|
on European Economics |
| By: | Roberto Basile; Davide Castellani; Antonello Zanfei |
| Abstract: | We examine the determinants of multinational firms’ location choices in Europe by estimating a nested logit model on a data-set of 5,761 foreign subsidiaries established in 55 regions in 8 EU countries over the period 1991-1999. We find that firms perceive regions across different countries as more similar than regions within national borders. This might be revealing that the process of European integration has reduced the national specificities perceived by multinationals and that regions within Europe compete to attract FDIs more across than within countries. Controlling for regional market size and potential, agglomeration economies and labor markets conditions, we also find that EU regional policy, captured by Cohesion Funds and Objective 1 eligibility, played a significant role in attracting multinationals, thus mitigating the agglomeration forces at work. Differences emerge in determinants of EU and US multinationals location choices, with special reference to the role of labor markets. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p37&r=eec |
| By: | J. Andrés Faíñaa; Jesús López-Rodríguez |
| Abstract: | In this paper we use a generalized entropy index such as the Theil index to analyze regional inequalities in Europe. We proved that there is a synchronization between the convergence and catching-up process of objective 1 regions towards the EU15 average with the reform of the EU regional policy. During the period 1982-1988 the Theil index shows that inequalities between objective 1 regions and non-objective 1 regions have increased while from 1989 onwards the reduction in the inequalities between these two groups has been the norm. We also remark the fact that there are high disparate rates of growth among objective 1 regions both within countries and across countries but our computations show also a trend towards a more balanced growth among objective 1 regions within and across EU countries. This success of the European Union regional policy in objective 1 regions will mean a big opportunity for Central and Eastern European countries and hence the increases in competition arising from an enlarged European market combined with a suitable regional development policy should in the future boost the growth of those countries. In the last part of the paper we made a simulation for the funding envelope from 2007, based on the 2000-2006 budget. We show that the figures of the Agenda 2000 provide enough financial support for 90% of the total CEEC population and for 75% of “current” objective 1 population. Key Words: Regional Policy, European Enlargement, Central and Eastern European Countries, Strategic Planning, Regional Growth, Regional Development |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p32&r=eec |
| By: | Carlos J. Rodriguez-Fuentes; Antonio Olivera-Herrera; David Padron-Marrero |
| Abstract: | The primary goal of the European Central Bank’s (ECB) monetary policy is to achieve price stability. Whereas during the 1980s and 1990s there was a rapid and strong convergence in terms of price differential among the Euro countries, particularly in those countries with higher inflation rates in the past, single monetary policy has proved to be quite inefficient in continuing this trend and has not achieved further reductions in inflation rate differentials within the euro zone. Since the ECB sets the official interest rate according to the average inflation of the euro area, the persistence of such price differentials within the area would mean that the “one size interest rate policy” would not fit all. This paper studies empirically the inflation rate differentials and their persistence in some currency unions with the aim to draw some conclusions for the working of the ECB monetary policy. KEYWORDS: monetary policy; inflation persistence; currency unions |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p218&r=eec |
| By: | Mark Thissen; Frank Van Oort |
| Abstract: | This paper addresses consequences of increased labour migration in Europe due to productivity effects in a core-periphery model. Traditional trade and growth models predict an overall beneficial impact of the accession of the current candidate states to the European Union. However, models incorporating imperfect competition warn that peripheral countries may realise only a small portion of this beneficial impact of the accession. In this chapter we go a step further: On the domestic level the countries accession may have negative effects while on the nationals level the effect will be positive. An empirical indication that benefits of accession may be low is the marginal benefits during the early phases of EU membership for Greece and Ireland and the Neue Länder of Germany. The following main questions are addressed in this chapter. What is the consequence of increased migration within the European Union due to deregulation in the context of the creation of a common market, and what will be the consequence of the extension of the European union with central and eastern European countries? |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p449&r=eec |
| By: | Annekatrin Niebuhr; Silvia Stiller |
