nep-geo New Economics Papers
on Economic Geography
Issue of 2011‒11‒01
28 papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Spatial econometrics of innovation : Recent contributions and research perspectives By Corinne Autant-Bernard
  2. Regional Patterns in the Achievement of the Lisbon Strategy: a Comparison Between Polycentric Regions and Monocentric Ones By Paola Bertolini; Enrico Giovanetti; Francesco Pagliacci
  3. Regional convergence in Turkey: the role of government in economic environment augmenting activities By Karaman, Fatma; Dogruel, Fatma
  4. The TERM model and its data base By Mark Horridge
  5. Policy coordination in systems of innovation: A structural-functional analysis of regional industry support in Sweden By Nilsson, Magnus; Moodysson, Jerker
  6. How Far Away is an Intangible? Services FDI and Distance By Ronald B Davies; Amélie Guillin
  7. Asymmetric Effects of National-based Active Labour Market Policies By Carlo Altavilla; Floro Ernesto Caroleo
  8. MMRF: Monash Multi-Regional Forecasting Model: A Dynamic Multi-Regional Model of the Australian Economy By Philip Adams; Janine Dixon; James Giesecke; Mark Horridge
  9. Human capital, technological spillovers and development across OECD countries By Rosa Bernardini Papalia; Silvia Bertarelli; Carlo Filippucci
  10. Monitoring sub-central government spending in Spain By Laura Fernández-Caballero; Diego J. Pedregal; Javier J. Pérez
  11. Neighborhood Effects and Individual Unemployment By Bauer, Thomas; Fertig, Michael; Vorell, Matthias
  12. Overeducation and Local Labour Markets in Spain By Ramos, Raul; Sanromá, Esteban
  13. The incidence of regional factors on "competitive performance” of universities By Fabio Pollice; Stefano De Rubertis; Enrico Ciavolino; Antonella Ricciardelli
  14. Industrial districts as open learning systems: combining emergent and deliberate knowledge structures. By Fiorenza Belussi; Silvia Rita Sedita
  15. Bank branch geographic location patterns in Spain: some implications for financial exclusion By Luisa Alamá Sabater; Emili Tortosa Ausina
  16. Polarization Versus Agglomeration By Vitor Joao Pereira Domingues Martinho
  17. Regional Agglomeration in Portugal: A Linear Analysis By Vitor Joao Pereira Domingues Martinho
  18. Spatial Effects and Verdoorn Law in the Portuguese Context By Vitor Joao Pereira Domingues Martinho
  19. Analysis of Net Migration Between the Portuguese Regions By Vitor Joao Pereira Domingues Martinho
  20. Sectoral Convergence in Output Per Worker Between Portuguese Regions By Vitor Joao Pereira Domingues Martinho
  21. The Importance of Increasing Returns to Scale in the Process of Agglomeration in Portugal: A Non-linear Empirical Analysis By Vitor Joao Pereira Domingues Martinho
  22. Spatial Effects in Convergence of Portuguese Product By Vitor Joao Pereira Domingues Martinho
  23. Agglomeration and Interregional Mobility of Labor in Portugal By Vitor Joao Pereira Domingues Martinho
  24. Spatial Autocorrelation and Verdoorn Law in the Portuguese NUTs III By Vitor Joao Pereira Domingues Martinho
  25. An Alternative Use of the Verdoorn Law at the Portuguese NUTs II Level By Vitor Joao Pereira Domingues Martinho
  26. Spatial Effects and Convergence Theory in the Portuguese Situation By Vitor Joao Pereira Domingues Martinho
  27. Geographic Concentration in Portugal and Regional Specific Factors By Vitor Joao Pereira Domingues Martinho
  28. The Verdoorn Law in the Portuguese Regions: A Panel Data Analysis By Vitor Joao Pereira Domingues Martinho

  1. By: Corinne Autant-Bernard (Université de Lyon, Lyon, F-69007, France ; Université Jean Monnet, Saint-Etienne,F-42000, France ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France)
    Abstract: Preliminary introduced by Anselin, Varga and Acs (1997) spatial econometric tools are widely used in economic geography of innovation. Taking into account spatial autocorrelation and spatial heterogeneity of regional innovation, this paper analyzes how these techniques have improved the ability to quantify knowledge spillovers, to measure their spatial extent, and to explore the underlying mechanisms and especially the interactions between geographical and social distance. It is also argued that the recent developments of spatio-dynamic models opens new research lines to investigate the temporal dimension of both spatial knowledge flows and innovation networks, two issues that should rank high in the research agenda of the geography of innovation.
