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on Economic Geography |
| By: | Franz R. Hahn (WIFO) |
| Abstract: | Stylised facts suggest that there is some "spatial structure" in the dynamics of cross-border lending of Austrian regional banks that seems to be closely related to the eastward enlargement of the European Union. This short paper provides evidence that a stark space-related dependency of competition has been at work governing the cross-border lending behaviour of the Austrian regional banks since 1995. |
| Keywords: | spatial econometric analysis, cross-border bank lending, institutions |
| Date: | 2012–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2012:i:418&r=geo |
| By: | Cristina Martinez-Fernandez; Pawel Chorazy; Tamara Weyman; Monika Gawron |
| Abstract: | The European Union Treaty of Lisbon brought a new dimension to cohesion – the territorial dimension, which has become one of the most frequently discussed aspects for achieving cohesion and, at the same time, one of the challenges for EU policies. The ‘territorial dimension’ determines many socio-economic problems and presents challenges for the European Social Fund (ESF), which has to enhance its flexibility and highlight the capacity and needs of specific territories at national, regional and local levels at the programming and implementation stages. While our understanding of the national and regional levels has advanced, the dynamics with the local level need further consideration, chiefly in the context of Europe 2020 strategy, and regarding the territorial dimension of the European Social Fund and mechanisms of territorialisation.<p> This paper discusses the conceptualisation of territoriality and the different levels of applicability in regional development approaches. The paper draws on OECD and other organisations research and analysis; particularly the work of the OECD Local Economic and Employment Development Programme (LEED). The paper argues that the local level is emerging as the key spatial dimension where EU development instruments apply and therefore a systemic local approach may be needed when designing national and regional cohesion policies and instruments. The paper is divided into 5 sections discussing: 1) The importance of an integrated spatial approach to development; 2) The success of the local approach to development: complexity, integration and the policy mix; 3) Integrating territorial mechanisms for job creation, employability and inclusive growth; 4) Fostering education policies for qualification and skills rich ecosystems; and 5) The way forward. |
| Date: | 2011–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2011/23-en&r=geo |
| By: | Roy Thurik; David Audretsch; Isabel Grilo |
| Abstract: | The present document analyzes the linkages between globalization, entrepreneurship and the role of regions. After dealing with the meaning of globalization, the regional dimension of the response to globalization is described where downsizing, knowledge spillovers and agglomeration are the essential phenomena. Next, it is shown how these developments have led to the emergence of new entrepreneurial activities. Subsequently, more details are given on the effects of the information and communication (ICT) revolution on the organization of industry in a globalized economy. Finally, it is concluded that policies promoting both knowledge investments as well as entrepreneurship have become prominent for many regions in the most developed countries. |
| Date: | 2012–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201201&r=geo |
| By: | Joanna Kuczewska (Faculty of Economics, University of Gdansk); Maciej Krzeminski (Faculty of Economics, University of Gdansk) |
| Abstract: | Regional competitiveness is the crucial area of research in modern economics. The European Union uses the regional competitiveness and divergences studies in creating the European Member States economies competitive advantages. Regional competitiveness determinates also the enterprises competitiveness advantages and plays the crucial role in creating their competitiveness position. The importance of the regional competiveness increases in the knowledge-based economy circumstances, where competitiveness depends on the ability to use knowledge, skills and attitudes of entrepreneurship. Regions are the leaders responsible for these resources mobilization so identification of their strengths and weaknesses allows to indicate the crucial growth tools. In terms of traditional concept, competitiveness is based on the classical theories of absolute advantage by Smith, Ricardo‘s comparative advantage to the first theory of Porter‘s competitive advantage. Modern knowledge-based economy creates a new approach to regional competitiveness researches – from the advanced Porter competitive advantage theory to the dynamic concept of constructed advantages. The key element of constructed advantages theory is an eclectic approach that combines a variety of different concepts such as Regional Innovation Systems, Triple Helix-concept and public-private partnership. They are characterized by multi-directional and multi-dimensional interactions between the actors of the economy. The objective of this study is a preliminary analysis of the constructed advantages of Polish regions on the example of Pomeranian region. |
| Keywords: | regional competitiveness, constructed advantages, Triple Helix, labour market |
| JEL: | R11 I25 J24 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:gda:wpaper:1105&r=geo |
| By: | Andrew T. Young; Matthew J. Higgins; Daniel Levy |
| Abstract: | We use U.S. county-level data containing 3,058 cross-sectional observations and 41 conditioning variables to study economic growth and explore possible heterogeneity in growth determination across 32 individual states. Using a 3SLS-IV estimation method, we find that all statistically significant convergence rates (for 32 individual states) are above 2 percent, with an average of 8.1 percent. For 7 states the convergence rate can be rejected as identical to at least one other state's convergence rate with 95 percent confidence. Convergence rates are negatively correlated with initial income. The size of government at all levels of decentralization is either unproductive or negatively correlated with growth. Educational attainment has a non-linear relationship with growth. The size of the finance, insurance and real estate, and entertainment industries are positively correlated with growth, while the size of the education industry is negatively correlated with growth. Heterogeneity in the effects of balanced growth path determinants across individual states is harder to detect than in convergence rates. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:emo:wp2003:1106&r=geo |
