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on Microeconomic European Issues |
| By: | Simonetta Longhi; Magdalena Rokicka |
| Abstract: | The 2004 accession of Eastern European countries to the EU has generated concerns about the influx of low-skill immigrants to those countries which did not impose restrictions to immigration, namely Ireland, Sweden, and the UK. However, there is lack of recent systematic evidence on the level of immigration and the quality of the new immigrants. We focus on the UK and combine the British and the European Labour Force Surveys to analyse whether immigration to the UK has changed substantially before and after the 2004 EU enlargement, and as a consequence of the recent economic downturn. We analyse 1) trends of immigration into the UK of people from Eastern European countries, and how these trends compare to trends in immigration from Western European countries; and 2) how such immigrants fare in the British labour market in terms of employment probability, wages, and job quality compared to British natives, to earlier immigrants, and to people in the country of origin. Keywords: East-West migration, UK labour market, immigrant assimilation JEL Classification: F22; J30; J61 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p145&r=eur |
| By: | Rafael Lata; Thomas Scherngell; Thomas Brenner |
| Abstract: | The focus of this study is on integration processes in European R&D by analyzing the spatio-temporal dimension of three different R&D collaboration networks across Europe. These networks cover different types of knowledge creation, namely co-patent networks, project based R&D networks within the EU Framework Programmes (FPs) and co-publication networks. Integration in European R&D – one of the main pillars of the EU Science Technology and Innovation (STI) policy – refers to the harmonization of fragmented national research systems across Europe and to the free movement of knowledge and researchers. The objective of this study is to describe and compare spatio-temporal patterns of the observed networks at a regional level, and to estimate the evolution of separation effects over the time period 1999-2006 that influence the probability of cross-region collaborations in the distinct networks under consideration. By separation effects we refer to geographical, technological, institutional and cultural barriers between the regions under consideration. The study adopts a spatial interaction modeling perspective, econometrically specifying a panel generalized linear model relationship taking into account spatial autocorrelation among flows by using Eigenfunction spatial filtering methods to address the research questions. The European coverage is achieved by using 255 NUTS-2 regions of the 25 pre-2007 EU member-states, as well as Norway and Switzerland. For the construction of the three dependent variables that describe collaboration intensities between all region pairs in the three different types of R&D networks, we use data from the OECD Regpat database to capture cross-region co-patent networks, the AIT EUPRO database to capture cross-region project based R&D networks in the FPs, and the Scopus database to capture cross-region co-publication networks. The independent variables consist of one origin measure, one destination measure and seven separation measures. The separation variables focus on barriers that may hamper cross-region collaboration probability, accounting for spatial effects, cultural and institutional hurdles and economic or technological barriers. The results will provide novel and valuable empirical insight into ongoing integration processes in different types of R&D, reflecting knowledge diffusion in form of R&D collaborations from a longitudinal and comparative perspective. By this, the study will produce important implications regarding past success or failure of European R&D integration policies, and, thus, for future STI policy design. JEL Classification: C23, O38, L14, R15 Keywords: R&D Networks, European Framework Program, Patents, Publications, Large-Scale Networks, Spatial Interaction Modelling, Panel Econometrics, Eigenvector Spatial Filtering, Social Network Analysis |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p836&r=eur |
| By: | VASILIS ANGELIS; Eleni Gaki; Katerina Dimaki; Nikolaos-Iason Koufodontis |
| Abstract: | Europe as we know it, the European Union of 27 countries, has evolved from the European Coal and Steel Union of a few developed countries in a comprehensive economic and political union, which now embraces and unites most of the European continent (EU 2011). Each successive transformation and enlargement of the Union has brought in new people and countries with large differences and particularities. Countries of southern Europe and later the former eastern socialist republics joined the initial core of the developed Western economies. Today, between countries of the European Union, different zones are distinguished in relation to levels of economic and social development. One group consists of the prosperous western and northern economies and includes countries such as Germany, Finland, the Netherlands, or Denmark. The second group includes regional and Mediterranean countries with less developed economies such as Spain, Portugal, Italy, Greece or Ireland. Finally, the third group includes countries of former Eastern economies, relatively weak, completing the transition from