nep-geo New Economics Papers
on Economic Geography
Issue of 2011‒11‒14
43 papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Intra firm and extra firm networks in the German knowledge economy. Economic development of German agglomerations from a relational perspective By Michael Bentlage; Alain Thierstein; Stefan Lüthi
  2. Agglomeration, Congestion, and Regional Unemployment Disparities By Ulrich Zierahn
  3. Types of competitiveness of Hungarian regions: agglomeration economies and endogenous regional development By Imre Lengyel
  4. Moving from the central city: features, destinations, causes and consequences of city dwellers' flight By Sabrina Iommi; Patrizia Lattarulo
  5. Evolution of Regional Disparities in Romania – A Shift-share Analysis By Mihaela-Nona Chilian
  6. Economic convergence: a regional and subregional view By Manuel Pérez Montiel; Gislaine Cristina de Souza Rech; Judite Sanson de Bem
  7. A spatial approach to EU regional economic convergence: a comparison between parametric and non-parametric analysis. By Cristina Brasili; Francesca Bruno; Annachiara Saguatti
  8. Regional Disparities and the Performance of Peripheral Regions in Turkey By Ferhan Gezici
  9. Within and Between Panel Cointegration in the German Regional Output-Trade-FDI Nexus By Timo Mitze
  10. Analysis of Industrial Agglomeration Patterns: An Application to Manufacturing Industries in Japan By Tomoya Mori; Tony E. Smith
  11. Potential and Spatial Structure of Population By Yuri Yegorov
  12. Towns in the regional policy of activation of peripheral areas – choosing problems – the case of northern Poland By Jacek Sołtys
  13. Role of Spatial Dispersion of Creative Capital for Understanding Regional Differences in Spain By EBRU KERIMOGLU; CAN KARAHASAN
  14. A spatial panel data version of the knowledge capital model By Christian Sommeregger; Christoph Hammer; Daniel Bekesi; Matthias Koch
  15. Clusters as a vehicle for regional development – The case of Lublin Region. By Ewa Bojar; Matylda Bojar
  16. Productivity growth in the Old and New Europe: the role of agglomeration externalities By Raffaele Paci; Emanuela Marrocu; Stefano Usai
  17. Indicators and methods for spatial cohesion research: difficulties and challenges in low-density regions By Hector Martinez Sanchez-Mateos; Felix Pillet Capdepon; Maria del Carmen Cañizares Ruiz; Angel Raul Ruiz Pulpon; Julio Plaza Tabasco; Jesus Francisco Santos Santos
  18. Urban spatial structure and economic growth in Spanish metropolitan areas By Emili Tortosa-Ausina; Luisa Alamá; Ana M Fuertes-Eugenio; Marta Roig-Casanova
  19. Evaluating EU Regional Policy: Many Empirical Specifications, One (Unpleasant) Result By Philipp Breidenbach; Timo Mitze; Christoph Schmidt
  20. On specifying heterogeneity in knowledge production functions By Giovanni Guastella; Frank van Oort
  21. Accumulation of education and regional income growth: Limited human capital effects in Norway By Hildegunn Stokke; Jørn Rattsø
  22. Do Regions with Entrepreneurial Neighbors Perform Better? A Spatial Econometric Approach for German Regions By Katharina Pijnenburg; Konstantin A. Kholodilin
  23. Job decentralization and transportation use in a monocentric city By Vincent Breteau; Fabien Leurent
  24. The Long-run Growth Trajectories of Third Italy's Cities By Antonio G. CALAFATI
  25. How can we deal with the contemporary places and spaces of new industries? A planner’s perspective. By Simonetta Armondi
  26. The distribution of the economic activity in the Mediterranean axis. Identification of cluster by sectors of economic activity. By Fernando A López; Ana Angulo; Andrés Artal
  27. Creative workers and regional development. Towards a classification of spatial effects By Antonio Russo; Alan Quaglieri Domínguez
  28. A Spatial related Note on Entrepreneurship and Economic Growth By Torben Klarl
  29. Estimating and Forecasting with a Dynamic Spatial Panel Data Model By Badi H. Baltagi; Bernard Fingleton; Alain Pirotte
  30. Regional Determinants of Entrepreneurship in a Small Economy: Panel Data Evidence from Scotland. By Andrew Ross
  31. Short run dynamics of income disparities and regional cycle synchronization By Hasan Engin Duran
  32. Cycles inside cycles: Spanish regional aggregation By Ana Gomez Loscos; M. Dolores Gadea; Antonio Montañes
  33. Does Globalization affect Regional Growth? Evidence for NUTS-2 Regions in EU-27 By Richard Sellner; Wolfgang Polasek
  34. Urban agglomeration and the aggregate economic growth By Domingo Pérez Ximénez-De-Embún; Marcos Sanso
  35. Time series and spatial interaction: An alternative method to detect converging clusters By Stilianos Alexiadis; Matthias Koch; Tamás Krisztin
  36. Spatial Strategic Interaction on Public Expenditures of The Northern Portuguese Local Governments By Barreira, Ana
  37. Territorial context in the research on the EU cohesion. One-speed or multi-speed Europe? By Mariusz Sokołowicz
  38. Estimates of the impact of static and dynamic knowledge spillovers on regional factor productivity By Manfred M. Fischer; James P. LeSage
  39. Detecting the Growth Pattern(s) of the EU Border Regions: A Convergence Clubs Approach. By Dimitris Kallioras; Panagiotis Artelaris; Lefteris Topaloglou; Maria Tsiapa
  40. Models of Spatial Competition: A critical review By Ricardo Biscaia; Isabel Mota
  41. Modeling the growth effects of regional knowledge production: The GMR-Europe model and its applications for EU Framework Program policy impact simulations By Attila Varga; Péter Járosi; Tamás Sebestyén
  42. Market Potential and Regional Disparities in Turkey By Fatma Dogruel; A. Suut Dogruel; B. Can Karahasan
  43. THE ROLE OF TERRITORIAL COHESION AS THE BASIS OF EUROPEAN SPATIAL PLANNING By Berezi Elorrieta

  1. By: Michael Bentlage; Alain Thierstein; Stefan Lüthi
    Abstract: Flows and inter-linkages between and within polycentric metropolitan regions have become a fundamental topic in regional sciences. The knowledge economy as a primary driver of spatial restructuring is forming these relations by generating knowledge within a spatially fine graded division of labor. This process drives companies to cooperate in intra firm and extra firm networks which in turn evoke patterns of interdependent spatial entities. The aim of the paper is twofold. Firstly, we analyze spatial patterns within these firm networks and secondly we combine this network approach with the development of the economic and spatial structure of German agglomerations. Inspired by formal social network analysis and spatial association statistics we apply methods to discover spatial clustering within relational data. We assume that relations between and within polycentric Mega-City Regions in Germany and its neighboring areas constitute a new form of hierarchical urban systems. Network analysis will help to detect locations of high centrality; cluster analyses of location-based data may show specific regional patterns of connectivity. We hypothesize that the position of locations within the functional urban hierarchy depends on the spatial scale of analysis: global, European, national or regional. Furthermore, we combine this relational perspective with an analysis of the economic development within these spatial entities. Here we assume that intensive interaction between functional urban areas has a high influence on their performance over time with regard to output indicators like labor, value-added and gross domestic product. Therefore we apply methods of spatial and network autocorrelation. We hypothesize that relational proximity influences economic development more intensively than effects of agglomeration and geographical proximity do.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p998&r=geo
  2. By: Ulrich Zierahn
    Abstract: Regional labor markets are characterized by huge disparities of unemployment rates. Models of the New Economic Geography explain how disparities of regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by introducing a wage curve based on efficiency wages into the New Economic Geography. The model shows how disparities of regional goods and labor markets endogenously arise through the interplay of increasing returns to scale, transport costs, congestion costs, and migration. In result, the agglomeration pattern might be catastrophic or smooth depending on congestion costs. The transition between both patterns is smooth.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p303&r=geo
  3. By: Imre Lengyel