| Abstract: | Border regions are likely to play a critical role within the special dynamics initiated by the enlargement of the EU. This paper deals with the effects of integration on labour market conditions in border regions. Within the framework of different theoretical approaches the effects of integration on location conditions and labour markets in border regions are analysed. Furthermore, we investigate empirically the degree of labour market integration in European border regions. Measures of spatial association are applied as indicators for the intensity of integration among neighbouring labour markets. The results of an analysis of per capita income and unemployment for the period 1995 to 2000 point at a measurable spatial segmentation of labour markets even among highly integrated EU15 countries. On average, border regions in the EU are characterised by lower degree of labour market integration than non-border areas due to significant border impediments that hamper equilibrating forces between labour markets on both sides of national frontiers. JEL classification: F22, J61, R23 Keywords: European Integration, Labour Market Disparities, Border Regions, Spatial Dependence |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p29&r=eec |
| By: | Peter Friedrich; Anita Kaltschütz; Chang Woon Nam |
| Abstract: | The idea of fiscal decentralisation has become increasingly fashionable world-wide. In some developed countries the systems of intergovernmental finance have evolved gradually and each country has unique features. Transition countries on different continents have had differing reasons and motivations for such reforms. More recently, the acknowledgement of subsidiarity as the basic principle for the European Un-ion, the introduction of the West German federal system in the eastern part of the country, the revival of regionalism in European countries are distinctive examples of the decentralisation process in Europe. Following the equalisation objectives, one tends to argue that those municipalities with greater spending needs automatically require more financial support from central or upper-level government. Yet, the sum of grants to municipalities should basically be induced from the comparison of their expenditure needs with local fiscal capacity from their own resources such as local tax revenues and fees. Surely the expenditure behaviour of municipalities is also, to a great extent, influenced by their present fiscal capacity and by the size of local debts. Four European countries were chosen to survey the recent development of local finance: the UK, Germany, Poland and Switzerland. This paper firstly identifies and highlights the similarities and differences in municipal finance in an international context. Secondly it theoretically examines the possibility of enhancing fiscal autonomy of local governments through increasing revenues from fees. Keywords: fiscal decentralisation, local expenditures and taxes, shared taxes, intergovernmental transfers, municipal borrowings, Poland, the UK, Switzerland, Germany |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p288&r=eec |
| By: | Rosina Moreno; Raffaele Paci; Stefano Usai |
| Abstract: | This paper investigates on the presence of innovation and production clusters in Europe. The analysis is based on an original statistical databank set up by CRENoS on regional patenting at the European Patent Office spanning from 1978 to 1997 and classified by ISIC sectors (3 digit) and on the Cambridge Econometrics database on production activity. We consider 138 regions of 17 countries in Europe, the 15 members of the European Union plus Switzerland and Norway. Firstly, an analysis of the spatial distribution of innovation and production activities in Europe is performed. Some global and local indicators for spatial association are presented, summarising the presence of a general dependence process in the distribution of the phenomena under examination. The analysis is implemented for different manufacturing macro-sectors to assess for the presence of significant differences in the their spatial features. Moreover, the extent and strength of spatial externalities are evaluated for three different periods: 1981-83, 1988-90 and 1995-97. Secondly, the spatial mapping of innovation is compared to the distribution of productive activity. Keywords: Innovation activity, Production specialisation, Spatial analysis, European regions. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p587&r=eec |
| By: | Marta Pascual; David Cantarero; Jose Maria Sarabia |
| Abstract: | The comparative analysis of income inequality across countries has acquired increasing importance in recent years. This paper is divided in two parts. The first one is focused on the analysis of income inequality in the European Union. To carry out this task, we use different models based on Lorenz curves and quantiles functions and different equivalence scales. The European Community Household Panel Data are used. The second part of the paper is focused on explaining the differences in income and health inequalities across European countries. In particular several hypotheses concerning the economic determinants of health inequalities are studied. KEY WORDS Income inequality, Lorenz curves, quantile functions, equivalence scales, European Community Household Panel, health inequalities |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p304&r=eec |
| By: | David Cantarero; Marta Pascual; Jose Maria Sarabia |
| Abstract: | In this paper the causal effects of socioeconomic status, in particular income, on individuals health in the European Union are analysed. We focus on the relationship between income and health. Finally, an international comparison of concentration indices for socioeconomic inequality in health based on the European Community Household Panel (ECHP) is presented. This survey contains data on individuals and households and the information is homogeneous across European Countries. KEY WORDS: Inequality, Health, Social Capital, European Community Household Panel, Ordered probit. JEL CATEGORY: D31, D63, I10 |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p230&r=eec |