socialism to capitalism. In this group are countries such as Bulgaria, Poland, Romania, Latvia. The existence of many different countries in a broad geographic area designates the regional problem at three levels. The first level concerns the groups of countries mentioned above. At a second level variation exists within countries. Finally, at a third level, in the unified Europe, differences are between regions across national borders. Many studies argue that while disparities between member countries are decreasing gradually, the disparities within countries are increasing. As a result, the overall gap between the rich and developed regions on one hand and the less developed regions on the other hand is expanding. The current economic crisis has affected almost all European countries but the countries of the European south and the former eastern socialist republics have suffered the most. Our objective in this paper is to quantify regional disparities as expressed by several growth indicators, such as GDP per capita, employment/unemployment rates, household savings and use them to compare the regional disparities at the three levels described above before and after the crisis. Keywords: Economic Crisis, Regional Disparities, GDP, Unemployment. JEL Classification: R10, R11, R15 Other possible choices for the theme: E or special session ZJ |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1158&r=eur |
| By: | Slavomir Hidas; Martyna Wolska; Manfred M Fischer; Thomas Scherngell |
| Abstract: | The focus of this study is on regional knowledge production activities in Europe, with special emphasis on the interplay between agglomeration and network effects. As increasingly considered in economic geography and regional science in the recent past, regional knowledge production activities, on the one hand, still remain geographically bounded; on the other hand, knowledge production activities have become increasingly interwoven and internationalized, emphasizing the crucial importance of region-external knowledge sources for a region’s knowledge production capacity. The objective of the study is to estimate to what extent agglomeration and network effects influence knowledge production activities at the level of European regions. We use an extended regional knowledge production function framework as basis for the study, and derive a spatial Durbin model (SDM) relationship that can be used for empirical testing. The European coverage is achieved using 241 NUTS-2 regions covering the EU-25 member states. The dependent variable, knowledge production activity, is measured in terms of patent counts at the regional level in the time period 1998-2008, using patents applied at the European Patent Office (EPO). The independent variables include an agglomeration index, measured in terms of population density, and the regional participation intensity in the European network of R&D cooperation, measured in terms of the number of participations of a region in R&D joint ventures funded by the European Commission under the heading of the EU Framework programs (FPs). By this we are able to estimate the distinct effects of network participation and agglomeration on regional knowledge production. In our modeling framework, we further control for total regional R&D expenditures as widely used in regional knowledge production function frameworks and its empirical applications. In estimating the effects, we implement a panel version of the standard SDM that controls for spatial autocorrelation as well as individual heterogeneity across regions. The specification incorporates a spatial lag of the dependent variable as well as spatial lags of the independent variables. This allows for the estimation of spatial spillovers of agglomeration and network effects from neighboring regions by calculating scalar summary measures of impacts. The estimation results are expected to provide sketches of policy implications in a European and regional policy context. JEL Classification: R11, O31, C21 Keywords: Regional knowledge production, Agglomerations effects, R&D networks, European Framework Programs, knowledge production function, panel spatial Durbin model |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p393&r=eur |
| By: | Seo-Young Cho |
| Abstract: | This paper empirically analyzes the relationship between migration and human trafficking inflows into Germany during the period between 2001 and 2010. My results suggest that migrant networks, measured by migrant stocks from a specific source country, have a causal linkage with the illicit, exploitative form of migration - human trafficking - from that respective country. However, the network effect varies across different income levels of source countries. The significant, positive effect of migrant networks on human trafficking decreases as the income level increases, and furthermore the effect is insignificant for high income countries. |
| Keywords: | Human trafficking, migration, network effects |
| JEL: | F22 J23 J61 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1246&r=eur |
| By: | Tomas Zelinsky |