    Keywords: Geography of innovation, spatial correlation, spatio‐dynamic panels, innovation networks
    JEL: O31 R12 C31
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:gat:wpaper:1120&r=geo
  2. By: Paola Bertolini; Enrico Giovanetti; Francesco Pagliacci
    Abstract: Polycentrism is a common feature of European urban systems. Lately, the concept has assumed a more normative relevance and it has been often considered as a pre?requisite for a more sustainable and balanced development across Europe. However, the effects of polycentrism on other main European Strategies (such as the Lisbon Strategy, aimed at increasing European competitiveness and social cohesion) are not so clear. Therefore, the paper tries to highlight the relationships between a regional polycentric development and the achievement of the Lisbon Strategy’s targets. Referring to a sample of 75 regions belonging to France, Germany, Italy and Spain, we have first measured the extent of polycentrism, by estimating through OLS the slope of the rank-size distribution of cities within each region. Then, we have performed a principal component analysis (PCA) in order to highlight the main features characterising the performance of each region according to Lisbon Strategy’s targets. Looking at the correlations between the extent of polycentrism and the achievement of the Lisbon Strategy’s targets, we have found that the former is significantly correlated both with the spread of manufacture and with low investments in human capital and innovation
    Keywords: the Lisbon Strategy, polycentrism, rank-size distribution, PCA
    JEL: O18 O52 R00 R10
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:mod:depeco:0664&r=geo
  3. By: Karaman, Fatma; Dogruel, Fatma
    Abstract: Regional disparities are important concerns for the researchers as well as the policy makers in both developed and developing countries. The government, as a leading actor in regional policies, can create externalities through investments not only in the real sectors, but also in infrastructure and institutions. Investments in education, health and transportation enhance the quality of life and business environment, and trigger the development in those regions. The paper defines this type of government role in a particular region as “economic environment augmenting activities of the government”. The paper focuses on two types of initiatives of the government: regional universities and the existence of an airport. The main findings show that spending impact suppresses knowledge impact in the low income provinces. And, there is a threshold for the regional income level: The demand effect of government initiatives as state university and providing air transport has greater impact in low-income provinces, particularly before 2000.
    Keywords: Regional convergence; role of government; effects of universities; panel-data modeling; Turkey
    JEL: R58 O18 R11
    Date: 2011–10–17
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:34271&r=geo
  4. By: Mark Horridge
    Abstract: TERM (The Enormous Regional Model) provides a strategy for creating a "bottom-up" multi-regional CGE model which treats each region of a single country as a separate economy. This makes it a useful tool for examining the regional impacts of shocks that may be region-specific. TERM is designed to allow quick simulations with many regions, so allowing for models of large countries with 30 to 50 provinces, such as USA or China. TERM also offers a standard procedure for preparing a database which requires, in addition to a national input-output or use-supply table, a minimal amount of regional data. More regional data can be used if available.
    Keywords: Regional CGE
    JEL: C68 D58 R12 R13
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:cop:wpaper:g-219&r=geo
  5. By: Nilsson, Magnus (CIRCLE, Lund University); Moodysson, Jerker (CIRCLE, Lund University)
    Abstract: The framework of regional innovation systems highlights the systemic nature of economic development and the importance of coordination of policy activities. Such coordination presupposes an understanding of the underlying problems and how they can be addressed. Generic problems in innovation systems refer to issues of lack of resources, negative lock-in, and structural or functional fragmentation. In spite of this, there are few good examples of systematic analyses of innovation systems that take into account both structural and functional properties of the system. This paper addresses this issue by offering a framework for analyzing innovation system problems, functions, activities, and actors and, based on this, offers insights with regard to the role of regional actors as coordinators of innovation system activities.
