nep-geo New Economics Papers
on Economic Geography
Issue of 2011‒12‒05
forty-nine papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Roads as Channel of Centrifugal Policy Transfer. Spatial Interactions Model Revised By Katarzyna Kopczewska
  2. Inter-regional spillovers in Fukuoka Prefecture: Using VAR model By Hiroshi Sakamoto
  3. The Center-periphery Dilemma and the Issue of Equity in Regional Development By Daniel Shefer
  4. Industrial Districts and the City: Relationships in the Knowledge Age. Evidence from the Italian Case By Augusto Cusinato; Fabiano Compagnucci
  5. The Dynamics of Economic Policy and Regional Specialization: Evidence from China¡¯s High-tech Industry By Dan Zheng
  6. On the Difficulty of Comparing the Spatial Distribution of Service Industries Across Nations: Contrasting Spain and Canada. By Fernando Rubiera Morollón; Mario Polèse
  7. Knowledge transfer inside the regional economic system: the case of eighty years of economic history of the Russian North-East By Alexander Pelyasov; Nataliya Galtseva; Igor Batsaev; Igor Golubenko
  8. Public policy for innovation and internationalisation: are they worth it? By Mariasole Bannò; Celeste Amorim Varum; Valentina Morandi
  9. Measuring the Contribution of Social Policies to Regional Inequality Dynamic in Brazil By Raul Silveira Neto; Carlos Azzoni
  10. Territorial Patterns of Innovation in Europe By Roberta Capello; Camilla Lenzi
  11. Human Capital, R&D and Productivity Convergence of European Regions. A spatial analysis of RHOMOLO's semi endogenous growth approach. By Fabio Manca; Giuseppe Piroli
  12. TRANSVERSALITY, TECHNOLOGICAL TRANSFER NETWORKS AND POLICY IMPLICATIONS: THE CASE OF REGIONAL INNOVATION POLICIES IN TUSCANY REGION (SDP 2000-2006) By Emanuele Fabbri; Luciana Lazzeretti
  13. Wage inequality in Spain: A regional perspective By Ismael Ahamdanech; Carmelo García-Pérez; Hipolito Simon
  14. RHOMOLO: A Dynamic General Equilibrium Modelling Approach to the Evaluation of the EU's Regional Policies By Ben Gardiner; Andries Brandsma; Olga Ivanova; d'Artis Kancs
  15. New Knowledge for Old Regions? The Case of the Software Park Hagenberg in the Traditional Industrial Region of Upper Austria By Gunther Maier; Michaela Trippl
  16. Regional Inequalities and Economic Downturns By Davide Furceri, Dr; Fabio Mazzola, Dr
  17. Cluster identification and analysis: Four regional cases in Spain By Jaime Del Castillo; Jonatan Paton
  18. Regional Trade and Logistics Infrastructure: A Spatial Approach By Luisa Alamá Sabater; Laura Marquez Ramos; Celestino Suarez Burguet
  19. Outcomes of territorial competition and the role of intergovernmental transfers among Mexican regions By Alejandra Trejo; Cristina Ibarra
  20. Economic Regions Based on the Agglomeration Economics: an Evaluation for the Spanish Case. By Fernando Rubiera Morollon; Ana Viñuela
  21. Entrepreneurship and cities: evidence from the post-communist world By Maksim Belitski; Julia Korosteleva
  22. The Winners' Choice: Sustainable Economic Strategies for Successful 21st Century Regions By Mark Partridge; Rose Olfert
  23. Geographic Determinants of Hi-Tech Employment Growth in U.S. Counties By Dan Rickman; Belal Fallah; Mark Partridge
  24. Comparing U.S. and European Views of University Involvement in Economic Development By Harvey Goldstein; Edward Bergman; Gunther Maier
  25. Marshallian Agglomeration Economies and Entrepreneurship: The Spanish Case By Roberto Dopeso Fernandez
  26. Ecological Inference with Entropy Econometrics: using the Mexican Census as a benchmark By Esteban Fernandez-Vazquez; Rafael Garduño
  27. Evaluation of public policies in Portuguese regional development context – a preliminary methodological approach supported in north region By Eduarda Marques Da Costa; Patricia Abrantes; Ana Louro; Paulo Morgado
  28. Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey By Serkan Degirmenci
  29. Do we follow the money? The drivers of migration across regions in the EU By Andrés Rodríguez-Pose; Tobias Ketterer
  30. Regional Input-Output Tables and the FLQ Formula: A Case Study of Finland By Anthony Flegg; Timo Tohmo
  31. The Role of Physical, Human and Social Capital in Regional Financial Development Differences: An Analysis of Turkish Provinces By Ercan Dulgeroglu; Sibel Bali Eryigit; Kadir Y. Eryigit; Filiz Gaygusuz
  32. The intriguing question of regional and territorial development in rural areas: analytical variations and Public Policy By Frederic Wallet; Andre Torre
  33. Chinese entrepreneurship in context: specialization, localization and their impact on Italian industrial districts By Fabio Sforzi; Silvia Lombardi; Flavio Verrecchia
  34. The Concentration Pattern of Manufacturing Firms in Istanbul Metropolitan Area By Ferhan Gezici; Kemal Çetin
  35. Croatian regulatory framework and actors in national regional policy By Zlatan Fröhlich
  36. The Portuguese Economic Divergence with European Union: A Call for Corporate Strategy in Light of New Economic Geography Principles By Porfírio, José
  37. TERRITORIAL CONSUMPTION MODELS – URBAN SPRAWL – (UN)SUSTAINABILITY: TIME FOR ANTI SPRAWL? By Zsuzsanna Váradi; Szilvia Kovács
  38. Impact of the High Speed Trains on the European Cities Hierarchy By Giuseppe Mazzeo
  39. Regional identities and competitiveness in a globalised environment: New challenges for Greek regions. By Anastasia Nikoli; Fotini Zigouri
  40. Review of Higher Education’s Contribution to Regional Development in Romania By Alina - Irina Popescu
  41. IDENTIFICATION OF TECHNOLOGICAL DISTRICTS: THE CASE OF SPAIN By Antonio Fuster Olivares; Jose Miguel Giner Pérez; MªJesús Santa María Beneyto
  42. Do we still need Rural Place-Based policy in an Urbanizing World? By Mark Partridge
  43. EVALUATING STRATEGICAL SPATIAL PLANNING APPROACH IN CASE OF ISTANBUL By Sinan LEVEND; Rahmi ERDEM
  44. Do birds of a feather flock together? Proximities and inter-clusters network By Sylvain Amisse; Paul Muller; Caroline Hussler; Patrick Rondé
  45. Giacomo Becattini and the notion of “Marshallian Industrial Districtâ€. By Joan Trullen
  46. Productivity in the Spanish regions during the recent economic cycles By Simon Sosvilla-Rivero
  47. Impact of Cohesion policy on Poland By Marek Kozak
  48. EU2'S REGIONAL ECONOMIC RECOVERY SOLUTIONS UNDER THE GLOBAL CRISIS By Ionescu Romeo
  49. The UK High Street During Economic Crisis By Les Dolega; Neil Wrigley

  1. By: Katarzyna Kopczewska
    Abstract: This paper proposes a methodology to measure spatial effects of roads and local authorities’ seats in a diffusion of business activity, which usually follows the distance decay patterns, from core to periphery. Regional development policy, pursued by regional authorities, directed to local units and designed to support local economies is implemented as a centrifugal diffusion process. This invisible flow of policy will be modeled with one-way spatial interaction model represented by multinomial distance-decay function on the integrated spatial dataset.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p720&r=geo
  2. By: Hiroshi Sakamoto
    Abstract: This paper examines the question of inter-regional spillovers in Fukuoka Prefecture. Fukuoka Prefecture is located on the west side of Japan, and is near the Korean peninsula. There are two government-designated major cities in Fukuoka Prefecture. One is Fukuoka City, which is the central city in Fukuoka Prefecture. The other is Kitakyushu City, which is a big city with a population of about one million. The relationship between Fukuoka City and Kitakyushu City is not without problems. Because the two cities are independently administered, each government can execute the policy that best suits its own interest. On the other hand, it is important for Fukuoka Prefecture that both cities economy cooperate. We analyze this question within the framework of three or more than three regions vector-autoregressive (VAR) model. To express the economic relationship in this study, Fukuoka Prefecture is divided into Fukuoka City, Kitakyushu City, and the rest of Fukuoka Prefecture. We subject to extensive sensitivity analysis, with particular attention paid to the effects on the results of strong common output movements.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p360&r=geo
  3. By: Daniel Shefer
    Abstract: Different regions are endowed with production factors and characteristics that offer different opportunities for specialization, which can be transform to a regional comparative advantage. Many outlying regions (peripheral regions) suffer from a high rate of unemployment, low level of per capita income and net out migration. Outlying areas attract less investment in comparison to central regions. This is because of the low marginal productivity of factors of production in the outlying areas. In order to alleviate these hardships, inflicted on outlying regions, central governments often devise incentive and investment programs whose main objective is to reduce the gap between regions in the country and thus reduce regional inequalities. To attract high tech industries to outlaying regions is now in vogue. In reality we observe a distinct geographical distribution between centers of R&D and large mass production plants. This is due primarily to agglomeration economies and industrial cluster in central regions. Mass production, because of their needs for a large number of relatively unskilled labors gravitates towards the edge of Metropolitan regions and the outlying areas. But then their contribution to the wellbeing of the population in these regions is limited. Public/private investment in large scale facilities (or infrastructures), like highways and railways, Technological Incubators, R&D Centers, universities and hospitals, are among the projects proposed in order to facilitates economic growth in outlying areas. However investing in these projects is not necessarily the panacea for outlaying areas. Because of scarce resources it is paramount to select the most cost-effective program which will take into account the profile of the region under consideration, its natural endowments, and the administrative and political structure of the local government and its ability, together with the region's population, to turn the chosen program to a success. In this paper we critically discuss the spatial implications of selected public investment programs design to facilitate the development of peripheral regions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1192&r=geo
