nep-geo New Economics Papers
on Economic Geography
Issue of 2012‒07‒08
eleven papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Regionalization of national input-output tables: Empirical evidence on the use of the FLQ formula By Kowalewski, Julia
  2. Inter-industrial relations and sectoral employment development in German regions By Kowalewski, Julia
  3. Entrepreneurship, Social Capital, Governance and Regional Economic Development By Karlsson, Charlie
  4. "Are NEG Models Capable of Simulating Agglomeration in the Real World?" By Takatoshi Tabuchi
  5. The territorial dynamics of innovation in China and India By Riccardo Crescenzi; Andrés Rodríguez-Pose; Michael Storper
  6. Spatial Pricing on Land Rental Markets By Graubner, Marten; Balmann, Alfons
  7. The Economics of Density: Evidence from the Berlin Wall By Gabriel M. Ahlfeldt; Stephen J. Redding; Daniel M. Sturm; Nikolaus Wolf
  8. Rethinking regional develpment strategy in the context of structural funds: Lessons from the Irish cross-border region By John Bradley; Michael Best
  9. Regional inequality and decentralization – an empirical analysis By Christian Lessmann
  10. Spatial Variations in Amenity Values: New Evidence from Beijing, China By Wenjie Wu
  11. Modal choice and optimal congestion By Quentin David; Renaud Foucart, ECARES, Université libre de Bruxelles

  1. By: Kowalewski, Julia
    Abstract: This paper contributes to the ongoing debate about deriving the value of the exponent when using Flegg's location quotient (FLQ) formula which helps to simulate regional input-output tables. Using a survey-based regional input-output table, the empirical analysis provides evidence of an optimal for the German Federal of State Baden-Wuerttemberg. Furthermore, an extended formula (SFLQ) is introduced allowing for variation in by industry. Finally, this paper demonstrates the advantage of the SFLQ and finds evidence for a close relationship between the spatial concentration of an industry at the national level and its propensity to import goods and services from other regions. --
    Keywords: regional input-output table,non-survey method,empirical analysis
    Date: 2012
  2. By: Kowalewski, Julia
    Abstract: This paper aims to find evidence for the positive impact of cluster structures on employment development in Germany. It develops a new way of measuring the co-location of suppliers and buyers of intermediate goods in a region as well as the importance for the employment development in individual industries. The findings indicate that co-location of inter-connected industries did have a positive effect on employment growth in 16 out of 56 industries between 1998 and 2007 supporting the assumption that agglomeration advantages tend to occur within regional clusters rather than within single industries. However, for the majority of industries such advantages cannot be identified. --
    Keywords: input-output,shift-share,regional cluster,employment development
    JEL: R12 R15 J49
    Date: 2012
  3. By: Karlsson, Charlie (Jönköping International Business School)
    Abstract: In this paper, we discuss three factors of critical importance for regional economic develop-ment, namely entrepreneurship, social capital and governance. We conclude firstly that the relationships between regional entrepreneurship, regional social capital, regional governance and regional economic development are complex and interdependent. Secondly, to influence these factors and the relationship between them policy-makers must have a long-term per-spective and be both patient and persistent in their efforts. It is our hope that this paper pro-vides both a somewhat better understanding of the relationships between regional entrepre-neurship, regional social capital, regional governance and regional economic development and some help to national and regional policy-makers in formulating and implementing the proper long-term regional policies needed.
    Keywords: Regional economic development; entrepreneurship; social capital; governance
    JEL: D70 G38 L26 R58
    Date: 2012–06–13
  4. By: Takatoshi Tabuchi (Faculty of Economics, University of Tokyo)
    Abstract: This paper shows that new economic geography models are capable of simulating the real-world tendency for urban agglomeration to the primate city. It is often observed that while regional populations were dispersed in early times, they have been increasingly concentrated into one capital region over recent years. The present paper thus demonstrates that multi-region new economic geography models are able to simulate the real-world population distribution trends witnessed over the past few centuries.
    Date: 2012–06
  5. By: Riccardo Crescenzi; Andrés Rodríguez-Pose; Michael Storper
    Abstract: This paper analyses the geography of innovation in China and India. Using a tailor-made panel database for regions in these two countries, we show that both countries exhibit increasingly strong polarisation of innovative capacity in a limited number of urban areas. But the factors behind this polarisation and the strong contrasts in innovative capacity between the provinces and states within both countries are quite different. In China, the concentration of innovation is fundamentally driven by agglomeration forces, linked to population, industrial specialisation and infrastructure endowment. Innovative areas in China, rather than generate knowledge spillovers, seem to produce strong backwash effects. In India, by contrast, innovation is much more dependent on a combination of good local socioeconomic structures and investment in science and technology. Indian innovation hubs also generate positive knowledge spillovers to other regions.
