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on Microeconomic European Issues |
| By: | Raffaele Paci; Emanuela Marrocu; Stefano Usai |
| Abstract: | The recent history of Europe is characterized by a dual picture showing the Old and New countries in sharp contrast with respect to their industrial specialisation and economic performance. We aim at analyzing the intertwined performance of regions and industries in New and Old European economies by investigating the effects of local agglomeration externalities (mainly specialisation and diversity externalities) on total factor productivity dynamics. We also analyse the potential influence of regional intangible assets such as human and technological capital. The econometric analysis makes use of spatial econometric techniques to take into account the possibility of cross-border externalities. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p200&r=eur |
| By: | Raphaël Chiappini (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux IV : EA2954) |
| Abstract: | This paper investigates the impact of offshoring on export performances of French, German and Italian automotive firms. We argue that the different offshoring strategies run by the main European automakers are responsible for the discrepancies in export performances of France, Germany and Italy on the world automotive market. We use an export equation and a panel data analysis and show that offshoring strongly affect exports of automotive firms. Focussing on the French and German export performances, we show that the relatively low export performance of France in the automotive industry since the end of the 1990s is mainly the result of an increase in offshoring lead by Renault and PSA. |
| Keywords: | Offshoring, export performance, automotive industry |
| Date: | 2011–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00637603&r=eur |
| By: | Gabriele Tondl; Peter Huber |
| Abstract: | Migration and Regional Convergence in the European Union European migration trends in the last decade have been marked by a number of spectacular changes. In the course of the recent enlargement immigration to some EU15 countries from the CEECs has become remarkable. Nevertheless, the vast majority of the EU27 countries are net immigration countries. In face of the important immigration and the cohesion problem, the question arises whether migration had any effect on unemployment and GDP per capita levels in the 2000s. In this paper we use data from the Eurostat Regio Database and estimate whether EU regions reveal a process of convergence in unemployment and income and whether migration plays a role in this process. We further examine whether migration has a different impact on emigration and immigration regions or in converging and diverging regions. While we cannot find a significant impact of migration on unemployment, migration clearly affects per capita income growth. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1761&r=eur |
| By: | Marx, Ive (University of Antwerp); Vandenbroucke, Pieter (University of Antwerp); Verbist, Gerlinde (University of Antwerp) |
| Abstract: | At the European level and in most EU member states, higher employment levels are seen as key to better poverty outcomes. But what can we expect the actual impact to be? Up until now shift-share analysis has been used to estimate the impact of rising employment on relative income poverty. This method has serious limitations. We propose a more sophisticated simulation model that builds on regression based estimates of employment probabilities and wages. We use this model to estimate the impact on relative income poverty of moving towards the Europe 2020 target of 75 percent of the working aged population in work. Two sensitivity checks are included: giving priority in job allocation to jobless households and imputing low instead of estimated wages. This paper shows that employment growth does not necessarily result in lower relative poverty shares, a result that is largely consistent with observed outcomes over the past decade. |
| Keywords: | employment growth, poverty, Europe 2020, household work intensity, low pay |
| JEL: | I32 J21 J68 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6068&r=eur |
| By: | Richard Sellner; Wolfgang Polasek |
| Abstract: | We analyze the influence of newly constructed globalization measures on regional growth for the EU-27 countries between 2001 and 2006. The spatial Chow-Lin procedure, a method constructed by the authors, was used to construct on a NUTS-2 level a complete regional data for exports, imports and FDI inward stocks, which serve as indicators for the influence of globalization, integration and technology transfers on European regions. The results suggest that most regions have significantly benefited from globalization measured by increasing trade openness and FDI. In a non-linear growth convergence model the growth elasticities for globalization and technology transfers decrease with increasing GDP per capita. Furthermore, the estimated elasticity for FDI decreases when the model includes a higher human capital premium for CEE countries and a small significant growth enhancing effect accrues from the structural funds expenditures in the EU. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p819&r=eur |
| By: | Michael Barber; Thomas Scherngell |