  4. By: Augusto Cusinato; Fabiano Compagnucci
    Abstract: The spatial implications of fordist and district-based patterns of development have had a profound effect on the debate about the role of the city. While the city is reputed to be the crucial provider of basic public goods within the fordist model, its role seems more nuanced, if not disputable, when the district model prevails. This disregard for the city is probably due (a) to the fact that the revival of the debate on marshallian districts has placed strong emphasis on the agglomeration economies internal to the districts themselves, while relatively omitting the urban ones, when not emphasising the burden of urban diseconomies; (b) to the countryside roots of most district pioneers. The quarrel was further fuelled with the advent of ICTs, the fragmentation of the productive processes and the possibility of displacing phases at a global level. The paper argues that this is only the early part of the history. The advent of ICTs has had not only functional although important consequences on the internal organisation of firms and industry and on economic geography as a whole; it has also, however, made innovation and knowledge ? rather than cost-saving policies ? the crucial drivers of the competitiveness of firms and local economic systems. The notion of knowledge has profoundly changed too, and the main change consists in the shift that is occurring from Learning I to Learning II, that is from the “production and accumulation†of knowledge according to pre-established codes, to its “generation and articulation†thanks to an endless reshaping of cognitive codes. On this prospect, while firms, places and regions are increasingly conceptualised as Learning II milieus, cities are proving to be a crucial and irreplaceable milieu for knowledge generation. As a consequence, it is becoming necessary to reassess the relationships between industry and the city. Within this new situation, industrial districts may suffer a severe condition of marginality from the central driver of knowledge generation, owing to their lack of internal competences in dialoguing with the city, and/or the lack of suitable mediators.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p237&r=geo
  5. By: Dan Zheng
    Abstract: Abstract: This paper investigates the effects of economic policy on regional specialization of China¡¯s high-tech industries for the period 1996 to 2005. Results indicate that the average level of regional specialization increases over years. Moreover, high-tech industry sector is highly localized in coastal regions. Using a dynamic panel data approach, we find that the implementation of high technology oriented export policy and subsidies for science and high technology activities encourage regional specialization, whereas local government¡¯s protections for local high-tech enterprises impede it. The empirical study also confirms the important role of high-skilled labor in determining regional specialization. Keywords: economic policy; specialization; high-tech industry; dynamics
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1086&r=geo
  6. By: Fernando Rubiera Morollón; Mario Polèse
    Abstract: The spatial distribution of employment in service industries is compared for Spain and Canada for nine (9) industry classes. The empirical and theoretical literature on modern services stresses the importance of agglomeration economies for high-order services. The relationship between city-size and location is examined with emphasis on cases that deviate from predicted patterns. The results for Spain and Canada reconfirm the weight of city-size as a determinant of location for high-order services. However, once one goes beyond this fairly predictable result, national differences in geography, institutions, and development come to the fore, making generalizations more difficult. Unlike most manufacturing industries, the definition and the spatial behavior of many service sectors is highly sensitive to institutional factors, creating unique patterns largely fashioned by national context.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p209&r=geo
  7. By: Alexander Pelyasov; Nataliya Galtseva; Igor Batsaev; Igor Golubenko
    Abstract: Economic role of the knowledge transfer is studied on the example of the Russian North-East and its two basic branches that is exploration and mining which form the core of the regional economy (regional mining system). Russian North-East can be considered as isolated industrial district with the basic gold mining activity. The scale of this activity has been determined regional socio-economic development for the last 80 years. The major information for this study has been taken from GIS on the spatial structure of exploration and mining branches in the Russian North-East on the district level for the last 80 years. On the basis of revealed regularities and specifics in the interregional knowledge transfer we have formed general understanding of this process. We have analyzed major channels of knowledge transfer from exploration as the branch generating new knowledge on the mineral resources to mining in which this knowledge is utilized. We have determined major systems of knowledge transfer from one branch to the other under different periods of regional economic history. We have examined how territorial structures of exploration and mining industries had been changed inside the regional system for the last 80 years. Main characteristics of knowledge transfer inside the regional mining system influence its productivity (volume of extraction, speed of development of the new deposits, etc.). Effective communication between exploration and mining industry, knowledge transfer from the geologists to the miners is critically important for the sustainable work of the regional mining system.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p52&r=geo
  8. By: Mariasole Bannò; Celeste Amorim Varum; Valentina Morandi
    Abstract: This paper investigates empirically determinants of regional growth. The scant literature that exists indicates that a region’s economic growth depends to a large extent on several features of the regions themselves, which evolve slowly over time. Our results contribute to this set of literature, accounting also for policy variables, which have been by far neglected. Indeed, due to numerous market failures, measures to promote innovation and internationalization have been prominent in government policies in the last decade. This follows because, there is a consensus among academics, policy makers and practitioners that innovation and internationalization has become increasingly important for the growth of regions and countries. The effect of such ad hoc policy measures by home governments to promote innovation and internationalization has scarcely been studied, and existing studies addressing this issue have mainly a national focus. Despite the clear theoretical justification for the public support, policy makers ask for robust empirical evidence on these matters. This paper contributes to this end. The novelty of the study is in the emphasis on the impact of public policy tools (for innovation and internationalization), and on the coordination between them, upon regional growth. The study is conducted for the 20 Italian regions over the period 1998 to 2008. It tests not only the importance of regional characteristics but also the effects of public policy measures upon the regional economic growth. We focus in specific in the role of innovation and internationalization policy related measures. The results reveal the importance of regional characteristics and also of policy measures. The empirical findings are in line with the theoretical hypotheses: public incentives are key for promoting growth, and they have to be seen in the broader context of the determinants of regional growth. The paper also derives conclusions regarding the interrelationship between policies for innovation and for internationalization. Moreover, the allocation of incentives does not seem to help counterbalance the regional asymmetry, and the global processes and challenges are likely to strengthen the gap between regions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p457&r=geo
  9. By: Raul Silveira Neto; Carlos Azzoni
    Abstract: We decompose the recent changes in regional inequality in Brazil into its components, highlighting the role of spatially blind social programs. We aggregate personal income micro data to the state level, differentiating 9 income sources, and assess the role of these components in the observed changes in regional inequality indicators. The main results indicate that the largest part of the recent reduction in regional inequality in Brazil is related to the dynamics in the market-related labor income, with manufacturing and services favoring inequality reduction. Labor income in agriculture, retirement and pensions, and property rents and other sources favored concentration. The social programs Bolsa Família and Benefícios de Prestação Continuada are responsible for more than 24% of the reduction in inequality, although they account for less than 1.7% of the disposable household income. Such positive impact on regional concentration is impressive, since the goals of the programs are clearly non-spatial.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p659&r=geo
  10. By: Roberta Capello; Camilla Lenzi
    Abstract: This paper investigates over the way in which regions innovate. The conceptual framework departs from the simple idea that scientific activities equates knowledge, assuming that the presence of local knowledge produced by research centers, universities and firms was a necessary and sufficient condition for increasing the innovative capacities in local firms, fed by local spillovers. In particular, the paradigmatic jump in interpreting regional innovation processes lies in a conceptual framework interpreting not a single phase of the innovation process, but the different modes of performing the different phases of the innovation process, highlighting the context conditions (internal and external to the region) that accompany each innovation pattern. The paper conceptually identifies different territorial patterns of innovation, and empirically test their existence in Europe. Interesting results emerge from the European territory, witnessing the existence of large differences in the territorial patterns of innovation. These results strongly support normative suggestions towards thematically/regionally focused innovation policies.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1900&r=geo