    Abstract: Nowadays, more and more scholars of regional science are interested in the role of agglomeration economies in the knowledge-based economy. This issue can be dealt with from different points of view: the competitive type of functional or nodal regions and one has to examine the factors influencing regional competitiveness. To improve competitiveness of regions, different economic development programmes must be applied, which means that the improvement of competitiveness requires different strategies based on the different types of regions. In this paper we outline our analytical framework: the pyramid model of regional competitiveness and the UFO-model of cluster-based regional economic development. After introducing, we are going to investigate into the competitiveness of Hungarian microregions (LAU1). Our statistical analysis to underline the classification of microregions by competitiveness types is based on a complex methodology of multi-variable data analysis. For the investigation of agglomeration economies in these different types of microregions we apply the location quotient (LQ) method and Ellison-Glaeser-index of traded sectors. The Local Moran Index (LISA), which can be interpreted as the local index of spatial autocorrelation, is used to calculate the neighbourhood effects of the microregions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p674&r=geo
  4. By: Sabrina Iommi; Patrizia Lattarulo
    Abstract: Cities have recently been affected by important changes both as regards their role in general economic growth and their spatial structure. As for the first issue, market globalisation has heightened territorial competition and cities, as places with a concentration of economic activities and workers and potential cradles of innovation, have found a new leading role in determining the future development of the regions and nations they belong to; as for the second issue, improvements in transportation and communication systems have reduced the necessity for proximity, thus leading to a new urban form which has been given many labels (low-density city, scattered city, dispersed city, exploded city, urban sprawl, etc.), but has clearly lost two traditional urban aspects: the territorial concentration of the population and economic activities and the certainty of city boundaries, intended both in physical and administrative terms. The last item is particularly important in territorial contexts, like in Italy, characterised by a large number of small local governments: in fact the spillover of cities from their traditional boundaries has provoked a twofold negative effect, that is, growing difficulties in understanding and in managing urban problems and opportunities. Keeping the described context as a framework, this paper aims to analyse the population movements that affected the chief regional city of Tuscany over a ten-year period (more precisely 1998-2008), in order to deduce their related causes and effects. The model developed was based on microeconomic data and connected the individual characteristics of the people leaving Florence (i.e. age, level of education, family size and composition) to the economic and territorial features of the places of destination (i.e. distance from Florence, real estate prices, social composition and functional mix). This application, based on an ordinarily little used data set, gave statistical evidence to residential choices and some measures of rental effects and search of amenities on urban sprawl. This insight could be reach of political implications. Given the subject-matter, the paper refers both to the literature on causes and patterns of residential mobility and to the one on causes and consequences of urban sprawl.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p786&r=geo
  5. By: Mihaela-Nona Chilian
    Abstract: The paper aims to assess the evolution of the development disparities (output, employment, overall and by sectors) in the regions and counties of Romania. Using classic and spatial shift-share analysis tools, we investigate the extent to which the existing interregional and, especially, intra-regional and inter-county inequalities can be attributed to different factors, such as industry mix, regional specific factors, and interregional interactions. The results reveal a diverse milieu and offer useful insights both for general and specifically targeted policies in the area of regional development. Keywords: Romanian regions, regional disparities, shift-share analysis, regional development JEL Classification: O18, R11, R12, R15
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p827&r=geo
  6. By: Manuel Pérez Montiel; Gislaine Cristina de Souza Rech; Judite Sanson de Bem
    Abstract: Economic convergence: a regional and subregional view Manuel Pérez Montiel Gislaine Cristina de Souza Rech Judite Sanson de Bem The study of economic convergence among nations is based on the initial work of Barro and Sala-i-Martin (1991), a topic of spatial econometric analysis Recently, research on economic convergence have been directed towards smaller spatial scales: regions in a country and urban regions and microregions in a Region. Economic convergence is a structural process, which occurs in the long term. The availability of comprehensive information and accurate for very long periods of time, and new processing techniques of spatial information,allows to study of economic convergence processes from a more detailed view. In this paper it is postulated that the processes of economic convergence, regional and subregional level, are produced according to different models. It tries to identify these different patterns of economic convergence within a nation or a region. We show, first, a model that identifies the different types of convergence that may occur simultaneously in the process of economic convergence of the spatial units of a region or sub-areas of a region. We study the dynamics of population and GDP in each subarea and shows how the convergence process can take place according to different guidelines. To Implement the model we can use two types of tools: a) the statistical treatment of available databases detailed spatial scale-provinces, urban regions and cities. b) the generation of graphs and maps with GIS tools. The model presented in this document is tested by applying it to the process of economic convergence in the long term in Spain, on the study period 1957 - 2006 and as spatial units, the provinces. For the period 1957 to 1991, we use the publications of the studies service of Banco de Bilbao on Spain's national income and its regional distribution. for the period 1986-2006 we use the statistical series of the National Institute of Statistics. Results show that economic convergence in Spain has occurred following different patterns. Keywords: Convergence, Regional and Subregional Scales, GIS. Regional GDP and Population
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p712&r=geo
  7. By: Cristina Brasili; Francesca Bruno; Annachiara Saguatti
    Abstract: The economic convergence among European regions over the period 1980-2006 is analysed in the first place by using a conditional β-convergence model and a distance-based weight matrix and secondarily by a spatially-conditioned stochastic kernel approach. A Spatial Autoregressive model which identifies two spatial regimes and spatial dependence finds that the convergence process is affected by polarization into two clusters defined both on a geographical and economic criterion, which converge at different rates towards different steady states. A similar result is then reached through a non-parametric analysis of the income distribution dynamics. These results confirm the hypothesis that a methodology which uses spatial econometric techniques is needed. They also suggest some implications for EU Regional Policy that should be taken into account.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1271&r=geo
  8. By: Ferhan Gezici
