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on Economic Geography |
| By: | Guilherme Mendes Resende; Alexandre Xavier Ywata de Carvalho; Patrícia Alessandra Morita Sakowski |
| Abstract: | The goal of this paper is to evaluate the results of regional economic growth estimates at multiple spatial scales using spatial panel data models. The spatial scales examined are minimum comparable areas, micro-regions, meso-regions and states over the period between 1970 and 2000. Alternative spatial panel data models with fixed effects were systematically estimated across those spatial scales to demonstrate that the estimated coefficients change with the scale level. The results show that the conclusions obtained from growth regressions are dependent on the choice of spatial scale. First, club convergence hypothesis cannot be rejected suggesting there are differences in the convergence processes between the north and south in Brazil. Moreover, the positive average-years-of-schooling coefficient gets larger as more aggregate spatial scales are used. Transportation costs effect is positive and statistically significant to economic growth only at the state level. Population density coefficients show that higher populated areas are harmful to economic growth demonstrating somehow that congestion effects are operating at the MCA, micro-regional and meso-regional spatial scales, but their magnitudes vary across the geographic scales. Finally, the values of spatial spillovers coefficients also vary according to the spatial scale under analysis. In general, such coefficients are statistically significant at the MCA, micro-regional and meso-regional levels; but, at state level those coefficients are no longer statistically significant suggesting that spatial spillovers are bounded in space. O objetivo deste estudo consiste em avaliar os resultados de estimações de crescimento econômico regional em múltiplas escalas espaciais utilizando modelos de painel espacial. As escalas espaciais examinadas são áreas mínimas comparáveis, microrregiões, mesorregiões e estados no período entre 1970 e 2000. Modelos alternativos de painel espacial com efeitos fixos foram estimados sistematicamente nessas escalas espaciais para demonstrar que os coeficientes estimados variam de acordo com a escala utilizada. Os resultados mostram que as conclusões obtidas a partir de regressões de cre scimento dependem da escolha da escala espacial. Primeiramente, a hipótese de convergência de clube não pode ser rejeitada, sugerindo haver diferenças nos processos de convergência entre o norte e sul do Brasil. Além disso, o coeficiente positivo da média de anos de escolaridade aumenta quanto mais agregada a escala espacial utilizada. O efeito de custos de transporte é positivo e estatisticamente significante para o crescimento econômico apenas no nível do estado. Os coeficientes da densidade populacional mostram que áreas mais densamente povoadas são prejudiciais para o crescimento econômico, sugerindo efeitos de congestionamento no nível de AMC, microrregiões e mesorregiões, mas a magnitude desses coeficientes varia de acordo com a escala geográfica. Finalmente os coeficientes de transbordamento espacial também variam conforme a escala espacial sob análise. Em geral, esses coeficientes são estatisticamente significativos nos níveis de AMC, microrregião e mesorregião; mas, no nível estadual, deixam de ser estatisticamente significativos, sugerindo que transbordamentos espaciais são limitados no espaço. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipe:ipetds:0193&r=geo |
| By: | Riccardo Crescenzi; Luisa Gagliardi |
| Abstract: | This paper looks at the link between inter-regional mobility, innovation and firms' behavioural heterogeneity in their reliance on localised external sources of knowledge. By linking patent data (capturing inventors' inter-regional mobility) with firm-level data (providing information on firms' innovation inputs and behaviour) a robust identification strategy makes it possible to shed new light on the geographical mobility-innovation nexus. The analysis of English firms suggests that firm-level heterogeneity - largely overlooked in previous studies - is the key to explain the innovation impact of inter-regional mobility over and above learning-by-hiring mechanisms. A causal link between inflows of new inventors into the local labour market and innovation emerges only for firms that make the use of external knowledge sources an integral part of their innovation strategies. |
| Keywords: | Innovation, Labour Mobility, Inter-regional Migration, Spillovers |
| JEL: | O31 O15 J61 R23 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0174&r=geo |
| By: | Andrew B. Bernard; Andreas Moxnes; Yukiko U. Saito |
