nep-geo New Economics Papers
on Economic Geography
Issue of 2012‒01‒25
eleven papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Analysis of Industrial Agglomeration Patterns: An application to manufacturing industries in Japan By MORI Tomoya; Tony E. SMITH
  2. The emergence of new industries at the regional level in Spain. A proximity approach based on product-relatedness By Ron Boschma; Asier Minondo; Mikel Navarro
  3. Increasing Returns in Transportation and the Formation of Hubs By MORI Tomoya
  4. Where russians should live: a counterfactual alternative to Soviet location policy By Mikhailova, Tatiana
  5. Space and municipal development in Bolivia By Osvaldo Nina; Tania Evia
  6. The Dynamics of Inter-Regional Collaboration – An Analysis of Co-Patenting By Sidonia von Proff; Thomas Brenner
  7. Migration and Regional Convergence in the European Union By Peter Huber; Gabriele Tondl
  8. Privatization and regional distribution of manufacturing in Turkey By Fatma Dogruel; Suut Dogruel
  9. The Pitfalls and Booby Traps of Cluster Policy By Gunther Maier; Michaela Trippl
  10. A regional computable general equilibrium model for Guatemala: Modeling exogenous shocks and policy alternatives By Morley, Samuel; Piñeiro, Valeria
  11. Temporal and spatial analysis of social inequalities: An innovative method to grasp social inequalities evolution on the territory By LORD Sébastien; GERBER Philippe; SOHN Christophe; EGGERICKX Thierry; HERMIA Jean-Pierre; KESTELOOT Christian

  1. By: MORI Tomoya; Tony E. SMITH
    Abstract: The standard approach to studying industrial agglomeration is to construct summary measures of the "degree of agglomeration" within each industry and to test for significant agglomeration with respect to some appropriate reference measures. But such summary measures often fail to distinguish between industries that exhibit substantially different spatial patterns of agglomeration. In a previous paper, a cluster-detection procedure was developed that yields a more detailed spatial representation of agglomeration patterns (Mori and Smith [28]). This methodology is applied here to the case of manufacturing industries in Japan, and is shown to yield a rich variety of agglomeration patterns. In addition, to analyze such patterns in a more quantitative way, a new set of measures is developed that focuses on both the global extent and local density of agglomeration patterns. Here, it is shown for the case of Japan that these measures provide a useful classification of pattern types that reflect a number of theoretical findings in the New Economic Geography.
    Date: 2012–01
  2. By: Ron Boschma; Asier Minondo; Mikel Navarro
    Abstract: How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. As the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities available at the regional level play a larger role than capabilities available at the country level for the development of new industries. To test this, we analyze the emergence of new industries in 50 Spanish regions at the NUTS 3 level in the period 1988-2008. We calculate the capability-distance between new export products and existing export products in Spanish regions, and provide econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions. We show that proximity to the regional industrial structure plays a much larger role in the emergence of new industries in regions than proximity to the national industrial structure. This suggests that capabilities at the regional level enable the development of new industries.
    Keywords: Regional branching, diversification, new industries, capabilities, Spain, proximity index
    JEL: R11 N94 O14
    Date: 2012–01
  3. By: MORI Tomoya
    Abstract: The spatial structure of transport networks is subject to increasing returns in transportation, distance, and density economies. Transport costs between locations are thus, in general, endogenous, and are determined by the interaction between the spatial distribution of transport demand and these increasing returns, although such interdependence has long been ignored in regional models. By using a simple model, the present paper investigates the characteristics of viable hub structures (in terms of spacing and hierarchical relations) given the presence of density and distance economies in transportation.
    Date: 2012–01
  4. By: Mikhailova, Tatiana
    Abstract: This paper investigates the extent of distortions in Russia's spatial economy that are inherited from the Soviet system. Using Canada as a benchmark for spatial dynamics of economic activity in a market economy, I construct the spatial allocation of population that would result in Russia, given its initial conditions and existing regional endowments, in the absence of Soviet location policy. The results show that Siberia and the Far East were overpopulated by about 14.5 million people by the end of the Soviet period. Overdevelopment of Siberia comes at the expense of the European area of the country. This discrepancy persists, even after adjusting the simulated counterfactual allocation for WWII.