  11. By: Fabio Manca; Giuseppe Piroli
    Abstract: The aim of the paper is to test the Benhabib and Spiegel (2005) productivity (TFP) catch-up framework on European regions. Differences in the stock of human capital across regions are hypothesized to be the cause of differences in the speed by which follower regions converge and catch-up with the technology frontier. We find robust empirical evidence for this hypothesis. Also, we find evidence of complementarities between R&D expenditures and human capital accumulation for which R&D impacts TFP growth as long as a critical mass for the stock of human capital is reached. The results are robust to sectoral disaggregations and to the choice of a country or sectoral specific leader in the TFP gap computation and to control for spatial dependence across European regions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p816&r=geo
  12. By: Emanuele Fabbri; Luciana Lazzeretti
    Abstract: Recently at the European level the theme of innovation has been further fostered with the Smart Specialization Strategy underlined within the COM(2010) 553 “Regional policy contributing to smart growth in Europe 2020â€. The aim of this study is to investigate the co-evolutive dynamics of the technological transfer processes at regional level, and in particular the issue of transversality and bases of knowledge between networks according to an evolutionary perspective. Transversality is analysed considering networks’ differences and proximities in terms of industry of application, applied technology, and local dimensions of relationships. In order to analyze these phenomena, we apply the Social Network Analysis to investigate the structural features of the space of relations and relational flows, and to roles and attributes of the universe of the co-funded actors. The structural analysis of the relations’ system (centrality, closeness, betweenness, local dimension) has been analyzed across five regional initiatives, studying over 150 networks and over 1300 co-funded actors. Relations between and within networks have been normalized and the role of specific agents has been underlined with regards to transversality dynamics. As conclusion, policy implications can be drawn, in particular as far as supply-led and demand-led innovation policy. The study is structured as follows. After the introduction describing the context of regional innovation policies over the last Regional Planning period (SPD 2000-2006), the first paragraph describes the main characteristics of the concept of transversality, with connections to RIS model and innovation networks. The second paragraph describes the Social Networks Analysis methodology used to study the evolutionary process of agglomeration with regards to bases of knowledge and transversality. The third paragraph deals with the results of the analysis and the fourth paragraph presents conclusive remarks on policy implication in terms of industrial policies.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p507&r=geo
  13. By: Ismael Ahamdanech; Carmelo García-Pérez; Hipolito Simon
    Abstract: The research examines wage inequality in the Spanish labour market from a regional perspective, drawing on stochastic dominance techniques. The field of study is of particular interest because wage determination in Spain incorporates an important territorial component, facilitated by certain specific institutional elements, given that Spain is one of the few developed countries in which collective bargaining is mainly developed through industry-wide agreements on an infra-national scale applied exclusively to provinces or regions. The main empirical findings are that wage inequality exhibits a significant regional heterogeneity and that both regional differences in workforce heterogeneity and the mix of jobs and workplaces and differences in their wage returns are influential factors in the explanation of regional heterogeneity in the levels of wage inequality. Consequently, the infrequent regional dimension of collective bargaining on an industry level implies the presence in Spain of wage determination mechanisms that are differentiated by region, which give rise to the existence of significant differences in regional wage structures.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1074&r=geo
  14. By: Ben Gardiner; Andries Brandsma; Olga Ivanova; d'Artis Kancs
    Abstract: This paper describes some of the features of a new dynamic general equilibrium framework (RHOMOLO) being developed at the European Commission (JRC-IPTS, together with DG REGIO) for evaluating EU Cohesion Policy. The design of the model reflects the objectives of Cohesion Policy, and a broader understanding of impact analysis which goes beyond pure economic effects and also considers environmental and social indicators. The model has both regional and sectoral dimensions – regionally, the aim is for complete NUTS2 (NUTS1 for Germany) coverage of the EU27, while the potential sector coverage is 23 – all of which leads to very large modelling dimensions and presents challenges in terms of data availability. The model is constructed using the concept of Dynamic Spatial Computable General Equilibrium (DSCGE), which ensures Walrasian equilibrium in a sequence of model solutions over time, and also incorporates elements of New Economic Geography (NEG) in the way it captures the forces of economic agglomeration and dispersion.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p672&r=geo
  15. By: Gunther Maier; Michaela Trippl
    Abstract: This paper seeks to enhance our understanding about the opportunities and limits of new path creation in traditional regional innovation systems. Due to their inherited historical legacies, such systems are usually thought of being ill-equipped to give rise to high-tech or knowledge intensive activities. Departing from recent insights on research concerned with the transformation of innovation systems and evolutionary economic geography we identify in a conceptual way enabling and constraining factors for the rise of new development paths in traditional regions. Empirically, we focus on the case of the “Software Park Hagenberg†(SPH) located in the old industrial region of Upper Austria. We examine key events triggering the emergence and subsequent evolution of the SPH and explore the role of the RIS in shaping the development trajectory of the SPH. Moreover, applying social network analysis tools, we investigate the pattern of networking between firms, research organisations and educational bodies within the SPH and we provide some evidence on the diffusion of knowledge and innovation generated though these interactions throughout the regional economy.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1830&r=geo
  16. By: Davide Furceri, Dr; Fabio Mazzola, Dr
    Abstract: The aim of this paper is to analyze the impact of economic downturns on regional inequalities. From a theoretical point of view regional inequalities may change in the aftermath of economic downturns if different regions have a different degree of resilience to a common shock or/and a different speed of adjustment. To test for this hypothesis we estimate the dynamic response of regional inequalities to economic downturns, controlling and interacting for country’s structural and policy variables associated to regional inequalities. The set of such variables includes, among others, the share of rural population, demographic changes, educational disparities, production diversification, the level of country development, the size of fiscal transfers and social spending. The approach we propose consists of estimating Impulse Response Functions (IRFS) based on local projections (Jordan, 2005) of the effect of downturns on regional inequalities. For each period, we estimate a direct and and an indirect effect which takes into account the interaction between the downturn occurrence and the structural/policy variables. Using an unbalanced panel of 29 OECD countries from 1993 to 2005, the paper shows that economic downturns are associated with a significant and long-lasting reduction in regional inequalities. The effect is a function of the severity of the downturn and it varies across countries. The empirical results are economically and statistically significant, and robust.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1204&r=geo
  17. By: Jaime Del Castillo; Jonatan Paton
    Abstract: The boom of clusters is leading to an 'explosion' of initiatives which in many cases lack an integrated approach. There are some methodologies which although strong technically, are expensive and often impossible to implement due to the shortage of basic information. This study proposes a methodology which combines both approaches using a set of defining and characterizing variables to identify and understand clusters at regional level. It has been tested in four Spanish regions with different economic profiles and a number of clusters, their impact and competitive levels have been analyzed. The methodology also proposes a dynamic analysis of clusters within the whole regional economic structure. This study examines the need for sound method of cluster analysis while providing an instrument not too restrictive in terms either the statistical information nor resource intensive. Keywords: clusters, mapping, impact, identification, dynamic analysis
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1835&r=geo
  18. By: Luisa Alamá Sabater; Laura Marquez Ramos; Celestino Suarez Burguet