    Abstract: The aim of this paper is to analyse interregional disparities and the performance of peripheral/less-developed regions in Turkey regarding the current tools of regional policies. During the planning period in Turkey, two main goals are defined as ‘maximizing national income' on the one hand, and ‘reducing interregional disparities' on the other. In 2002, in order to establish the statistical database harmonized with the regional statistical system of EU, classification of NUTS regions has been completed. After that, the State Planning Organization (SPO) prepared a “Regional Development Strategy, Objectives and Operational Programs†especially for the 10 Level-2 regions which are mostly less developed regions and located in the east, as a road map in order to direct regional development activities in Turkey. Later, Development Agencies in the center of NUTS regions were established to facilitate development objectives of the regions. The aim of this paper is to re-examine the regional disparities under the light of the new process. Mostly the studies on regional disparities considered economic dimension and the results indicate that the distribution of GDP per capita highlights the eastern-spatial peripherality of regional development pattern in Turkey. Previous study of author emphasizes two significant points for regional policies. First, there is evidence of a strengthening of a two-regime spatial division in the country; secondly, there would appear to be little evidence of positive spill-overs from the more-developed to the less-developed parts of the country. Therefore, in this paper, evolutions of regions in terms of their performances will be examined since 1980. The main questions of the paper are: “which regions can be defined as winners and losers?â€Â, “is there any differentiation among less developed regions?â€Â. Furthermore, we try to explore the factors which underlay the aggregate trends of the regions in Turkey, since we know the importance of region-specific policies. The findings of the analyses would be discussed with respect to new regional policies in Turkey.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p147&r=geo
  9. By: Timo Mitze
    Abstract: For spatial data with a sufficiently long time dimension, the concept of global cointegration has been recently included in the econometrics research agenda. Global cointegration arises when non-stationary time series are cointegrated both within and between spatial units. In this paper, we analyze the role of globally cointegrated variable relationships using German regional data (NUTS 1 level) for GDP, trade, and FDI activity during the period 1976-2005. Applying various homogeneous and heterogeneous panel data estimators to a Spatial Panel Error Correction Model (SpECM) for regional output growth allows us to analyze the short- and long-run impacts of internationalization activities. For the long-run cointegration equation, the empirical results support the hypothesis of export- and FDI-led growth. We also show that for export and outward FDI activity positive cross-regional effects are at work. Likewise, in the short-run SpECM specification, direct and indirect spatial externalities are found to be present. As a sensitivity analysis, we use a spatial weighting matrix based on interregional goods transport flows rather than geographical distances. This scheme thus allows us to address more soundly the role of positive and negative effects of trade/FDI on output activity for a system of interconnected regions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1258&r=geo
  10. By: Tomoya Mori (Institute of Economic Research, Kyoto University); Tony E. Smith (Department of Electrical and Systems Engineering, University of Pennsylvania)
    Abstract: The standard approach to studying industrial agglomeration is to construct summary measures of the “degree of agglomeration” within each industry and to test for significant agglomeration with respect to some appropriate reference measure. But such summary measures often fail to distinguish between industries that exhibit substantially different spatial patterns of agglomeration. In a previous paper, a cluster-detection procedure was developed that yields a more detailed spatial representation of agglomeration patterns (Mori and Smith [28]). This methodology is here applied to the case of manufacturing industries in Japan, and is shown to yield a rich variety of agglomeration patterns. In addition, to analyze such patterns in a more quantitative way, a new set of measures is developed that focus on both the global extent and local density of agglomeration patterns. Here it is shown for the case of Japan that these measures provide a useful classification of pattern types that reflect a number of theoretical findings in the New Economic Geography.
    Keywords: Industrial Agglomeration, Cluster Analysis, Spatial Patterns of Agglomerations, New Economic Geography
    JEL: C49 L60 R12 R14
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:kyo:wpaper:794&r=geo
  11. By: Yuri Yegorov
    Abstract: The goal of this work is to suggest a mechanism explaining different spatial patterns of residential locations. The basic idea is counterbalance of centripetal and centrifugal forces. This paper complements the previous author's works in this area. This article addresses the following questions: a) agglomeration potential, b) optimal city size, c) equilibrium agricultural density, d) influence of agglomeration on land rent. Both relative location and size distribution of cities and residential patterns in agricultural areas represent interesting objects of study. There exist two main forces, centripetal (agglomeration) and centrifugal (congestion) that shape urban areas. The origin of agglomeration forces is in scale economies, while congestion forces represent a cumulative negative externality from such agglomeration. Following the stylized facts about different production technologies, it is assumed that agricultural technology creates dispersion force (through intensive land use), while industrial technology creates agglomeration force. It is possible to find the optimal city size assuming some scale economies in production counterbalanced by commuting costs. Location heterogeneity is balanced across residents via location rent to bring identical utility. There might be two possibilities: finite optimal size (for low scale economies) and infinitely large city (for high scale economies). The rural community of farmers is also considered. Here the average distance to neighbor (as a proxy to market access) is balanced with the benefits from land ownership. The optimal rural population density is the point maximizing this potential. Finally, the spatial equilibrium is constructed. It consists of discrete cities of optimal size attracting certain fraction of the population and the continuous farmland between them. The concept of potential for agro-industrial cluster is also introduced. It is assumed that rural resident has an access to scale economies in production of a city via commuting, and also has land slot for agricultural activity. There exists equilibrium land rent giving agents identical utility.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p110&r=geo
  12. By: Jacek Sołtys
    Abstract: In Polish regions there are big differences of the level of development between metropolitan areas (and others surroundings of big cities) and peripheral ones. These differences refere also to the factors and chances of development – in the peripheral areas there are little of them. What could help the activation of those areas is the development of some of the cities, including the localization of the investments. But the development usually requires the support of regional politics resources. In the area of the authors' interests there are problems of regional politics, 1) Which cities should be supported to activate the best peripheral areas of the regions? 2) What kind of transformations of the city space should be supported as part of that politics? Author analyses the problems and relations presented above and designs scenarios of activation of the chosen peripheral areas of provinces in northern Poland.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1688&r=geo
  13. By: EBRU KERIMOGLU; CAN KARAHASAN
    Abstract: It has been argued that ‘creative class’ as a source of growth has gained increasing attention in recent years. According to Florida, a main factor in explaining creativity driven growth is the locational choice of creative people. This research investigates the spatial distribution of creative capital and its effects on regional disparities by considering geographic differences of human capital and employment. First we analyze the dispersion of creative capital related with the dispersion of employment, human capital and regional inequalities. Second, this dispersion is tried to be used as a possible factor behind the differences in Spain. There are high regional differences in terms of creative employment endowments and this picture is persistent for year 1996 and 2004. Results indicate that for both 1996 and 2004 creative employment is spatially dependent. Since this finding only gives clues at a very general level (global in this sense) its decomposition can increase the information set regarding the dispersion of creative employment at the local level. Findings also indicate that there are hot spots in mostly the north eastern geography of Spain. Creative capital is spatially unequal. In line with central aim of this research, our central concern is to carry out this discussion towards the relationship between this unequal pattern and general regional differences in Spain. There is similarity between the geographical patterns in regional inequalities and creative employment endowments. According to the objectives, models containing valuable information about regional development differences in Spain are constructed for year 2004. Models show that creative employment is influencing the differences in regional per capita income in Spain. Finally, it is interesting that in the final model, once we control for the human capital development level of the population for each provinces, creative capital (as well as sectoral composition) fails to explain the regional income differences. In short results of the final model should not be regarded as the insufficiency of the creative capital to explain regional differences; rather it should be remarked that human capital development is dominating the impact of the creative capital.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p697&r=geo