| By: | Kirsi Ripatti |
| Abstract: | A Central Counterparty (CCP) is an entity that interposes itself between transacting counterparties – a seller vis-à-vis the original buyer and a buyer vis-àvis the original seller – to quarantee execution of the transaction. Thus, the original transacting parties substitute their contractual relationships with each other with contracts with the CCP. Central Counterparty Clearing has become increasingly popular in Europe, not just in derivatives markets, where, due to the high risk involved, it has been common for decades, but also in equities markets. Within the European Union, the main factor motivating the increased sophistication in clearing arrangements is the ongoing process of European economic integration, ie the euro’s introduction, the ongoing organisation of an internal market for financial services and the corresponding objective of creating a pan-European financial infrastructure for payments and securities clearing and settlement. Central counterparty clearing houses exert a broad influence on the functioning of financial markets. They can increase the efficiency and stability of financial markets to the extent that their smooth functioning results in a more efficient use of collateral, lower operating costs and greater liquidity. As market players actively try to achieve economies of scale and scope with mergers and through harmonising their technical processes, they inevitably have had to focus on one of the most fragmented areas in Europe’s securities market infrastructure – clearing and settlement. Because of the importance of its role, a CCP must have sound risk management. The CCP assumes responsibility in the aggregate and reallocates risk among participants. Moreover, if the CCP fails to perform risk management well, it can increase risk in the markets. While the big market players dominate the current CCP market in Europe, it is not only the big players who can benefit from a functioning CCP. With the right structure, a CCP enables small players to stay in the market and makes it possible for issuers in a regional marketplace to achieve market funding. Indeed, this is the 4 tendency currently seen in the newest EU member states – and one of the main arguments against the single European CCP model. Although, the purpose has been to leave CCP questions to market participants, regulatory, oversight and supervisory issues can drive the actions of market participants. Indeed, authorities must sometimes be actively involved in boosting a CCP project to keep their home markets competitive. This may well be the situation faced by the Nordic/Baltic market in the near future. Thus, this paper attempts to give a neutral evaluation of the risks and benefits related to the functionality of CCPs in integrating markets and construct a framework for possible future risk-benefit analysis in a Finnish/Nordic-Baltic clearing and settlement infrastructure that incorporates a CCP solution. This is an updated version of a Bank of Finland working paper (Financial Markets Department 01/04).1 |
| Keywords: | central counterparty clearing, clearing, settlement, securities markets, infrastructure, integration |
| JEL: | G15 G20 G28 G33 G34 |
| Date: | 2005–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0508021&r=eec |
| By: | Juan Miguel Benito; Roberto Ezcurra |
| Abstract: | This paper applies nonparametric techniques in order to examine the evolution of the entire distribution of regional productivity in the European Union between 1977 and 1999. Likewise, we study the strength of the respective roles played by regional and sectoral factors in the convergence in productivity observed in the European context. To achieve this aim, we consider a new methodology involving a modification of conventional shift-share analysis and various results reported in the literature on personal income distribution. Our results suggest that regional inequality in productivity in the European Union is closely linked to intrinsic differences between regions. Likewise, the analyses performed reveal the major role played by the national component and the spatial dimension in the explanation of regional disparities in the product per worker in the European Union. In addition, our findings support the relevance of one-sector growth models for analysing regional disparities in per capita income. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p102&r=eec |
| By: | Silke Haarich; Jaime del Castillo |
| Abstract: | The paper presents the changing role of evaluation for public policies and the increasing importance of comprehensive evaluation systems for more effective and learning public institutions. In this context, evaluation systems are becoming an essential element of governance and democratic processes. Within the framework of the current EU Structural Policy and its new challenges (enlargement, new priorities, regional policy paradigm), the creation and the development of evaluation capacities and comprehensive evaluation systems becomes increasingly an instrument for organizational learning and policy improvement. In this context, the development of evaluation systems is not only fundamental for the new member states, but also for countries with a poor evaluation culture or a fragmented evaluation system. However, evaluation still lacks the necessary resources and infrastructure to become an accepted and integrated governance tool, despite the growth of the European Evaluation Community and