| Abstract: | Interactions between firms, universities, and research organizations are crucial for successful innovation in the modern knowledge-based economy. Systems of such interactions constitute R&D networks. R&D networks may be meaningful segmented using recent methods for identifying communities, subnetworks whose members are more tightly linked to one another than to other members of the network. In this paper, we identify such communities in the European R&D network using data on joint research projects funded by the fifth European Framework Programme. We characterize the identified communities according to their thematic orientation and spatial structure. By means of a Poisson spatial interaction model, we estimate the impact of various separation factors – such as geographical distance – on the variation of cross-region collaboration activities in a given community. The European coverage is achieved by using data on 255 NUTS-2 regions of the 25 pre-2007 EU member-states, as well as Norway and Switzerland. The results demonstrate that European R&D networks are not homogeneous, instead showing relevant community substructures with distinct thematic and spatial properties. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p392&r=eur |
| By: | Catherine Pollak (IRDES et Centre d'Economie de la Sorbonne); Nicolas Sirven (IRDES) |
| Abstract: | This article analyses the effect of job quality on pathways to productive activities of older workers in Europe. Using comparative panel data from SHARE, we analyse the medium term effects of working conditions of workers aged 50-64 on three participation outcomes (staying in employment, participating in social activities and providing informal care) with a trivariate probit model. Several aspects of job quality appear to play a role for participation in society as a whole, including participation in social activities. Care-giving on the other hand appears independent from the considered job quality indicators, but very gender specific. However, trade-offs between full time work and care activities appear in some cases. Therefore, better working conditions and the opportunity for work time arrangements should be developed if one aims to foster participation of older workers in the society. |
| Keywords: | Job quality, ageing, early retirement, social participation, informal care. |
| JEL: | J22 J14 C35 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:11066&r=eur |
| By: | Judith Clifton; Daniel DÃaz-Fuentes; Marcos Fernández-Gutiérrez; Julio Revuelta |
| Abstract: | Public infrastructure services (or Services of General Economic Interest, SGEI) in the European Union have undergone significant reform in the recent period, including privatization, liberalization and deregulation. These reforms, however, have led to concerns about the potential impact of pursuing economic profitability over service quality, affordability, accessibility and universality. Traditionally, because SGEI have been understood as playing a key economic, social and strategic role, they have been subject to specific rules in the general interest: so-called Public Service Obligations (PSO). A key objective of PSO is to ensure equal access to services, independent of the place of residence, income or other factors. PSO are, therefore, a key instrument as regards ensuring equity and territorial cohesion. As such, it constitutes a fundamental concern in European regional policy. Traditionally, the regulation of SGEI has focused on the supply side, as it has been assumed competition in an integrated European market would benefit citizens. Despite this, little research has actually been done on evaluating regulation from the demand side, not to speak of applying a regional focus. The aim of this paper is to evaluate SGEI provision and regulation in the EU from the perspective of citizens as consumers using a regional perspective. We focus on the region (NUTS1) and the urban/rural character of the place of residence as possible determinants of disparities. To do so, a microeconometric analysis of citizens’ revealed and stated preferences is performed, focusing on three large European countries (Italy, Spain and the United Kingdom) for four services: electricity, gas, water and telecommunications. First, disparities in spending on the services are analyzed, using National Household Budget Surveys. Next, differences in dissatisfaction with service access and price are analyzed, using the Eurobarometer. Finally, we analyze whether lower consumption of a particular service in a particular region or rural area is related to problems of accessibility, affordability or to other factors. Findings show different regional patterns of services use. Moreover, serious and widespread problems are observed regarding equal access to services such as gas and telecommunications in rural areas, of some concern for the question of territorial cohesion. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1416&r=eur |
| By: | Attila Varga; Péter Járosi; Tamás Sebestyén |
| Abstract: | This paper introduces the Geographic Macro and Regional (GMR) model for NUTS-2 regions of the Euro zone. This model consists of three blocks: the TFP, the SCGE and the MACRO blocks. The model is built for impact analysis of policies targeting intangible assets in the forms of R&D, human capital and social capital. The analysis can be done both at the regional and the EU macroeconomic levels. Policy simulations on the growth impacts of the 6th European Framework Program illustrate the capabilities of the complex model system. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1426&r=eur |
| By: | Cristina Brasili |
