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on Economic Geography |
| By: | Kohei Nagamachi (Faculty of Economics, University of Tokyo) |
| Abstract: | This paper provides one explanation of why there is observed a positive correlation between skill premium and income of regions. In doing so, this paper provides a model of self-organized sorting and skill premium with a continuum of heterogeneous individuals and that of industries or tasks within a production process. It is found that the positive correlation merges through the interaction between the location-occupation choice by individuals and regional comparative advantage. The spatial equilibrium, sorting, and product differentiation play a key role in determining the way how such interaction works. |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2012cf868&r=geo |
| By: | Sawako Maruyama (Graduate School of Economics, Kobe University) |
| Abstract: | This paper aims to analyze the similarities and differences between Kansai region in Japan and Vastra Gotaland regionin Sweden. We investigate the regional economies,the frameworks of regional coordination, and the degree of internationalization.Main findings of the analysis are summarized as follows. Firstly, the two regions have similar industrial structures and have experienced similar economic stagnation over a long period. Similar problems led to similar solutions requiring local autonomy and regional coordination. Secondly, the two regions both want local discretionary authority over the region. Regional coordination is one way to achieve this. However, the framework of regional coordination is different in both countries. The adopted framework in each region is related to the system of local governance at the country/prefectural level. Unlike Vastra Gotaland, Kansai is facing problems coordinating tasks between prefectures, and is unable to define the geographical identity of the administrative districts involved. Thirdly, the extent of internationalization in both public and private sectors is different in both regions. Firms and local governments in Kansai are not as internationalized as Vastra Gotaland which has the support of the EU structural fund.These facts suggest that while both regions are moving in the same direction towards regional coordination, they are at different levels of achievement. The achievements of regional coordination are affected by the differences in local governance. Simple adaptation of the same system as Vastra Gotaland would not necessarily result in good governance in Kansai, where prefectures have already a lot of tasks, therefore, Kansai has to find an appropriate, efficient and feasible framework on their own. |
| Keywords: | Regional coordination, Regional development policy |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1222&r=geo |
| By: | Ahmad, Mahyudin; Hall, Stephen G. |
| Abstract: | Do institutions spatially affect growth? By employing a neoclassical growth model with institutional controls and augmenting the model with a formal spatial framework, this study finds evidence that institutions has spatial spillover effect on economic growth based on a panel observation from 58 developing countries for the period between 1985-2008. This study also shows that the spatial lag model is the most appropriate to model the spillover effect. |
| Keywords: | Institutions; economic growth; spatial dependence; spillover effect; spatial lag model; |
| JEL: | R10 O43 C31 |
| Date: | 2012–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42360&r=geo |
| By: | Kerstin Enflo (Lund University School of Economics and Management); Joan Ramón Rosés (Universidad Carlos III de Madrid) |
| Abstract: | In many countries, regional income inequality has followed an inverted U-shaped curve, growing during industrialisation and market integration and declining thereafter. By contrast, Sweden’s regional inequality dropped from 1860 to 1980 and did not show this U-shaped pattern. Accordingly, today’s regional income inequality in Sweden is lower than in other European countries. We note that the prime mover behind the long-run reduction in regional income differentials was structural change, whereas neo-classical and technological forces played a relatively less important role. However, this process of regional income convergence can be divided into two major periods. During the first period (1860-1940), the unrestricted action of market forces, particularly the expansion of markets and high rates of internal and international migrations, led to the compression of regional income differentials. In the subsequent period (1940-2000), the intended intervention of successive governments appears to have also been important for the evolution of regional income inequality. Regional convergence was intense from 1940 to 1980. In this period, governments aided the convergence in productivity among industries and the reallocation of the workforce from the declining to the thriving regions and economic sectors. During the next period (1980-2000), when regional incomes diverged, governments subsidised firms and people in the declining areas. |
| Keywords: | Convergence; regional policy; neo-classical growth model; labour reallocation. |
| JEL: | N94 N93 R11 R12 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0029&r=geo |
| By: | Belit Saka |
| Abstract: | This paper deals with long distance internal migration patterns of the immigrant population in Germany and addresses the question whether immigrants are more mobile than native Germans and to what extent the differences in spatial mobility behavior between immi-grants and native Germans are influenced by a) individual level characteristics, b) macro level regional economic characteristics and c) regional ties. The analysis shows in general a very low rate of long distance internal migration in Germany for native Germans as well as for immigrants. Even after controlling for individual and regional level characteristics, the immigrant population is half as mobile as native Germans. The results are more robust for the 2nd generation immigrants. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp495&r=geo |
| By: | Scholz, Theresa (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Rauscher, Cerstin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Reiher, Jörg; Bachteler, Tobias |