the take-off of several National Evaluation Societies in the past years. Unexploited potentials exist on the supply side (evaluators, skills, training, dialogue), but also on the demand side (commissioning, data monitoring, use of evaluations) of the evaluation system. Evaluation Capacity Building (ECB), as an approach for the development of evaluation systems, is the integrated and planned development of skills, resources and infrastructures and the intentional shift towards an evaluation culture in an organization, department or government. Nonetheless, getting to grips with the institutionalisation of the discipline of evaluation and the building of an ongoing evaluation capacity turns out to be extremely difficult: Which are concrete measures of ECB? Who is responsible for the measures, for the implementation? What are the target groups? When has the ECB been successful? are only some of the questions that come up. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p216&r=eec |
| By: | Andrej Horvat; Gunther Maier |
| Abstract: | Based on the review of literature and our own conceptual considerations, we show that absorption problems regarding the EU Structural Funds may be important. Our brief covering of some general macroeconomic aspects of absorption problems brings us closer to the central topic of our paper, namely, the question of how to measure the administrative capacities of particular Candidate Countries for Structural Funds. First, we describe a suitable methodology for calculating the administrative absorption capacities of Candidate Countries. We then turn to some of the Candidate Countries’ institution-building activities in preparation for the EU’s Structural Policy. This shows that the process of preparing programming documents was the central point of the overall institution-building exercise. At the end of this chapter we present calculations on administrative capacities in five Candidate Countries: the Czech Republic, Hungary, Slovakia, Estonia and Slovenia, respectively. These calculations are based on previous calculations by the European Commission and on the strategic documents negotiated between the Commission and these Candidate Countries before the end of 2003. By calculating the key indicators of administrative capacity, we offer some preliminary statements regarding the present administrative capacity in a particular prospective new Member State and provide additional information on the overall absorption capacity of the countries in the 2004-2006 programme period. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p591&r=eec |
| By: | Kurt Geppert; Michael Happich; Andreas Stephan |
| Abstract: | Economic disparities between the regions of the European Union are of constant concern both for policy and economic research. One of the “stylised facts” from the empirical literature is that the process of absolute convergence observed for decades has slowed down or even petered out during the 1980s. In this paper we analyse whether it has resumed and persisted in the 1990s when European integration made huge steps forward. We construct a typology of regions in order to examine whether there are overlapping trends of regional development, in particular, overall convergence on the one hand and persistent or even increasing spatial concentration (agglomeration) on the other. Both of our approaches, Marcov chain analysis and dynamic panel estimation, provide evidence that regional convergence in the EU15 has become stronger in the 1990s. At the same time there appears to exist a tendency towards further agglomeration of high income economic activities. Keywords: Regional growth, agglomeration, dynamic panel estimation |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p219&r=eec |
| By: | Ben Gardiner; Ron Martin; Tyler Peter |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p333&r=eec |
| By: | Giuseppe Arbia; Gianfranco Piras |
| Abstract: | This paper studies the convergence of per capita GDP across European regions over a fairly long period. Most of the works are based on either cross-sectional or fixed-effects estimates. We propose the estimation of convergence in per capita GDP across European regions by making use of panel-data models extended to include spatial error autocorrelation and spatially lagged dependent variable (Anselin,1988;Elhorst,2002). This will allow us to extend the traditional ß convergence model to include a rigorous treatment of the spatial correlation among the intercept terms. A spatial analysis of such intercept terms will also be performed in order to shed light on the concept spatially conditional convergence. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p524&r=eec |
| By: | Juana Domínguez-Domínguez; José Javier Núñez-Velázques; Luis Felipe Rivera-Galicia |
| Abstract: | The purpose of this paper is to analyze the evolution of poverty in the 15 countries of E.U., whose household income data is available through the information contained in the European Community Household Panel (ECHP). Several indicators have been proposed in economic literature for measuring poverty, but they may produce different orderings when cases are compared. In this work, a set of poverty one-dimensional indicators are chosen, which best verify some desirable properties. A modification of the Principal Component Analysis (PCA) is proposed to calculate synthetic cross-sectional measures of poverty using this set of indicators. In order to obtain comparable values throughout time, in addition to cross-sectional sense, joint consideration of single poverty indicators is proposed, independently of their temporary period of reference. Therefore, applying common space analysis to these cross-sectional synthetic measures, a common frame of comparison and a homogeneous weighting structure are obtained, which are stable throughout time. This powerful tool allows static as well as dynamic comparisons, among the EU countries. Furthermore, the determination of groups of countries according to their characteristics in poverty will be accomplished. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p582&r=eec |