| By: | Michael Ralph M. Abrigo (Philippine Institute for Development Studies); Desiree A. Desierto (School of Economics, University of the Philippines Diliman) |
| Abstract: | Outward migration data from the Philippines exhibit spatial clustering. This is likely due to information spillover effects--fellow migrants share information with other neighboring migrants, thereby lowering the costs of migration. To verify this, we use spatial econometrics to define a geography-Âbased network of migrants and estimate its effect on the growth in the number of succeeding migrants. We find that current and past migration from one municipality induces contemporaneous and future migration in neighboring municipalities, even while controlling for demographic, economic and institutional factors that may be common across municipalities. |
| Keywords: | Migration, Network effects, spatial econometrics |
| JEL: | C21 D85 F22 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:201106&r=geo |
| By: | Joanna Kuczewska (Faculty of Economics, University of Gdansk) |
| Abstract: | Regional competitiveness is the crucial area of research in modern economics. The European Union uses the regional competitiveness and divergences studies in creating the European Member States economies competitive advantages. Regional competitiveness determinates also the enterprises competitiveness advantages and plays the crucial role in creating their competitiveness position. The importance of the regional competiveness increases in the knowledge-based economy circumstances, where competitiveness depends on the ability to use knowledge, skills and attitudes of entrepreneurship. Regions are the leaders responsible for these resources mobilization so identification of their strengths and weaknesses allows to indicate the crucial growth tools. In terms of traditional concept, competitiveness is based on the classical theories of absolute advantage by Smith, Ricardo‘s comparative advantage to the first theory of Porter‘s competitive advantage. Modern knowledge-based economy creates a new approach to regional competitiveness researches – from the advanced Porter competitive advantage theory to the dynamic concept of constructed advantages. The key element of constructed advantages theory is an eclectic approach that combines a variety of different concepts such as Regional Innovation Systems, Triple Helix-concept and public-private partnership. They are characterized by multi-directional and multi-dimensional interactions between the actors of the economy. The purpose of the analysis is a preliminary assessment of selected economic relations between the entities in Pomeranian region. There be analyzed relations between business and research and development institutions with particular emphasis on the role of Science and Technology Park in Gdynia as an institution affecting the shape and strength of relationships that create advantages of the region. |
| Keywords: | regional competitiveness, constructed advantages, Triple Helix, Regional Innovations Systems, science and technological parks |
| JEL: | R11 I25 J24 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:gda:wpaper:1106&r=geo |
| By: | Charlot, S.; Paty, S.; Visalli, M. |
| Abstract: | This article provides empirical evidence on the impact of local taxation on property prices, controlling for the local public spending, using data on property taxation and real estate transactions, over the period 1994–2004. Our empirical methodology pairs transactions in the same spatial environments. Spatial differencing and Instrumental Variables (IV) methodology allow us to compare sales across municipality boundaries and to control for the potential endogeneity of local taxation and public spending. Our results suggest that the local Property Tax (PT) rate has no impact on property prices, while the amount of taxes paid appears to have a negative effect on property price. |
| Keywords: | FISCAL CAPITALIZATION;LOCAL TAXATION;PROPERTY PRICES;BORDERS |
| JEL: | H30 R20 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:201106&r=geo |
| By: | Giorgio Fazio; Davide Piacentino |
| Abstract: | In the growth literature, researchers are typically concerned with macro convergence. However, to the extent that macro dynamics result from the underlying microeconomic relations, convergence should also be investigated at the micro-level. In this paper, we suggest an approach that allows exploiting large micro panels to test for convergence. Compared to the traditional convergence analysis, this approach allows obtaining, at the same time, β and σ like convergence parameters for both the micro and the macro level of interest. We provide a practical example that analyzes productivity convergence in Italy across firms and provinces using a large sample of Italian firms. |
| Keywords: | Convergence, Multilevel Models, Italian firms |
| JEL: | C33 D20 O47 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2011_07&r=geo |
| By: | S. Annim; S. Mariwah; J. Sebu |
| Abstract: | Abstract Over time, while some countries have experienced trends of poverty and inequality moving in the same direction, others have witnessed the two developmental issues panning out in opposite directions. The latter is observed in Ghana, where in the last two decades poverty has been reducing and consumption inequality is on the ascendency. Motivated by this observation, we address three objectives in this paper. First, we decompose inequality using administrative districts as the unit of analysis to examine within and between contributions to national inequality. Second, we examine trends of inequality in the only region (Eastern) of Ghana that experienced a reduction in inequality over the period 1991-2006; and, finally, we investigate the relationship between district-level inequality and household poverty. The last three rounds of the Ghana Living Standard Survey are used for our analysis. We observe that the contribution of within district inequality is higher than inequality between districts. This pattern is observed for other geographical classifications, such as rural-urban, ecological zone and regions. In the Eastern region of Ghana, where overall inequality reduced over the period 1998 to 2005, this was not the case for about 50 percent of the districts in the region. Finally, district-level inequality shows a significant effect on household poverty, but with varying signs, depending on the state of economic activity of the unit of analysis (district) and factors that affect both poverty and inequality. We recommend that districtlevel policy implementers should be tasked with the responsibility of minimising inequality within their district and therefore overall inequality in Ghana. Also, poverty reduction strategies should take into consideration district-level poverty and other factors, such as land size distribution, that jointly affect poverty and inequality. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:16112&r=geo |
| By: | Haavio, Markus (Bank of Finland Research); Kauppi , Heikki (Turku School of Economics) |
| Abstract: | We develop a dynamic multi-region model, with fluctuating regional house prices, where an owner-occupied household’s location choice depends on its current wealth and its current type and involves both consumption and investment considerations. The relative strength of the consumption motive and the investment motive in the location choice determines the equilibrium pattern of residential sorting, with a strong investment (consumption) motive implying sorting according to the type (wealth). The model predicts a negative relation between the size of house price fluctuations and the degree of residential sorting in the type dimension. Also, movers should be more sorted than stayers in the type dimension. These predictions are consistent with evidence from US metropolitan areas when income, education and age are used as proxies for household type. |
| Keywords: | residential sorting; house prices; consumption motive; investment motive; incomplete markets; household mobility |
| JEL: | D52 G11 R13 R21 R23 |
| Date: | 2011–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2011_024&r=geo |
| By: | Chiara Criscuolo; Ralf Martin; Henry G. Overman; John Van Reenen |
| Abstract: | Business support policies designed to raise productivity and employment are common worldwide, but rigorous micro-econometric evaluation of their causal effects is rare. We exploit multiple changes in the area-specific eligibility criteria for a major program to support manufacturing jobs ("Regional Selective Assistance"). Area eligibility is governed by pan- European state aid rules which change every seven years and we use these rule changes to construct instrumental variables for program participation. We match two decades of UK panel data on the population of firms to all program participants. IV estimates find positive program treatment effect on employment, investment and net entry but not on TFP. OLS underestimates program effects because the policy targets underperforming plants and areas. The treatment effect is confined to smaller firms with no effect for larger firms (e.g. over 150 employees). We also find the policy raises area level manufacturing employment mainly through significantly reducing unemployment. The positive program effect is not due to substitution between plants in the same area or between eligible and ineligible areas nearby. We estimate that "cost per job" of the program was only $6,300 suggesting that in some respects investment subsidies can be cost effective. |
| Keywords: | industrial policy, regional policy, employment, investment, productivity |
| JEL: | H25 L52 L53 O47 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0098&r=geo |
| By: | Goodfellow, Tom |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:ner:lselon:http://eprints.lse.ac.uk/39870/&r=geo |
| By: | Franz R. Hahn (WIFO) |
| Abstract: | The fast adoption of Western-style democracy and market economy principles as established by EU standards by many of the Eastern European "transformation countries" since the early 1990s should have raised cross-border lending by banks based in "old" EU member countries to clients resident in new Eastern European EU member countries. This should particularly apply to Austria since it shares a long-lasting common history and, hence, common culture with these countries. To account for common culture we propose a new gauge aimed at measuring "cultural proximity" by making out onomastic similarities between common surnames of Austrian residents and common surnames of residents in the Czech Republic, Slovak Republic, in Hungary and Slovenia, respectively. By exploring, with panel econometric techniques, cross-border lending activities of Austria's small-sized to medium-sized regional banks, located close to its eastern border, over the period from 1996 to 2008 this paper provides evidence that is supportive of the presumption that cultural closeness matters for making basic laws of economics work. |
| Keywords: | panel econometric analysis, cross-border bank lending, geography, common culture, institutions |
| Date: | 2012–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2012:i:417&r=geo |
| By: | Guido Buenstorf (Institute of Economics and International Center for Higher Education Research (INCHER-Kassel), University of Kassel); Alexander Schacht (Graduate College "The Economics of Innovative Change", Friedrich Schiller University Jena) |
| Abstract: | Using a new dataset with detailed geographic information about licensing activities of the Max Planck Society, Germany's largest non-university public research organization, we analyze how the probability and magnitude of commercial success are affected by geographic distance between licensors and licensees. Our evidence suggests that proximity is not generally associated with superior commercialization outcomes. A negative association between distance and commercialization success is identified only for the specific cases of, first, spin-off licensees located outside Germany and, second, foreign licensees within the subsample of inventions with multiple licensees. |
| Keywords: | academic inventions, licensing, spin-off entrepreneurship, geographic distance |
| JEL: | L24 L26 O34 R30 |
| Date: | 2012–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2011-061&r=geo |