    Keywords: Regional innovation systems; innovation policy; systemic problems
    JEL: O30
    Date: 2011–10–21
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2011_009&r=geo
  6. By: Ronald B Davies (University College Dublin); Amélie Guillin (University College Dublin)
    Abstract: Foreign direct investment (FDI) in services has grown significantly in recent years. Evidence of spatial relationships in FDI decisions have been provided for goods man- ufacturing by utilizing physical distance-based measures of trade costs. This paper investigates spatial interactions for services FDI using several distance measures, in- cluding physical distance, genetic distance, and transport time. Across different mea- sures of distance, the traditional determinants of outbound FDI activity remain valid for services. We also find spatial interdependence for services FDI that is generally supportive of complex vertical motivations.
    Keywords: Foreign direct investment, Services, Spatial econometric techniques
    Date: 2011–09–30
    URL: http://d.repec.org/n?u=RePEc:ucn:wpaper:201120&r=geo
  7. By: Carlo Altavilla (University of Naples Parthenope, CESifo and CSEF); Floro Ernesto Caroleo (University of Naples Parthenope)
    Abstract: Labour market policies settled at national level imply a “one-size-fits-all” labour market strategy. This strategy might not sufficiently take into account region-specific economic structures. We employ a panel factor-augmented vector autoregression (FAVAR) to evaluate whether active labour market programmes (ALMPs) might asymmetrically affect labour markets at regional level in a data-rich environment. The paper focuses on Italian regions. Our results suggest that while in the South employment is mainly driven by social and economic context variables, in the North the employment dynamics is significantly explained by policy interventions. Finally, we suggest two main policy implications. First, the success of active policies depends on the regional labour market conditions. Second, policymakers should adjust labour policy strategy to the regional economic structure
    Keywords: Active Labour Market Policies, FAVAR.
    JEL: C33 J64
    Date: 2011–10–25
    URL: http://d.repec.org/n?u=RePEc:sef:csefwp:293&r=geo
  8. By: Philip Adams; Janine Dixon; James Giesecke; Mark Horridge
    Abstract: MMRF is a dynamic CGE model of Australia's six State and two Territory economies. MMRF is used extensively in contract research. Several features of MMRF make it an ideal tool for policy analysis, including: dynamics, a highly disaggregated regional and sectoral database, a national labour market, and detailed modelling of government financial statistics.
    Keywords: CGE modelling, dynamics, regional economics
    JEL: C68 D58 R13
    Date: 2010–12
    URL: http://d.repec.org/n?u=RePEc:cop:wpaper:g-223&r=geo
  9. By: Rosa Bernardini Papalia (Department of Statistics, University of Bologna); Silvia Bertarelli (Department of Economics Institutions and Territory , University of Ferrara); Carlo Filippucci (Department of Statistics, University of Bologna)
    Abstract: In this paper, we study the relationship between the level of development of an economy and returns to different levels of education for the panel of OECD countries over the 1965-2004 period, in a club convergence framework. The connection between growth and human capital measures of primary, secondary and tertiary education in a multiple-club spatial convergence model with non linearities and spatial dependence is considered. By decomposing total schooling into its three constituent parts, we are able to evaluate their impact on regional growth without imposing homogeneous returns from each level of education. We contribute to the identification of two regimes for OECD countries, each characterized by different returns on physical and human capital accumulation and technological spillovers. We also find that the non-monotonic pattern of convergence is strongly influenced by human capital stocks and technology diffusion process is stronger in the club less close to the technological frontier.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:15&r=geo
  10. By: Laura Fernández-Caballero (Banco de España); Diego J. Pedregal (Universidad de Castilla-La Mancha); Javier J. Pérez (BANCO DE ESPAÑA)
    Abstract: The evolution of Regional and Local governments’ spending in Spain is currently under close scrutiny by national and international investors and analysts, international organizations and rating agencies. Indeed, some 50% of general government spending and some 70% of public employment are managed by Regions and Municipalities, which consequently have to bear a great portion of the overall fiscal consolidation plan currently under way. Despite recent efforts of the Spanish government at increasing transparency, the significant shortages of the existing data render the task of monitoring regional and local governments’ public spending in real-time a complicated endeavor. Within this framework, we exploit all available short-term information on sub-national governments’ spending from scattered sources, and find a subset of indicators usable for real-time policy analysis. In particular: (i) we compile a dataset on quarterly and monthly regional government’s spending variables, by reviewing all available, scattered sources, and put together a database usable for economic and policy analysis; (ii) we exploit the compiled information, and other additional sources, by fitting time-series mixed-frequencies models to the data, and show the forecasting and monitoring capabilities of the selected short-term fiscal indicators; (iii) we show that official annual budgetary targets do present a reasonable forecasting performance when used as indicators of regional and local spending targets in national accounts terms, in particular when used in combination with time series indicators.
