nep-geo New Economics Papers
on Economic Geography
Issue of 2005‒04‒16
33 papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Testing the 'new economic geography': a comparative analysis based on EU regional data By Bernard Fingleton
  2. Regional convergence and agglomeration in Argentina : a spatial panel data approach By Nicole Madariaga; Sylvie Montout; Patrice Ollivaud
  4. Inter-Regional Price Convergence and Market Integration in Russia By Konstantin Gluschenko
  5. Well Isn't That Spatial?! Handbook of Regional and Urban Economics: A View From Economic Theory By Marcus Berliant
  6. Chinese Regional Agricultural Productivity in the 1990'a By Haizhi Tong; Lilyan E. Fulginiti
  7. Productivity Growth in China: Evidence from Chinese Provinces By Xiang Ao; Lilyan E. Fulginiti
  8. Geographic Versus Industry Diversification: Contraints Matter By Paul EHLING; Sofia B. RAMOS
  9. Crecimiento y convergencia: a propósito de Quah By Jhon James Mora
  10. Dispersión y Estabilidad de las Diferencias Salariales interestatales en México, 1984-2000 By Willy W. Cortez
  11. Investment climate and total factor productivity in manufacturing: Analysis of Indian states By C.Veeramani; B.N.Goldar
  12. House Prices, Fundamentals and Inflation By Angela Black; Patricia Fraser; Martin Hoesli
  13. Optimal Environmental Road pricing By Johansson-Stenman, Olof
  14. Growth and Convergence in Southeast Asia Sugarcane Industries By Erlangga Agustino Landiyanto; Wirya Wardaya
  15. konsentrasi spasial industri manufaktur: tinjauan empiris di kota surabaya By erlangga agustino landiyanto
  16. Definition of a methodology to analyze and measure interactions inside Regional Innovation Systems. By Jon Mikel Zabala Iturriagagoitia
  17. Análisis y medición de las interacciones en los Sistemas Regionales de Innovación. Su relación con la trayectoria histórica y tecnológica de las regiones. By Jon Mikel Zabala Iturriagagoitia
  18. Regional Innovation System in the Pomeranian Province of Poland By El¿bieta Wojnicka; Przemys³aw Rot; Piotr Tamowicz; Tomasz Brodzicki
  19. Analysis and Measurement of Interactions in Innovation Systems: A Corporative and Sectoral approach. By Jon Mikel Zabala Iturriagagoitia
  20. Analysis and measurement of interactions in European Innovation By Jon Mikel Zabala Iturriagagoitia
  21. POLICY INNOVATION IN FEDERAL SYSTEMS By Christos Kotsogiannis; Robert Schwager
  22. Les apports du GREMI à l’analyse territoriale de l’innovation ou 20 ans de recherche sur les milieux innovateurs By Muriel Tabariés
  23. Measuring Social Capital in Italy. An Exploratory Analysis By Fabio Sabatini
  24. A Residential Energy Demand System for Spain By Xavier Labandeira; José M. Labeaga; Miguel Rodríguez
  25. Collusion in the Dutch waste collection market By E. Dijkgraaf; R. H. J. M. Gradus
  26. The European Regional Crime Database: Data from the Book Crime in Europe By Horst Entorf; Hannes Spengler
  27. Organic Apple Production in Washington State: An Input-Output Analysis By Pon Nya Mon; David W. Holland
  28. Does the Concept of “Community of Practice” Show New Trajectories for the Evolution of Industrial Districts? By Silvia Rita Sedita
  29. Kinerja Keuangan dan Strategi Pembangunan Kota di Era Otonomi By erlangga agustino landiyanto
  30. Crop Diversification in Orissa: A Spatio-Temporal Analysis By Manoranjan Pattanayak; Bibhu Prasad Nayak
  31. From Decentralisation of Planning to People's Planning: Experiences of the Indian States of West Bengal and Kerala By Charvak
  32. Fiscal reforms at the sub-national level: The case of Punjab By Upinder Sawhney
  33. Indonesia's Transition to Decentralized Governance: An Evolution at the Local Level By Widjajanti I. Suharyo

  1. By: Bernard Fingleton (Cambridge University)
    Abstract: This paper evaluates 'new economic geography' theory by comparing it with a competing non-nested model derived from urban economics. Using bootstrap inference and the J-test, the paper shows that while NEG theory is supported by the data, it needs to be modified to achieve this, and it is not the only, or even the best or simplest, explanation of regional wage variations across the EU.
