nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒12‒01
sixteen papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Mekansal Etkiler Altinda Ampirik büyüme Modelleri: Türkiye Üzerine Bir Uygulama By Nazif Catik; Mehmet Guclu
  2. Trade and the structure of cities By Jean Cavailhes; Carl Gaigne; Jacques-Rrancois Thisse
  3. Política regional y convergencia: algunos condicionantes By Diego Martínez López
  4. Resisting Economic Integration when Industry Location is Uncertain By Gallo, Fredrik
  5. Daily travel and inequalities: the case of low income populations By Lourdes Diaz Olvera; Dominique Mignot; Christelle Paulo
  6. The income-distance trade-off of migrants young workers (In French) By Marie-Benoît MAGRINI (LEREPS-GRES)
  7. CONVERGENCIA REGIONAL EN COLOMBIA: un enfoque en los Agregados Monetarios y en el Sector Exportador By Carolina Gómez Cuenca
  8. The selection of investment subsidy beneficiaries. An estimate of the differences between national and regional policymakers priorities By BECCHETTI LEONARDO; LONDOÑO BEDOYA DAVID
  9. Bridging the gap between growth theory and the new economic geography: The spatial Ramsey model By Raouf Boucekkine; Carmen Camacho; Benteng Zou
  10. Ownership, Contractual Practices and Technical Efficiency: The Case of Urban Public Transport in France By William Roy; Anne Yvrande-Billon
  11. Urban Transport in France : Moving to a Sustainable Policy By Bruno Faivre D'Arcier
  12. The Geographic Distribution of Economic Activities of the USA Multinational Enterprises By Felipa Mello Sampayo
  13. Agglomeration, Migration and Tax Competition By Kurt A. Hafner
  14. Desequilibrios regionales en la política de descentralización en Colombia By Jaime Bonet
  15. La dynamique des inégalités de revenu en France rurale et urbaine (1984-2002) By Luc Behaghel
  16. Le transport ferroviaire régional, nouvel outil pour un aménagement durable du territoire en Rhône-Alpes By Bruno Faivre D'Arcier

  1. By: Nazif Catik; Mehmet Guclu (Department of Economics, Ege University)
    Abstract: (This paper is in Turkish) In this study we analyze the regional development process in Turkey by using the two traditional regional empirical growth models, Neoclassical convergence equations and Post-Keynesian Verdoorn’s Law, for the period from 1990 to 2000 at the NUTS 3 level under the spatial effects. Evidence obtained from the convergence equations with non-spatial effects rejects the validity of both absolute and conditional convergence hypotheses, while spatial econometric models taking into account the interaction between the regions in the growth process reveal existence of a weak convergence between the regions of Turkey. The results indicate that regional development disparities and location significantly affect the growth process of the regions in Turkey. Verdoorn’s Law indicates that there is a strong positive relation between manufacturing productivity growth and output growth and hence, manufacturing industries are also subject to increasing returns to scale. However, spatial econometric models of Verdoorn equations show that there is no significant spillover effect to accelerate productivity growth in the regions. According to the results obtained from both specifications, interaction between the regions is very weak and limited. Therefore we argue that it is inevitable to review regional policies in Turkey to reduce regional development disparities.
    Keywords: Spatial Econometrics, Regional Growth, Convergence, Verdoorn’s Law, Spillover Effects, Mekansal Ekonometri, Bölgesel Büyüme, Verdoorn Kanunu, Yayýlma Etkileri
    JEL: C51 R11 R15
    Date: 2006–11
  2. By: Jean Cavailhes (INRA-CESAER); Carl Gaigne (INRA-ESR); Jacques-Rrancois Thisse (CORE, Universite catholique de Louvain, Institute of Economic Analysis, Kyoto University, PSE, and CEPR.)
    Abstract: Our purpose is to investigate how the interplay between trade, commuting and communication costs shapes the economy at both the interregional and intraurban levels. Specifically, we study how economic integration affects the internal structure of cities and show how decentralizing the production and consumption of goods in secondary employment centers allows firms located in a large city to maintain their predominance. Several new results in both economic geography and urban economics are established, which all agree with empirical evidence.