    Abstract: This paper aims to analyze whether the existing logistics platforms network in Spain affects Spanish transport demand by using a spatial framework. In particular, we use demand for transport to export goods to other Spanish provinces as a proxy for logistics infrastructure demand in Spain. Then, we obtain data for trade flows between provinces (NUTS3) in the year 2007. We also obtain data about the number and area of logistics platforms existing in each Spanish province to proxy for the transportation network structure in Spain. In a first step, we construct weight matrixes considering first-order contiguity and we obtain that spatial dependence is significant in a spatial econometric model of commodity flows (LeSage and Polasek, 2008). Secondly, we incorporate logistics network structure dependence into the model so that the spatial lags measure the impact and significance on trade flows from all origins to all destinations by considering the importance of logistics performance in the neighboring provinces. Finally, we perform the analysis for different economic activities. The results obtained provide evidence about the role of the location of logistics platforms for satisfying existing demand for transport structure in the Spanish provinces..
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1737&r=geo
  19. By: Alejandra Trejo; Cristina Ibarra
    Abstract: In an environment of growing globalization, which goes along with a relative increase of factor mobility, the role of territories and its competitiveness is under debate. In order to spur local attraction territories often enter in competition with each other. At this respect it is commonplace that governments at various territorial levels apart from other public and private institutions concern about providing the conditions that make attractive their countries, regions or cities for productive activities and in so doing they get involved in the race for competitiveness. Even though competition involves the actions of multiple actors, these often are connected with each other through local policy makers. By and large, local government and regional development policy are regarded to play a central function in territorial competition and in fact can be considered that the competitive success of regions and cities cannot be achieved without the active action of local governments. To the extent to which governments are more conscious about the actual territorial competitive environment they will try to formulate more policies for the development of competitive capabilities. The actions and efforts may take many forms (marketing, assisting local businesses, constructing infrastructure, information and land provision, taxation and so on). Particularly governments may use programs or apply funds, which are available as a result of national or regional policy, to attend to local interests. However local governments’ actions depend to a large extent on their financial capabilities. The federal government in Mexico provides most of the financial support to states and municipalities on an ongoing basis through transfers and participations. These are federal transfers supporting specific policy areas or unconditional transfers.This paper is concerned with presenting an integrated framework for territorial competition analysis which emphasises the fundamental role of local government action and assessing the role of federal aid on the competitive results of Mexican regions. The methodology proposed will develop a series of competitive results indicators for Mexican regions and use a multivariate analysis to assess the influence of transfers and participations. The periods include those years when Mexico has been and opened and liberalised economy.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1486&r=geo
  20. By: Fernando Rubiera Morollon; Ana Viñuela
    Abstract: What is region? From an economic point of view, a region is a unit in which capital and labour move freely and goods and services are totally open to trade with other regions without any frontiers or limitations. The openness of the regions and their interaction with other regions are their main characteristics. From a statistical point of view internal homogeneity and also heterogeneity between the regions are both desirable properties of a set of regions. The objective of this chapter is revise the concept of region and propose a division of the territory which satisfy the statistical and economical region concept requirements in the way of propose a classification that has economic theoretical meaning but, at the same time, satisfy the internal homogeneity and heterogeneity among classes. Using micro data from the latest Census available, the Spanish territory can be divided into functional regions that emphasize the importance of location and agglomeration economies (a classification with theoretical economic meaning). A set of contrast and indexes is applied to prove that, when studying labor economic issues, such classification based on economic criteria results on more convenient regions than the administrative ones commonly used.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p206&r=geo
  21. By: Maksim Belitski; Julia Korosteleva
    Abstract: We investigate variation in entrepreneurial activity across 98 Eastern Neighbourhood cities. The aim of study is twofold: to bridge the city-level gap in empirical research on entrepreneurship in the Eastern Neighbourhood urban areas; to focus on urban heterogeneity in entrepreneurship unlike regional level studies which deal both with urban and rural areas where entrepreneurial activity has different characteristics. Finally, in accordance with urban incubator hypothesis the incidence of entrepreneurship is higher in urban agglomerations. To measure entrepreneurship a number of small businesses is used which has been widely used in a number of studies for capturing entrepreneurial activities. We employ the System GMM estimator to establish our model, which is determined by the need to address some econometric problems, including the problem of potential endogeneity of some of our regressors; the presence of predetermined variables, namely the lagged dependent variable; the presence of fixed effects which may be correlated with the repressors; finite sample. We find that the heterogeneity in entrepreneurship is largely explained by the agglomeration effects and city socio-economic characteristics such as level of poverty. On the one hand this is puzzling, as the general perception of the nature of entrepreneurial activity in these countries is that it is necessity-driven. On the other hand, the role of the government and social benefits still seem to play an important role in the countries of transition discouraging individuals from considering entrepreneurship as a way out of poverty. We fail to support the hypothesis of Moscow proximity as an important driver for small business activity in these cities. At the same time our findings support capital-city hypothesis as an incubator for business start-ups. Unfortunately, the level of capital stock and criminality add little in explaining the variation of entrepreneurship. We also do not find any robust effect of transition reforms, including small-scale privatisation, banking transformation and business regulation on entrepreneurial entry in the Eastern Neighbourhood cities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p288&r=geo
  22. By: Mark Partridge; Rose Olfert
    Abstract: Throughout the second half of the 20th Century, urbanization, new technologies, rapid labor-saving productivity growth in primary industries, and improved highways combined to create large-scale rural-urban functionally integrated regions. These forces have raised the stakes for regions in their pursuit of economic development and growth, making successful regional policy even more important. Changes to the governance structures consistent with the increased interdependence within broad rural-urban regions will improve the region's competitiveness; adopting fad-based approaches and policies aimed at “picking winners†will be less fruitful. Going forward, continuing globalization and environmental sustainability have the potential to fundamentally reshape relative regional attractiveness.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1655&r=geo
  23. By: Dan Rickman; Belal Fallah; Mark Partridge
    Abstract: This paper examines the spatial pattern of U.S. county employment growth in high-tech industries. The spatial growth dimensions examined include industry cluster effects, urbanization effects, proximity to a college, and proximity in the urban hierarchy. Growth is examined for overall high-tech employment and for employment in various high-tech sectors. Econometric analyses are conducted for a sample of all counties and for metropolitan and non-metropolitan counties separately. Among our primary findings, we do not find evidence of positive localization or cluster growth effects, generally finding negative growth effects. We instead find some evidence of positive urbanization effects and growth penalties for greater distances from larger urban areas.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p518&r=geo
  24. By: Harvey Goldstein; Edward Bergman; Gunther Maier
    Abstract: University researchers are now considered by many as key actors in the building of knowledge economies in their regions, as universities are assumed to be important engines of regional economic well-being. Yet within the academy not all faculty are accepting of these roles for their institutions, for a variety of reasons. We measure faculty attitudes towards their universities being involved in (a) assisting regional economic development and (b) the commercialization of knowledge more generally using web-based surveys. Then using secondary data from a variety of sources, we attempt to explain the variation in attitudes among faculty in terms of: (i) individual attributes and professional experiences, (ii) scholarly disciplinary of the faculty member, (iii) institutional characteristics of their respective university, and (iv) regional economic conditions. Using ordered logit models, we test to see if faculty view a distinction in appropriateness of universities assisting economic development versus appropriateness of the commercialization of knowledge, whether there are differences between U.S. and EU faculty in their attitudes towards each type of activity, and whether faculty in regions undergoing industrial restructuring or in economic distress have more favorable attitudes towards each activity. Results to-date indicate that faculty have more favorable attitudes towards their universities assisting regional economic development compared to commercialization of knowledge, that universities individual and disciplinary variables are more important than institutional and regional economic variables, and that there are strong similarities in attitudes between U.S. and EU faculty attitudes, but with a few interesting exceptions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p301&r=geo