    Keywords: 'new economic geography', urban economics, bootstrap, J test
    JEL: R
    Date: 2005–04–11
  2. By: Nicole Madariaga (TEAM); Sylvie Montout (TEAM); Patrice Ollivaud (OECD)
    Abstract: This paper examines the per capita income convergence process among 23 Argentinian provinces over the period 1983-2002. The purpose of this work is to apply new estimation methods following two-step procedure as in Badinger et al. (2004). We combine a spatial filtering of variables to remove the spatial correlation (Getis and Griffith, 2002) and suitable estimators for dynamic panels (using first-differenced and system GMM estimators). Our estimations on filtered variables reveal a conditional convergence process between Argentinian provinces and a positive and significant impact of agglomeration variables on growth rate. Hence, our results show that ignoring spatial distortions due to geographic proximity misleads estimations and underestimates the speed of convergence specifically for provinces that are distant from Buenos Aires. Moreover, we improve estimations of agglomeration effects when spatial autocorrelation is removed.
    Keywords: Growth, convergence, spatial dependence, spatial filtering, dynamic panels, Generalized Method of Monuments.
    JEL: C23 O00 R11
    Date: 2005–02
  3. By: Julie Le Gallo (IERSO IFReDE-GRES); Sandy Dall'erba (REAL)
    Abstract: This paper analyzes the evolution of labor productivity disparities among 145 European regions over 1975-2000 according to the concepts of ƒã- and ƒÒ-convergence and emphasizes the importance of including spatial effects and a disaggregated analysis at a sectoral level. We detect a significant -convergence only in aggregate labor productivity and in the services sectors among peripheral regions. We also show that omitting spatial effects leads to biased measures of -convergence. We then estimate a pooled -convergence model including spatial autocorrelation and sectoral differentiation. The results indicate that disparities in productivity levels between core and peripheral regions persist by vary by sector.
    Keywords: convergence, spatial econometrics, labor productivity, sectoral approach
    JEL: O52 R11 R15
    Date: 2005–03–16
  4. By: Konstantin Gluschenko (Institute of Economics & Industrial Engineering, Siberian Branch of the Russian Academy of Sciences)
    Abstract: The paper analyzes a spatial pattern of goods market integration in Russia. By the spatial pattern is meant a state of each individual region of the country: whether it is integrated, and if not, whether it moves towards integration. Time series of the cost of the basket of 25 basic foods across 75 regions of Russia for 1994-2000 with monthly frequency are used as the empirical stuff. With the use of nonlinear cointegration relationship that includes asymptotically subsiding trend capturing movement towards integration, 36% of Russian regions are found to be integrated with the national market; 44% of them are non- integrated, but are tending to integration with the national market; and 20% of regions are non-integrated and having no such a trend. It is found that s-convergence of regional prices takes place, implying that, despite the presence of regions not tending to integration, the predominant trend is the improvement in market integration.
    Keywords: market integration, law of one price, price dispersion, convergence, Russian regions
    JEL: C32 P22 R10 R15
    Date: 2005–04–08
  5. By: Marcus Berliant (Washington University in St. Louis)
    Abstract: Review of the 'Handbook of Regional and Urban Economics: Volume 4: Cities and Geography' edited by J.V. Henderson and J.-F. Thisse
    JEL: R0
    Date: 2005–03–03
  6. By: Haizhi Tong (University of Nebraska); Lilyan E. Fulginiti (University of Nebraska)
    Abstract: A nonstochastic Malmquist Index and a stochastic frontier production function are estimated to examine agricultural productivity growth in Chinese provinces during the 1990’s. Results for both methods indicate high productivity growth in the mid 1990’s with a declining trend thereafter. While the Malmquist index picks up a reversal of this trend in 2000-2001, this is not evident in the stochastic frontier estimates. Both methods identify the same regions as the most productive. Variables representing public inputs such as education, research and infrastructure are shown to have an important impact on differential provincial performance.
    Keywords: Agricultural productivity growth, China, provinces, Malmquist index, stochastic frontier, research and infrastructure
    JEL: Q12 O47 O53
    Date: 2005–02–28
  7. By: Xiang Ao (University of Nebraska); Lilyan E. Fulginiti (University of Nebraska)
    Abstract: Young (1995) estimated Total Factor Productivity (TFP) growth for Hong Kong, Taiwan, Singapore and South Korea. He reported moderate growth rates for these four regions. This means that rapid growth of GDP in these four economies is due mainly to fast increase of inputs. Young (2000) also estimated the TFP growth rate of China to be 1.4% per year during the period of 1978 to 1998. Similar to his claim for the four 'Asian Tigers', he concluded that 'the productivity performance of the non-agricultural economy (of China) during the reform period is respectable, but not outstanding.' China's real GDP grew at about 9% every year during that period. Is this extraordinary growth rate only due to factor accumulation? Or is it to a large degree due to improved efficiency and innovations? To answer this question, this study uses a panel dataset of real GDP, capital stock, and labor force for 30 provinces for 1978 to 1998 to estimate the TFP for the Chinese economy. Two approaches are used to estimate the aggregate production technology: a fixed-effects model and a stochastic frontier model. Our results are consistent across models indicating a TFP growth rate of 4.9% and 3.3% respectively. Both estimates are higher than Young's 1.9%. Our estimates also indicate that national average of TFP's contribution to GDP growth amount to 41.3% and 38.7%, respectively. Other results of interest indicate that capital has contributed more than labor to GDP growth and that technological change has been labor using.
