nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒12‒04
fifteen papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Transportation and Infrastructure, Retail Clustering, and Local Public Finance: Evidence from Wal-Mart's Expansion By Hicks, Michael
  2. PORT EFFICIENCY AND REGIONAL DEVELOPMENT By Eduardo A. Haddad; Geoffrey J. D. Hewings; Raul Antonio dos Santos
  4. Geography, population density, and per-capita income gaps across US states and Canadian provinces By Lagerlöf, Nils-Petter; Basher, Syed A.
  5. DEMOGRAFIA, CICLO DE VIDA E DINÂMICA DA DESIGUALDADE REGIONAL DE RENDA NO BRASIL By Tatiane Almeida de Menezes; Raul da Mota Silveira Neto; Carlos Roberto Azzoni
  6. Study on Applications of Supply and Demand Theory of Microeconomics and Physics Field Theory to Central Place Theory By Nien, Benjamin Chih-Chien
  7. Open Innovation Clusters: The Case of Cova da Beira Region (Portugal) By Leitao, Joao
  8. The on-going CAP-reform – incentive for a shift towards rural development activities? By Dax, Thomas
  11. The redefinition of Europe's Less Favoured Areas By Dax, Thomas
  12. Innovating routines and routinizing invention: a study on the diffusion of patent applications in italian regions, 1981-2001 By Quatraro Francesco
  13. Mind the gap: Convergence of technology and technology of convergence in italian regions, 1982-2001 By Quatraro Francesco
  14. An industry in Jeopardy. The urban economics of the Jewelry industry in Khan al-Khalili cluster in Egypt By Abdel-Kader Mohamed; Giaccaria Paolo
  15. DIFERENCIAIS REGIONAIS DE SALÁRIO NO BRASIL, 1991 E 2000: UMA APLICAÇÃO DOS MODELOS HIERÁRQUICOS By Gustavo Geaquinto Fontes; Rodrigo Ferreira Simões; Ana Maria Hermeto Camilo de Oliveira

  1. By: Hicks, Michael
    Abstract: The author examines the role highway infrastructure and local property tax rate variability play in retail agglomeration in Indiana from 1988 through 2003. To account for data errors and the potential endogeneity of taxes and infrastructure on retail agglomeration, he introduces a unique identification strategy that exploits the entrance timing and location of Wal-Mart stores in Indiana. Using a time-series cross-sectional model of Indiana’s 92 counties from 1988 through 2003, he estimates the impact highway infrastructure, property taxes, and big-box competition have in creating regional agglomerations. Among two separate specifications and a full and rural-only set of the data, the author finds considerable agreement in the results. In the full sample, he finds no relationship between property tax rates or highway infrastructure and retail agglomeration. Within the non-metropolitan statistical area (MSA) counties, this relationship is very modest, though it possesses considerable statistical certainty. Highway impacts within the non-MSA counties are significant and positively related to retail agglomeration, with the presence of highways explaining about 10 percent of total agglomeration variability. (JEL R11, R53)
    Keywords: Infrastructure; endogeneity; taxation; Wal-Mart
    JEL: R52 R11
    Date: 2006
  2. By: Eduardo A. Haddad; Geoffrey J. D. Hewings; Raul Antonio dos Santos
    Date: 2006
  3. By: Fábio Augusto Reis Gomes; Cleomar Gomes da Silva
    Date: 2006
  4. By: Lagerlöf, Nils-Petter; Basher, Syed A.
    Abstract: We explain per-capita income gaps across US states and Canadian provinces by the following chain of causation. Geography determined where Europeans originally settled: in Northeastern USA, along those segments of the Atlantic coast where the climate was neither too hot (the US South), nor too cold (Canada). Higher population densities in this early settled region have prevailed to this day. This has in turn affected per-capita incomes because densely populated areas are conducive to skill accumulation; indicatively, many of the world’s top universities lie in this region. Our ordinary least-squares regressions show university education having a robust positive and significant effect on per-capita incomes. To control for endogeneity we run various instrumental-variable regressions: some where education today is instrumented with e.g. population density in 1900; and some where different sets of geography variables (e.g. temperature) are used as instruments. Our findings are consistent with the type of causal chain described.