  14. By: Christian Sommeregger; Christoph Hammer; Daniel Bekesi; Matthias Koch
    Abstract: This paper attempts to analyze the impact of knowledge and knowledge spillovers on regional total factor productivity (TFP) in Europe. Regional patent stocks are used as a proxy for knowledge, and TFP is measured in terms of a superlative index. We follow Fischer et. al (2008) by using a spatial-spillover model and a data set covering 203 regions for six time periods. In order to estimate the impact of knowledge stocks we use a spatial autoregressive model with random effects, which allows for three kinds of spatial dependence: Spatial correlation in the innovations, the exogenous and the endogenous variables. The results suggest that there is a significant positive impact of knowledge on regional TFP levels, and that knowledge spills over to neighboring regions. These spillovers decay exponentially with distance at a rate of 8%. Using Monte Carlo simulations we calculate the distribution of direct and indirect effects. The average elasticity of a region's TFP with respect to its own knowledge stock is 0.2 and highly significant. The average effect of all other regions' TFP is about 50% higher, which confirms that the cross-country externalities are important in the measuring of the impact.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p727&r=geo
  15. By: Ewa Bojar; Matylda Bojar
    Abstract: Clusters are a specific form of spatial organization of various sectors of industry and services regarded as the most mature form of organization of production in the post-industrial era. Research on existing cluster structures clearly demonstrates that clusters can be an important drive of regional development. Clusters have positive influence on the other sectors of local and regional economy and significantly contribute to the development of their international competitive advantage. The clusters through external effects, such as technological spill-over, affect the other sectors of local and regional economy and thus lead to increasing their international competitive advantage. Even the cluster-like structures by many are viewed as stimulators of regional development capable to contribute significantly to the growth of export and attract considerable amounts of foreign investments. Cooperation within the cluster structures can produce a wide array of synergy effects and thus cluster participants can benefit even more. Cooperation within the framework of clusters is particularly advantageous to small and medium-sized enterprises; they can combine their innovative potential, team up and apply for external funds more effectively. The concept of clusters represents an important step towards explaining the reasons for unequal distribution of economic activities in space and resultant disparities in economic development between various regions. A groundbreaking model of clusters based on the triple helix of science, business and government has determined new approach to stimulating innovation in order to alleviate regional disparities and ensure sustainable hi-tech regional development. The paper explores clusters as a crucial concept in modern management and contemporary economic development theories and discusses selected factors shaping clustering processes.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p59&r=geo
  16. By: Raffaele Paci; Emanuela Marrocu; Stefano Usai
    Abstract: The recent history of Europe is characterized by a dual picture showing the Old and New countries in sharp contrast with respect to their industrial specialisation and economic performance. We aim at analyzing the intertwined performance of regions and industries in New and Old European economies by investigating the effects of local agglomeration externalities (mainly specialisation and diversity externalities) on total factor productivity dynamics. We also analyse the potential influence of regional intangible assets such as human and technological capital. The econometric analysis makes use of spatial econometric techniques to take into account the possibility of cross-border externalities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p200&r=geo
  17. By: Hector Martinez Sanchez-Mateos; Felix Pillet Capdepon; Maria del Carmen Cañizares Ruiz; Angel Raul Ruiz Pulpon; Julio Plaza Tabasco; Jesus Francisco Santos Santos
    Abstract: Previous research carried out by this same authors went through the analysis of data sources and their potential to apply the polycentrism approach to territories where the urban features is weak (specifically in Castilla-La Mancha, Spain). Lately, several hubs were identified as potential centres and sub-centres in a regional articulation, helping out to delimitate accurately the map of polycentrism and Functional Urban Areas (FUAs) for each of them. Currently, we hope to depict those FUAs, highlighting the spatial cohesion, and looking for a better geographical knowledge, in accordance with current European standards. The most common methods to characterize functional areas used to be linked with numerous variables, demographic and economic, usually available and updated. Nevertheless, to go deepen is a difficult task because the broad range of indicators involved and the outcomes of recent dynamics. The specific aim of this paper is reviewing methodologies and datasets sources frequently used in the spatial evaluation, stressing those which focus less populated or dispersed areas. The analysis is driven by the difficulty to effectively assess what spatial cohesion is and how can it be measured, especially in these zones where this concept is crucial to understand the regional development.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1517&r=geo
  18. By: Emili Tortosa-Ausina; Luisa Alamá; Ana M Fuertes-Eugenio; Marta Roig-Casanova
    Abstract: There is a large literature on the existence of agglomeration economies, as shown in the surveys by Moomaw (1983) or Gerking (1993). The benefits of these economies arise from multiple sources, but some negative externalities might also emerge. Within the hierarchical urban system, cities at different ranks (different size) take on different economic functions with variant 'efficient sizes' (Capello and Camagni, 2000) and, indeed, the distributions of cities' relative size have been stable in many countries (Black and Henderson, 1999; Eaton and Eckstein, 1997; Nitsch, 2005) and, in many cases they obey the Zipf's law (Gabaix, 1999). If a city is able to adjust its spatial structure to offset the negative exter- nalities due to its size, it will be able to keep growing. If that is not possible, it might be more convenient to transit from a monocentric to a polycentric structure, which is usually considered as a possible strategy to eliminate diseconomies in urban economics (Sasaki and Mun, 1996; Fujita et al., 1997). However, there is little empirical evidence on the links between urban spatial structure and growth---which are usually understood within the context of urban evolution. One notable exception is the study by Cervero (2001), where it is argued that more compact, centralized and accessible cities are usually associated with higher productivity levels. In this context, this paper explores the links between urban spatial structure and economic growth in metropolitan areas in Spain, where this type of analysis is virtually non-existent. However, it is a relevant policy issue due to a variety of reasons such as the increased urban sprawl and the different costs it brings about. The analysis will also enable to evaluate if there is any particular type of urban spatial structure which prevails on the grounds of its superior efficiency, together with evaluating if an efficient urban spatial structure hinges on the size and other attributes specific to each particular metropolitan area.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1703&r=geo