    Keywords: Russia; USSR; Siberia; economic geography; Soviet location policy
    JEL: P5 R1
    Date: 2012–01–13
  5. By: Osvaldo Nina (Institute for Advanced Development Studies); Tania Evia (Iowa State University)
    Abstract: This paper seeks to establish the factors related to the Human Development Index, incorporating the spatial dimension in the analysis of its determinants. The variables were classified into four groups: geographic, socio-economic, demographic and infrastructure and services. The results show that the geographic and demographic variables are important in the socio-economic development of municipalities. In relation to economic variables, only the variable rural economic organizations is significant, showing the importance of these institutions. Furthermore, contrary to expectations, the variable municipal social spending per capita is not significant, suggesting that central government spending is more important in achieving better health and education indicators, and finally, the process of decentralization has not been able to reach these levels. On the other hand, the spatial dimension is relevant in human development at the municipal level, showing that there is a process in which events in one location are more likely to predict similar events in neighboring geographical units. In this regard, plans or projects of the municipalities should be made jointly and not individually.
    Keywords: Regional distribution; Municipal development; Spatial econometrics; Bolivia
    JEL: R12 O18 C21
    Date: 2011–12
  6. By: Sidonia von Proff (Department of Geography, Philipps University Marburg); Thomas Brenner (Department of Geography, Philipps University Marburg)
    Abstract: The paper at hand investigates how co-patenting over distance develops when aggregating inventive activities on a regional level. That means, the object of analysis is a link between two regions in contrast to other studies, where links between two individuals or firms are investigated. We analyse which regional characteristics influence the creation and continuation of such links. The main focus lies on different types of distance. The approach adds a dynamic view to the existing, often static literature about collaboration behaviour. The regressions are done for all patent-relevant industries in Germany. We find that several distance types decrease – as expected – the likelihood of link creation but also - not in all cases expected - of link continuation.
    Keywords: patents, research collaboration, collaboration dynamics, inter-regional links, Germany
    JEL: R11 O34 L14
    Date: 2011–10
  7. By: Peter Huber (WIFO); Gabriele Tondl
    Abstract: We offer an empirical, econometric analysis of the impact of migration on the EU 27's NUTS-2 regions in the period 2000-2007. While our results indicate that migration had no statistical impact on regional unemployment in the EU it had a significant impact on both per-capita GDP and productivity. The coefficients suggest that a 1 percent increase in immigration to immigration regions increased per-capita GDP by about 0.02 percent and productivity by about 0.03 percent. For emigration regions a 1 percent increase in the emigration rate leads to a reduction of 0.03 percent in per-capita GDP and 0.02 percent in productivity. Since immigration regions are also often regions with above-average GDP and productivity while emigration regions in Europe practically all have below-average GDP, migration seems to induce divergence rather than convergence.
    Keywords: Migration, Convergence, Unemployment
    Date: 2012–01–18
  8. By: Fatma Dogruel (Marmara University); Suut Dogruel (Marmara University)
    Abstract: The state owned enterprises were crucial in the early stage of industrial development in Turkey. They were producer of basic consumption goods and contributed the building the entrepreneurial understanding, and hence the development of the private sector. State owned enterprises have played key role in almost all sectors of the Turkish economy, including manufacturing sectors and various infrastructural facilities. After 1980, the radical transformation has occurred in Turkish economic policies: The reform process included not only financial liberalization and trade reforms, but also the privatization of the state owned enterprises. Initially, starting from the second half of 1980s, international organizations have advocated privatization as a “must” policy tool. The paper explores the effects of privatization on regional growth of Turkish manufacturing. The analyses are carried out at regional basis in order to detect to what extent the public sector is complement to or substitute of the private sector. The findings show that privatization has no perverse effects on the development of the manufacturing activities in the traditional and new industrial zones. However, its effects are in opposite directions in the poor regions.
    Keywords: Industrial policy, privatization, State Owned Enterprises, spatial distribution of manufacturing, shift-share analysis.