| Abstract: | This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to search more and find better suppliers. This in turn drives down the firm's marginal production costs. We test the theory by exploiting the opening of a high-speed (Shinkansen) train line in Japan which lowered the cost of passenger travel but left shipping costs unchanged. Using an exhaustive dataset on firms' buyer-seller linkages, we find significant improvements in firm performance as well as creation of new buyer-seller links, consistent with the model. |
| JEL: | D22 D85 F14 L10 L14 R12 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21082&r=geo |
| By: | Pierre-Philippe Combes (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS, 2, Rue de la Charité,13002 Marseille, France; Sciences Po, Department of Economics, 28, Rue des Saints-Pères, 75007 Paris, France. Also affiliated to the CEPR.); Sylvie Démurger (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France); Shi Li (School of Business, Beijing Normal University, China; IZA, Bonn, Germany) |
| Abstract: | We analyse the impact of internal migration in China on natives’ labour market outcomes. We find evidence of a large positive correlation of the city share of migrants with natives’ wages. Using different sets of control variables and instruments suggests that the effect is causal. The large total migrant impact (+10% when one moves from the first to the third quartile of the migrant variable distribution) arises from gains due to complementarity with natives in the production function (+6.4%), and from gains due to agglomeration economies (+3.3%). Finally, we find some evidence of a stronger effect for skilled natives than for unskilled, as expected from theory. Overall, our findings support large nominal wage gains that can be expected from further migration and urbanisation in China. |
| Keywords: | Migration, urban development, agglomeration economies, wage disparities, China |
| JEL: | O18 J61 R23 J31 O53 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1503&r=geo |
| By: | Kumagai, Satoru; Ueki, Yasushi; Bullón, David; Sánchez, Natalia |
| Abstract: | This paper investigates the current situation of industrial agglomeration in Costa Rica, utilizing firm-level panel data for the period 2008-2012. We calculated Location Quotient and Theil Index based on employment by industry and found that 14 cantons have the industrial agglomerations for 9 industries. The analysis is in line with the nature of specific industries, the development of areas of concentration around free zones, and the evolving participation of Costa Rica in GVCs. |
| Keywords: | Costa Rica, Industrial structure, Industry, Productivity, Economic development, Industrial Agglomeration |
| JEL: | L60 O54 R12 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper499&r=geo |
| By: | Luca Papi (Universit… Politecnica delle Marche, Dipartimento di Scienze economcihe e Sociali, MoFiR); Emma Sarno (Universit… di Napoli "L'Orientale"); Alberto Zazzaro (Universit… Politecnica delle Marche, MoFiR) |
| Abstract: | The evolution of the banking industry has always been affected by recurrent waves of technological, regulatory and organizational changes. All such changes have significant effects on the spatial organization of banks, the interconnectedness of geographical credit markets and the core-periphery structure of banking industry. In this chapter, we review the literature on the effects of geographical distances between the key actors of the credit market (the borrowing firm, the lending branch, the lending bank, and rival banks) on lending relationships and interbank competition. Using the metrics and graph techniques for network analysis we then provide evidence concerning the evolving geographical network of bank organizations in Italy. |
| Keywords: | Distances in credit markets, network analysis, spatial organization of banks |
| JEL: | G2 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wmofir:105&r=geo |
| By: | Desmet, Klaus; Nagy, David Krisztián; Rossi-Hansberg, Esteban |
| Abstract: | We study the relationship between geography and growth. To do so, we first develop a dynamic spatial growth theory with realistic geography. We characterize the model and its balanced growth path and propose a methodology to analyze equilibria with different levels of migration frictions. We bring the model to the data for the whole world economy at a 1º times 1º geographic resolution. We then use the model to quantify the gains from relaxing migration restrictions as well as to describe the evolution of the distribution of economic activity in the different migration scenarios. Our results indicate that fully liberalizing migration would increase welfare more than three-fold and would significantly affect the evolution of particular regions in the world. We then use the model to study the effect of a spatial shock. We focus on the example of a rise in the sea level and find that coastal flooding can have an important impact on welfare by changing the geographic-dynamic path of the world economy. |