  19. By: Philipp Breidenbach; Timo Mitze; Christoph Schmidt
    Abstract: Numerous studies have focused on the role of EU regional policy in fostering growth and convergence among European regions, why conducting another one? We argue that two facts are still lacking in the actual academic debate in order to get a sound empirical identification strategy and reliable results: First, one should take the theoretical underpinnings of regional growth models more serious, and second, a likewise careful account of the role of spatial dependence in the underlying data is needed. Though research has increasingly become aware of the latter point as important control factor for regional heterogeneity and omitted variables, in empirical operationalization still the ad-hoc inclusion of a hardly interpretable ‘catch-all’ spatial lag term of the endogenous variable is the first choice. We rather follow the lines of new theoretical and empirical approaches aiming at directly quantifying interregional spillovers associated with the amount of funds granted to lagging regions and their neighborhood. The dataset includes 127 NUTS1/-2 regions within the EU15 over the decade 1997-2007. In the spotlight of the investigation are the Objective 1 payments which are provided for lagging regions with a GDP p.c. of less than 75% of the EU average. These payments shall represent the main instrument to fulfill the central aim of European regional policy, the boost of convergence and harmonic growth over the EU. They represent about two third of the whole European cohesion policy. In our estimations we run a neoclassical convergence model in mainly four different specifications. On the one hand we separate in the aspatial and spatial models. On the other hand we run additive and multiplicative applications in order to consider the right coefficient interpretations. We estimate the model in various econometric specifications to point out the effectiveness of these funding. Our results all hint to the unpleasant result that EU structural funds objective 1 funding has a remarkably little or even negative direct impact on regional growth within the EU15. The spatial funding effects turn into negative significance in the most model specifications.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1144&r=geo
  20. By: Giovanni Guastella; Frank van Oort
    Abstract: Within the Geography of Innovation literature, the Knowledge Production Function approach has become a reference framework to investigate the presence of localized knowledge spillovers and spatial econometric tools have been applied to study interregional spillovers. A linear specification for the KPF is assumed linking patents to R&D expenditure. This approach however suffers of different drawbacks. First patent applications are count data in nature. Patents per inhabitants may produce an unrealistic picture of the spatial distribution of innovative activities. Secondly, spatial heterogeneity is not usually observed, producing both omitted variables bias and spatial correlation in the error structure. Third, a positive R&D-patents linkage may arise as a spurious correlation if market size is not observed, causing R&D to be endogenous. This paper uses a regional cross section model to study the spatial distribution of high tech patents across 232 European regions in the period 2005/2006 to address these issues. Two main processes drive technological change in the model: research activities and knowledge generated outside firms and in a second moment embedded through either formal or informal acquisition. Among the different knowledge sources we particularly focus on the role of firms working in Knowledge Intensive Business Services and on that of universities. In developing the empirical model we take into account that a) patents are count data; b) the exclusion of market size will cause biased and inconsistent model parameters estimates; c) estimates of interregional spillovers may be biased by the omission of heterogeneity in the model specification. Empirical results indicate that, as expected, a count data distribution best fits the data, producing less spatially autocorrelated residuals. Regional innovative activity is explained by both investments in research and localization of KIBS, but only the first generates positive interregional externalities. Scientific universities do not directly affect the production of new knowledge. However, different knowledge production processes characterize regions with and without scientific universities, with R&D driving innovation in the sooner and KIBS in the latter. Finally, most of what are assumed to be interregional spillovers reveal to be, at a more careful inquiry, effect due to unaccounted spatial heterogeneity in regional innovation.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1114&r=geo
  21. By: Hildegunn Stokke; Jørn Rattsø
    Abstract: Accumulation of education and geographic concentration of educated people in cities are expected to generate urban income growth. New economic geography predicts income divergence across regions. We investigate the dynamic process of accumulating tertiary education and regional income growth in Norway during the past four decades. The expansion of smart cities goes along with catching up of education level in the periphery and overall the education levels converge. Income levels also are shown to converge in distribution analysis using Kernel functions and first order Markov chains. However, the movements in the income distribution are unrelated to the accumulation of education. The hypothesis of equal income transition probabilities across subgroups of regions with different increases in education cannot be rejected. We conclude that accumulation of education has not been important for the pattern of income growth. Catching up from low income is not driven by education and income growth has not taken off in cities with increasing education level.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p460&r=geo
  22. By: Katharina Pijnenburg; Konstantin A. Kholodilin
    Abstract: We use a neoclassical production function to analyze the effects of knowledge spillovers via entrepreneurship on economic performance of 337 German districts. To take the spatial dependence structure of the data into account, we estimate a spatial Durbin model. We highlight the importance of the choice of the appropriate weight matrix. We find positive knowledge spillover effects via entrepreneurship within a certain region. Between regions, entrepreneurship as a vehicle by which knowledge spills over and contributes to economic performance depends largely on the choice of the weight matrix. We see this as evidence for regionally bounded knowledge spillover effects via entrepreneurship.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p58&r=geo
  23. By: Vincent Breteau (LVMT - Laboratoire Ville, Mobilité, Transport - Université Paris-Est - Ecole des Ponts ParisTech - IFSTTAR, CGDD - Commissariat Général au Développement Durable - Ministère de l'Ecologie, du Développement Durable, des Transports et du Logement); Fabien Leurent (LVMT - Laboratoire Ville, Mobilité, Transport - Université Paris-Est - Ecole des Ponts ParisTech - IFSTTAR)
    Abstract: Our objective in this paper is twofold: first, we want to give a theoretical founding to empirical findings of several works that emphasize the fact that while distance traveled increases with household location distance from the city center, transportation time tends to decrease, thus offering a strong incentive to sprawl. Second, we want to analyze the impact of job dispersal on city size, overall distance traveled and transportation cost, along with other urban variables, and spatial equity. We therefore develop an extended monocentric model of city taking into account employment dispersal and varying unit commuting costs. Using this model, we show that under specific conditions including employment dispersal and high marginal transportation cost around city center, the distance traveled by households from home to workplace increases with their distance from the city center, while private transportation costs they endure decrease. Then, based on a surplus analysis, we show that city size moderately increases with the level of employment dispersal, while overall home-to-work distance traveled decreases, suggesting that job decentralization might entail savings in social costs of transportation. However, our findings show that such dispersal could entail spatial inequity: the households living near the city center could suffer a welfare loss.