    Keywords: Productivity growth, China, provinces, stochastic frontier, TFP, technical change, efficiency change
    JEL: O47 O53
    Date: 2005–02–28
  8. By: Paul EHLING (Penn State University, Smeal College); Sofia B. RAMOS (ISCTE Business School)
    Abstract: This research addresses whether geographic diversification provides benefits over industry diversification in a sample of European country and industry indexes. The methodology allows performance comparisons with short-selling constraints, upper and lower bounds, and many benchmarks. In the absence of constraints, no empirical evidence is found to support the argument that country diversification is a superior approach. In the case of realistic weights on portfolios such as short-selling, and lower or upper bonds, geographic diversification performs (sig-nificantly) better. The contrary results appear to be attributable to the fact that industry portfolios are better suited to eliminate the single dominant factor risk in stock returns. Further out-of-sample analysis shows that geographic diversification performs better, although the tests do not show statistical significance.
    Keywords: Diversification gains; EMU; Geographic diversification; Industry diversification
    JEL: G11 G15
    Date: 2004–08
  9. By: Jhon James Mora
    Abstract: Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso. Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso.Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso. Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso.Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso. Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso.Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso. Este artículo discute los resultados del trabajo de Quah sobre la convergencia entre países. Los resultados muestran que aunque el trabajo de Quah es demoledor en torno a la convergencia tipo beta y sigma, la estimación del núcleo estocástico es bastante discutible y, por lo tanto, la transición entre países queda reducida a una cadena de Markov de un paso.
    Keywords: Crecimiento
    JEL: C1
    Date: 2003–08–20
  10. By: Willy W. Cortez (Departmento de Metodos Cuantitativos, CUCEA, Universidad de Guadalajara)
    Abstract: Economic liberalization has induced a new dynamics on wage setting and employment on Mexican labor market. These changes have been caused by two related events: productive restructuring and increasing labor market flexibility. To the extent that productive restructuring has implied significant regional changes, we assess if these regional changes have been accompanied by significant changes in cross state wage differences by educational levels. We find evidence that there is a small trend for the wage differences to decline among college graduates. However, the evidence among lower educational levels is less conclusive. Resumen La liberalización económica ha inducido una nueva dinámica de determinación de los salarios y el empleo en el mercado laboral Mexicano. Estos cambios han sido causados por dos eventos relacionados: la reestructuración productiva y a la creciente flexibilización del mercado laboral. En la medida que la reestructuración productiva ha implicado cambios regionales significativos, se evalúa si estos cambios regionales han venido acompañados de cambios significativos en las diferencias salariales interestatales por nivel educativo. Se encuentra evidencia de una ligera tendencia hacia la reducción de las diferencias salariales entre los trabajadores con educación universitaria. Para los niveles educativos inferiores la evidencia es menos concluyente.
    Keywords: Diferencias Salariales Interestatales, Nivel Educativo, Ecuación de Mincer, México
    JEL: I20 J31 J51 O15
    Date: 2005–02–14
  11. By: C.Veeramani (Indian Council for Research on International Economic Rela); B.N.Goldar (Indian Council for Research on International Economic Rela)
    Keywords: Investment climate, Total factor productivity, manufacturing, Indian states
    JEL: L D L
  12. By: Angela Black (University of Aberdeen Business School); Patricia Fraser (University of Aberdeen Business School); Martin Hoesli
    Abstract: This paper studies actual house prices relative to fundamental house prices. Using UK data and a time-varying present value approach, we find that deviations of house prices fromtheir fundamental value (as warranted by real disposable income) are significant but not dominated by speculative activity; the driving force appears to be over-sensitivity to expectations over fundamentals. Our findings suggest that inflation (excluding house prices) responds asymmetrically with more impact on future inflation from turning points at peaks of overevaluation compared to turning points at troughs of underevaluation; and the turning points appear to have independent forecasting ability for inflation. This suggests that house prices have information about inflation which could be exploited by the MOnetary Policy Committee (MPC).
    Keywords: House Prices, Fundamentals, Inflation, Monetary Policy
    JEL: E52 E58 R31
  13. By: Johansson-Stenman, Olof (Department of Economics, School of Economics and Commercial Law, Göteborg University)
    Abstract: An optimal first-best road charge should not only be differentiated with respect to factors that affect the direct external environmental and time costs from the road-user himself. Indirect effects, such as the fact that other cars will be more polluting when congestion increases, should also be taken into account. <p>
    Keywords: Road pricing; environmental costs; externalities; indirect effects
    JEL: Q58 R41 R48
    Date: 2005–03–31
  14. By: Erlangga Agustino Landiyanto (Faculty of Economics, Airlangga University); Wirya Wardaya (Faculty of Economics, Airlangga University)
    Abstract: This paper analyses growth and convergence on sugarcane industry in southeast Asia countries. Important questions in this paper are whether the growth of sugar cane industry in Southeast Asia moves toward a convergence or divergence trend over time and to what extent the economic integration influences the development and policy of those countries. This paper is a cross-country study and employs GLS techniques. Some countries involved in the analysis are Indonesia, Malaysia, Thailand, Cambodia, Laos, Myanmar, The Philippines, and Vietnam. The finding suggests that based on ƒÒ convergence approach, both basic variable and equation with dummy indicate that these variables could explain the convergence and speed of convergence within the industry. Furthermore, The regression results also strengthen the finding of £m - convergence.
