrigated area and the number of irrigation equipment in the region, the market orientation of farms, the type and development level of the non-agricultural activities, the labour force, and the specialization of farms. The objective of this paper is to analyze the regional agricultural characteristics and to determine the level of entrepreneurship in the area, so that farmers and regional policies might better interfere in order to help farmers adjust their production to the market and obtain a benefit. A comparison with the situation at the whole country will be also provided. The paper concludes that Romanian subsistence agriculture is still a âmodus vivendiâ, and most likely only time and the force of new technologies employed by the large commercial companies will partly solve the issue. |
| Keywords: | subsistence, regional analysis, irrigations, Community/Rural/Urban Development, Consumer/Household Economics, |
| Date: | 2009–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa111:52848&r=geo |
| By: | Quamrul Ashraf; Oded Galor; Omer Ozak |
| Abstract: | This paper exploits cross-country variation in the degree of geographical isolation, prior to the advent of sea-faring and airborne transportation technologies, to examine its impact on the course of economic development across the globe. The empirical investigation establishes that prehistoric geographical isolation has generated a persistent beneficial effect on the process of development and contributed to the contemporary variation in the standard of living across countries. |
| Keywords: | Growth, Development; Isolation; Agglomeration; Globalization |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bro:econwp:2009-9&r=geo |