  25. By: Roberto Dopeso Fernandez
    Abstract: This paper analyzes to what extent marshallian agglomeration economies affect the creation of new entrepreneurial ventures at the metropolitan level. The measuring of agglomeration economies is based on the construction of indexes using the methodology of Glaeser and Kerr (2009). The indexes attempt to capture the effects of resource sharing, labor matching and knowledge spillovers according to the taxonomy proposed by Marshall (1920). Also an index to measure the influence of small suppliers to attract new business ventures, following Chinitz (1961), is constructed. Data on new firms and employment generated is accounted for the period 2000-2008. The analysis is based on the activity of the 15 largest metropolitan areas in Spain. Sixty two-digit industries (CNAE-93) are considered. The results show that jobs created by entrepreneurs are highly influenced by the ability to share suppliers and customers. Firm creation is influenced by those factors as well as the presence of small suppliers and the proximity to innovative activity. Agglomeration indexes with sector and city fixed effects explain more than 90% of new entry and employment generated. The potential multicollinearity among indexes is tested using principal component analysis. This analysis shows some complementarities among the indexes. New regressions using the factorized terms show that traditional measures of localization economies hide specific information about the process of agglomeration.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1771&r=geo
  26. By: Esteban Fernandez-Vazquez; Rafael Garduño
    Abstract: Most regional empirical analyses are limited by the lack of data. Researchers have to use information that is structured in administrative or political regions which are not always economically meaningful. The non-availability of geographically disaggregated information prevents to obtain empirical evidence in order to answer some relevant questions in the field of urban and regional economics. The objective of this paper is to suggest an estimation procedure, based on entropy econometrics, which allows for inferring disaggregated information on local income from more aggregated data. In addition to a description of the main characteristics of the proposed technique, the paper illustrates how the procedure works taking as an empirical application the estimation of income for different classes of Mexican municipalities. It would be desirable to apply the suggested technique to a study case where some observable data are available and confront the estimates with the actual observations. For this purpose, we have taken the information contained in the Mexican census as a benchmark for our estimation technique. Assuming that the only available data are the income aggregates per type of municipality and State, we make an exercise of ecological inference and disaggregate these margins to recover individual (local) data.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p794&r=geo
  27. By: Eduarda Marques Da Costa; Patricia Abrantes; Ana Louro; Paulo Morgado
    Abstract: The evaluation of territorial programs and plans has been gaining importance, both in political-institutional speeches and practices and in academic reflections. In Portugal, the structure of planning, operacionalized on a vast number of quite recent instruments, requires an effort of articulation in the guidelines to various scales (from European until the municipal) and of the various fields (some sectoral, others, of more transversal nature). The development of monitoring systems, as well as the generalisation of the evaluation procedures, answer to the need of articulation between policies and support the strategic nature that is planning today. As a part of the Research Project SPOTIA - Sustainable Spatial Policy Orientations and Territorial Impact Assessment - Contribution to Portuguese context' (Centre of Geographical Studies – University of Lisbon to the Ministry of Science and Technologies), this paper aims to present an example of the first outputs of this research on the analysis of coherence between three different instruments planning, such as the National Policy Planning (PNPOT), a guiding document of national level, the Regional Spatial Plan to Northern Territory (PROT-Norte), the regional guidance document, and the Regional Operational Programme (PO-Norte), the regional program associated to a financing plan and program implementation. The analysis of coherence between these documents is not only between their general, strategic and specific objectives, but also by the indicator system assessment of each document. With this analysis we can reach the domains that are constantly, or not, present in these documents. In this context, a first essay of a methodological approach on evaluation of public policies in Portuguese context will be presented.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1804&r=geo
  28. By: Serkan Degirmenci
    Abstract: Many cross-country studies acknowledge the indispensable role of institutions in promoting economic growth and in sustaining economic development. So, their emphases have shifted to determine the most influential institution(s) in order to be specific. While these papers are widespread in the recent literature, the role of institutions within-country level has not been yet discussed in detail. Although the formal institutional structures of many nation-state countries apply to their all regions, results may differ depending upon various conditions. Considering these differentiated outcomes, this study aims to discuss the roles and functions of institutions in regional economic growth and development. To that end, first objective of this paper is to provide an introductory background by surveying and systematically documenting the evidences on the impact of institutions on regional growth and development outcomes from both the theoretical and empirical studies within a voluminous literature. Second objective is to elaborate this survey by classifying these studies with respect to their different conceptions about “institutions†and to their methodological approaches adopted. By doing that, this paper try to propose an analytical framework that identifies the channels of influence between institutions and economic performance outcomes. As the main concern of that study, third objective is to discuss whether institutions really matter for regional economic growth and development and, if so, how can institutions be included in the regional growth and development policies. Turkey is a convenient example for this discussion. Although its fundamental written institutions have a countrywide validity, their density and quality varies among regions. So, lastly, it is planned to be done an empirical exercise to reveal the linkages between prominent characteristics of these regional institutions and economic performances of regions for the case of Turkey. To sum up, the novelty of this paper is to provide an extensive but a systematic survey of many studies in related literature and to contribute in part to the empirics of the relationship between institutions and regional economic growth and development. Finally, it is expected to obtain a sound understanding about the institutional approach both in economic growth and economic development spheres within the regional context.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1180&r=geo
  29. By: Andrés Rodríguez-Pose; Tobias Ketterer
    Abstract: Most immigration theories tend to highlight that migration follows wealth and economic dynamism, but is this also the case across regions in Europe? The aim of the paper is to investigate whether migrants in Europe indeed follow the money and to contrast this with a variety of potential alternative explanations, including the presence of migrants from a similar origin. The analysis is based on panel data estimations including 133 European regions over a time period of 17 years. Different lag structures have been employed in order to distinguish between short- and long-run effects. The results cast some doubt about the prominence of pecuniary factors as a determinant of cross regional migration in Europe, with little evidence to support the idea that migration follows economic dynamism. Network effects, human capital related-, and ‘territorially embedded' innovation enhancing regional characteristics, by contrast, seem to play a much stronger role than hitherto considered. The study also reveals important differences among EU countries in the factors which determine regional migration.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p191&r=geo
  30. By: Anthony Flegg; Timo Tohmo
    Abstract: This paper examines the use of location quotients (LQs) in constructing regional input-output tables. Its focus is on the modified FLQ formula proposed by Flegg and Webber (1997). Using data for 20 Finnish regions, ranging in size from very small to very large, we determine appropriate values for the unknown parameter delta in this formula. We also develop a regression model that can be used to select an appropriate value for delta. We find that the FLQ yields results far superior to those from standard LQ-based formulae. Our findings should be very helpful to any regional analyst who is contemplating making use of the FLQ formula to generate an initial set of regional input-output coefficients. These coefficients could be used either as part of the RAS procedure or as the non-survey foundations of a hybrid model. We consider possible improvements to the FLQ formula but find that including a regional specialization term in this formula only marginally enhances its performance. On balance, we would recommend using the original FLQ formula.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p334&r=geo
  31. By: Ercan Dulgeroglu; Sibel Bali Eryigit; Kadir Y. Eryigit; Filiz Gaygusuz