    Keywords: Regional and local public finances; government expenditure; fiscal forecasting
    JEL: E17 E62 H68 H72
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:bde:wpaper:1127&r=geo
  11. By: Bauer, Thomas (RWI); Fertig, Michael (ISG, Cologne); Vorell, Matthias (RWI)
    Abstract: Using a unique dataset for Germany that links individual longitudinal data from the GSOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment prospects. The panel setup and richness of the data allows us to overcome some of the identification problems which are present in this strand of literature. The empirical results indicate that there is a significant negative impact of neighborhood unemployment on the individual employment probability.
    Keywords: social interactions, unemployment, neighborhood characteristics
    JEL: J64 R23
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6040&r=geo
  12. By: Ramos, Raul (University of Barcelona); Sanromá, Esteban (University of Barcelona)
    Abstract: The objective of this paper is to analyze the influence of individual variables and some characteristics related to spatial mobility in regional labour markets on overeducation in Spain. With this aim, we use microdata from the Spanish Budget Family Survey to estimate a logit model for overeducation probability taking into account the problem of selection bias and the presence of data of different levels (individuals and territory). The obtained results permit us to conclude that the size of local labour markets and the possibility of extending the job search to other labour markets through commuting are relevant factors to explain overeducation in the Spanish labour market. In spite of the differences in terms of labour market institutions, our results are very similar to the ones obtained for other countries.
    Keywords: educational mismatch, Spain, multilevel, commuting, job mismatch, differential overeducation
    JEL: J61 J24 J31
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6028&r=geo
  13. By: Fabio Pollice (University of Salento); Stefano De Rubertis (University of Salento); Enrico Ciavolino (University of Salento); Antonella Ricciardelli (University of Salento)
    Abstract: The performance of single universities, beyond internal determinants, is influenced by the conditions of their own territorial context, that is by a number of factors related to their local geographical area, meant as a space of territorial interactions, measurable by its previous relational dynamics. This set of factors can, directly or indirectly, affect both the organizational structure and strategic orientations of the single university, as well as the results achieved by it in the field of education and research.Through a multi-dimensional statistical model, the evaluation criteria for university performance will be compared to some territorial variables which, in scientific literature, are considered to be indexes of territorial competitiveness. The statistical model aims at measuring the impact local context has on the competitive performance of universities, explaining the nature and intensity of this relationship. With reference to the objectives of the research, data we will use refer to two different sets of indicators: on the one hand, data used to evaluate university performance, on the other hand, the ones used to measure territorial competitiveness. In more detail, university performance is based on some of the indicators used by the CENSIS in the "University Ranking 2010" referring to the following databases: MIUR-Statistical Office; CINECA; CNVSU; National LLP Agency Italy; CRUI; CORDIS. Territorial data, instead, are extracted from the "Atlas of the Provinces and Regions competitiveness” elaborated by UNIONCAMERE. For both sets of indicators, the analysis will refer to the year 2008.If the indicators of university performance are correlated to territorial conditions, they don’t really measure university productivity/competitiveness, but rather the competitiveness of its territorial context. This can lead to some distortions in the financial resources allocation and, more generally, in national supporting policies to public universities.In their conclusions, authors also tend to reverse the perspective through which the role of government intervention has been traditionally interpreted. If universities are qualifying elements of territorial competitiveness – as it is shown by the fact that they are frequently used within the set of indicators to measure it – the strengthening of university system should be one of the priority objectives of regional development policies. Consequently, national government should invest in university education and research, even where university performance, due to some specific local conditions, is not satisfactory or even below fixed national or international standards.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:37&r=geo
  14. By: Fiorenza Belussi (University of Padova); Silvia Rita Sedita (University of Padova)
    Abstract: This article deepens the theoretical understanding of learning processes in industrial districts (IDs) by analysing the emergent and deliberate structures that favour knowledge transfer at the local and distance level. An analytical framework illustrates district-learning dynamics through two mechanisms. The first is the exploitation of local knowledge structures. The second is the exploration of distant knowledge structures. We claim that a combination of the two mechanisms enhances the competitiveness of industrial districts in the global arena. We illustrate how these theoretical reflections find empirical evidence in the case of the Lake Naivasha cut-flower district in Kenya.