| By: | Flavio Boscacci |
| Abstract: | A large re-structuring process is running in the European logistics market. The main driving forces come from the globalisation of the Economy, encouraged by the decrease of the unit transportation costs and by the contemporaneous upgrading of the labour level costs and the legal environmental costs. So, a good logistics system has become a must for the competition at both micro and macro-economic levels. Given the effectiveness of the single deliveries of goods, the main problem is to increase efficiency of the logistics services. From the micro-economic point of view, the problem consists in minimising the costs of the production processes of goods management services. In Europe, in particular, we are watching a large re-organisation of the logistics enterprises and of their territorial networks to achieve the best scale and scope economies of production. At the macroeconomic level, the problem is to estimate the rate of the logistics services on the GDP. In this paper we investigate the European logistics market transformations both from microeconomics and macroeconomics points of view. Thus, we will analyse the investments of the logistics sector as well as the logistics supply value as a component of GDP and its contribution to the International balance of commerce. Moreover, the infrastructures system quality (railways, roads, telecommunication, ports, airports, etc.) will be considered as a base asset for the reduction of the private costs of service production and as a territorial resource for the sustainable vehicles circulation. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p481&r=eec |
| By: | Kjetil Bjorvatn; Nicola Daniele Coniglio |
| Abstract: | The most important policy instrument to promote regional development in the European Union is Strucutral Funds, covering approximately a third of the EU budget. An empirical analysis demonstrates that these funds have on average been ineffective in speeding up the process of convergence with in the European Union. Only in countries with sufficiently good institutions have these funds contributed positively to regional development. Our analysis attempts to shed light on how investment subsidies may create industrialization, and more importantly, how poor quality institutions may prevent this strategy from succeeding. JEL codes: Keywords: Regional policy, rent seeking, industrialization |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p162&r=eec |
| By: | M.Carmen Guisan; M.Teresa Cancelo |
| Abstract: | We analyse the evolution of regional employment in EU countries, and present some econometric models which relate employment with wages, economic growth and productivity. This study points to the main causes the important regional disparities of wages and rates of employment that exist in EU15 and EU24, as well as the low level of the average rate of employment in comparison with the USA and other areas. Finally we suggest some European policies that should be have into account in order to foster employment and real wages in the less developed regions as well as the average rate of employment of European Union. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p460&r=eec |
| By: | Roberto Ezcurra; Carlos Gil; Pedro Pascual; Manuel Rapún |
| Abstract: | This paper examines productive specialization in the regions of the European Union over the period 1977 to 1999 using the information provided by various methodological instruments. The results obtained reveal a process of convergence in regional productive structures during the twenty-three years considered. This has been due to the behavior of regions with high levels of specialization at the start of the period, whose productive structures have tended to shift to wards the European average overtime. The analysis carried out also high lights the major role played by regional size, level of development and geographical location in explaining specialization in the European context. Finally, the empirical evidence provided suggests that changes in regional productive structures are closely linked to the evolution of the spatial distribution of per capita income in the European Union. Keywords: Specialization, economic activity, regions, European Union. JEL Code: F15, R11, R12. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p372&r=eec |
| By: | Heikki Eskelinen; Lauri Dieter Frank; Timo Hirvonen |