    Keywords: Geography; population density; income gaps; Canada; USA
    JEL: J0 O3 R00
    Date: 2005–10
  5. By: Tatiane Almeida de Menezes; Raul da Mota Silveira Neto; Carlos Roberto Azzoni
    Date: 2006
  6. By: Nien, Benjamin Chih-Chien
    Abstract: This paper attempts to analyze “central place theory” of spatial economics based on “supply and demand theory” in microeconomics and “field theory” in physics, and also discuss their relationship. Three most important research findings are described below. Firstly, the concept of market equilibrium could be expressed in the mathematical form of physics field theory under proper hypothesis. That is because the most important aspect of field theory model is that complex analysis is taken as a key mathematical tool. If assuming that “imaginary part” is neglected in this model, it is found that this model has the same mathematical structure as supply and demand theory of microeconomics. Secondly, the mathematical model of field theory can be applied to express clearly many concepts of central place theory, or even introduce many new concepts. Thirdly, it could also be taken as a study of combining the Hotelling Model and Moses Model for the location theory in another mathematic approach.
    Keywords: Mathematical Economics; Economic Geography; Microeconomics
    JEL: D11 D21 R10
    Date: 2006–09–18
  7. By: Leitao, Joao
    Abstract: This paper aims to reveal the role played by open innovation schemes in the development of new competitive advantages. Furthermore, it aims to present a normative model for networking knowledge clusters, that is, traditional clusters that are applied to the case of the Cova da Beira region (Portugal) such as Agro-Food, Textile, and Public Sector; and a set of emergent clusters that include Bioscience, Biotechnology, Multimedia, Tourism, Health, and Knowledge. In this paper, the basic framework about clusters was expanded, taking as reference the studies of Porter (1985, 1990, 1998, 2005), Feldman (1994), Porter and Stern (2001), and Furman, Porter and Stern (2002). The problematic related to open innovation schemes is integrated in this framework in order to reveal the importance of building new kinds of open innovation networks that don’t involve the geographic concentration of the enterprises. After making a literature review in order to present the analytical framework that includes the clusters theory, a normative model is presented through the development of a case study applied to the Cova da Beira region (Portugal). This option is due to the existence of a local University that has historically interfaced the launching of open-innovation spin-offs into local and international clusters networks. The present paper reveals a high degree of originality, since it contributes to the introduction of the concept of open innovation into the literature about clusters. The main point is that open innovation provides two main implications to build up and leverage both internal and external knowledge into international clusters networks. First, this study presents a basic implication for several agents such as, entrepreneurs, researchers, and policy makers; that is, universities are principals in interfacing the sources of open innovation and the transfer of processes of knowledge into the international clusters networks. Second, it promotes the inclusion of the issue related to the creation of international and institutional networks in the short agenda of the referred agents in order to promote the introduction of new open innovation schemes.
    Keywords: Clusters; Entrepreneurship; Institutional Networks; Open Innovation.
    JEL: R3 M13 R11 M20
    Date: 2006–10–16
  8. By: Dax, Thomas
    Abstract: The paper is based on the findings of a 2 year, EU-wide project on the territorial impacts of the CAP (ESPON project 2.1.3). It particularly focuses on the territorial impact of the different components of CAP and assesses the changes towards rural development policy. The results presented are derived from statistical analysis of the database augmented by findings from an EU-wide review of literature and a series of case studies on the implementation experiences of the main rural development measures across the EU. It is shown that pillar 2 support is still strongly centred on agricultural measures and actors and far from reaching its potential for enhancing a more generally applied rural development strategy. The discussion of the paper will focus on the differing national priorities, and the uneven allocation of RDR funds, partly due to difficulties of co-financing in poorer regions. Importantly, analysis of the impact of the Mid Term Review proposals on farm incomes suggests that the latest reforms of the CAP do not improve substantially the consistency between the CAP, and cohesion. In particular, the proposed application of the CAP-reform in different member states shall be discussed and assessed whether the changes in the framework of rural development contribute to achieve a more balanced performance across EU countries and regions.