    Abstract: The Role of Physical, Human and Social Capital in Regional Financial Development Differences: An Analysis of Turkish Provinces Ercan Dulgeroglu , Sibel Bali Eryigit , Kadir Y. Eryigit and Filiz Gaygusuz Abstract With the undeniable importance of the financial markets in the economy, the factors stimulating financial development have started to be researched, particularly in recent times in a more intensive way. Starting from this point, the driving force of this study is both to contribute to international literature in this field and to fill a gap in the literature related to Turkey. The main purpose of this study is to explain the causes of regional financial development differences on the basis of capital accumulation. In order to answer the question ‘What is the effect and degree of importance of physical, human and social capital on the differences in regional financial development?’, in this study some indexes for financial development and each type of capital accumulation will be calculated using kernel principle components analysis and depending on the annual data of 81 provinces covering the period 2005 – 2009. As an index, the capital measurements can be seen in a comprehensive form allowing for more accurate measurement and evaluation of both the capital accumulation and financial development. By using the calculated indexes, then, financial development differences are evaluated with spatial panel data methods developed by Elhorst (2003). In this context, to our knowledge, this study is the first to take into account the effects of each type of capital on financial development in a model simultaneously. Keywords: Financial development, physical capital, human capital, social capital, spatial panel data analysis,
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1539&r=geo
  32. By: Frederic Wallet; Andre Torre
    Abstract: The aim of this paper is to shed light on territorial development and rural development issues, and to review the links and differences between. Indeed, everything points to reach those dimensions that have long seemed disconnected. On the one hand, rural policies incorporate explicitly the territorial dimension, even though the rural-urban distinction is increasingly blurred. At the same time, decentralization, subsidiarity, the regionalization of agricultural production, but also short circuits or local foods deal with the generalization of an urban model. Finally, regional science pays attention to agricultural and rural dimensions, even though research on rural areas is opening to territorial issues. The first part of the paper is devoted to a presentation and a critical attempt to define the concepts of development, territory and rural. The second part addresses the issues of regional and territorial development with a presentation of the major theories and key public policies, and concludes with a reflection on the ways for reconciliation between theory and policy. The third part follows the same pattern applied to the issue of rural development, from theoretical analyses to concrete policies. Keywords: regional development, territorial development, rural development, rural areas, public policy
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1609&r=geo
  33. By: Fabio Sforzi; Silvia Lombardi; Flavio Verrecchia
    Abstract: Chinese migration flows represent a relatively new phenomenon in Italy. Its entrepreneurial nature is reflected in massive flows Chinese businessman employed both in manufacturing and commercial activities, with a dense concentration in correspondence of some industrial districts. The aim of the paper is to shed some light on current Chinese specialization of economic activities and localization across Italian regions and industrial districts, to test interpretative research hypothesis on Chinese entrepreneurship models and identify agglomeration forces underlying the emergence of so-called Chinese ethnic businesses. Some reflections on the manufacturing and commercial attitude of Chinese entrepreneurship will also be considered. The utilization of native-Chinese entrepreneurs as unit of observation represents an innovative methodological contribution based on ASIA-ISTAT archives. The exercise of explorative analysis based on data processing and spatial analysis will finally highlight business migration patterns, which represent new socio-economic challenges for Italian industrial districts
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p626&r=geo
  34. By: Ferhan Gezici; Kemal Çetin
    Abstract: Economists who have been working on economic geography (Krugman, 1991; Porter, 1994) have emphasized that space should be taken into account as local rather than national as a mainstream of the studies of economic geography. Therefore, the relationship between the geographic location and industrial concentration and their performance has become the main concern (Malmberg, Sölvell and Zander, 1996). The studies which are looking at the relationship between the firm size and concentration indicate that small plants are concentrated in central locations and bigger ones have moved to peripheral cities, while another one points out “the relationship between establishment size and clustering is roughly characterized by an inverted u-shape, which means clustering increases up to some size threshold and then decreasesâ€Â. The aim of this paper is to explore intra-metropolitan distribution of manufacturing firms in Istanbul Metropolitan Area, while there has been an economic structural change in the metropolitan city. Ripley's K function is used to analyse whether the firms clustered or dispersed weighted by employment. The K function provide analysing co-location between firms of different industries. As a result of the analysis, mostly the concentration of manufacturing firms is in the central and first ring on the European side. Being in the center seems to provide the advantages of supplier, market and deep networks through the traditional structure of manufacturing activities. Further, the firms locating in the first ring use the positive impacts of transportation infrastructure. Another result indicates that there is a relationship between the firm size and its location; while the small and medium sized firms are clustered in the center, the big ones move to the periphery.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p146&r=geo
  35. By: Zlatan Fröhlich
    Abstract: Croatian regional policy is closely tied into the EU accession strategy. A major objective will be to prepare for the introduction of EU cohesion policy and the Structural Funds. The pre-accession funds will contribute to that effort. This will require a significant effort on the part of the government to strengthen the institutional base for the management of the Funds – from the centre of government to regions across the country. The National Strategy for Regional Development will be a major part of that effort. While many regional actors in Croatia perceive preparations for participation in Cohesion policy only from the standpoint of the new funding possibilities, the actual value of the policy transformation is somehow not yet fully perceived. One of the key reasons for this is that most of the policy transformation involves exclusively central-level institutions. Also, the full introduction of the new policy instruments such as programming, monitoring and evaluation, the payment system and other into the daily policy practice requires many substantial changes in the organisation of the involved institutions and this is a slow ongoing process. Regional actors are feeling the new policy trends mostly through the participation in the Instrument for Pre-accession (IPA) and other available EU programmes, but also through the changes in the national regional policy which has become much more open and inclusive for actors on sub-national levels than before. The strategy sets the context for balanced regional development both at national and sub-national level as well as draws attention to development needs of the ‘assisted areas’ as well as counties highlighting their different development profiles. It brings together the main analytical parts: policy framework, institutional context and finally an assessment of the existing development interventions on county, NUTS 2 and assisted areas level.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1841&r=geo
  36. By: Porfírio, José (Universidade Aberta)
    Abstract: New Economic Geography (NEG), a new branch of Spatial Economics that was developed at the beginning of the 90s, supports that “peripheral” European Union’s economies (like Portugal, Greece, Ireland or even Spain) are predestined to diverge from the developed European “centers” like France or Germany. This new field of Economics seems to be supporting the incapacity of European structural policies to battle against this divergence trend, and ultimately an inevitable catastrophe of the Single European Currency, and thus,of the European integration project as a whole. The recent evolution of the main EU’s peripheral economies (e.g. Greece, Portugal and Ireland) confirming their divergence trend from the developed core EU’s countries, seems to support these NEG forecasts. However, in our paper we support that, taking into consideration some identified pitfalls of NEG’s principles, and on the other hand, considering the potentialities that may arise from the capacity of enterprises to put in place effective Corporate Strategies (which its related with the need to develop their strategic capabilities), peripheral countries/regions may be able to overcome this apparent fatalness. Thus, more important than just funding is the aptitude of these peripheral economies – through their economic agents’ capabilities – to use these funding and profit from them adequately. This will lead us to support, not just the continuation of the European structural funds’ policies, with the positive impacts arising from the inherent redistribution effects, but also to conclude on the urgent need to develop strategic capabilities of main economic agents of these regions. Using an empirical survey, performed during the transition period of the introduction of the Euro (1999 2001), to companies operating in Portugal, we conclude by demonstrating that the lack of corporate strategic capabilities may well be an important explanation for the present difficult economic situation, explaining most of the existing problems of Portugal and that, only through a real change in the prevailing paradigm, regarding the action of these companies, we may be able in a near future to sustainably overcome the present difficulties.