    Keywords: Residential location; Urban Sprawl; Job decentralization; Commuting
    Date: 2011–11–01
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00637406&r=geo
  24. By: Antonio G. CALAFATI (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: The paper conducts an empirical exploration of the growth trajectories of the main cities of the Third Italy - a macro-region that has attracted much attention for its economic performances in the past decades. The findings of the extraordinary heterogeneity of city growth trajectories - a why-question still unobserved and unaddressed - will be discussed with regard to two methodological issues: firstly, the claim that macro-regional performances can be explained by macro-regional factors; secondly, the hypothesis, implicit in many studies, that the factors treated in the model as explanatory variables of macro-regional and urban economic performances remain constant over time. As the paper will show, the results of the empirical analysis question important parts of the received explanation of Third Italy's economic success, and they also prompt more general reflection on the theoretical framework to be used to study the long-run growth performances of cities.
    Keywords: Third Italy, cities' growth trajectories, cities' long-run economic performances, macro-regional performances, macro-regions
    JEL: B41 O18 O43 R11 R12
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:anc:wpaper:366&r=geo
  25. By: Simonetta Armondi
    Abstract: This paper is concerned with developing a better understanding of the dynamics that affect the relationship between industries and their geographical and spatial context at different scale in the XXI century. It shows the peculiar point of view of a planner with a focus on space and place in building the new post-crisis economic landscape.The paper states that the changing patterns of places and space of industries are a good perspective to observe – and also to criticize – the dominant narratives “at workâ€: global city-regions (Sassen 1991), space of flows (Castells 1996), creative cities (Florida 2002; Landry 2000, Evans 2009, Scott 2010), and creative industries and clusters (Comunian et al., 2010).Starting from etherogeneous italian case studies – a post industrial district, a creative cluster, an urban fashion district, etc. – it seeks to understand also and the ways in which the territories of industries and economic production are studied and represented in urban research, and to some extent in popular discourse. Castells M. (1996), The information Age: Economy, Society and Culture, Blackwell, Oxford. Comunian R., Chapain C., Clifton N. (2010), “Location, location, location: exploring the complex relationship between creative industries and placeâ€, Creative Industries Journal, 1. Evans G. (2009), “Creative Cities, Creative Spaces and Urban Policyâ€, Urban Studies, May. Florida R. (2002), The Rise of Creative Class, New York, Basic Books. Landry C. (2000), The Creative City, Earthscan. Roy A. (2009) “The 21st-Century Metropolis: New Geographies of Theoryâ€, Regional Studies 43.9. Sassen S. (1991), The Global City: New York, London, Tokyo, Princeton U. P. Scott A. J. (2010), “Cultural economy and the creative field of the cityâ€, Geografiska Annaler 2, Series B.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p610&r=geo
  26. By: Fernando A López; Ana Angulo; Andrés Artal
    Abstract: Agglomeration economies play an important role in the explanation of the development and regional growth. For this reason, there exists a growing interest in the analysis of standards of co-localisation of the economic activities. This topic has been dealt with from different approaches using a good number of technical statistics. Our proposal is to present some of the more well-known statistics usually used in epidemiology, with the objective of identifying spatial clusters of companies dedicated to the same economic activity. As such, this paper analyses the geographic distribution of economic activity throughout the Mediterranean to the smallest possible level of spatial integration (post code level). Firstly, by using exploratory analysis tools of spatial data we identify patterns of localisation of economic activity including both industrial and service areas. Secondly, by using the statistics of T. Tango (1995) and M. Kulldorff (1997) we identify clusters of businesses in distinct subsectors of activity. The information is obtained from the 'Sistema Anual de Balances Ibéricos' (SABI) database and using the National Classification of Economic Activities NCEA code to a 2 digit level. Our results highlight that great differences exist in the production geographic concentration in all sectors. Additionally, the results from our analysis also reveal that well defined groups exist within the economic sectors.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p692&r=geo
  27. By: Antonio Russo; Alan Quaglieri Domínguez
    Abstract: Using data from the Labour Force Surveys in the 2001-2008 period, this paper analyses the evolution in the distribution of “creative professions†as a share of regional workforces (at NUTS2 level), and correlates it with the evolution of p.c. GDP, in different time periods, to test the hypothesis of causal relationship between the two variables, in either direction. It then proposes a regional classification based on the spatial clustering of these effects, which highlights the existence of “national effects†and the relevance of geographical specificities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p65&r=geo
  28. By: Torben Klarl
    Abstract: A large and still growing body of literature suggests that entrepreneurship is of exceptional importance in explaining regional specific efficiencies of knowledge spillovers. Although quantifying the impact of entrepreneurial activity for economic growth is an interesting issue -- particularly at the regional level -- a consice formulation within a theoretical growth model is missing. This paper in general tries to uncover the link between own- and neighbour-related regional entrepreneurial activity in innovation and regional growth within a spatial semi-endogenous growth model in the spirit of Jones (1995) reflecting recent empirical findings on entrepreneurial activity for economic growth. The paper makes the following points: firstly, the degree of tacit knowledge spillover within the R\&D-sector is positively related to own and neigbhour-related entrepreneurial activity and secondly, for a given entrepreneur's willingness to invest in R\&D-projects the degree of tacit knowledge spillover is higher with stronger institutions. The paper derives an explicit solution for the transitional as well as for the balanced growth path level of entrepreneurs' innovative activities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p278&r=geo
  29. By: Badi H. Baltagi; Bernard Fingleton; Alain Pirotte
    Abstract: This paper focuses on the estimation and predictive performance of several estimators for the dynamic and autoregressive spatial lag panel data model with spatially correlated disturbances. In the spirit of Arellano and Bond (1991) and Mutl (2006), a dynamic spatial GMM estimator is proposed based on Kapoor, Kelejian and Prucha (2007) for the Spatial AutoRegressive (SAR) error model. The main idea is to mix non-spatial and spatial instruments to obtain consistent estimates of the parameters. Then, a linear predictor of this spatial dynamic model is derived. Using Monte Carlo simulations, we compare the performance of the GMM spatial estimator to that of spatial and non-spatial estimators and illustrate our approach with an application to new economic geography.