| Abstract: | Starting from the definition of local development as a process of cooperation and change managed by local actors whose main goal is producing collective goods for the local community I would like to consider the factors which favour the possibility of making the process start. In the first part it will be presented the several programs for a sustainable urban development by the European Commission (Urban I, Urban II, Leipzig Charter) from Nineties up to now. Moreover, passing through the concept of territorial capital it will be design the linkages between local and urban development in the EU in order to arrange effective policies to improve the local and urban development. Therefore, politics of local development must intervene to increase cities territorial capital; this could seem to be obvious but it is less evident than quantifying territorial capital, in particular the cities one. The second part of the paper has just been finalized to find out seven essential components of territorial capital: productive, cognitive, social, relational, environmental, settlement, infrastructural components. Selecting one or more variables for each one of these components (with the exception of the relational one which we can't quantify) they can represent the territorial capital for European cities. The used variables are taken from Eurostat Urban Audit database about European cities, they refer to 2006/2007 biennium and they regard 118 cities of Belgium, Denmark, Germany, Spain, France, Esthonia, Italy, Latvia, Lithuania, Hungary, Holland, Slovakia, Slovenia, Finland and United Kingdom. Synthesizing the information given by the chosen variables (through the statistical analysis of the Principal Components) it will be specify six groups of cities which are as homogeneous as possible for presence of territorial capital, this is very useful to better addressed the policies to the local and, more specifically, urban development. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1382&r=eur |
| By: | Marina Gruševaja; Toralf Pusch |
| Abstract: | Structural Funds are the main instrument of the EU cohesion policy. Their effective use is subject to an ongoing debate in political and scientific circles. European fiscal assistance under this heading should promote economic and social cohesion in the member states of the European Union. Recently, the domestic institutional capacity to absorb, to distribute and to invest Structural Funds effectively has become a crucial determinant of the cohesion process and has attracted attention of the scientific community. The aim of this study is to shed light on the effectiveness of Structural Funds in the countries of the first Central and Eastern European enlargement round in 2004. Using regional data for these countries, we have a look on the impact of several institutional governance variables on the effectiveness of Structural Funds. In the interpretation of results, reference is made to regional economics. Results of the empirical analysis indicate an influence of certain institutional variables on the effectiveness of Structural Funds in the new member states. |
| Keywords: | EU cohesion policy, Structural Funds, institutional setting, EU new member states |
| JEL: | R11 P2 O38 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:17-11&r=eur |
| By: | Rafael Boix Domenech; Paolo Veneri; Vincent Almenar; Francesc Hernández |
| Abstract: | Metropolitan areas concentrate the main share of population, production and consumption in OECD countries. They are likely to be one of the most important units for economic, social and environmental analysis as well as for the development of policy strategies. However, one of the main problems that occur when adopting metropolitan areas as units of analysis and policy in European countries is the absence of widely accepted standards for identifying them. This severe problem hinders comparative research between European countries using metropolitan areas as units of analysis. In this text we defend the necessity of a methodology to identify metropolitan areas in Europe. This methodology should fulfil three requisites: first, to be useful for analysis and planning, which requires to represent in a realistic way economic, social and environmental phenomena; second, to be applicable to all the European countries; and third, to be flexible enough to deal with the existence of different administrative and territorial structures across countries as well as to take into account that many metropolitan areas, particularly the largest ones, are polycentric. The aim of this paper is to identify metropolitan areas in Spain and Italy using similar methodologies and to evaluate their application to other European countries. The results allow comparing the metropolitan realities of these countries as well as providing the metropolitan units that can be used in subsequent comparative researches. Two methodologies are proposed: the Cheshire-GEMACA methodology (FUR) and an iterative version of the USA-MSA algorithm, particularly adapted to deal with polycentric metropolitan areas. Both methods show a good approximation to the metropolitan reality and produce very similar results: 75 FUR and 67 DMA in Spain (75% of total population and employment), and 81 FUR and 86 DMA in Italy (70% of total population and employment). |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p515&r=eur |
| By: | Thomas Scherngell; Rafael Lata |
