nep-geo New Economics Papers
on Economic Geography
Issue of 2009‒08‒08
eleven papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. The role of fiscal transfers for regional economic convergence in Europe. By Cristina Checherita; Christiane Nickel; Philipp Rother
  2. Regional Effects on Cooperative Innovation Activities and the Related Variety of Regional Knowledge Bases By Uwe Cantner; Andreas Meder
  3. Does labour mobility reduce disparities between regional labour markets in Germany? By Niebuhr, Annekatrin; Granato, Nadia; Haas, Anette; Hamann, Silke
  4. Trade Coefficients and the Role of Elasticity in a Spatial CGE Model Based on the Armington Assumption By Ando, Asao; Meng, Bo; Chao, Qu
  5. Entrepreneurship, Evolution and Geography By Erik Stam
  6. Organized crime and regional development. A review of the Italian case By Vittorio , Daniele
  7. On the density distribution across space: a probabilistic approach By Ilenia Epifani; Rosella Nicolini
  8. FIRM INNOVATION: THE INFLUENCE OF R&D COOPERATION AND THE GEOGRAPHY OF HUMAN CAPITAL INPUTS By Jaakko Simonen; Philip McCann
  9. Revisiting the Regional Growth Convergence Debate in Colombia Using Income Indicators By Boris Branisa; Adriana Cardozo
  10. Regional Growth Convergence in Colombia Using Social Indicators By Boris Branisa; Adriana Cardozo
  11. Rural to Urban Migration as a Household Decision: Experimental Evidences from the Mekong Delta, Vietnam By Huynh Truong Huy

  1. By: Cristina Checherita (George Mason University, School of Public Policy, 3401 Fairfax Drive, MS 3B1, Arlington, VA 22201, USA.); Christiane Nickel (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Philipp Rother (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.)
    Abstract: This paper provides evidence on the role of net fiscal transfers to households and EU structural funds for per-capita output convergence across a large sample of European regions during the period 1995-2005. We find that net fiscal transfers, while achieving regional redistribution, seem to impede output growth and promote an "immiserising convergence" - output growth rates in poor receiving regions decline by less than in rich paying regions. EU structural and cohesion funds spent during 1994-1999 had a positive, but slight, impact on future economic growth, mainly through the human development component. JEL Classification: E62, R11, R23.
    Keywords: Fiscal policy, convergence, regional economic growth, regional migration.
    Date: 2009–03
    URL: http://d.repec.org/n?u=RePEc:ecb:ecbwps:20091029&r=geo
  2. By: Uwe Cantner (Friedrich-Schiller-University, School of Economics and Business Administration, Jena); Andreas Meder (Thuringian Ministry of Economic Affairs, Erfurt)
    Abstract: The literature on "Innovation Systems" is divided into several directories. Dif- ferences occur through the definition of the system's borders. This paper intro- duces a methodology how to differentiate between regional and technological effects of cooperative innovation activities and analyzes furthermore how dif- ferent dimensions of regional knowledge affect the regional effects on coopera- tive innovation activities. We find evidence that the related variety of knowl- edge available within a region and its combination with a proxy of the amount of knowledge foster regional effects of cooperative innovation activities. Addi- tionally, we find that the development of German regions fits with the sugges- tions of the Regional Innovation System (RIS) approach.