    Keywords: Panel data, spatial lag, error components, linear predictor, GMM, spatialautocorrelation
    JEL: C33
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:cep:sercdp:0095&r=geo
  30. By: Andrew Ross
    Abstract: This paper analyses the spatial variation of new entrepreneurial activity across 32 Scottish regions for the period 1998-2007. Entrepreneurship is widely recognised as a key determinant of economic growth, regional prosperity and sustainable development. Using data from the Value Added Tax (VAT) register, this paper estimates spatial variation in new entrepreneurial activity using a panel data model. Results show that there is considerable variation in entrepreneurship across Scottish regions and that this variation may be explained by demand and supply factors, policy and cultural factors and agglomeration benefits. Given that Scotland has recently suffered from low levels of entrepreneurship compared with other parts of the UK and similar sized smaller countries, this paper provides relevant and timely findings, as Scotland attempts to recover from the recent recession.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p848&r=geo
  31. By: Hasan Engin Duran
    Abstract: Abstract: Since the 1990s, the issue of regional income convergence and its long term tendencies has been thoroughly and heatedly discussed. Much less attention, however, has been devoted to the short-run dynamics of regional convergence. In particular, three important aspects have not yet been adequately addressed. Firstly, it is indeed essential to understand whether regional disparities manifest a tendency to move systematically along the national cycle. Then, if this happens to be the case, it becomes crucial to know whether: i. these movements are pro- or counter-cyclical, ii. the cyclical evolution of the disparities is a consequence of differences in the timing with which the business cycle is felt in regions or it is motivated by the amplitude differences across local cyclical swings. In this paper, we shed light on these issues using data on personal income for the 48 coterminous U.S. states between 1969 and 2008. Keywords: cyclical income disparities, regional business cycles, synchronization JEL Codes: R11, E32, O18
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p937&r=geo
  32. By: Ana Gomez Loscos; M. Dolores Gadea; Antonio Montañes
    Abstract: This paper sets out a comprehensive framework to identify regional business cycles within Spain and analyses their stylised features and the degree of synchronization present among them and the Spanish economy. We show that the regional cycles are quite heterogeneous although they display some degree of synchronization that can be partially explained using macroeconomic variables. We also propose a dynamic factor model to cluster the regional comovements and Önd out if the country cycle is simply the aggregation of the regional ones. We Önd that the Spanish business cycle is not shared by the seventeen regions, but is the sum of the di§erent regional behaviours. The implications derived from our results are useful both for policy makers and analysts.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p99&r=geo
  33. By: Richard Sellner; Wolfgang Polasek
    Abstract: We analyze the influence of newly constructed globalization measures on regional growth for the EU-27 countries between 2001 and 2006. The spatial Chow-Lin procedure, a method constructed by the authors, was used to construct on a NUTS-2 level a complete regional data for exports, imports and FDI inward stocks, which serve as indicators for the influence of globalization, integration and technology transfers on European regions. The results suggest that most regions have significantly benefited from globalization measured by increasing trade openness and FDI. In a non-linear growth convergence model the growth elasticities for globalization and technology transfers decrease with increasing GDP per capita. Furthermore, the estimated elasticity for FDI decreases when the model includes a higher human capital premium for CEE countries and a small significant growth enhancing effect accrues from the structural funds expenditures in the EU.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p819&r=geo
  34. By: Domingo Pérez Ximénez-De-Embún; Marcos Sanso
    Abstract: This paper presents a theoretical approach to solve the main problems faced to explain the relationship between aggregate economic growth and the urban structure. The most significant conclusion reached is that there is a theoretical relationship between aggregate economic growth and urban concentration with an inverted-U shape. This result had been previously found in an empirical context (Henderson, 2003), but not as outcome of a theoretical model. An overlapping generations model with four different types of goods (some with both technological and local externalities) and two cities where their production could be located provides the dynamics of the movements of labor and goods across cities. The resulting system of two cities with different patterns of specialization, urban concentration and economic growth rates, makes clear how to set out the comparison of aggregate growth rates: only the aggregate growth rate between two steady states, one without migration but with trade specialization and the other after migration and specialization, makes sense. Henderson, V. (2003), The Urbanization Process and Economic Growth: The So-What Question, Journal of Economic Growth, 8, 47-71.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p884&r=geo
  35. By: Stilianos Alexiadis; Matthias Koch; Tamás Krisztin
    Abstract: In this paper an attempt is made to assess the hypothesis of re- gional club-convergence, using a spatial panel analysis combined with B-Splines. In this context, a ‘convergence-club’ is conceived as a group of regions that in the long-run move towards steady-state equilib- rium, approximated in terms of the average per-capita income. Using data for the US states over the period 1929-2005, a pattern of club- convergence is detected. The ’cluster’ of converging states is rather limited and a strong spatial component is detected.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1678&r=geo
  36. By: Barreira, Ana (University of Algarve)
    Abstract: The existence of spatial strategic interaction between neighbouring local governments is often referred in literature and identified in empirical applications for several countries. The spatial interaction in local government expenditure finds support on three theoretical explanations: spillover effects, Tiebout competition or mimicking behaviour. Identify the adequate explanation for the local government interaction is not an easy task since the reduced form of the estimated model can generate indistinguishable pattern in spatial interactions. This paper seeks to identify between those theoretical explanations what is the underlying reason for spatial interaction in public expenditures among local governments for the case of a particular sub-area of Portugal. Using differentiated model configurations and the local government expenditures of the municipalities composing the Northern Portuguese mainland, between 1998 and 2008, the paper identifies the structural model that generates the observed spatial auto-correlation in local public expenditures. Among the various theoretical reasons, only the existence of spillovers effects finds support.