| Abstract: | The main objective of the study is to analyze the most important determinants of monetary poverty (at macro-level) in the Western EU countries taking into account the effects of regional spillovers. According to the latest estimates over 16 per cent of the EU citizens are poor (based on monetary concept). Using Europe 2020 strategy indicator people at risk of poverty or social exclusion over 23 percent of EU citizens can be considered poor. In this study a spatial Durbin model (SDM) is employed. The sample includes 145 regions at NUTS-2 (in few cases at NUTS-1) level of 11 countries from the western part of the European Union. The at-risk-of-poverty rate (i.e. monetary poverty indicator) across western EU regions is the dependent variable, and four explanatory variables are employed in the study: disposable per capita income; long-term unemployment rate; education level and population density. All variables refer to observation year 2008. In order to quantify the impacts of explanatory variables the scalar summary measures are used. According to the results two non-spatially lagged explanatory variables (education and population density) and two spatially lagged explanatory variables (income and education) are not statistically significant. In terms of the scalar summary impact measures the following patterns can be observed: average direct impacts, as well as indirect and total impacts of income are negative. Average direct impacts of unemployment are positive, average indirect impacts are negative, and the average total effects are statistically insignificant. Average direct effects of population density are not statistically significant, but indirect and total effects are positive. Impacts of proxy for education level (defined as share of persons aged 25-64 with lower secondary education attainment) are statistically not significant. Such a result cannot not be interpreted in the sense that education has no impact on poverty levels. On the other hand we can assume that the given proxy measures only quantity, not the quality of education, and hence the variable is not significant. Keywords: monetary poverty, spatial Durbin model, regional spillovers. JEL: I32, R11, R15 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p435&r=eur |
| By: | Laura Resmini; Laura Casi |
| Abstract: | In the last years, and particularly since the publication of the famous Barca Report (Barca, 2009), the European Union (EU) is starting to acknowledge the importance of spatially targeted regional policies and to understand how crucial a territorial approach can be in order to achieve desirable social, economic and environmental outcomes. Indeed the increasing complexity in the path to regional growth and development is fostered by globalization and the creation of large integrated areas such as the European Union, where regions need to leverage their territorial capital to compete effectively. In this context we analyse the impact of FDI on growth and development of European regions, discussing the role of different components of territorial capital in determining the intensity and the direction of such an impact. In doing so we start from the assessment of the impact that various types of FDI can have according to the characteristics of the country they come from (Industrialized vs. emerging countries; European vs. non-European countries) and their sector’s affiliation (i.e. low and high tech manufacturing sectors; business services vs. financial services, etc.). Then we inspect the possibility that such an impact may vary with the endowments of different type of territorial capital. In particular, the paper aims at answering to the following research questions: do different levels of agglomeration economies determine different additional FDI induced growth rates? How social capital influences the impact of FDI on the growth of a region? Does relational capital matter in the FDI-growth relationship? In order to answer these research questions, we analyse empirically the impact of different measures of FDI density on regional economic performance, measured as real GVA growth rate, exploiting FDIRegio database and Eurostat data. In order to mitigate possible endogeneity problems and non linearities in the relationship, we use different matching techniques and include various regional controls, such as human capital endowments, past growth rates and agglomeration trajectories, as well as demand and cost factors. Furthermore, in order to identify the territorial capital role in fostering the FDI-growth relationship, we allow such relationship to vary across different types of regions, grouped according to their economic specialization and social capital endowment. The latter is identified through a PCA analysis based on the results of the European Values Study, from the ZACAT - GESIS database |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p485&r=eur |
| By: | Peter Warda; Urban Gråsjö; Charlie Karlsson |
| Abstract: | In this paper we focus on one type of externality, namely knowledge spillovers. Empirical studies on effects of knowledge spillovers in Europe have normally focused on localized effects, either on total factor productivity or knowledge production in terms of patent output. The purpose of this paper is to quantitatively review the empirical literature on spatial knowl-edge spillovers in Europe by means of meta-analysis. Our aim is to determine the extent to which such spillovers have been empirically documented as well as the spatial reach of these spillovers. In addition, we will apply meta-regression-analysis to analyze the determinants of observed heterogeneity across and between publications. Our results show that if total local R&D expenditure in a European region increases by 1%, the number of patents in that region increases, on average, by 0.482%. Spatial knowledge spillovers induce a positive effect on local knowledge production, however, this effect proves to be marginally small. Spatial weighting regime seems to matter. If R&D expenditures in other regions are weighted by distance in kilometers or minutes (instead of a binary contiguity matrix) then the spillover effect will on average be larger. Also, public R&D expenditure is found to have a lower impact on local patent production compared to private R&D expenditure. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p622&r=eur |