| Abstract: | Broadband infrastructures with a high transmission capacity are seen as a key precondition for the development of an information society, and therefore, their supply and availability have become important issues in public policies. The paper analyses the policy strategies applied in Finland and Sweden for promoting territorial rollout of broadband infrastructures. The experiences of these two countries can be seen to be of scientific interest and political relevance especially for the following two reasons: Both countries have been forerunners in the development of information society in general, and telecommunications in particular. Secondly, these two countries are sparsely populated, which is a most relevant conditioning factor in the rollout of broadband infrastructures characterised by nodal features. Despite the above-mentioned similarities of the two countries, they have applied quite different strategies in the rollout of broadband. In Sweden, the public sector has taken a more interventionist role than in Finland. This implies the question whether and how this difference can be seen in the territoriality of broadband supply. The paper attempts to answer this question, and provide conclusions for effective policy strategies. The paper is an outgrowth of the ESPON (European Spatial Planning Observation Network) project 1.2.2 “Telecommunications Services and Networks: Territorial Trends and Basic Supply of Infrastructure for Territorial Cohesion” (see: http://www.espon.lu). |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p257&r=eec |
| By: | Dimitris Kallioras; Georgios Fotopoulos; George Petrakos |
| Abstract: | The process of Central and Eastern European Countries’ (CEEC) transition from central planning to market economy has resulted in industrial restructuring and labor reallocation across branches and regions. The paper identifies patterns of industrial activity in Bulgaria, Romania, Slovenia, Hungary and Estonia on a basis of employment data, as a proxy for regional industrial structures, at NUTS III spatial level, disaggregated by manufacturing branches according to NACE rev. 1 two – digit classification. Theil entropy index is used in the analysis in order to evaluate patterns of regional specialization (defined as the distribution of the shares of a sector ? in a region ?) and sectoral concentration (defined as the distribution of the shares of a region in a sector ?). The over time evolution of the process of industrial restructuring represents a proper baseline for the likely distributional implications of the EU enlargement for these countries. Key Words: Bulgaria, Romania, Slovenia, Hungary and Estonia, industrial restructuring, industrial mix, competitiveness and growth. JEL Classification: L16, R11, R12. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p89&r=eec |
| By: | Tomokazu Arita; Philip McCann |
| Abstract: | Our paper analyses micro-level data from the US and European semiconductor manufacturers. In particular, we will focus on the plants undertaking the wafer manufacturing processes. We integrate a range of production technological indices with spatial data and regional economic variables in order to understand the issues determining the location behavior of the industry. Our results indicate that the locational behaviors of the US and European wafer plants do not correspond to an orthodox product-life-cycle model. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p450&r=eec |
| By: | Ewa Bojar |
| Abstract: | A shortfall of capital constitutes a major barrier of regional and local development. Introduced economical and social transformations started a decade ago had opened Polish economy to the inflow of foreign capital. Both the central government as well as regional and even local authorities spent a lot of efforts to attract foreign investments into the country and as a result of these exertions at the end of 2002 foreign investment stock exceeded 65 Bln US dollars, including more than 61 Bln dollars in huge investments (exceeding 1 Mln dollars). The peak inflow of foreign direct investments to Poland was in 2000 when more that 10 Bln US dollars reinforced Polish economy. However, significant drop was observed in the following years (2001 – 7 Bln dollars, 2002 – 6 Bln dollars). Over the course of political and economical transformation of Polish economy and transition into the market-driven economy near 50 thousand business ventures engaging foreign capital were formed. Unfortunately only a little bit more than 700 found favorable environment in the Lublin region. The Lublin region is the third largest region in Poland. As revealed by our survey presently some 22% out of 213 local communities in the region, also called ‘gminas’, recognize the importance of foreign direct investments in stimulating local social and economical development and it is reflected in their development strategies. Joint venture companies with foreign capital operate in 87 gminas of the Lublin region, and 93 local communities successfully applied for structural funds made available by the European Union to the newly accessing countries (PHARE – 32 gminas, SAPARD – 81 gminas). As regards diversification of financial resources to support local development a trail has already been blazed by many local communities successfully attracting foreign capital and the EU funds. The present paper, based on the research carried out by Department of Economics of Lublin University of Technology, surveys the actual role and perspectives of old and emerging opportunities in terms of financing local and regional development. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p124&r=eec |
| By: | Roberto Basile; Luca De Benedictis |
| Abstract: | The existence and persistence of large spatial disparities in un-employment within national economies is a central issue in regional economics. Previous empirical analyses have largely disregarded the role of fundamentals. On the contrary in this paper we explore the link between labour productivity, international trade and regional un-employment differentials. We base our empirical analysis on the predictions of a simple General Oligopolistic Equilibrium effciency-wage trade model. Using semi parametric regression methods, controlling for industry-mix and labour force participation, we give evidence of a non linear negative relationship between labour productivity and regional unemployment, in the cases of European regions. Instead, no significant relationships between these variables have been found for the United States. Keywords: Productivity, Regional Unemployment, Oligopoly, Non parametrics. JEL Classification: C14, D50, F12, F16, J41, L13, R10. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p38&r=eec |