    Keywords: Economic Development; New Economic Geography; Corporate Strategy; European Union; Peripheral Territories
    JEL: M21 O12 R12
    Date: 2011–03–31
    URL: http://d.repec.org/n?u=RePEc:ris:cieodp:2011_011&r=geo
  37. By: Zsuzsanna Váradi; Szilvia Kovács
    Abstract: The presentation deals with a current urbanization phenomenon in Hungary, and highlights the cause-effect relationship of urbanization from interdisciplinary aspect and underlines the weakspots of sustainable urban development. After the Transition in 1990 the patterns of the settlement system were radically changed in Hungary too, which were transferred mainly the new urbanization trends, especially the suburbanization processes. The spreading of the urban areas and agglomerations started a new stage of territorial consumption. Based on the international and Hungarian literature it is well known, that more and more people moved out from the cities to live outside, but their working places, schools, their everyday life, their consumption and social contacts are realised in the cities. They ‘territorial consumption’ is increasing in the outside, so the spreading of the suburban settlements is doubtless, but the inhabitants’ everyday-life consumption take place in the cities, which usually caused sustainability problems and social, political and institutional conflicts as well, between the core cities and the surrounding settlements. The most visible problems of the phenomenon could be seen at the transport problems, at the service gaps and at the ecological problems. In order to link these aspects, the presentation focuses on the socially, economically and territorially defined consumption in the Budapest Metropolitan Region. It highlights the characteristic usage of urban space by several specified social groups, with the methods of empirical analysis . Firstly it would like to underline the main features and models of everyday life activities by localizing their consumption scenes, such as places of work, education and shopping. It would like to present the consequences of the new regional social structure and the reorganisation of the territorial consumption habits together, their dependence on each other, and the local or global consumption patterns of the different social groups. In addition, the lecture shows the consumer locations of public service and space among the different groups: it discusses the utilization of various urban public spaces and public institutions, the social infrastructure of the different social and territorial groups and the determining factors of these public consumer habits territorially.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1657&r=geo
  38. By: Giuseppe Mazzeo
    Abstract: The European space is marked by the recent beginning of the dualism nation-region. In it the cities take on a fundamental role because their success becomes the success of the territories around. Manuel Castell has maintained that the city is the social structure in which any territorial phenomena (from the economical development processes to the relations between classes or ethnic groups, from the public intervention to the financial accumulation) takes on its bigger strength because in it are concentrated the focusing in the territorial transformations. Obvious the cities are not the same, for physical or functional dimension; besides every innovation adds and modifies the relational system previously created. Aim of the paper is to analyse the factors generating the urban hierarchies to the European level and the impact on it of the new high velocity nets. In the first section it is carried out a reading/analysis of the hierarchies in the urban European system, as outlined in a series of studies. The second section analyses the role of the communication infrastructures in the building of the hierarchies and, in the third, is deepen the impact of the building of European high speed network on the fluctuations in the cities hierarchy. The paper asserts that the hierarchy is influenced by the growing of this infrastructure only for the second level positions, while the head positions are not influenced by it. One of the possible conclusion is that in a mature situation as the European territorial system, the urban structure seems to be well organized around poles with a strong persistence. This does not mean that a city could not climb the hierarchies, although this is possible only if a number of preconditions and of support policies are verified and with the remarks that this does not seem to affect the head positions, characterized by large stability.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p485&r=geo
  39. By: Anastasia Nikoli; Fotini Zigouri
    Abstract: Over the last decades, at a European level, efforts have been made so that regions become capable of sustainable economic growth, with great social cohesion and better distribution of wealth, while at the same time under open market conditions, they are being exposed to external competitiveness. In order to survive and gain advantage from globalised economies, regions have to (re)form and promote a competitive profile that differentiates them from other regions and promises potentials of further development. At that point, a competitive ‘identity’ could be a key factor in dealing with persistence and change, in today’s globalised environment. The formation of regional identities seems to be a matter of great concern amongst decision / policy makers. Space in general, has a symbolic and ideological dimension, as well as a material basis that reflect the stage of development in societies. Regional identities which have a strong collective dimension, are related to factors that define and constitute societies (history, collective memory, governance, economy, culture, etc), reflect a certain inner or/and outer image and seem to be a mean to understand and measure regional development. At a social level, identities satisfy the need of belongingness and of sharing common goals, beliefs and values. Thus, they play a privileged role in strengthening social and economic cohesion by fortifying the collective consciousness and provoking the driving forces of development, especially when regions face challenges. In Greece, the recent administrative reorganizational program established by a new law in 2010, incorporates new multidimensional criteria for regional planning and development and offers potential for formation of competitive regional identities. By merging into greater ones, Greek regions could gain the required resources to face the challenges created by the economic crisis and by the high competitive and globalised environment. The new law underlines the need to restructure the economy and the regional governance system and reinforces public participation in decision making and planning process. These changes could raise the interest in forming attractive identities which, into the future and along with new regional planning strategies, could provide opportunities for economic growth and prosperity to Greek regions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p897&r=geo
  40. By: Alina - Irina Popescu
    Abstract: The impact of higher education institutions on the regional economy is now more important the ever, due not only to their role as providers of education and research, but also to their linkages to the economic, social and cultural surroundings. The paper explores the relationship between the higher education and the regional development, bringing evidence from the eight development regions of Romania: Bucharest and Ilfov, Center, West, North-West, North-East, South-East, South, and South-West, on the most widely used development indicators, according to the methodology proposed by OECD for the assessment of the local engagement of higher education institutions. The analysis reveals the needs to improve the relevance of university education, to widen and strengthen the collaboration between higher education institutions and the business environment, to improve the flexibility of the workforce by re-skilling and up-skilling through lifelong learning. In collaboration with regional and local authorities, universities are in the need to develop and expand learning and skills development programmes, research activities and outreach efforts to support the cultural and creative industry development of the regions they are embedded in, taking also into consideration the international dimension by building stronger connections with students, researchers and professionals from Europe and abroad.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1327&r=geo
  41. By: Antonio Fuster Olivares; Jose Miguel Giner Pérez; MªJesús Santa María Beneyto
    Abstract: In recent years, several contributions have been focused on a new sort of productive systems that share some characteristics with Marshallian industrial districts. These contributions have analysed the competitiveness of these new areas and how have been promoted by policy makers. In this line, the Marshallian concept of industrial district has been increasingly related to high technology and innovation in order to analysis technological districts or clusters. The aim of this research is to show how these new areas have characteristics are not similar to those shown by traditional industrial districts. Therefore, framework and techniques for analysis that have been traditionally used for industrial districts must be adapted for identifying technological districts. Specifically, some reflections about the framework analysis of sector and spatial units are introduced in the first part of this research as well as those techniques that can be useful to identify and analyse technological districts. Next, the analysis is focused on the identification of technological districts in Spain. A multivariate analysis will be applied to calculate a synthetic index that will be used to identify those areas with a high degree of specialization in high and medium technology activities. This synthetic index will collect data about those technological activities that are involved not only in manufacturing but also in activities of innovation and R&D. Until now, there have been not many attempts to identify technological clusters through the application of quantitative methodologies; therefore, the purpose of this research is to contribute to the enhancement of knowledge about these areas in Spain. Keywords: technological districts, clusters, location, spatial agglomerations.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1541&r=geo