| By: | Florian Reinold; Manfred Paier; Manfred M. Fischer |
| Abstract: | The objective of this study is to explore the determinants of joint knowledge generation within European networks of R&D collaboration. This study distinguishes between two types of joint knowledge generation: scientific and commercially relevant knowledge generation. Joint generation of scientific knowledge is measured by co-authored scientific publications, while joint commercially relevant knowledge is measured by co-owned patents and artefacts. Unit of analysis are dyads of organisations jointly participating in projects of the 5th EU Framework Programme (FP5). The data for carrying out this study is taken from a survey among FP5 participants and the EUPRO database. 23 EU member countries (Bulgaria, Cyprus, Malta and Rumania are excluded) plus Switzerland and Norway are included. Regression methods for discrete choice (logit and probit) are employed to meet the objective. The independent variables taken into consideration encompass the types of organisations involved in the dyad, geographical and cultural obstacles, relational factors and project characteristics. Results show that dyads involving universities have the highest probability not only to jointly generate scientific knowledge but also to jointly generate commercially relevant knowledge, whereas the involvement of an industry organisation results in a low probability for both types of knowledge generation. Perhaps, this can be attributed to the fact that joint knowledge generation entails disclosure of own knowledge, which is actually a task of universities but is problematic for industry organisations. Another important result is that crossing national border has a significant positive rather than negative effect on joint scientific knowledge generation, which is essentially a consequence of how the Framework Programmes had been set up. Similarly, crossing EU-15 external border has a positive effect on joint knowledge generation, indicating that the FPs work well in achieving their aim of supporting the catching up process of CEE countries. But, joint generation of commercially relevant knowledge is negatively influenced by language borders. This can be explained by the fact that the co-development of patentable knowledge or artefacts requires more intensive and complex interactions than to co-author a scientific publication where English is the lingua franca anyway. Results on relational factors and project characteristics satisfy expectations: Duration of collaboration and the existence of previous collaboration have a positive effect on joint knowledge generation, whereas the project size, measured by number of participants, affects joint knowledge generation negatively. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p253&r=eur |
| By: | TIIU PAAS |
| Abstract: | The paper focuses on quantitative assessment of the innovation’s role in explaining regional disparities and convergence in Europe. The empirical part of the study bases on the regional GDP pc and innovation indicators on the EU-27 NUTS2 level regions. Based on the selected set of initial innovation indicators for the 262 EU NUTS2 level regions and using the principal components factor analysis method, three composite indicators of regional innovation capacity are extracted. They explain around 80 % of the variation of the initial innovation indicators. The preliminary research results show that around 60% of variability of regional GDP per capita is explained by composite indicators of regional innovation performance and additional 20% are country specific factors. Estimating convergence equations, we noticed that regional innovations tend to increase inter-regional differences, at least during the short-run period. Thus, if regional income convergence is a policy target, additional policy measures beside innovation activities should be effectively implemented |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p80&r=eur |
| By: | Thomas Cornier; Sébastien Bourdin |