    Keywords: Convergence, Growth, Sugarcane.
    JEL: R C6 D5 D9
    Date: 2005–01–31
  15. By: erlangga agustino landiyanto (faculty of economics, airlangga university indonesia)
    Abstract: Konsentrasi dari aktivitas ekonomi secara spasial, terutama pada industri manufaktur, telah menjadi fenomena menarik untuk dianalisis. Pada industri manufaktur, konsentrasi spasial ditentukan oleh biaya upah, biaya transportasi dan akses pasar serta ekstenalitas dari konsentrasi spasial yang berkaitan dengan penghematan lokalisasi dan penghematan urbanisasi. Penelitian ini bertujuan untuk mengetahui dimana dan pada subsektor apa industri manufaktur kota Surabaya Terkonsentrasi serta untuk mengetahui mengapa dan bagaimana industri manufaktur kota Surabaya terkonsentrasi sehingga dapat dianalisis mengenai kebijakan dalam mengembangkan industri manufaktur kota Surabaya. Data yang digunakan pada penelitian ini adalah data tenaga kerja industri manufaktur dua digit per kecamatan di Surabaya tahun 1994 dan 2002. Data tersebut dianalisis dengan menggunakan LQ, Ellison Glaeser indeks dan Maurel Sedillot indeks. Berdasarkan analisis, diketahui bahwa Industri manufaktur di kota Surabaya terkonsentrasi di kecamatan Rungkut, Tandes dan Sawahan sedangkan subsektor unggulan Kota Surabaya adalah industri makanan, minuman dan tembakau serta industri logam, mesin dan peralatan.
    Keywords: Konsentrasi spasial, eksternalitas, kluster, agglomerasi, Surabaya
    JEL: R
    Date: 2005–01–24
  16. By: Jon Mikel Zabala Iturriagagoitia (Institute of Innovation & Knowledge Management. INGENIO CSIC-UPV)
    Abstract: The aim of the present thesis proposal is to define a methodology to measure the interactions among the agents involved in a System of Innovation, due to the fact that the literature agrees in a lack of measures in this respect. The conceptualization of Regional Innovation Systems (Cooke and Morgan, 1993) can be understood like an extension and adaptation arisen from the concept of National Innovation Systems defined in the works of Freeman (1987), Nelson (ed., 1993) and Lundvall (ed., 1992) and in the subsequent development of Edquist (ed., 1997). It consist of analyzing the existence of actors (institutions, clusters, universities, industries…) and regional competences, and the interactions into Innovation Networks among them, providing regional authorities with a tool to define policies to increase competitiveness. A first stream work in which relations and flows among the main agents of an Innovation System are shown, is the one made up by the works of Scherer, (1982), Pavitt (1984), Archibugi (1988), Galli and Teubal (1997), DeBresson (ed., 1996). Another is due to Andersen (1992, 1996) on Innovation Systems, using “graph theory” and simulation models (Andersen and Lundvall, 1997). Recently, some different research projects can be found in which relations established among the agents in Innovation Systems are studied (European Planning Studies, Vol. 8, Not. 4, 2000). Besides, diverse simulation models created to measure the characteristics of Innovation Systems in different environments (Simulating Self-Organizing innovation networks” -SEIN-) are also detailed. There is a growing need to elaborate indicators that allow to predict changes in the regional innovation capacity beyond those employed in the linear model. We have also noticed the need to measure other processes such as those related to institutional relations and the creation of networks, in order to evaluate innovation policies (Zenker, 2001; Landabaso, Oughton, Morgan, 2001; Saviotti, 1997; Archibugi, Howells and Michie, eds., 1999). This is supported by the fact that several policies fostering innovation have been defined, such as RIS, RTP, RITTS, etc… In this context, and due to the importance of co-operation practices within Regional Innovation Systems, the present research project tries to contribute with a model as well as an Indicator Scoreboard which helps quantify the interrelations that occur among the agents in an Innovation System.
    Keywords: Regional Innovation Systems, Innovation Networks, Measures, Interactions.