| Abstract: | One of the main goals of the European Research Area (ERA) concept is to improve coherence and integration across the European research landscape by removing barriers for collaborative knowledge production in a European system of innovation. The cornerstone of policy instruments in this context is the European Framework Programme (FP) that supports pre-competitive collaborative R&D projects, creating a pan-European network of actors performing joint R&D. However, we know only little about the contribution of the FPs to the realisation of ERA. The objective of this study is to monitor progress towards ERA by identifying the evolution of separation effects, such as spatial, institutional, cultural or technological barriers, which influence cross-region R&D collaboration intensities between 255 European NUTS-2 regions in the FPs over the time period 1999-2006. By this, the study builds on recent work by Scherngell and Barber (2009) that addresses this question from a static perspective. We employ Poisson spatial interaction models taking into account spatial autocorrelation among residual flows by using Eigenvector spatial filtering methods. The results show that geographical distance and country border effects gradually decrease over time when correcting for spatial autocorrelation among flows. Thus, the study provides evidence for the contribution of the FPs to the realisation of ERA. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p304&r=eur |
| By: | Klaus Nowotny |
| Abstract: | Migrants are among the groups most vulnerable to economic fluctuations. As predicted by the 'welfare magnet' hypothesis, migrants can therefore be expected to--ceteris paribus--prefer countries with more generous welfare provisions to insure themselves against labor market risks. This paper analyzes the role of the welfare magnet hypothesis for migrants to the EU-15 at the regional level. The empirical analysis based on a random parameters logit model shows that the regional location decisions of migrants are mostly governed by income opportunities, labor market conditions, ethnic networks and a common language. There is no strong evidence for the welfare magnet hypothesis in the EU, but the empirical model shows that the design of the (income) tax system has a large and consistent effect on locational choice. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p133&r=eur |
| By: | Terry Gregory; Melanie Arntz; Florian Lehmer |
| Abstract: | This paper examines the determinants of internal migration in a context where wages tend to be rather inflexible at a regional scale so that regional labor demand shocks have a prolonged impact on employment rates. Regional income differentials, then, reflect both regional pay and employment differentials. In such a context, migrants tend to move to regions that best reward their skills in terms of both of these dimensions. As an extension to the Borjas framework, the paper thus hypothesizes that regions with a low employment inequality attract more unskilled workers compared to regions with unequal employment chances. By estimating a migration model for the average skill level of gross labor flows between 27 German regions, we find evidence in favor of this hypothesis. While rising employment inequality in a region raises the average skill level of an in-migrant, higher pay inequality in a region does not have a significant impact on the average skill level of its in-migrants. A higher employment inequality in Eastern as compared to Western Germany may, thus, be the missing link to explain the fact that East-West migrants tend to be rather unskilled. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p972&r=eur |
| By: | Ernest Miguelez; Rosina Moreno |
| Abstract: | The aim of the present paper is to shed light on the determinants of geographical mobility and location choices of skilled individuals across the European regions. The most talented workers, e.g. inventors, move for a number of reasons, contributing in this manner to the geographical diffusion of knowledge as well as to reshape the geography of talent. Thus, geographic areas constitute nodes through which talent circulate, bringing knowledge from one place to another. By means of a gravity model, we will test whether social proximity between inventors’ communities and the so-called National System of Innovation drive in- and out-flows of inventors between pairs of regions, above and beyond physical separation, as well as other pulling factors (amenities, economic conditions, and the like). As for the econometrics is concerned, in order to accommodate our estimations to the count nature of our dependent variable and the high number of zeros in it, zero inflated negative binomial models are used. Our first results point out to the importance of, still, geographical proximity in driving this phenomenon. However, social relationships, as well as institutional, or technological and cultural proximities, are also playing a preponderant role in mediating the mobility patterns of inventors across the European geography. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p711&r=eur |
| By: | Rafael Boix Domenech; Luciana Lazzeretti; José Luis Hervàs Oliver; Blanca De Miguel Molina; Borja Trujillo Ruiz |
| Abstract: | Creative industries are highly concentrated forming clusters. One of the main problems for the identification of clusters of creative industries in Europe is the lack of data, constrained in practice to regions (NUTS 2) and influenced by the heterogeneity in the definition of NUTS across countries. This research uses firm-level data geo-referenced at address level and geostatistical modeling to identify clusters of creative industries in fifteen European countries. The procedure is independent of administrative divisions and national boundaries and allows to produce a precise geography of the clusters of creative industries in Europe. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p471&r=eur |