| By: | M.Carmen Guisan; Eva Aguayo; A. David Carballas |
| Abstract: | The role of human capital, industry and tourism in regional development is analysed by means of econometric models with data of both EU15 and the ten countries of the 2004´s Enlargement. The study points to the need to improve economic policies at EU level, in order to increase production in the less developed regions and to get a higher degree of socio-economic convergence among EU regions. We analyse the main measures that have shown a positive impact on regional development during the last years. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p468&r=eec |
| By: | Christiane Krieger-Boden |
| Abstract: | The process of European integration entails regional structural change thereby affecting the economic situation of regions and the objective of regional cohesion in Europe. As some kinds of specialization may be more favourable to regional income opportunities than others, there may be winning and losing regions depending on their characteristic specialization pattern. Relying on regional employment data from national data sources in a deep industrial break-down, I study the long-term structural change of regions from four countries depending on their initial kind of specialization, i.e., their initial set of industries with high or low scale economies and with high resource, labour, skill or research intensities. This approach requires a classification of industries according to their characteristics, and of regions according to their industrial mix, by means of cluster analyses. This will help identifying types of regions like the core regions of each country with usually quite diversified industrial structures and a certain focus on more modern industries, like old industrialised regions with a focus on iron-and-steel or textiles, like peripheral regions with an initial focus on traditional labour intensive industries, and finally like some highly and very specifically specialised regions. The evolution of specialization is then analysed in the context of the identified type-classes of regions with similar specialization. While the overall change of regional specialization is slow and without a clear direction towards an increase or decrease, the analysis for types of regions yields some more explicit results. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p577&r=eec |
| By: | Maria Jesus Delgado Rodriguez; Inmaculada Alvarez Ayuso |
| Abstract: | This work decompose labor-productivity grotwh and convergence in EU into components attributable to technological change (shifts in the European production frontier), technological catch-up (movements toward or away from the frontier) and factor accumulation (movement toward or away from the frontier). This work extends previous researchs considering public capital and human capitas as additional productive inputs and analysing its separate constribution to convergence as components of factor accumulation. In the case of human capital, we also test its rate effect as determinant factor of technical change. With this purpose we applied the Malmquist index of total factor productivity to an European data base to provide evidence for the 15 EU State Members. The results show that growth is primarily driven by factor accumulation which contribution is fundamental for lagging countries. We do not find evidence of any significant convergence over the whole period studied related to integration with factor accumulation and efficiency change as important factors of convergence while technical change (encouraged by greater human capital) has worked against it. Key words: Human Capital, Malmquist Index, Source of Convergence. JEL Classification: O47 H54 D24 |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p164&r=eec |
| By: | Santiago Rodriguez Feijoo; Alejandro Rodriguez Caro; Carlos Gonzalez Correa |
| Abstract: | This paper studies the convergence in the European Union on Purchasing Power Parity. Firstly, we develop a method for the estimation of PPP series and then, we put it into practice and estimate the monthly Purchasing Power Parity for the period January 1995 to July 2003. Secondly, convergence is studied using distribution dynamics from the continuous and discrete approximations. Results show some slow convergence in the European Union. Keywords: Purchasing Power Parity, Convergence, Distribution Dynamics, Markov Chains |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p369&r=eec |
| By: | Javier Revilla Diez; Martin Berger |
| Abstract: | Using firm-level survey data from Barcelona, Stockholm, Vienna in Europe and Singapore, Penang (Malaysia) and Bangkok in South-East Asia the paper enquires into the different R&D and innovation behaviour of multinational and local companies in these Metropolitan Regions. Scrutinizing a set of input, throughput and output indicators as well as information on cooperation characteristics, we try to evaluate a) if the spatial pattern of more (intense) innovation activity in Europe when compared to South-East Asia is still valid; and b) if there are reasons to believe that R&D units of multinational corporations in Europe are mainly concerned with the enhancement of the knowledge base and the development of future competitiveness by tapping into localized knowledge and using the particular host regions’ innovation systems, while, on the other hand, MNCs in South-East Asia use R&D to support existing production facilities in order to exploit an existing competitive advantage. We are able to show that there is still a major gap in the innovation performance between South-East Asia and Europe and that there are indeed indications that R&D units in Europe are more orientated towards the augmentation of the company’s knowledge base. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p642&r=eec |