    JEL: O P
    Date: 2005–03–11
  17. By: Jon Mikel Zabala Iturriagagoitia (Institute of Innovation & Knowledge Management. INGENIO CSIC-UPV)
    Abstract: La conceptualización de los Sistemas Regionales de Innovación (Cooke y Morgan, 1993; Autio et al., 2004) puede ser considerada como una extensión y/o adaptación del concepto de los Sistemas Nacionales de Innovación surgidos a partir de los trabajos de Freeman (1987), Nelson (ed., 1993) y Lundvall (ed., 1992) y en el consiguiente desarrollo de Edquist (ed., 1997), consistente en analizar la existencia de los actores o agentes (instituciones, clusters, universidades, industrias…), las competencias o características regionales, y las interacciones que a modo de Redes de Innovación (Innovation Networks) se producen entre ellos, dotando de este modo a las autoridades regionales de una herramienta para la definición de políticas para incrementar su competitividad. En este contexto, las prácticas de cooperación a través de la interacción de los diferentes agentes de los Sistemas de Innovación, adquieren singular importancia. Sin embargo, la bibliografía existente sobre el tema es escasa, en especial en referencia a aquellos aspectos encaminados a su medición. Es este vacío el que motiva la presente investigación la cual se plantea como objetivo la definición de una metodología que permita abordar la medición de las interacciones entre los agentes que constituyen un Sistema de Innovación. Con la realización de la presente investigación se espera contribuir con un modelo y una serie de métricas que permitan ayudar a cuantificar y a cualificar las interacciones que se producen entre los agentes que constituyen un Sistema de Innovación, y en la medida de los posible, determinar la dependencia que éstas tienen del territorio en el que se desarrollan, es decir, de la trayectoria histórica y tecnológica del mismo.
    Keywords: Regional Innovation Systems, Path-dependence, Interactions, Indicators, Innovation Networks.
    JEL: O11 O18 P51 R11
    Date: 2005–03–11
  18. By: El¿bieta Wojnicka (The Gdañsk Institute for Market Economics); Przemys³aw Rot (The Gdañsk Institute for Market Economics); Piotr Tamowicz (The Gdañsk Institute for Market Economics); Tomasz Brodzicki (The Gdañsk Institute for Market Economics)
    Abstract: The concept of an innovation system stresses the role of interaction and co-operation between different agents creating and distributing knowledge and innovation. In the post-communist countries like Poland, most of the institutions similar to those of mature market economies are already established. However they not yet embedded in the economy. That is one of the reasons why co-operation between agents in the Polish innovation system is very weak, which results in a very low level of innovation throughout the entire economy. In 2001, The Gdansk Institute for Market Economy undertook research into the regional innovation system of one of the Polish regions – the Pomeranian Region. The results of the research showed that the majority of firms in the region do not co-operate in the innovation process, especially on the regional level. Horizontal linkages between firms almost do not exist. Firms perceive other firms mainly as competitors and are afraid of co-operation. They believe co-operation leads to the theft of their ideas and precious workers. If co-operation occurs, it concerns only less risky and costly phases of the innovation process like joint development, joint conferences and exhibitions as well as joint marketing strategy. The Pomeranian firms also have very weak linkages to the public scientific sector. They very rarely co-operate with scientific research institutions or technology transfer institutions. The weak interaction between firms, both among themselves and with those in academia, results in a very low overall and especially business R&D expenditure. The Pomeranian region, similar to the entire country, is mainly a user, not a producer of technology. The majority of the firms’ capital is imported from foreign countries. To sustain the long-run competitiveness of industry it is crucial to enhance the R&D activity of Polish firms, preferably basing this on co-operation with other agents of the innovation system. A policy stimulating interactions in the innovation process could be cheaper than a policy establishing new institutions as co-operation steers resources into a single effort and it has multiple effects. An important source of new knowledge might be the exchange of information and ideas during conferences, exhibitions, co-operation of firms in chambers of commerce, etc. However, the majority of Pomeranian firms belong to different firms’ associations on the domestic level. As co-operation on the regional level might be more effective, regional authorities should induce dialogue between firms and other regional agents. In the Strategy of Development of the Region originating in the year 2000, one of the main priorities is building an effective regional innovation system. However, it is important that all the actions undertaken are based on their usefulness for enterprises, which are the most important agents in the RIS.
    Keywords: regional innovation systems, enterprises
    JEL: P Q Z
    Date: 2005–03–11
  19. By: Jon Mikel Zabala Iturriagagoitia (Institute of Innovation & Knowledge Management, INGENIO, CSIC-UPV)
    Abstract: Innovation Systems constitute an analysis framework, which allows comprehending the socio-economic structure of a territory. In this context, and due to the importance of interactions, the present research intends to contribute a methodology and a set of indicators which help to increase the knowledge about these interactions, and their impact on the innovative capacity of the territories. The methodology developed will be tested in a multisectoral industrial sector, the Mondragón Cooperative Corporation (MCC) located in the Basque Country. This way, not only the measures defined but also the differences among the Networks that constitute its different sectors will be observed.
    Keywords: Innovation Systems, Interactions, Innovation Networks, Measures, Mondragón Cooperative Corporation.