| Abstract: | Sustainability is nowadays a priority of European institutions. For several years, States, Regions and Cities in Europe have integrated this topic at the heart of their policies. Otherwise, these various entities set their priorities for sectored actions, in the challenges characterizing this question. Does European strategy for sustainable development, which cohesion policy and action towards cities are strategic tools, help the EU and its states to strengthen competitiveness, innovation and sustainability in European major cities ? Do Countries more successful in terms of action towards sustainability systematically contain the most sustainable cities? On the contrary, is there a self-direction of major cities in relation to States concerning policies to improve sustainability ? To answer these questions, a first part of our work will consist in setting up a sustainability index on a national scale, within twenty-seven States composing the Union and, in the urban scale on sixty-nine cities of more than 400 000 inhabitants as well as the capitals of States. This one includes twenty-seven variables distributed within three groups: the social inclusion, the socioeconomic situation and the environmental innovation. The second part of our work will consist in the analysis of the index created. In this framework, we shall suggest a quantitative approach (multiple linear regression - Hierarchical Ascendant Classification - spatial analysis) and qualitative (analysis of the public policies of sustainable development). The results highlight a spatial differentiation concerning progress in action towards sustainability as well for member States as European major cities. If we compare States between each other, sustainable development integration seems to be more advanced in former European Union of fifteen countries, although Greece is far behind and some Central and Eastern European countries seem to take their game. For cities, we find a similar geography of sustainability with nevertheless gaps concerning the model of general distribution that we will study. In this framework, we will take the example of the city of Barcelona which ranking indicates that she has an edge in terms of sustainability while Spain is behind in terms of sustainable development. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p214&r=eur |
| By: | FUJII Mayu; OSHIO Takashi; SHIMIZUTANI Satoshi |
| Abstract: | Using panel data from two surveys in Japan and Europe, we examine the comparability of the self-rated health (SRH) of the middle-aged and elderly across Japan and the European countries and the survey periods. We find that a person's own health is evaluated on different standards (thresholds) across the different countries and survey waves. When evaluated on common thresholds, the Japanese elderly are found to be healthier than their counterparts in the European countries. At the individual level, reporting biases leading to discrepancies between the changes in individuals' SRH and their actual health over the survey waves are associated with age, education, and country of residence. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12061&r=eur |
| By: | Sebastien Bourdin |
| Abstract: | The purpose of this paper is to introduce the simulation platform Geocells. For modelling the uncertain efficiency of the regional policy we had set up a cellular automata. An application of this model focuses on the European regions’ behaviour according to the variation in aid granted by the European Union and to neighbourhood effects. Taking into account the regional disparities, the analysis of European regions relative positions from the angle of macroeconomic and budgetary indicators, the cellular automaton Geocells allows an assesment of the overall effectiveness of the regional policy, and measures the influence in the modification of granting rules. The issue of the solidarity effort between State members and the regions, as well as their adequacy to the cohesion principles displayed in the European texts and treaties is at the centre of the debates on European regional policy. The main questioning is about the European public policies’ ability to adjust disparities produced by the single market. The use of a simulation platform through cellular automaton aims at answering the question of knowing on which conditions (of settings in terms of budgetary redistribution), according to which duration of financial aid programs, and according to which objective levels of reduction, convergence, or adjustment, European solidarity policies could be effective. Methodologically, this cellular automata Geocells is based on interrelated processes between variables (like time periods, growth rates in the GDP per head, flows of public investments) and three geographical levels (european level, national level and regional level). To these principles officially ratified by the European Commission, we have added to our model a spatial dynamic parameter: the hypothesis of the role of spatial interactions and of contiguity effects in the regions’ trajectories. Despite many regional growth models analyse the region as a stand-alone unit and ignore spatial interaction phenomena linked to proximity, neighbourhood, or contiguity effects, we wanted to uderline the role of the diffusion by contact with neighbouring regions,. For the assesment we used well known indicators such as beta or sigma convergence. Beyond the scientific literature, the concept of convergence is one of the three priority objectives of the EU's Cohesion Policy for 2007-13. After each simulation the impact of mixed policy related to regional development is evaluated by the Moran index of spatial autocorrelation.. The aim is these calculations is an attempt to optimize bothly convergence ratios and what territorial pattern will be shaped by these policy choices. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p163&r=eur |
| By: | Pedro Simões; Nuno Cruz; Rui Marques |