    Keywords: city structure, secondary business centers, commuting costs, trade costs, communication costs
    JEL: F12 F22 R12 R14
    Date: 2006–09
  3. By: Diego Martínez López (Centro de Estudios Andaluces)
    Abstract: Sobre la base del modelo de Funke y Strulik (2005), se plantean una serie de cuestiones sobre los condicionantes que afectan a la eficacia de la política regional. En particular, se estudia el coste en términos de eficiencia que la redistribución territorial puede ejercer sobre la acumulación de capital privado nacional. También se hace explícito cómo factores tales como la movilidad interregional del trabajo, la existencia de un mercado perfecto de capitales a escala nacional y un acceso no homogéneo a la tecnología influyen en la eficacia de la política regional.
    Keywords: Inversión pública, convergencia, redistribución, capital privado.
    JEL: R11 R53 R58
    Date: 2006
  4. By: Gallo, Fredrik (Department of Economics, Lund University)
    Abstract: This paper analyses the political determination of transportation costs in a new economic geography model. In a benchmark case with certainty about where agglomeration takes place, a majority of voters favour economic integration and the resulting equilibrium is an industrialised core and a de-industrialised periphery. Allowing for uncertainty, a high level of trade costs may win the election and maintain the initial distribution of industry. The reason is that a coalition of risk-averse immobile factors of production votes for the status quo due to uncertainty about which region will attract industry if economic integration is pursued. Finally, the standard view that agglomeration is unambiguously beneficial to residents in the industrial centre is challenged by introducing costs of undertaking economic integration.
    Keywords: footloose entrepreneur model; majority voting; new economic geography; regional policy
    JEL: F12 F15 R12
    Date: 2006–11–16
  5. By: Lourdes Diaz Olvera (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Dominique Mignot (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Christelle Paulo (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat])
    Abstract: The curent context of increasing social and spatial disparities raises the issue of universal accessibility to the city and its services, in particular for persons on low incomes. The issue of inequalities with regard to travel, which we have considered first of all at an aggregate level using the usual travel indicators (number of trips, distance covered, travel time budget) essentially comes down to inequality in access to the car. An analysis of recent changes in urban public transport pricing policy, a survey conducted within welfare and social integration agencies in the conurbations of Lyon, Nancy, and a series of interviews with individuals in a situation of precarity have been used to obtain a more accurate qualitative and quantitative picture of transport difficulties.
    Keywords: France ; daily travel ; low income population ; inequality ; public tansport pricing policy ; transport assistance
    Date: 2006–10–30
  6. By: Marie-Benoît MAGRINI (LEREPS-GRES)
    Abstract: Spatial mobility can be seen as an employment strategy to obtain job opportunities located into a different local labor market than the individual origin’s local market. That is migrants should have higher wages than non-migrants, as much more than migration effort should be compensated by job advantages following migration, according to the costs/benefits trade-off mechanism. Nevertheless some unobservable characteristics could generate higher or lower earnings as well as higher or lower migration probabilities. By considering migration’s distance of young workers, between the local labor markets at the end of their studies and three years later, we evaluate the real migration return of spatial mobility which reveal their migration costs/benefits trade-off.
    Keywords: distance, spatial mobility, human capital, youth’entry into the labour market, selection bias, endogenous bias
    JEL: J61 J24 R23 C34 C35
    Date: 2006
  7. By: Carolina Gómez Cuenca
    Abstract: Resumen: La Convergencia Económica -si las economías son similares- es el crecimiento más rápido de las regiones pobres comparadas con el de las ricas debido a los rendimientos decrecientes del capital; pero, si son heterogéneas, la Convergencia seria la tendencia de una economía a su propio equilibrio a partir de considerar los determinantes de su crecimiento. El estudio analiza la hipótesis de Convergencia en el PIB per cápita para 1960-2000 entre las regiones colombianas con el enfoque tradicional de Barro y Sala-I-Martín. La hipótesis se evalúa además con el enfoque de Quah a nivel de PIB per cápita y de Agregados Monetarios regionales, para el mismo periodo. En el PIB se halla evidencia de Convergencia condicional y Coalición entre regiones en los setenta y ochenta; y en el agregado monetario, marcada Coalición y Estratificación. ------------------------------------------------------------------ Abstract: The Convergence Economic implies, if the economies are homogenous, that poor regions tend to grow faster than rich ones as a result of decreasing returns of capital; but if the economies are heterogeneous the Convergence implies that an economy approaches to its own steady state by considering the growth´s determinants. This Paper studies the Convergence in the GDP per capita, in 1960-2000, between colombian regions using the traditional method proposed by Barro and Sala-I-Martín. The regional Convergence in the GDP per capita and in monetary supply, in the same period, is also evaluated across the new method proposed by Quah. For GDP there is evidence of conditional Convergence and Coalition between regions in seventies and eighties; and in Monetary Supply, evident Coalition and Stratification.