    JEL: O31 O32 R11
    Date: 2005–03–11
  20. By: Jon Mikel Zabala Iturriagagoitia (Institute of Innovation & Knowledge Management. INGENIO, CSIC-UPV)
    Abstract: Innovation Systems constitute an analysis framework, which allows comprehending the socio-economic structure of a territory. It consists of analyzing the existence of actors such as government institutions, clusters, universities, industries… their main competences, and the interactions into Innovation Networks among them. Thus, authorities (regional, national, local…) are endowed of a tool that allows the creation and development of competitive and efficient Innovation Systems. In this context, and due to the importance of interactions inside Innovation Systems, the present research intends to contribute a methodology which helps us to analyze and measure these interactions produced within Innovation Networks. The methodology developed will be tested in a sector which is present in several European Territories. This way, not only the measures defined but also the differences among the Networks analyzed will be observed and tested.
    Keywords: Innovation Systems, Interactions, Innovation Networks, Measures.
    JEL: R
    Date: 2005–03–11
  21. By: Christos Kotsogiannis (University of Exeter); Robert Schwager (Georg-August-Universitat Gottingen)
    Abstract: Conventional wisdom has it that policy innovation is better promoted in a federal rather than in a unitary system. Recent research, however, has provided theoretical evidence to the contrary: a multi-jurisdictional system is characterized---due to the existence of a horizontal information externality---by under-provision of policy innovation. This paper presents a simple model that introduces political competition for federal office. Under such competition political actors use the innovative policies in order to signal ability to the electorate. In the equilibrium analyzed policy innovation occurs more frequently than in a unitary system. It is thus shown that, once electoral motives are accounted for, the conventional wisdom is validated.
    Keywords: Fiscal federalism; policy innovation; policy experimentation.
    JEL: H77 R59
    Date: 2005–04–04
  22. By: Muriel Tabariés (MATISSE)
    Abstract: This paper deals with the last research decades about the concept of milieu innovateur as it has been created and utilized by a European research network, the GREMI, working on the territorial aspects of innovation and development. From the early typologies of territories innovation trajectoires and the analyses of relationship between milieux and innovation networks, to structural and organisational characteristics of milieux and long term evolution trajectories, to interrelations between the milieu and the city, the objective is to show the richness of a concept that allows to understand the rearrangements that occurred since thirty years within firms and territories.
    Keywords: Territory, innovation, milieu innovateur, trajectories, collective learning
    JEL: O18
    Date: 2005–02
  23. By: Fabio Sabatini (University of Rome La Sapienza)
    Abstract: The aim of this paper is to trace a map of Italian local social capital endowments. It focuses on the “structural” dimension of the concept, as identified with social networks. The analysis is based on a dataset collected by the author including about two hundred indicators of five main social capital dimensions: strong family ties, weak informal ties, voluntary organizations, civic awareness, and political participation. 51 key variables are selected for performing principal component analyses both on each of the five groups and on the entire dataset, in order to build latent indicators for every single social capital’s dimension and for the concept as a whole. Finally, a multiple factor analysis is run on the entire dataset, in search of a single synthetic measure of social capital. A clear distinction emerges between bonding social capital, shaped by strong family ties, and bridging and linking social capital, shaped by weak ties among friends, neighboors and members in voluntary organizations. Areas characterized by high levels of bonding social capital can suffer from a lack of bridging and linking ties. The study provides a valuable synthetic indicator capturing the particular configuration of social capital which the literature generally associates with positive economic outcomes.
    Keywords: Social capital, Social networks, Economic development, Principal component analysis, Multiple factor analysis
    JEL: A12 O10 O18 R11
    Date: 2005–04–11
  24. By: Xavier Labandeira (rede & Universidade de Vigo); José M. Labeaga (FEDEA & UNED); Miguel Rodríguez (rede & Universidade de Vigo)
    Abstract: Sharp price fluctuations and increasing environmental and distributional concerns, among other issues, have led to a renewed academic interest in energy demand. In this paper we estimate, for the first time in Spain, an energy demand system with household microdata. In doing so, we tackle several econometric and data problems that are generally recognized to bias parameter estimates. This is obviously relevant, as obtaining correct price and income responses is essential if they may be used for assessing the economic consequences of hypothetical or real changes. With this objective, we combine data sources for a long time period and choose a demand system with flexible income and price responses. We also estimate the model in different sub-samples to capture varying responses to energy price changes by households living in rural, intermediate and urban areas. This constitutes a first attempt in the literature and it proved to be a very successful choice.
    Keywords: households, energy, demand, spain, location
    JEL: D12 Q41 R22
    Date: 2005–03–08
  25. By: E. Dijkgraaf (Erasmus University Rotterdam, ECRi, SEOR); R. H. J. M. Gradus (Erasmus University Rotterdam, Vrije Universiteit Amsterdam)
    Abstract: In this paper we analyse whether collusion exists in the Dutch waste collection market, which shows a high degree of concentration. Although scale effects might be in accordance with this market outcome, the question is whether this concentration is in fact a result of fair competition. Using data for (nearly) all Dutch municipalities we estimate whether collusion exists and what the impact is on tariffs for waste collection. The results indicate that high concentration increases prices and therefore (partly) offsets the advantage of contracting out. The presence of competing public firms might be essential to ensure more and fair competition.