    Keywords: industrial districts, knowledge structure, business networks, communities of practice.
    JEL: R0 O1
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:pad:wpaper:0141&r=geo
  15. By: Luisa Alamá Sabater (Dpt. Economia); Emili Tortosa Ausina (Universitat Jaume I)
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:ivi:wpasec:2011-10&r=geo
  16. By: Vitor Joao Pereira Domingues Martinho
    Abstract: The aim of this paper is to analyze the processes of polarization and agglomeration, to explain the mechanisms and causes of these phenomena in order to identify similarities and differences. As the main implication of this study should be noted that both process pretend to explain the concentration of economic activity and population in certain places, through cumulative phenomena, but with different perspectives, in other words, the polarization with a view of economic development and agglomeration with a perspective of space.
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5557&r=geo
  17. By: Vitor Joao Pereira Domingues Martinho
    Abstract: This work aims to study the Portuguese regional agglomeration process, using the linear form the New Economic Geography models that emphasize the importance of spatial factors (distance, costs of transport and communication) in explaining of the concentration of economic activity in certain locations. In a theoretical context, it is intended to explain the complementarily of clustering models, associated with the New Economic Geography, and polarization associated with the Keynesian tradition, describing the mechanisms by which these processes are based. As a summary conclusion, we can say which the agglomeration process shows some signs of concentration in Lisboa e Vale do Tejo (which is evidence of regional divergence in Portugal) and the productivity factor significantly improves the results that explain the regional clustering in Portugal (despite being ignored in the models of New Economic Geography).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5559&r=geo
  18. By: Vitor Joao Pereira Domingues Martinho
    Abstract: The consideration of spatial effects at a regional level is becoming increasingly frequent and the work of Anselin (1988), among others, has contributed to this. This study analyses, through cross-section estimation methods, the influence of spatial effects in productivity (product per worker) in the NUTs III economic sectors of mainland Portugal from 1995 to 1999 and from 2000 to 2005 (taking in count the availability of data), considering the Verdoorn relationship. To analyse the data, by using Moran I statistics, it is stated that productivity is subject to a positive spatial autocorrelation (productivity of each of the regions develops in a similar manner to each of the neighbouring regions), above all in services. The total of all sectors present, also, indicators of being subject to positive autocorrelation in productivity. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags (measuring spatial autocorrelation through the spatially lagged dependent variable) and spatial error (measuring spatial autocorrelation through the spatially lagged error terms), influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions (Martinho, 2011).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5573&r=geo
  19. By: Vitor Joao Pereira Domingues Martinho
    Abstract: This work aims mainly to present a project of research about the identification of the determinants that affect the mobility of labor. The empirical part of the work will be performed for the NUTS II and NUTS III of Portugal, from 1996 to 2002 and for 1991 and 2001, respectively (given the availability of statistical data). As main conclusion it can be said, for the NUTS II (1996-2002), which is confirmed the existence of some labor mobility in Portugal and that regional mobility is mainly influenced positively by the output growth and negatively by the unemployment rates and by the weight of the agricultural sector. NUTS III level (1991 and 2001) is something similar, but with this level of spatial disaggregation (and in this period) the basic equipment (amenities), particularly in terms of availability of housing, are the main determinants of migration.