    Keywords: regional development, regional effects of cooperative behavior, knowledge, related variety of knowledge
    JEL: C30 L14 O32
    Date: 2009–08–06
    URL: http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-064&r=geo
  3. By: Niebuhr, Annekatrin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Granato, Nadia (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Haas, Anette (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Hamann, Silke (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Differences in regional labour market conditions are still pronounced in Germany, especially between the Eastern and the Western part. Traditional neoclassical models imply that labour mobility should reduce disparities. In contrast, models that include externalities or selective migration suggest that regional differences might well increase due to interregional migration of workers. We investigate the impact of labour mobility on regional disparities in Germany between 1995 and 2005. Considering the impact of migration as well as commuting, effects on regional wages and unemployment are estimated. Our results suggest that labour mobility tends to reduce disparities; however, we find significant effects only on unemployment dispari-ties." (Autorenreferat, IAB-Doku)
    JEL: C23 J61 R23
    Date: 2009–07–30
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200915&r=geo
  4. By: Ando, Asao; Meng, Bo; Chao, Qu
    Abstract: The Armington Assumption in the context of multi-regional CGE models is commonly interpreted as follows: Same commodities with different origins are imperfect substitutes for each other. In this paper, a static spatial CGE model that is compatible with this assumption and explicitly considers the transport sector and regional price differentials is formulated. Trade coefficients, which are derived endogenously from the optimization behaviors of firms and households, are shown to take the form of a potential function. To investigate how the elasticity of substitutions affects equilibrium solutions, a simpler version of the model that incorporates three regions and two sectors (besides the transport sector) is introduced. Results indicate: (1) if commodities produced in different regions are perfect substitutes, regional economies will be either autarkic or completely symmetric and (2) if they are imperfect substitutes, the impact of elasticity on the price equilibrium system as well as trade coefficients will be nonlinear and sometimes very sensitive.
    Keywords: Armington Assumption, Spatial CGE, Elasticity of substitution, Trade coefficient, Econometric model
    JEL: C68 R13 R15
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper204&r=geo
  5. By: Erik Stam
    Abstract: Entrepreneurship is a fundamental driver of economic evolution. It is also a distinctly spatially uneven process, and thus an important explanation of the uneven economic development of regions and nations. Not surprisingly, entrepreneurship is a key element of evolutionary economics (Schumpeter 1934; Witt 1998; Grebel et al. 2003; Metcalfe 2004; Grebel 2007) and has been recognized as an important element in explaining (regional) economic development (Acs and Armington 2004; Audretsch et al. 2006; Fritsch 2008). This means that the explanation of regional variations in entrepreneurship has also become an important issue. Even more so because there are pronounced differences within and between nations in rates of entrepreneurship and in their determinants (Bosma and Schutjens 2008), and these differences tend to be persistent over time, reflecting path dependence in industry structure (Brenner and Fornahl 2008), institutions (Casper 2007) and culture (Saxenian 1994) that vary widely across regions and countries, but are relatively inert over time. Introducing entrepreneurship into evolutionary economic geography means that the traditional focus on firms is complemented with a focus on individuals. This paper is an inquiry into the role of entrepreneurship in evolutionary economic geography. The focus is on how and why entrepreneurship is a distinctly spatially uneven process. We will start with a discussion on the role of entrepreneurship in the theory of economic evolution. Next, we will review the empirical literature on the geography of entrepreneurship. The paper concludes with a discussion of a future agenda for the study of entrepreneurship within evolutionary economic geography.
    Keywords: Length 23 pages
    Date: 2009–07
    URL: http://d.repec.org/n?u=RePEc:esi:evopap:2009-07&r=geo
  6. By: Vittorio , Daniele
    Abstract: This paper offers a review of the effects of organized crime on regional economic development, with particular reference to the case of Italy. After reviewing the empirical studies that analyse the relationship between crime and economic development, the paper examines the regional distribution and the social costs of some crimes (in particular extortion) that can be linked to mafia type criminality.
    Keywords: Organized crime; Italy; economic development; costs of crime
    JEL: K49 K42 R59
    Date: 2009–04
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:16547&r=geo
  7. By: Ilenia Epifani; Rosella Nicolini
    Abstract: This paper aims at providing a Bayesian parametric framework to tackle the accessibility problem across space in urban theory. Adopting continuous variables in a probabilistic setting we are able to associate with the distribution density to the Kendall's tau index and replicate the general issues related to the role of proximity in a more general context. In addition, by referring to the Beta and Gamma distribution, we are able to introduce a differentiation feature in each spatial unit without incurring in any a-priori definition of territorial units. We are also providing an empirical application of our theoretical setting to study the density distribution of the population across Massachusetts.