    JEL: O1 O25 O43 G38 R12
    Date: 2011
  9. By: Gunther Maier; Michaela Trippl
    Abstract: Over the past two decades, cluster policies have become a standard instrument of public authorities and economic development practitioners in many parts of the world. This paper takes a critical stance on this phenomenon and provides theoretical arguments that challenge the widespread application of cluster initiatives to promote long-term regional development. We distinguish between and compare two main bodies of thought: the neoclassical view and the agglomeration view. We show that there are no rationales for cluster policy from the perspective of neoclassical theory. The agglomeration view, in contrast, provides a convincing conceptual basis for justifying economic policies implemented in form of cluster initiatives. At the same time, however, it points to major problems related with the cluster policy approach. We identify and elaborate on three essential difficulties, i.e. the proper (1) targeting, (2) dosing, and (3) timing of cluster policy actions. We highlight that the problems related with these fundamental issues of each public initiative constitute powerful pitfalls and booby traps of cluster policies.
    Date: 2012
  10. By: Morley, Samuel; Piñeiro, Valeria
    Abstract: In this paper we develop a dynamic regional computable general equilibrium (CGE) model for Guatemala that incorporates regional disaggregated sectors for agriculture. The model is designed to be useful as a development tool for determining the effects of regional investments intended to reduce regional poverty and also to explore policy options to deal with a number of macro and balance-of-payments issues. Our model extends previous modeling work on Guatemala in several ways. First, it develops an updated regional social accounting matrix (SAM) for 2008, coupled with an updated CGE. Second, the CGE is a recursive dynamic model that incorporates unemployment in the short run. Most CGE models are not useful for short-run analysis because they are comparative static models that assume full employment. We specify a fixed minimum wage and an informal sector and use a recursive dynamic framework to solve for the short-run adjustment process that occurs as the economy responds to shocks. Second, the model is regional, permitting us to examine the impact of sectoral development policies, particularly those focused on agriculture. Guatemala has one of the lowest investment rates in Latin America. We show that if the investment share is raised by 4percent over five years, the rate of growth of the economy rises by about .6 percentage points. Guatemala is also quite sensitive to external macro disturbances. Our dynamic model gives a first approximation of the timing and nature of the adjustment over the ten years following various macro disturbances. We show that after ten years most of these shocks are absorbed by changes in the real exchange rate and the composition of output rather than the rate of growth of output. Negative shocks cause a real devaluation and a shift from consumption and non-tradables and towards exports and tradable goods. An important empirical question is whether the adjustment toward the traded goods sector is as flexible as the underlying elasticities in the model imply.
    Keywords: Computable general equilibrium (CGE) modeling, Economic development, general equilibrium models, macro shocks, regional CGE model,
    Date: 2011
  11. By: LORD Sébastien; GERBER Philippe; SOHN Christophe; EGGERICKX Thierry; HERMIA Jean-Pierre; KESTELOOT Christian
    Abstract: This paper puts forward a methodology to rank the population along a hierarchical continuum, from a lower level to a higher level of social precariousness. Going beyond the complex layered issues related to the concept of poverty, it rather explores the notion of deprivation with the idea of social inequalities which are observable according to specific socio-economic key dimensions. Part of a broader research – Destiny – focusing on both the spatial and the temporal evolutions of social inequalities in Belgium and Luxembourg, this method represents a first phase of the project. The social inequalities are addressed in an individual perspective with disaggregated data. This standpoint allowed the analysis of the whole population for Belgium and Luxembourg in a ten-year period (1991 and 2001). The method is based, on the one hand, on the national censuses from both countries – the only comprehensive data available on an individual basis –, and on the second hand, on the European Union - Study on Income and Living Conditions Panel (EU-SILC). These two data sources have been combined for accessing economic information from EU-SILC and transposed into the national censuses in both countries. The EU-SILC detailed data on household income were used as an indicator of social inequalities for three dimensions: education, socio-professional status and housing. This enabled to rank each individual on a ‘social continuum’. After a presentation of the methodological framework, individual ranking results are exposed and discussed on the basis of spatial analysis.
    Keywords: Social inequality; Spatial inequality; Methodology; Census; Luxembourg; Belgium
    JEL: J11 J21 J80 R10 R20
    Date: 2011–10

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