  42. By: Mark Partridge
    Abstract: Abstract: Rural areas across the developed world have long been recipients of policies aimed to improve their well-being at great expense to public treasuries. Most of these policies are aimed at the agriculture sector as well other natural resource based industries. With productivity growth and consolidation, agriculture and natural resource based sectors employ relatively few workers in rural areas, leading to criticisms that these narrow sectoral based policies are misguided if their true aim is broad-based rural development. Others argue that rural policy is obsolete as formally rural communities have increasingly become part of urban-centered mega regions. These rural areas are now in an interdependent relationship with their urban neighbors in which urban areas are the primary drivers of economic activity in a knowledge economy, while rural residents are the stewards of the environment and natural resources. Others instead argue the globalization and technological change make regional policy obsolete and rural policy just slows needed adjustments toward cities or productive areas. After decades of rural placed based policy, this study will assess whether sectoral-based rural policy still makes sense and whether movements to a regional orientation will improve socioeconomic performance for rural residents and urban taxpayers.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p186&r=geo
  43. By: Sinan LEVEND; Rahmi ERDEM
    Abstract: In Turkey, The law of Institutional Strategic Planning (ISP) issued in order to compliance with European Union is unfortunately insufficient recovering spatial-oriented strategic planning (SSP) decisions. There is not a fundamental Spatial Strategic Planning model based on strategic spatial planning and an integrated structure that can be coordinated with both the strategic plans prepared by municipalities and strategic plans prepared by the government. Strategic Spatial Planning (SSP) process that sub-units have to correspond is not clearly defined although the Public Strategic Plan is mandatory by the legal regulation. İstanbul as a metropolis has got a lot of urbanization problems. Its operational planning boundaries surpasess its provincial boundaries. It exposes to a high level of risk because of earthquake, and its natural and cultural values are under threat because of rapid urbanization. The need for a planning organization that is taken as a whole up to the scale of urban design, transparent, comprehensive participated, cooperative and continuous is the major undisputed fact. This paper aims to evaluate SSP approach in Turkey in the case of İstanbul. For this purpose, firstly a literature review is conducted to define Strategical Planning. Eventually, in Istanbul Institutional Strategical Planning and Environment Arrangement Planing (100000 scale) are analyized and these plans are evaluated in terms of adequacy of strategical planning approach. Key Words: strategic, strategical spatial planning, İstanbul
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p481&r=geo
  44. By: Sylvain Amisse; Paul Muller; Caroline Hussler; Patrick Rondé
    Abstract: The present contribution develops on the analysis of clusters in terms of proximities by exploring the issue of distant inter-cluster collaborations. We mobilize different forms of proximity (geographic, cognitive, social) discussed in the literature in order to identify their respective influence on intercluster collaboration by taking the example of French Pôles de Compétitivité. Our results echo previous results applied to intra-cluster collaborations since inter-cluster collaboration mostly relies on a form of social capital due to the key roles played by relational and cognitive proximity. Finally, our results exhibit a negative influence of geographic distance on collaboration. JEL: C45, R12, R58 Keywords: clusters, network analysis, proximities, intercluster collaboration
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1896&r=geo
  45. By: Joan Trullen
    Abstract: Abstract: The notion of “Marshallian Industrial District†proposed by Giacomo Becattini in the first seventies has led a revolution in the local economic analysis around the world. The paper offers a methodological interpretation of the approach adopted by Becattini. The roots are clearly Marshallian. He understands the economy as a complex social science that operates in historical time. But Becattini goes beyond because he proposes a new unity of analysis for the local economic development. The paper identifies similarities and differences between the original concept of “Industrial District†proposed by Marshall and the concept of “Marshallian Industrial District†in the Becattini’s approach. The paper uses the distinction between logical time, real time and historical time. The “Marshallian Industrial District†approach proposes the study of economic process located in specific areas and explained in historical time. Keywords: industrial district, Marshallian industrial district, methodology of economics, Schumpeter’s economic analysis, historical time, economic process. JEL: B31, B41
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1168&r=geo
  46. By: Simon Sosvilla-Rivero
    Abstract: The Spanish regions are facing a severe recession caused by the international financial crisis that has overlapped with the correction that had been recorded in the property market, which has led to a sharp drop in economic activity and a rapid destruction process employment. In these circumstances it is a priority to begin a new growth path based on a more productive and sustainable pattern, which enhances competitive sectors and contribute to the creation and consolidation of employment. This paper has attempted to shed light on what branches of production can be the basis for a new production model of the Spanish economy to overcome the weaknesses in the present, making special emphasis in services To this end, the behavior of productivity during expansions will be analyzed for twenty production branches by applying the methodology proposed by Leamer (2007), based on the decomposition of contributions to the growth of the productivity of each of these branches in 'normal' and 'outstanding'. The results will identify production branches that have contributed to the weakening of productivity during recessions as well as those that have created an important stimulus to productivity during expansions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p57&r=geo
  47. By: Marek Kozak
    Abstract: Marek W. Kozak University of Warsaw m.kozak@uw.edu.pl Impact of Cohesion policy on Poland Poland has relatively short experience in European policies implementation. Its ability to analyze the effects and modify strategies and implementation following experience-based rule is of particular importance for development pace and path. There is a number of ways of evaluating impacts of public intervention. In case of Cohesion policy and their key instruments (that is structural funds and Cohesion fund), it is important to notice, that in 2007 two structural funds (EAGGF and FIOR) ceased to exist. However, they still do contribute to the impact on Polish economy development, as many other external and internal factors (globalization, global terms of trade, institutional change, mix of national and European policies etc). Up to now richness and interlinkages between factors makes it more than difficult to identify and measure real net impact of specific funds, as their goals and management are - at least in theory - closely coordiated and are being implemented pretty long after formal date of end of financial perspective (due to N+2 and N+3 rules). Even in case of econometric models in use (HERMIN, QUEST and other) problem of net influence measurement exists as they are based mostly on previous performance and a number of assumptions relating to development factors. The aim of this text is to discuss available information (ex-post evaluation, progress reports, scientific publications and other sources) on the Polish case, and, more importantly, to assess whether the impact of Cohesion policy up to now is better visible on the demand or supply side. Main thesis is that the effects of Cohesion policy are mostly restricted to demand side, that is up to now it brings short-and medium-term results rather than impacts (understood as structural change).
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1094&r=geo
  48. By: Ionescu Romeo
    Abstract: The paper deals with the necessity to implement sub-regional specific solutions in order to achieve the economic recovery. EU2 countries (Bulgaria and Romania) have the same political and economic past, present and future and the same challenges to face. This is why both countries are analysed together in order to present the disparities between the real economic environment and the economic recovery measures implemented. The punt is high, because these latest Member States would be transformed into a good practice example for other member and candidate countries. Unfortunately, the reality is different. The analysis is focused on the anti-crisis programs from EU2 and their experience with the international financial institutes. The analysis is supported by Eurostat and official databases in order to describe the symmetrical shock to asymmetrical implications on the economy. The conclusions of the analysis can be resumed to the following: the global crisis affected powerfully the latest two EU member states; the financial regulation represents a critical area to create a sustainable and efficient financial system; the real target for Romania and Bulgaria is to save themselves from the national bankruptcy; the popular pressure on the policymakers increased and the economic recovery implemented plans are not able to support the economic recovery in both countries. The analysis and the conclusions of the paper are followed by pertinent statistical tables and diagrams.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p289&r=geo
  49. By: Les Dolega; Neil Wrigley
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1842&r=geo

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