    Keywords: Agglomerations, Bayesian inference, Distance, Gibbs sampling, Kendall's tau index, Population density.
    JEL: C40 R14
    Date: 2009–07–22
    URL: http://d.repec.org/n?u=RePEc:aub:autbar:776.09&r=geo
  8. By: Jaakko Simonen; Philip McCann
    Abstract: This paper investigates the role played by the sectoral and geographical mobility of labour in the promotion of industrial innovations. Knowledge can be transferred between firms by inter-firm interactions and interfirm cooperation. In addition, knowledge can also be transferred between firms by labour mobility. In order to examine these issues we employ a unique innovation dataset from Finland which combines firm specific information about the innovation performance of the firms along with their individual characteristics, as well as firm specific information regarding the sectoral and geographical origins of their recent labour acquisitions. Analyzing this data allows us to identify the different roles which the geography of knowledge spillovers and exchanges and the geography of labour markets play in the innovation process.
    Keywords: innovation; labour; mobility; R&D; cooperation
    JEL: O31 J60 R30
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:mos:moswps:2007-29&r=geo
  9. By: Boris Branisa (University of Goettingen / Germany); Adriana Cardozo (University of Goettingen / Germany)
    Abstract: This paper investigates growth convergence across Colombian departments during the period of 1975 to 2000, following both the regression and the distributional approaches suggested in the literature, and using two income measures computed by Centro de Estudios Ganaderos (CEGA).We also discuss issues related to data provided by Departamento Administrativo Nacional de Estadısticas (DANE) used by previous convergence studies. Our results show no evidence supporting convergence using per capita gross departmental product, but rather persistence in the distribution. Using per capita gross household disposable income, we find convergence, but only at a low speed, close to one percent per year. Furthermore, we find no evidence of the existence of different steady states for the two variables considered.
    Keywords: Colombia, regional growth convergence, growth regression, kernel density estimators
    JEL: C11 O40 O54
    Date: 2009–07–29
    URL: http://d.repec.org/n?u=RePEc:got:iaidps:194&r=geo
  10. By: Boris Branisa (University of Goettingen / Germany); Adriana Cardozo (University of Goettingen / Germany)
    Abstract: This paper investigates convergence in social indicators among Colombian departments from 1973 to 2005. We use census data and apply both the regression approach and the distributional approach (univariate and bivariate kernel density estimators). Using literacy rate as a proxy for education, we find convergence between 1973 and 2005, but persistence in the distribution between 1975 and 2000, when we use the infant survival rate and life expectancy at birth as proxies for health. Additionally, using data from Demographic and Health Surveys, we find convergence in the rate of children that are well-nourished between 1995 and 2005.
    Keywords: Colombia, regional convergence, distribution dynamics, social indicators, kernel density estimators
    JEL: I31 O18 O54 R11
    Date: 2009–07–29
    URL: http://d.repec.org/n?u=RePEc:got:iaidps:195&r=geo
  11. By: Huynh Truong Huy (Center for Migration and Intercultural Studies, Antwerpen University, Belgium)
    Abstract: <p>This paper reports the results of a survey from 148 households in the Mekong Delta regarding the household's decision of migration. Recent studies of migration indicated that a decision of migration for a certain person is not made individually by himself, but it is often made with impacts from other members in family. The logistic regression model is applied in this paper to examine the determinants of decision of migration to both migration and non-migration households.</p><p>According to the descriptive measure, it is found that the decision of migration for a typical household is significantly associated with the factors, namely "push" and "pull" factors. Among those are lack of job and low wages in home village, landless, job opportunities, higher wages and links to relatives from urban areas. Furthermore, the result of the estimated model displays the household's migration decision is strongly positively associated with household size, housing status, landless, but negative to number of dependants, plot size and income from non-farming activity.</p>
    Keywords: Vietnam, Rural, Urban, Migration, Mekong Delta, household
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:dpc:wpaper:1709&r=geo

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