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5564&r=geo
  20. By: Vitor Joao Pereira Domingues Martinho
    Abstract: The aim of this paper is to present a further contribution to the analysis of absolute convergence (and), associated with the neoclassical theory, and conditional, associated with endogenous growth theory, of the sectoral productivity at regional level. Presenting some empirical evidence of absolute convergence of productivity for each of the economic sectors and industries in each of the regions of mainland Portugal (NUTS II and NUTS III) in the period 1986 to 1994 and from 1995 to 1999. The finest spatial unit NUTS III is only considered for each of the economic sectors in the period 1995 to 1999. They are also presented empirical evidence of conditional convergence of productivity, but only for each of the economic sectors of the NUTS II of Portugal, from 1995 to 1999. The structural variables used in the analysis of conditional convergence is the ratio of capital/output, the flow of goods/output and location ratio. The main conclusions should be noted that the signs of convergence are stronger in the first period than in the second and that convergence is conditional, especially in industry and in all sectors (1)(Martinho, 2011).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5552&r=geo
  21. By: Vitor Joao Pereira Domingues Martinho
    Abstract: With this work we try to analyse the agglomeration process in the Portuguese regions, using the New Economic Geography models. In these models the base idea is that where has increasing returns to scale in the manufactured industry and low transport costs, there is agglomeration. Of referring, as summary conclusion, that with this work the existence of increasing returns to scale and low transport cost, in the Portuguese regions, was proven and as such the existence of agglomeration in Portugal.
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5538&r=geo
  22. By: Vitor Joao Pereira Domingues Martinho
    Abstract: This study analyses, through cross-section estimation methods, the influence of spatial effects in the conditional product convergence in the parishes' economies of mainland Portugal between 1991 and 2001 (the last year with data available for this spatial disaggregation level). To analyse the data, Moran's I statistics is considered, and it is stated that product is subject to positive spatial autocorrelation (product develops in a similar manner to product in neighbouring regions). Taking into account the estimation results, it is stated that there are not indications of convergence (the population is in the littoral of Portugal) and it can be seen that spatial spillover effects, spatial lag (capturing spatial autocorrelation through a spatially lagged dependent variable) and spatial error (capturing spatial autocorrelation through a spatially lagged error term) condition the convergence of product of Portuguese parishes in the period under consideration (1)(Martinho, 2011).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5556&r=geo
  23. By: Vitor Joao Pereira Domingues Martinho
    Abstract: The aim of this paper is to analyze the relationship between inter-industry, intra-industry and inter-regional clustering and demand for labor by companies in Portugal. Is expected at the outset that there is more demand for work where the agglomeration is greater. It should be noted, as a summary conclusion, the results are consistent with the theoretical developments of the New Economic Geography, namely the demand for labor is greater where firms are better able to cluster that is where transport costs are lower and where there is a strong links "backward and forward" and strong economies of agglomeration.