| By: | Philipp Breidenbach; Timo Mitze; Christoph Schmidt |
| Abstract: | Numerous studies have focused on the role of EU regional policy in fostering growth and convergence among European regions, why conducting another one? We argue that two facts are still lacking in the actual academic debate in order to get a sound empirical identification strategy and reliable results: First, one should take the theoretical underpinnings of regional growth models more serious, and second, a likewise careful account of the role of spatial dependence in the underlying data is needed. Though research has increasingly become aware of the latter point as important control factor for regional heterogeneity and omitted variables, in empirical operationalization still the ad-hoc inclusion of a hardly interpretable ‘catch-all’ spatial lag term of the endogenous variable is the first choice. We rather follow the lines of new theoretical and empirical approaches aiming at directly quantifying interregional spillovers associated with the amount of funds granted to lagging regions and their neighborhood. The dataset includes 127 NUTS1/-2 regions within the EU15 over the decade 1997-2007. In the spotlight of the investigation are the Objective 1 payments which are provided for lagging regions with a GDP p.c. of less than 75% of the EU average. These payments shall represent the main instrument to fulfill the central aim of European regional policy, the boost of convergence and harmonic growth over the EU. They represent about two third of the whole European cohesion policy. In our estimations we run a neoclassical convergence model in mainly four different specifications. On the one hand we separate in the aspatial and spatial models. On the other hand we run additive and multiplicative applications in order to consider the right coefficient interpretations. We estimate the model in various econometric specifications to point out the effectiveness of these funding. Our results all hint to the unpleasant result that EU structural funds objective 1 funding has a remarkably little or even negative direct impact on regional growth within the EU15. The spatial funding effects turn into negative significance in the most model specifications. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1144&r=eur |
| By: | Maria Manuela Natário; João Pedro Couto; Ascensão Maria Braga; Teresa Maria Tiago |
| Abstract: | There is interest in both academic literature and regional governments about the innovativeness of regions and the drivers of that competitiveness, especially if considering the impact on economic development and social progress. Innovation is the base for the global competitiveness. Innovative capacity enables regions to increase their productivity and attract investments, thereby sustaining continuous progress in the quality and standard of living. This study aims to measure regions’ innovativeness in different European regions and to evaluate the nature of the innovation process and the relationship existing between its innovativeness’ and its region of origin. It proceeds from the assumption that the competitiveness of a region is reflected in its innovation capacity or innovation dynamic. The literature review regarding regions’ innovativeness produces some insights regarding to the effect of contextual elements on regions performance. Thus, the objective is to compare the European regions to verify the existence of subjacent clusters and find out the characteristics that distinguish the different group of regions. The innovative capacity is considered in terms of innovative output and several factors are analysed to identify and differentiate the dynamics of innovations of the regions. The results point to the existence of five groups of regions, and the factors identified are related to innovation process, namely forms of innovation, factors and objectives of innovation and with aspects related to the innovation framework such as tertiary education and life-long learning, business and public R&D expenses, and level of collaboration for innovating. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p466&r=eur |
| By: | Blanca De Miguel Molina; José Luis Hervás Oliver; Rafael Boix Domenech; MarÃa De Miguel Molina |
| Abstract: | This paper examines the existence of regional agglomerations of manufacturing, service and creative industries, the relationship between these industries and the wealth of regions and their industrial structure. Through an analysis of 250 European regions, three important conclusions can be inferred from the results obtained in this paper. The first is that creative industries play an important role in the wealth of a region. The second is that the most creative regions are characterized by having more high-tech manufacturing industries than the rest of the regions although the number of low-tech manufacturing firms is similar. Lastly, the industrial structure of each region has a greater influence on regional wealth than the existence of industrial agglomerations. The importance of this paper resides in the fact that up until now no analysis has demonstrated that creative industries are the most important industries in regional wealth. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p472&r=eur |