    Keywords: Waste collection, collusion, public-private firms, contracting out
    JEL: D43 L33 R51
    Date: 2005–02–08
  26. By: Horst Entorf (Technische Universität Darmstadt); Hannes Spengler (Technische Universität Darmstadt)
    Abstract: This paper contains a documentation of the EU regional crime database (EURCD). The EURCD is the basis of the analyses presented in our recently published book 'Crime in Europe' which, in turn, is the result of a research project conducted on behalf of the EU Commission. The EURCD is a panel dataset containing information on 12 Interpol crime categories (murder, sex offences, rape, serious assault, theft, aggravated theft, robbery and violent theft, breaking and entering, theft of motor cars, fraud, drug offences and total offences) across eight EU member states (Denmark, Germany, Spain, Italy, the Netherlands, Finland, Sweden and England & Wales) for the maximal period 1980-1998 (length of period depends on country and region). The spatial structure of the EURCD is organised according to Eurostat's NUTS-system, meaning that it contains data broken down into, for instance, German 'Kreise', Spanish 'Provincias' and Italian 'Provincias'. Crime data obtained for countries which, for reasons explained in the paper, could not (Belgium, Greece, Portugal) or only partly (England & Wales) be integrated into the analyses is (or will soon be) provided in country-specific files. There is a lack of data for Ireland and Luxemburg because regional crime data does not exist for these countries, and for France and Austria which refused to participate in the project. In order to allow multivariate analyses of the causes and consequences of crime the EURCD also contains a sizeable number of non-crime variables. By providing this data to the public we hope to enhance empirical crime research in Europe which until today has been denied adequate attention by both criminologists and economists.
    JEL: K42
    Date: 2005–01–23
  27. By: Pon Nya Mon (Washington State University); David W. Holland (Washington State University)
    Abstract: This paper provides an Input-Output (I/O) based economic impact analysis for organic apple production in Washington State. The intent is to compare the economic “ripple” effect of organic production with conventional production. The analysis is presented in two scenarios: first we compare the economic impact of organic versus conventional apple production for a l demand increase of one million US$ as measured in sales. The second analysis looks at the economic impact of organic and conventional apple production in terms of given unit of land (405 hectares of production). Both state-wide output (sales) and employment (jobs) impacts are estimated under each scenario. Results are presented in terms of direct, indirect, and induced economic impact. Organic apple production was more labor intensive than conventional production. While, the organic apple sector used less intermediate inputs per unit of output than conventional production it also produced higher returns to labor and capital. As a result, the indirect economic effect was lower for the organic sector than the conventional sector, but the induced economic effect was higher for organic. Given the organic price premium, the economic impact (direct, indirect and induced) was larger for organic apple production than conventional apple production.
    Keywords: conventional and organic apple production, multiplier effects, output, and employment effects, IMPLAN
    JEL: D58 R11
    Date: 2005–03–22
  28. By: Silvia Rita Sedita
    Abstract: The aim of this paper is to find a framework that could be useful to evaluate the utility of the concept of “Community of Practice” (CoP) for understanding the dynamics of knowledge creation and sharing in Industrial Districts (IDs). The CoP concept stems from the managerial experience of large corporations, which have found in it a kind of “living repository” of knowledge. The source of the concept of agglomeration of firms in ID is completely different. Anyway, many similarities can be found between the concepts of ID and CoP, as well then some differences. The paper proceeds as follows. First, it explains the three main concepts useful for understanding further argumentations: knowledge, ID, CoP. Next, it offers a framework to put in comparison the two concepts of ID and CoP. In the end, an example of how the applications of tools, coming from the CoP concept, can be useful to formulate some hypotheses on the evolutionary behaviour of IDs is shown.
    Keywords: Community of Practice, Industrial District, Knowledge, Learning
    JEL: D83 R12
    Date: 2005–02–02
  29. By: erlangga agustino landiyanto (faculty of economics, airlangga university indonesia)
    Abstract: Dengan munculnya UU No. 22 tahun 1999 yang mengatur pelimpahan wewenang dan tanggung jawab dari pemerintah pusat kepada pemerintah daerah serta UU No. 25 tahun 1999 yang mengatur perimbangan keuangan antara pusat dan daerah, selayaknya kota Surabaya mengembangkan sumber daya lokal dan mengurangi ketergantungan dari pusat. Akan tetapi, berbagai pengamatan empiris menyatakan bahwa pemberlakuan otonomi daerah menimbulkan distorsi dan high cost ekonomi. oleh karena itu, makalah ini menganalisis kinerja keuangan kota Surabaya dan merumuskan strategi kebijakan dalam meningkatkan kinerja keuangan pemerintah kota Surabaya agar tercapai pembangunan berkelanjutan yang berdasarkan partisipasi aktif dan sesuai dengan kebutuhan dari masyarakat kota Surabaya.