| By: | M. Jose Prieto; Agustin Manzano |
| Abstract: | From to beginning of year 2002, the Spanish Autonomous Communities (CC. AA.) fiscal performance is conditioned by a new legal framework compounded from the financial agreement and the legislation on budget stability. This new framework implies a change in the CC. AA. fiscal behaviour. Are the CC. AA. ready to provide its citizens the public services they demand and fulfil its fiscal stability commitments? Are all the CC. AA. in the same position? Using political economic models and data on past budget execution, this paper is aimed at shedding light over the factors that jeopardize the CC. AA. budget stability in the future and the differences between CC. AA. relevant to its fiscal performance. JEL classification: H61, H62, H71, H72, H77 |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p262&r=eec |
| By: | Raffaello Bronzini |
| Abstract: | A number of empirical works analyzed the effect of agglomeration on multinational investment verifying whether agglomerated areas attract foreign direct investment. Despite the large amount of studies, there has been no systematic attempts to disentangle whether FDI are drawn by the concentration of firms within the same sector (specialization) or within different sectors (diversity). Furthermore, the question whether firms’ size of the host area influences multinational investment is still unanswered. This paper provides an empirical evidence on the role of agglomeration economies in attracting foreign direct investments within Italian regions and provinces, distinguishing between specialization and diversity externalities, and on the role of firms’ size in affecting foreign investors’ choices. We employ a new territorial data set on foreign direct investment collected by the Italian Foreign Exchange Office for industrial and service sectors. We find a strong evidence that specialized geographic areas attract FDI, whereas diversified areas draw FDI only for industrial sectors; finally there is little evidence that firm size has an impact on FDI, if anything, only big firms in Southern regions would seem to affect positively foreign investor decisions. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p321&r=eec |
| By: | Michael Dooms; Elvira Haezendonck |
| Abstract: | Haezendonck (2001) introduced an ecological dimension in conventional port portfolio analysis for seaports and applied it to the seaports in the Hamburg – Le Havre range. Given the fast growth of inland waterway transport, and the development of inland ports in the hinterland of seaports, the analysis can also be extended to evaluate the ‘green’ competitiveness of inland ports, as they are considered as important enablers to reach objectives of sustainable development. In this paper, the ‘green port portfolio analysis’ is applied to a range of eight inland ports in Western Europe. This results in (1) a number of specific methodological issues related to the inland port environment, (2) an interesting research agenda both for policy-makers at the local and regional level as well as for inland port managers. Keywords: Strategic management, port management & development |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p274&r=eec |
| By: | Ilaria Mariotti; Giacinto Micucci; Pasqualino Montanaro |
| Abstract: | Traditionally, scholars describe Italian industrial districts (IDs) as closed manufacturing systems of SMEs embedded in local contexts, able to interact with the outside only at the two ends of the value chain and where well-identified firms were in charge of managing the relationships with final markets (Becattini, 1989; 2002; Piore and Sabel, 1984). However, at the end of the nineteen-eighties and during the nineties, even local systems of SMEs (IDs) perceived the importance of increasing their contacts with firms outside the local district area. The emerging delocalisation process carried out by Italian district SMEs highlights their abilities to globalise not only by selling products manufactured locally in international markets (export-based perspective), but also in terms of the international reorganisation of local supply chains. The purpose of the paper is twofold. First, we investigate whether the internationalization strategies by district SMEs are independent or complementary to each other. Second, we test if they are linked to the lack of low-skilled labour force. The questions will be addressed using data-sample of about 700 district firms (Bank of Italy database). The paper is organised as follows. A general introduction is followed by a discussion of the internationalisation strategies adopted by Italian SMEs. Section three focuses on the internationalisation process of the IDs and offers a review of studies on the subject. Section four presents an empirical analysis on the process as undergone by a sample of district SMEs. The results of the econometric model are described in section five and some ideas for further research are forwarded in the conclusions. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p436&r=eec |