| Keywords: | coastal flooding; development; gains from mobility; geography; growth; migration; spatial economics; trade; world economy |
| JEL: | F1 F22 O1 O15 O18 Q54 R11 R12 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10544&r=geo |
| By: | Rafael Henrique Moraes Pereira; Vanessa Nadalin; Leonardo Monasterio; Pedro Henrique Melo Albuquerque |
| Abstract: | This study introduces a new measure of urban centrality. It identifies distinct urban structures from different spatial patterns of jobs and resident population. The proposed urban centrality index constitutes an extension of the spatial separation index (MIDELFART-KNARVIK et al., 2000). It is suggested that urban structure should be more accurately analyzed by considering a centrality scale (varying from extreme monocentricity to extreme polycentricity) rather than a binary variable (monocentric or polycentric). The proposed index controls for differences in size and shape of the geographic areas for which data is available, and can be calculated using different variables, such as employment and population densities and trip generation rates. The properties of the index are illustrated in simulated artificial data sets. Simulation results for hypothesized urban forms are compared to other similar measures proposed by previous literature. The index is then applied to the urban structure of four different metropolitan areas: Pittsburgh and Los Angeles in the United States; São Paulo, Brazil; and Paris, France, The index is compared to other traditional spatial agglomeration measures, such as global and local Moran’s I, and density gradient estimations. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipe:ipetds:0189&r=geo |
| By: | Herrmann, Johannes (Stockholm School of Economics); Hjertström, Alexander (Stockholm School of Economics); Avdeitchikova, Sofia (The Ratio institute) |
| Abstract: | Business angels are a vital source of capital for innovative startup firms. However, even of those startups that have the potential to fulfill angel investors’ expected return on investment, most are rejected during the angel’s investment decision process. Information asymmetry, risk and distrust in the relationship between the investor and the entrepreneur result in investment barriers. The concept of proximity has been proposed as a suitable conceptual foundation to understand how the relationship between angel and entrepreneur might hinder or benefit the investment decision. Particularly, researchers distinguish between functional (geographical) and relational dimensions of proximity. The purpose of this paper is to examine the influence of proximity on business angel investments. We do this based on data from 226 investment situations gathered in fall 2014 from 56 business angels and 87 entrepreneurs in Sweden and analyzed using a state-of-the-art Structural Equation Modelling technique. We find that the investment decision is partially determined by the functional proximity of investor and entrepreneur, when observed in isolation. Our results furthermore support conceptual studies in the field of business angels that have hypothesized a mediating effect of relational proximity in this relationship. Based on the empirical analysis in this study, we find this effect to be fully mediating. |
| Keywords: | Business angels; investment decision; functional proximity; relational proximity; structural equation modeling; mediation |
| JEL: | D81 M13 M21 O16 R12 |
| Date: | 2015–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0253&r=geo |
| By: | Riccardo Crescenzi; Alexander Jaax |
| Abstract: | The debate on Russia’s innovation performance has paid little attention to the role of geography. This paper addresses this gap by applying an ‘augmented’ regional knowledge function approach to examine the territorial dynamics of innovation in Russia. The empirical results suggest that regional R&D investments are strong predictors of local innovative performance. However, R&D activities are inadequately connected to regional human capital resources. The activities of foreign firms play a fundamental role as ‘global knowledge pipelines’. Different territorial dynamics of innovation are observed in the European and the Asian part of Russia, with regions to the East of the Urals less likely to benefit from interregional knowledge spillovers. The historical legacy from the Soviet era still emerges as a strong predictor of current innovative performance, shedding light on the importance of long-term path dependency in the Russian geography of innovation. |
| Keywords: | Innovation, R&D, geography, regions, Russia |
| JEL: | R11 R12 O32 O33 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1509&r=geo |