    Keywords: Desentralisasi, Otonomi, Kemandirian, Kota Surabaya
    JEL: D6 D7 H R
    Date: 2005–02–07
  30. By: Manoranjan Pattanayak (Jawaharlal Nehu University); Bibhu Prasad Nayak (Jawaharlal Nehu University)
    Abstract: The objective of this paper is to analyze the crop diversification and crop concentration in Orissa in the last one and half decade. It is pursued through measuring crop diversification and crop concentration index. We have used Herphindal and Entropy measure for crop diversification and locational quotient measure has been used to measure crop concentration. The result shows that in all most all districts, crop specialization is taking place and more so in the last phase of our study. Then employing an ordinary least square we have figured out the major determinants of crop diversification.
    Keywords: Crop Diversification, Orissa agriculture, crop concentration, spatio-temporal analysis
    JEL: N55 Q10
    Date: 2005–02–26
  31. By: Charvak (Centre for Development Studies, Kerala Research Project for Local Level Development)
    Abstract: From Decentralisation of Planning to Peoples Planning - Experiences of the Indian States of Kerala and West Bengal by Charvak, 2000: The Discussion Paper attempts a comparison of the process of decentralisation of planning in the two States that have made significant progress in this area. The study shows that social mobilisation, process of democratisation, mass conscientisation, demand from below, and collective action have been responsible for their success. It also makes a critical review of the evolution of local bodies in these States followed by an analysis of the process, and the new innovative experiments of decentralisation. A detailed account of the Kalliasseri experiment (from Resource Mapping to Peoples Plan Campaign) as well as the KSSP experiment (from Science Popularisation to Local Level Planning) is also given. The study concludes with the observation that instrumentalities such as the total literacy campaign, peoples mobilisation, popular science movements, and mass conscientisation are the necessary conditions for replicating of the Kerala and the West Bengal experience in other States. ( Other related works of Charvak: Background Paper to UNDP, India, 1998, Country Strategy Paper for IDF-1998 and to the UN award winning HDR-2004 of West Bengal).
    Keywords: Decentralisation, Decentralization, Planning, Top-down, Bottom up, Left politics, Local governance, democracy, local planning,
    JEL: O P
    Date: 2005–03–15
  32. By: Upinder Sawhney (Punjab University)
    Abstract: The importance and need for sub-national fiscal reforms is all too obvious in India where the states are facing severe fiscal imbalances since the beginning of the nineties. A decade of political strife in the eighties, followed by populist economic policies in the nineties led to a massive fiscal deterioration in Punjab, hampering its overall growth process. The Fiscal Reform Programme in the state was initiated in 1999 with the signing of a Memorandum of Understanding between the Government of India and the Punjab government. This was followed by the setting up of various committees and commissions to look into the problems of revenue mobilisation, expenditure management, public enterprises and the power sector. The more recent effort towards fiscal consolidation has been the enactment of Fiscal Responsibility and Budget Management Act, 2003. The assessment of the entire fiscal reform effort of the state reveals that the Punjab government is seized of the seriousness of the situation, admits the gravity of consequences but lacks the grit and determination to implement certain hard decisions for fiscal restructuring. The government is very much caught up in the web of populist policies and succumbs readily to political pressure against certain unpopular decisions for attaining fiscal stability. The success of the fiscal reform programme depends only on the administrative competence and political will of the government towards achieving longterm fiscal consolidation and restoration of fiscal balances in the state.
    Date: 2005–02
  33. By: Widjajanti I. Suharyo (SMERU Research Institute)
    Abstract: Indonesia’s decentralization reform is now in its third year of implementation. The ‘big bang’ start marked the transfer of resources –assets, personnel and finances- to the regions to compensate for the added authorities and functions. While the speed and size of the changes to formal structure have been phenomenal, the adjustment of non-formal institutional settings is likely to take a long time. Many conceptual and practical problems remain and the path to reform is continuously driven by an evolutionary change in the practices as well as in the perception and expectation of decentralization. Drawing from SMERU field research, this paper highlights the dynamics of the implementation of decentralization reform at the local level and some related issues and concerns. Although this reform is still in the preliminary stages, the findings of these studies show how the reform process has influenced the evolution of governance at the local level. In addition to the general findings, special attention is devoted to the problems of budget allocation, community participation and intergovernmental coordination faced by two resource-poor regions –West Lombok and Bandar Lampung (City)– in relation to the provision of public services. Although the progress at the local level might have been overshadowed by many problems, any progress certainly needs to be acknowledged to allow local governance to strengthen.
    Keywords: Decentralization, decentralisation, Indonesia, local governance, reform
    Date: 2003–06

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