    Keywords: local public expenditures; horizontal spatial interaction; spatial econometrics
    JEL: C33 H72 H73
    Date: 2011–03–31
    URL: http://d.repec.org/n?u=RePEc:ris:cieodp:2011_002&r=geo
  37. By: Mariusz Sokołowicz
    Abstract: Every European Union enlargement has deepened economical divergence between member states and their regions. However, the economic aspect of this issue is only a part of a broad scope of reasons of its internal diversity, including also social, cultural or cognitive dimensions. The history of so called “Lisbon process†and failing in achieving Lisbon aims is one of most clear examples of failures of realization one common strategy for all EU member states. Different rates of economic growth or different level of innovativeness or human capital development has made every attempt to measure and execute this processes with one “best-fit†method virtually impossible. Difficulties in measuring EU convergence, which have economic, social, territorial and other aspects are connected not only in problems emerging from the formal issues but also, or primarily, in differences between incremental processes inside EU. EU regions are repeatedly finding “different routes to the same destinationâ€. It does not mean, however there are better or worse routes, since every one emerges from different spring. In these context, regional science can derive from intellectual heritage of institutionalism, which assumes, inter alia, that historical path of development implies the way economic actors act to achieve their objectives. In a broader context, institutional environment (often shaped in the conditions of spatial proximity), not only constitutes the framework but also can be a source of new ideas and thus – it can contribute to regional competitiveness. Bearing this in mind, one must state that what can really decide about the value of the European Union, it is a variability of institutional contexts of regional development. This thesis can successfully refer to research programs aiming at measuring EU member states’ and regions’ development conditions and achievements. In other words, research program on regional development should be adapted to the specificities of the member countries and regions. The aim of this paper is to verify (referring to the institutional economics framework), to what extent the demand for capturing diversity by research methods in regional science can be reconciled with methodological regime and the need to ensure comparability of results.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1432&r=geo
  38. By: Manfred M. Fischer; James P. LeSage
    Abstract: We develop an empirical approach to examine static and dynamic knowledge externalities in the context of a regional total factor productivity relationship. Static externalities refer to current period scale or industry-size effects which have been labeled localization externalities or region-size effects known as agglomeration externalities. Dynamic externalities refer to the relationship between accumulated or prior period knowledge and current levels of innovation, where past learning-by-doing makes innovation positively related to cumulative production over time. Our empirical specification allows for the presence of both static and dynamic externalities, and provides a way to assess the relative magnitude of spillovers associated with spillovers from these two types of knowledge externalities. The magnitude of own-region impacts and other-region (spillovers) can be assessed using scalar summary measures of the own- and cross-partial derivatives from the model. We find evidence supporting the presence of dynamic externalities as well as static, and our estimates suggest that dynamic externalities may have a larger magnitude of impact than static externalities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p31&r=geo
  39. By: Dimitris Kallioras; Panagiotis Artelaris; Lefteris Topaloglou; Maria Tsiapa
    Abstract: The EU regions have been experiencing a period of unprecedented change. The ongoing (and parallel) processes of EU integration and enlargement have progressively transformed regional economies to integral parts of the emerging (European) socio-economic space, exposing them to the forces and the dynamics of a more competitive environment. Border regions, in particular, have been put in a state of flux since the re-(al)location of activities, opportunities and threats has changed over (the significance of) their role in the respective emerging (European) socio-economic map. Within the context of the aforementioned milieu, the paper aims at detecting and assessing growth determinants at the EU borderlands. This is an issue that has attracting increasing attention, especially after the creation of the Single European Market and the advent of the euro currency. However, the majority of border studies are enclaved in the “unitary case syndromeâ€Â, without providing substantial added value on border theory. Thus, the present study, following an interdisciplinary approach, compiles a spatial econometrics growth model, incorporating a series of inherent and acquired growth determinants (initial conditions). These determinants are not only quantitative (“hardâ€Â, “traditionalâ€Â) but also qualitative (“softâ€Â, “non-traditionalâ€Â), accentuating the complexity of border issues. The study area covers 349 EU NUTS III border regions, as they are specified by ESPON. The findings of the paper are going to provide valuable insight for the understanding of the determinants of growth in EU border regions, having important implications for both theory and policy-making.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p76&r=geo
  40. By: Ricardo Biscaia; Isabel Mota
    Abstract: According to Duranton (2008), the main focus of spatial economics is the location choice of the economic agents. In order to explain the location and the agglomeration of agents in certain locations, one must relax the core assumptions of the neoclassic competitive framework. According to Fujita and Thisse (2002), three alternatives emerged and had huge attention in the literature: the assumption of heterogeneity of locations, as in comparative advantage models or in pioneering static location models; the externality models, in which economic activity endogenously generates spillovers that motivates the agglomeration of the agents; the assumption of imperfect markets, implying that the agents have to interact with each other, as in spatial competition models or in the monopolistic competition approach. This review will focus on the development of spatial competition models. Specifically, the main purpose is to study models in which the location choice by firms plays a major role. Therefore, after a brief review of the roots of spatial competition models, this paper intends to offer a critical analysis over the recent developments in spatial competition modeling. The starting point is the recognition of the increased importance of this topic through the quantification of the research in this field by using bibliometric tools. After that, this study proceeds by identifying the main research paths within spatial competition modeling. Specifically, the type of strategie (Bertrand vs. Cournot competition) and its implications over location equilibria are discussed. Additionally, it is presented a comparison of the impact of the most studied assumptions in literature, that respect to the market (linear vs. circular), production costs, transportation costs, as well as the number of firms. Finally, the type of information (complete vs. incomplete) and its effects over the equilibria are also discussed.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1518&r=geo
  41. By: Attila Varga; Péter Járosi; Tamás Sebestyén
    Abstract: This paper introduces the Geographic Macro and Regional (GMR) model for NUTS-2 regions of the Euro zone. This model consists of three blocks: the TFP, the SCGE and the MACRO blocks. The model is built for impact analysis of policies targeting intangible assets in the forms of R&D, human capital and social capital. The analysis can be done both at the regional and the EU macroeconomic levels. Policy simulations on the growth impacts of the 6th European Framework Program illustrate the capabilities of the complex model system.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1426&r=geo
  42. By: Fatma Dogruel; A. Suut Dogruel; B. Can Karahasan
    Abstract: Regional disparity is one of the important characteristics of Turkish economy. The paper focuses on the explanatory power of market potential on the regional differences in Turkey. Regional divergences in wages and employment are used as the proxies for regional differences. Empirical results reveal that, under various specifications, variation in market potential is an important determinant of regional differences.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1601&r=geo
  43. By: Berezi Elorrieta
    Abstract: The European Union regional policy has undoubtedly been a key to the European integration process. Its main purpose, originally, was to correct territorial imbalances between different EU states and regions. However, cohesion policy is today one of the most important tools to develop the Lisbon Strategy objectives (closely related to economic competitiveness), in a process called by some authors the 'Lisbonisation' of EU policies. The importance recently gained as a tool to promote competitiveness has allowed 'to save' the cohesion policy from the budget cuts supported by some net contributor countries. Moreover, since the entry into force of the Treaty of Lisbon, the cohesion policy is a shared competence between the EU and Member States, which gives the Commission a right of initiative to address cohesion policy recommendations. For a better implementation of the Lisbon Strategy, a greater territorialization of the actions as well as a better territorial governance between different institutional levels are needed, since the economic competitiveness is based on optimizing the regional territorial capital and on the capacity for resource mobilization. Thus, while cohesion policy originally lacked of a territorial approach, currently it is one of the policies with higher territorial impact. Consequently, from the French approach of aménagement du territoire, it means a real operational capability on spatial planning by the EU. Through this, the Union could overcome the need of financing and the lack of competence on territorial matters. In fact, although the term 'spatial planning' is almost banned in the EU language, the influence of European level on countries and regions spatial planning is increasing. Therefore, territorial cohesion, as a more neutral and vague concept, could turn into the 'Trojan Horse' by which the EU would exercise a real European spatial planning. This paper is aimed to analyze the development of EU cohesion policy, focusing in the role that it plays nowadays in territorial matters. Indeed, the new economic and institutional context could have a great influence on its function in a near future, acting as a framework for a real European spatial planning.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1208&r=geo

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