    Keywords: Common Agricultural Policy (CAP); CAP-reform; rural development; territorial cohesion
    JEL: R58 Q18 Q0
    Date: 2005–08
  9. By: Danilo Camargo Igliori
    Date: 2006
  10. By: Rodrigo R. Soares
    Date: 2006
  11. By: Dax, Thomas
    Abstract: The support scheme for farming in less-favoured areas, established by the European Union in 1975, marked a major change in the nature of the Common Agricultural Policy (CAP) by introducing for the first time regional categories. It also represented the initiation of direct annual payments to farmers, an approach which was to expand greatly in the 1990s and thereafter. Over a long period it had remained the only significant structural measure of agricultural policy with a territorial dimension. Only recent policy reforms changed this situation: commodity market support was gradually decreased and, on the other hand, the environmental implications of policy measures were increasingly emphasised. Discussions on the interrelations of the Less-Favoured Areas (LFA) scheme with Agri-Environmental Measures (AEM) and other elements of the Rural Development Programmes (RDP) have been intensified as the political and financial weight of the programmes gained in importance. This paper focuses on the objectives and relevance of the LFA support scheme, its application in the EU and the main elements of the debate for the redefinition of LFA support. From the very beginning, LFA policy was conceived as a structural policy aimed at the prevention of land abandonment, to preserve the farming population in these areas and maintain cultural landscapes. In this regard, the instrument was one of the first measures to address environmentally beneficial farming systems, and thus reveals high coincidence with High Nature Value (HNV) farming systems. The three types of LFA, mountain areas, other LFAs and areas affected by specific handicaps take account of the range of geographical differences in the production difficulties of EU agriculture. The increased focus on environmental aims resulted in a discussion of the ‘intermediate’ areas, the category of other LFAs. It has been proposed that the socio-economic criterion in determining these areas should be dropped, but the aim to maintain land management in marginal areas would be kept. Meanwhile, the decision on the redefinition of the LFAs has been postponed (to 2010). Nevertheless the issue will keep a central role in policy discussions of the future Rural Development Programmes.
    Keywords: Less-Favoured Areas; Common Agricultural Policy; rural development; mountain areas
    JEL: R52 R58 Q18
    Date: 2005–11–15
  12. By: Quatraro Francesco (University of Turin)
    Abstract: In this paper we investigate the patterns of diffusion of industrialized R&D activities within fmns' organizational routines, as signalled by the diffusion of patents applications per capita. Innovation and routines afe hence viewed as two opposite, bui yet c1osely intertwined aspects crucial to fmns' expansiono The analysis is contrasted against the specific features of the Italian production system, characterized by two distinct models of capitalismo The adoption of the new routine follows the logistic time path, and North-eastern and Adriatic regions show up faster diffusion speed than North-western regions. In a fÌ"amework in which physical and social technologies co-evolve with the institutional setting, the hypothesis of a catching up driven by the shift fÌ"om the Schumpeter Mark I to Mark II models found support, in which innovation and R&D carried out within universities and public labs played a crucial role.
    Date: 2006–06
  13. By: Quatraro Francesco (University of Turin)
    Abstract: University is becoming the beam of the new emerging mode of governance of the generation and dissemination of knowledge as it reveals remarkable institutional advantages both to provide a solution to the knowledge trade-off and to reduce agency costs. The typical academic labor relation emerges as an appropriate institutional device to handle the principal-agent problems when creative talents are required. The unique institutional setup of the academic system creates the supply of certified skills that are ready to operate on a professional base. Such academic consultants can be paid on an ex-post per job base matching their variable costs only. This supply leads to the creation of a specific market for research services where the demand is provided by the knowledge outsourcing of corporations.
    Date: 2006–03
  14. By: Abdel-Kader Mohamed; Giaccaria Paolo
    Date: 2005–04
  15. By: Gustavo Geaquinto Fontes; Rodrigo Ferreira Simões; Ana Maria Hermeto Camilo de Oliveira
    Date: 2006

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