| Abstract: | All European Union (EU) member states have to comply with the demanding recycling rates targets that were set for the recovery of packaging waste in the Directive 94/62/EC. Nevertheless, each country has its own system for accomplishing these targets. Some already had national legislation when the Directive entered into force. Others had to “start from scratchâ€. Indeed, many countries have experienced massive improvements in the waste management systems in the last years; these include the closing of dumps and the construction of complying sanitary landfills. The “maturity levels†of the waste management frameworks are different for the diverse EU countries. Evidently, this has consequences for the efficiency and effectiveness of the recycling system. Moreover, one can observe very different approaches for managing household packaging waste, although there is still a lack of evidence regarding the outperformance (if one considers economic and environmental aspects altogether) of any approach over another. This paper presents and discusses the pros and cons of the recycling systems of household packaging waste for five EU countries, namely: France, Germany, Portugal, Romania and the UK. We compare institutional frameworks, recycling rates, green dot fees and, whenever possible, recycling costs and benefits (i.e. the costs of selective collection and sorting on the one hand, and the financial transfers performed by the industry along with the product of the sale of recyclables on the other). To provide a verdict on the overall performance of any system is not straightforward. We are, however, able to underline several of the national best practices. Keywords: France; Germany; green dot; packaging waste; Portugal; recycling; Romania; the United Kingdom. JEL codes: H11; H21; H23; Q53; Q58. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1013&r=eur |
| By: | Federico Biagi; Juraj StančÃk |
| Abstract: | In this paper we look at the evolution of the R&D intensity gap between the EU and its major competitors using data from the Industrial Scoreboard covering the period 2002-2010. We focus on R&D intensity and we assess whether the gaps relative to major competitors arise from differences in industrial composition (structural component) or differences within sectors (intrinsic component). The paper is divided in two parts. In the first part of the paper we first present the evolution of the R&D intensity gap between the EU and its major competitors (US, Japan, BRIC, Asian Tigers) and then we look more closely at the role and evolution of the structural and intrinsic component for each pair-wise comparison, by looking at four basic macro-sectors defined in term of their R&D intensity. In the second part of our work we concentrate on the EU-US R&D intensity gap and, by applying firm level analysis, we test whether the results obtained by the statistical decomposition of aggregate R&D intensity are confirmed. In particular we test whether there is evidence of across-sector variability in R&D intensity and whether, within sectors, EU and US firms are performing differently, controlling for size, cyclical effects, common macroeconomic shocks and company’s age. Age is important for at least two reasons. First, young companies might have more problems in finding access to funds necessary in order to invest in R&D. Second, young companies might have to be especially aggressive in terms of innovation if they want to enter and succeed in markets where incumbents already exist. Therefore, our aim here is also to document the age profile for R&D intensity and to verify whether the R&D intensity gap between EU and non-EU companies is related to age of the firm. Finally we check if R&D intensity is affected by the abundance of internal funds (as captured by the profit/sales ratio), if this relationship changes with the age of the company and if the latter shows across-regional variation. Our results from firm level analysis indicate that there is evidence of strong across-sector variation and some evidence of within-sectors-across-region variation, which –however- is not always in favour of the US. Moreover we find that R&D intensity tends to decrease as firm size increases (as measured by the number of employees), that the age profile for R&D intensity behaves very differently in the two regions and that young companies in the EU exhibit a much higher reactivity to lagged profits-to-sales ratio, when compared to their US counterpart. We believe that this is an indication that the conditions for accessibility and cost of funds differ significantly across the two regions. Keywords: R&D Intensity, EU R&D gap JEL Codes: L16, O30, O57 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p321&r=eur |
| By: | Roberta Capello; Camilla Lenzi |
| Abstract: | In this paper, we aim at re-assessing the undisputed positive relationship between innovation and economic growth by questioning the view that R&D (and formal knowledge in general) equates innovation and innovation equates regional growth. We rather propose that these linkages are strongly mediated by local territorial assets and explore this relationship at the regional level (NUTS2) for 262 regions of the European Union. In doing so, we rely upon an original database encompassing several knowledge and innovation indicators, ranging from R&D expenditures, patent data, to newly released data on different types of innovation: product, process and marketing and/or organizational innovation, derived from the Community Innovation Survey 2002-2004 wave. The data set also includes several variables aimed at capturing different elements characterizing possible different attitudes and patterns of