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5534&r=geo
  24. By: Vitor Joao Pereira Domingues Martinho
    Abstract: This study analyses, through cross-section estimation methods, the influence of spatial effects in productivity (product per worker), at economic sectors level of the NUTs III of mainland Portugal, from 1995 to 1999 and from 2000 to 2005 (taking in count the data availability and the Portuguese and European context), considering the Verdoorn relationship. From the analyses of the data, by using Moran I statistics, it is stated that productivity is subject to a positive spatial autocorrelation (productivity of each of the regions develops in a similar manner to each of the neighbouring regions), above all in services. The total sectors of all regional economy present, also, indicators of being subject to positive autocorrelation in productivity. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags (measuring spatial autocorrelation through the spatially lagged dependent variable) and spatial error (measuring spatial autocorrelation through the spatially lagged error terms), influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions. The results obtained for the two periods are different, as expected, and are better in second period, because, essentially, the European and national public supports (Martinho, 2011).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5578&r=geo
  25. By: Vitor Joao Pereira Domingues Martinho
    Abstract: With this study we want to test the validity of the well known "Verdoorn's Law" which considers the relationship between the growth of productivity and output in the case of the Portuguese economy at a regional and sectoral levels (NUTs II) for the period 1995-1999. The importance of some additional variables in the original specification of Verdoorn's Law is also tested, such as, trade flows, capital accumulation and labour concentration. The main objective of the study is to confirm the presence of economies to scale that characterise the polarisation process with cumulative causation properties, explaining regional divergence. By introducing new variables to the original specification of Verdoorn's Law we intend to examine how the economies to scale are influenced by the consideration of factors related to the Polarisation (Keynensian tradition) and Agglomeration (spatial economics tradition) phenomena. The results obtained from the regression analysis based on panel estimation show that the original specification of Verdoorn's Law is more robust and confirm the presence of increasing economies to scale at both, regional and sectoral levels. However, the additional variables related to trade flows, capital accumulation and labour concentration have few influence on the performance of economies to scale (1)(Martinho, 2011).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5548&r=geo
  26. By: Vitor Joao Pereira Domingues Martinho
    Abstract: This study analyses, through cross-section estimation methods, the influence of spatial effects and human capital in the conditional productivity convergence (product per worker) in the economic sectors of NUTs III of mainland Portugal between 1995 and 2002. To analyse the data, Moran's I statistics is considered, and it is stated that productivity is subject to positive spatial autocorrelation (productivity develops in a similar manner to productivity in neighbouring regions), above all, in agriculture and services. Industry and the total of all sectors present indications that they are subject to positive spatial autocorrelation in productivity. On the other hand, it is stated that the indications of convergence, specifically bearing in mind the concept of absolute convergence, are greater in industry. Taking into account the estimation results, it is stated once again that the indications of convergence are greater in industry, and it can be seen that spatial spillover effects, spatial lag (capturing spatial autocorrelation through a spatially redundant dependent variable) and spatial error (capturing spatial autocorrelation through a spatially redundant error term), as well as human capital, condition the convergence of productivity in the various economic sectors of Portuguese region in the period under consideration (Martinho, 2011).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5571&r=geo
  27. By: Vitor Joao Pereira Domingues Martinho
    Abstract: This paper pretends to analyze the importance which the natural advantages and local resources are in the manufacturing industry location, in relation with the "spillovers" effects and industrial policies. To this, we estimate the Rybczynski equation matrix for the various manufacturing industries in Portugal, at regional level (NUTS II) and for the period 1980 to 1999. Estimations are displayed with the model mentioned and for four different periods, namely 1980 to 1985, from 1986 to 1994, from 1980 to 1994 and from 1995 to 1999. The consideration of the various periods until 1994, aims to capture the effects of our entrance at the, in that time, EEC (European Economic Community) and the consideration of a period from 1995 is because the change in methodology for compiling statistical data taken from this time in Portugal. As a summary conclusion, noted that the location of manufacturing in Portugal is still mostly explained by specific factors, with a tendency to increase in some cases the explanation by these factors, having the effect "spillovers" and industrial policies little importance in this context.
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5558&r=geo
  28. By: Vitor Joao Pereira Domingues Martinho
    Abstract: This work aims to test the Verdoorn Law, with the alternative specifications of (1)Kaldor (1966), for five regions (NUTS II) Portuguese from 1986 to 1994 and for the 28 NUTS III Portuguese in the period 1995 to 1999. Will, therefore, to analyze the existence of increasing returns to scale that characterize the phenomena of polarization with circular and cumulative causes and can explain the processes of regional divergence. It is intended to test, even in this work, the alternative interpretation of (2)Rowthorn (1975) Verdoorn's Law for the same regions and periods. The results of this work will be complemented with estimates of these relationships to other sectors of the economy than the industry (primary and services sector), for each of the manufacturing industries operating in the Portuguese regions and for the total economy of each region (3)(Martinho, 2011).
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1110.5544&r=geo

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