    Keywords: Innovation; R&D; socioeconomic conditions; geography; regions; China; India
    JEL: R11 R12 O32 O33
    Date: 2012–06–22
  6. By: Graubner, Marten; Balmann, Alfons
    Abstract: This paper analyzes spatial competition on land rental markets. It contributes to the small body of literature that investigates the optimal spatial price policy under competition and extents previous work by considering economies of size. Because the consideration of increasing or decreasing returns of additional land and the endogenous choice of spatial pricing is analytically intractable, a computational economics approach is used to simulate spatial pricing in the presence of economies of size. This paper is a first step towards a spatial competition model of a land rental market and based on selected simulations it shows that price discrimination is likely to arise.
    Keywords: Industrial Organization, Land Economics/Use,
    Date: 2012
  7. By: Gabriel M. Ahlfeldt; Stephen J. Redding; Daniel M. Sturm; Nikolaus Wolf
    Abstract: This paper develops a quantitative model of city structure to separate agglomeration forces, dispersion forces and fundamentals as determinants of location choices. The model remains tractable and amenable to empirical analysis because of stochastic shocks to worker productivity, which yield a gravity equation for commuting flows. To empirically disentangle alternative determinants of location choices, we use Berlin's division and reunification as a source of exogenous variation in the surrounding concentration of economic activity. Using disaggregated data on land prices, workplace employment and residence employment for thousands of city blocks for 1936, 1986 and 2006, we find that the model can account both qualitatively and quantitatively for the observed changes in city structure.
    Keywords: agglomeration, dispersion, density, cities
    JEL: N34 O18 R12
    Date: 2012–06
  8. By: John Bradley (EMDS - Economic Modelling and Development Strategies); Michael Best
    Date: 2012–06
  9. By: Christian Lessmann (Technische Universität Dresden & CESifo)
    Abstract: This paper analyzes the impact of political and fiscal decentralization on regional inequalities using a unique data set which covers 56 countries at different stages of economic development. Cross-section and panel data estimations show that decentralization decreases regional inequalities in general. However, estimations using an interaction variable approach imply that the effect depends on the level of economic development. While rich countries benefit from decentralization with regard to a more equal regional income distribution, decentralization may lead to higher regional inequalities in developing and emerging economies. The results are pointing in the same direction for measures of fiscal and political decentralization implying that both -autonomy in decision making and fiscal authority- are decisive in this context. Thus, when fostering decentralization in developing countries -as proposed by international development agencies- the potential negative redistributional consequences should be taken into account.
    Keywords: Regional inequality, decentralization, panel data
    JEL: H11 H77 R11
    Date: 2012
  10. By: Wenjie Wu
    Abstract: Using parks as an example, this paper explores the robustness and sources of spatial variation in the values for estimated amenities using an extended geographically weighted regression (GWR) technique. This analysis, illustrated with estimates using geo-coded data from Beijing's residential land market, has three important implications. First, it provides a powerful estimation strategy to evaluate how sensitive GWR parameters are to unobserved amenities and complementarities between amenities. Second, it compares the spatial variation patterns for the marginal prices of proximity to parks, estimated using a range of GWR model specifications. The answers generated using the GWR approach still reveal a significant underlying problem of omitted variables. Finally, it highlights the importance of conceptualizing amenity values not just in terms of their structural characteristics but how those characteristics interact with or are conditioned by local socio-economic, and other contextual characteristics.
    Keywords: Land market, parks, spatial variation, geographically weighted regression, GIS,China
    JEL: C21 Q51 R14
    Date: 2012–06
  11. By: Quentin David (CREA, University of Luxembourg); Renaud Foucart, ECARES, Université libre de Bruxelles (ECARES, Université libre de Bruxelles)
    Abstract: We study the choice of transportation modes within a city where commuters have het- erogeneous preferences for a car. As in standard models of externalities, the market outcome never maximizes aggregate welfare. We show that in the presence of multiple equilibria prob- lems of coordination can worsen this result. Hence, a social planner focusing on the marginal impact of policies may miss the largest source of inefficiency. We discuss two policy tools: taxation and traffic separation (e.g. exclusive lanes for public transportation). Setting the optimal levels of taxation and of traffic separation constitutes a necessary but not a sufficient condition to reach the first best equilibrium. Comparing the relative efficiency of both poli- cies, we show that traffic separation should be preferred for large-scale policies while taxation better applies to marginal modifications of commuting patterns.
    Keywords: Modal choice, Coordination, Network effect, Cross-modal congestion
    JEL: R4 L5 H2
    Date: 2012

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