innovation that we control for, such as regional preconditions for knowledge and innovation creation and acquisition (namely, accessibility, trust, structural funds funding, foreign direct investments). The results of the analysis confirm that R&D is an important driver of economic growth. However, this result hides a larger territorial heterogeneity and needs some qualifications. Firstly, only regions strongly endowed with elements supporting knowledge creation processes are likely to benefit from the positive returns to R&D; a critical mass of R&D investments is therefore needed in order to exploit the eventual benefits arising from increasing returns to research expenditures. Secondly, once controlling for innovative behavior, R&D does not show anymore a significant impact on GDP growth. In fact, whereas the growth benefits accruing from R&D look rather selective and concentrated in a relatively small number of regions, the benefits accruing from innovation look not only of greater magnitude but more pervasive and beneficial for a larger number of regions. From these findings, we ultimately draw ad-hoc policy suggestions. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p187&r=eur |
| By: | Enrico Orrù |
| Abstract: | This research claims that investing European Union (EU) Structural Funds in Learning Mobility (LM) might lead to further regional polarization. LM is a type of labour mobility finalized to acquire new knowledge (human capital) and social networks (social capital). Historically, LM has been supported by space neutral policies, like the ERASMUS programme. However, after the mid-tem review of the Lisbon strategy (2005), also Cohesion Policy started to invest in LM and today it is considered an important priority by 1/3 of European Social Fund national programming documents (EU, 2010i). This, even though there is no evidence of LM being consistent with the historical objective of Cohesion Policy: real convergence (Molle, 2007). Human capital theory predicts investment in education to improve labour market outputs. However, when it comes to lagging regions this might not be the case both because of brain drain (Becker, 1964) and because of their inefficient labour markets (RodrÃguez-Pose and Vilalta-BufÃ, 2005) . In order to shed light on these issues, this paper relies on a case study: the programme Master and Back (M&B). M&B is an early example of Structural Funds devoted to learning mobility and has been carried out since 2005 by the Italian region Sardinia. It consists of financing young Sardinian residents endowed with excellent CVs to take masters and PhDs in the best world universities and then of facilitating their return by means of economic incentives. In order to evaluate the impact of the programme, the labour market outputs of the recipients have been compared to those of a suitable control group by means of Propensity Score Matching (Rosenbaum and Rubin, 1983). In particular, the following outputs have been considered: odds of employment, earnings and odds of emigration. Both administrative data and web survey data have been collected. Overall 207 treated units and 1,201 control units have participated to the survey, corresponding respectively to 50% and 20% of response rate. The results show that M&B has had no significant effect neither on odds of employment nor on earnings, while it seems to have increased the odds of emigration. These findings imply that lagging regions should be very careful when investing in learning mobility and that EU Cohesion Policy should pay more attention to the risks of further regional polarization. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p402&r=eur |
| By: | Klaus Nowotny |
| Abstract: | Stylized facts show that migrants more often face overqualified employment than natives. As shown by previous research, one third of the employed foreign born with tertiary education in the EU-15 are overqualified, with levels reaching up to 57.6%, compared to 20.9% among natives. Among the employed foreign born with medium education levels (ISCED 3-4), about one fifth (19.8%) is overqualified in the EU-15, compared to 7.4% of the natives. For the U.S., research shows that among employed migrants with tertiary education who immigrated in the 1990s only 21-76% obtained skilled jobs, depending on the country of origin. Whether this 'brain waste' is 'involuntary', e.g., the result of labor market discrimination or due to limited transferability of qualifications, or 'voluntary' is, however, unresolved; migrants may be willing to accept a job-skill-mismatch as long as they receive a compensation for working in overqualified employment. This paper therefore analyzes the impact of the willingness to accept overqualified employment on the reservation wage of prospective medium and highly skilled migrants. The empirical analysis uses individual level data surveyed in 2010 in Austria, the Czech Republic, Slovakia and Hungary. The survey was designed to identify migration and cross-border commuting intentions in these four countries and is especially suited to the analysis in this paper because it avoids the selection problems which would be associated with estimating migrants' reservation wages after migration. The theoretical and empirical models in this paper show that overqualified employment is not necessarily the outcome of labor market discrimination of migrants in the host country, but can also represent the migrant's