    Date: 2006–09–30
    Abstract: We evaluate the effects of the partial delegation of the right to select of subsidy recipients from national to regional policymakers in Italy on a sample of more than 10,000 projects. We do so by comparing actual eligibility rankings with those simulated without considering the impact of newly introduced regional criteria. Our main results show that regional policymakers attach higher value to job creation by paying significantly more, in terms of disbursed subsidy, for any additional worker employed by financed projects. “Regional winners” are also smaller and younger, with their projects lasting longer and creating relatively more jobs than “national winners”. We also show that the relatively higher emphasis of regional policymakers on the creation of new plants contributes to the determination of part but not all these effects.
    Date: 2006–10
  9. By: Raouf Boucekkine; Carmen Camacho; Benteng Zou
    Abstract: We study a Ramsey problem in infinite and continuous time and space. The problem is discounted both temporally and spatially. Capital flows to locations with higher marginal return. We show that the problem amounts to optimal control of parabolic partial differential equations (PDEs). We rely on the existing related mathematical literature to derive the Pontryagin conditions. Using explicit representations of the solutions to the PDEs, we first show that the resulting dynamic system gives rise to an ill-posed problem in the sense of Hadamard (1923). We then turn to the spatial Ramsey problem with linear utility. The obtained properties are significantly different from those of the non-spatial linear Ramsey model due to the spatial dynamics induced by capital mobility.
    Keywords: Ramsey model, Economic geography, parabolic equations, optimal control
    Date: 2006–06
  10. By: William Roy (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Anne Yvrande-Billon (ATOM - Analyse Théorique des Organisations et des Marchés - [Université Panthéon-Sorbonne - Paris I])
    Abstract: This paper investigates the impact of ownership structure and contractual choices on technical efficiency in the French urban public transport sector. The central proposition, which relies on classical contract theory arguments, is that ownership regime and contractual practices are key determinants of performances.<br />To test this proposition, we use an original panel data set covering 135 different French urban transport networks over the period 1995-2002 and we apply a stochastic frontier methodology.<br />The econometric results corroborate our proposition: the technical efficiency of urban public transport operators depends on the ownership regime and on the type of contract governing their transactions.
    Keywords: Contracts ; Contractual Incentives ; Contractual arrangements ; Ownership ; Efficiency ; Performance ; Urban Public Transport ; Public Service Governance
    Date: 2006–10–18
  11. By: Bruno Faivre D'Arcier (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat])
    Abstract: The organisation of urban public transport in France has some specificity in comparison to other European countries, even if problems are similar and the creation of the European Union leads progressively to an harmonisation. To understand these differences, it is first necessary to focus on historical and institutional aspects, including the 1982 Transport Law. This paper describes the evolution of the urban transport policy, giving illustration through the case of Lyon's conurbation; it highlights the reason for an unsuccessful attempt to reduce car use for urban trips, and discusses the main stakes for implementing new sustainable transport policies in French cities.
    Keywords: Institutional Aspect ; Public Transport ; Sustainable Transport Policy ; Transport Law ; Urban Transport Policy ; Lyon (France)
    Date: 2006–11–23
  12. By: Felipa Mello Sampayo
    Abstract: This paper examines empirically a range of theoretical hypotheses about the determinants of FDI location in a panel data regression framework. The results of the estimation of a gravity model lend support to the proximity-concentration and internalisation hypotheses. Also, the fact that FDI has been found to be decreasing in the competition posed by alternative locations is suggestive of the superiority of the share version of the gravity model over its classical formulation. A panel data cointegration-type analysis between FDI and GDP, and per capita income differential suggests that GDP has a positive impact on FDI, but provide mixed evidence as to whether per capita income differential reflects demand or supply determinants of FDI. Causality tests between income, income differential and FDI points to FDI playing a positive role on economic growth and convergence.
    Keywords: Foreign direct investment, multinational enterprises, gravity model, dynamic panel data model, panel data cointegration
    JEL: C23 F21 F23
    Date: 2006–06
  13. By: Kurt A. Hafner
    Abstract: The paper focuses on tax competition and international migration in R&D sectors as agglomeration forces and trade restrictions are present. Core countries in economically integrating regions adapt tax rates to keep their industrial status quo. Unlike the often discussed “race to the bottom” result, tax rates are increased and the provision of public goods is maintained. Additionally, tax rates that redistribute between mobile and immobile labor lead to a tax burden that favors mobile labor. As economic integration continues, the cutback of factor mobility restrictions for skilled labor supports economic development in core countries at the expense of periphery countries.
    Keywords: Economic Geography, Agglomeration, Migration, Tax Competition
    Date: 2006–06
  14. By: Jaime Bonet
    Abstract: El propósito principal de este documento es presentar una serie de recomendaciones de política que permitan consolidar a la descentralización como una estrategia de desarrollo regional. La evidencia muestra que la descentralización ha perpetuado las disparidades que en materia de cobertura en educación y salud existen en Colombia. Se encuentra, además, una gran desigualdad en los ingresos fiscales per cápita de los entes territoriales, lo cual implica que éstos asumen la responsabilidad de prestación de servicios en condiciones muy diferentes. Gran parte de esta inequidad en el ingreso se origina en la diferencia observada en los ingresos tributarios, la cual, contrario a lo que se esperaría en un programa de equidad fiscal horizontal, no es corregida por el sistema de transferencias vigente. El escaso vínculo existente entre los recaudos y las decisiones de gasto impiden que se realicen los aumentos en eficiencia que se esperan de una estrategia de descentralización. Las recomendaciones de política están focalizadas en tres aspectos: involucrar una mayor equidad en el sistema de transferencias del gobierno nacional a los subnacionales, fortalecer el aparato tributario subnacional y establecer unos incentivos claros para mejorar la eficiencia del gasto.
    Date: 2006–10–31
  15. By: Luc Behaghel
    Abstract: La stabilité globale des inégalités de revenu disponible (après transferts et avant impôt) observée en France entre 1984 et 2002 masque des évolutions significatives au sein du territoire. Tout d’abord, hors Ile-de-France, l’écart se résorbe systématiquement entre pôles urbains, d’une part, et espaces périurbain et rural, d’autre part. Ensuite, au sein de ces différents espaces, les inégalités semblent prendre des trajectoires différentes : elles croissent davantage dans les pôles urbains que dans les communes des espaces périurbain et rural. On décompose ces tendances en trois composantes : changements de composition des populations, changements des rendements des caractéristiques observables des ménages et changements résiduels. Cette décomposition rend assez bien compte du rattrapage effectué par les espaces périurbain et rural, qui s’explique statistiquement par la convergence des trois espaces en termes de composition socioprofessionnelle, et par le fait que les statuts d’emploi évoluent plus favorablement pour les ménages périurbains et ruraux que pour les ménages des pôles urbains. Il est plus difficile de rendre compte statistiquement des évolutions contrastées des inégalités au sein de chaque espace : ces évolutions sont plus ténues et la part attribuée aux différentes composantes dépend de l’ordre dans laquelle la décomposition est menée. Un résultat ressort néanmoins avec robustesse : la tendance plus inégalitaire au sein des pôles urbains tient en partie à la composition de plus en plus contrastée de la population en termes de catégories socioprofessionnelles et d’accès à l’emploi.
    Keywords: France, inequality, income, rural, urban
    JEL: O18 N3
    Date: 2006–11
  16. By: Bruno Faivre D'Arcier (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat])
    Abstract: La régionalisation ferroviaire a été généralisée en 2002 après une expérimentation (1997-2001) auprès de 7 régions volontaires dont Rhône-Alpes qui est la première région TER de province. La réorganisation et le développement de l'offre ferroviaire ont été importants et couronnés de succès puisque la fréquentation a progressé plus que proportionnellement. Cela s'est traduit par un effort financier majeur. La pérennisation de cette tendance soulève cependant quelques questions : définition d'une politique multimodale cohérente et adaptée aux différents marchés de déplacements régionaux ; risques financiers pouvant résulter du développement des services ferroviaires ; mutation nécessaire de l'opérateur ferroviaire pour assumer son nouveau rôle de prestataire de service au moindre coût.
    Keywords: Décentralisation ; Région ; transport ferroviaire de voyageurs ; aménagement du territoire ; politique de transport
    Date: 2006–11–23

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