rational choice as long as she is compensated for the disutility of the job-skill mismatch by a higher wage: according to the empirical estimates the compensation required for accepting overqualified employment abroad is about 11% of the income the individual could earn at home. Furthermore, the relative reservation wage increases with age. A higher income at home on the other hand decreases the relative reservation wage, but the income variable is only significant at the 10% level. The estimated parameters of the country fixed effects show that even after controlling for individual characteristics the relative reservation wage in the CEECs considered (the Czech Republic, Slovakia and Hungary) is considerably higher than in Austria: according to the regression results, potential migrants from the CEE countries require a relative reservation wage that is 100-150% higher than those of prospective Austrian migrants. Keywords: brain waste, overqualification, migration, reservation wage, interval regression JEL codes: 15, J24, J31, F22, C24 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p287&r=eur |
| By: | Tamas Dusek |
| Abstract: | The aim of the study is to examine two issues of consumer air travel accessibility in Europe, namely flight time and ticket costs. The first part of the paper discusses the various methodological problems of creating time matrix and cost matrix of air travel. Because of problems of conceptualizing of the air travel network and the modifiable areal unit problem the analysis is conducted on several spatial levels. The smallest network consists of 15 busiest airports and the largest network has 203 airports. Airports were selected based on the number of arriving and departing aircraft. The source of flight time data is the timetable for the non-stop flights. Flight time was calculated with a simple algorithm based on timetable flight time for one-stop and two-stop connections. The source of ticket cost data is an internet query of travel itineraries. Several distance matrices were created for different networks and date of flights. The applied part of analysis uses simple methods also, such as average flight time, speed, cost and unit cost. The deformation of time and cost space from the Euclidean space is analyzed by multidimensional scaling. The comparison of geographical space on one side, and time space and cost space on the other side is made by the simple regression analysis and bidimensional regression. Results show significant local and regional biases in time and cost space, relative to the air distance. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p735&r=eur |
| By: | Peter Schmidt |
| Abstract: | Comparing the economic development and current situation of the internal markets of the U.S. and the EU, two things are noticeable. On the one hand, the EU is conducting massive regional policy programmes (notably the Structural Funds) to foster economic cohesion among the 27 nations belonging to the Single European Market while in the U.S. with its 50 federal states such policies play a rather subordinate role. At the first glance, this seems to be consistent with the situation in this two markets because in the U.S. only 2\% of the total population lives in regions with less than 75\% of the US-average GDP per capita while in the EU approximately 31\% of the total population lives in such regions eligible for structural funds support. In other words, regional policies in the U.S. would be redundant. But taking a closer look, on the other hand, reveals that the internal mobility of U.S. citizens is significantly higher than that of EU citizens. According to the neoclassical economic theory migration, besides the free flow of goods, services and capital, plays an important role in assuring convergence or economic cohesion, respectively. Following this strand of theory no regional policy is needed to achieve convergence among the regions or nations of a common market. Thus, comparing the two internal markets, the question comes up if the lower degree of economic cohesion in the EU has something to do with the lower internal market mobility of EU citizens and a higher degree of structural intervention of the EU regional policy? To answer this question, the paper consists of three parts. First, the theoretical background concerning migration and the potential need for regional policy is presented, to find out if one of them is a better instrument to achieve a balanced economic development within an internal market. In the second part, we discuss the actual situation of internal migration and examine why migration rates are comparatively low in the EU. In the last part, the interrelation between the EU regional policy and (internal) migration are analysed. Besides other things like language, culture or institutions this paper is going to argue that structural funds are inhibiting internal migration, which is one of the key measures in achieving convergence among the nations in the Single European market. It becomes clear, that the European regional policy aiming at economic cohesion among the 27 member states is inconsistent if the structural funds hamper instead of promoting migration. JEL-Classification: E62, F15, F22 Keywords: Migration, Structural Funds, European Integration Other chosen themes: N. Regional strategies and policies E. Finance and regional development |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p383&r=eur |