| Abstract: | "Economic research addressing spatial questions is often constrained by the availability of data at a sufficiently fine regional scale. For this reason the 2009 cross-section of the Integrated Employment Biographies (IEB) of the Institute for Employment Research was geocoded. The IEB are collected from administrative processes of the Federal Employment Agency and include employees and their employing establishment, unemployed, jobseekers, benefit recipients and participants of employment measures. The geocodes assigned to the IEB serve as a basis to generate small regions that represent neighbourhoods. Additionally, the geocoded data itself allows for the application of research methods at a regional level that can be chosen independent of administrative areas. The corresponding data protection regulations have to be adhered to." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Integrierte Erwerbsbiografien, regionales Cluster, Datenaufbereitung, Datenschutz |
| Date: | 2012–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabfme:201209_en&r=geo |
| By: | Sergei Guriev (New Economic School); Elena Vakulenko (National Research University Higher School of Economics) |
| Abstract: | In this paper we study convergence among Russian regions. We find that while there was no convergence in 1990s, the situation changed dramatically in 2000s. While interregional GDP per capita gaps still persist, the differentials in incomes and wages decreased substantially. We show that fiscal redistribution did not play a major role in convergence. We therefore try to understand the phenomenon of recent convergence using panel data on the interregional reallocation of capital and labor. We find that capital market in Russian regions is integrated in a sense that local investment does not depend on local savings. We also show that economic growth and financial development has substantially decreased the barriers to labor mobility. We find that in 1990s many poor Russian regions were in a poverty trap: potential workers wanted to leave those regions but could not afford to finance the move. In 2000s (especially in late 2000s), these barriers were no longer binding. Overall economic development allowed even poorest Russian regions to grow out of the poverty traps. This resulted in convergence in Russian labor market; the interregional gaps in incomes, wages and unemployment rates are now below those in Europe. The results imply that economic growth and development of financial and real estate markets eventually result in interregional convergence. |
| Keywords: | Convergence, economic growth, Russian regions, financial development, migration. |
| JEL: | J61 R23 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:cfr:cefirw:w0180&r=geo |
| By: | Fosgerau, Mogens; de Palma, André |
| Abstract: | We consider dynamic congestion in an urban setting where trip origins are spatially distributed. All travelers must pass through a downtown bottleneck in order to reach their destination in the CBD. Each traveler chooses departure time to maximize general concave scheduling utility. We find that, at equilibrium, travelers sort according to their distance to the destination; the queue is always unimodal regardless of the spatial distribution of trip origins. We construct a welfare maximizing tolling regime, which eliminates congestion. All travelers located beyond a critical distance from the CBD gain from tolling, even when toll revenues are not redistributed, while nearby travelers lose. We discuss our results in the context of acceptability of tolling policies. |
| Keywords: | Dynamic model; Toll policy; Spatial differentiation; Acceptability |
| JEL: | D11 R41 R14 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42270&r=geo |
| By: | Calá, Carla Daniela; Arauzo Carod, Josep Maria; Manjón Antolín, Miguel C. |
| Abstract: | Regional policies aiming to attract new firms are largely based on evidence that originates from Europe, the USA and Japan. This may raise doubts about the usefulness of such policies when applied to developing economies. This paper addresses this issue by providing estimates of the determinants of firm entry in the Argentinean provinces. We find that most of the determinants used in previous studies analysing developed countries are still relevant. However, there is a need for additional explanatory variables that reflect the specificities of developing economies. Key words: firm entry, regional economics, Argentina. JEL: R12; R30; C33 |
| Keywords: | Empreses -- Creació, Economia regional, Argentina, 332 - Economia regional i territorial. Economia del sòl i de la vivenda, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/203159&r=geo |
| By: | Ahmad, Mahyudin; Hall, Stephen G. |
| Abstract: | This study augments a standard growth model with institutional controls, and models the spatial dependence using geographical and institutional weight matrices. Spatial Durbin model is shown to be the most appropriate to describe the data and political institutions weight matrix best explains the institutional distance concept since it produces identical results to the exogenous geographical-based distance matrix. Overall, the findings give evidence to the institutional quality effects, particularly the security of property rights, on economic growth in the developing countries. We also find evidence of an indirect route of institutions spillover where institutions in a country lead to economic improvement in that country and generate positive effects on the neighbouring countries’ income growth. Furthermore, our study is able to show that countries with similar political institutional settings have an increased spatial dependence and converge to a similar level of growth. |
| Keywords: | Growth; institutions; spillover effects; institutional distance; spatial Durbin model; |
| JEL: | R10 O43 C21 |
| Date: | 2012–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42294&r=geo |
| By: | Mussida, Chiara (Università Cattolica del Sacro Cuore); Pastore, Francesco (University of Naples II) |
| Abstract: | Theoretical reasoning justifies different signs of the relationship between the local variation in unemployment rates and the extent of workers reallocation. This paper aims to test different theoretical hypotheses in the case of Italy by using the longitudinal files of the Italian labour force survey over the years from 2004 to 2010. We find that labour turnover, as well as inflows and outflows separately, differ significantly at the regional level and are ceteris paribus positively related to the unemployment rate. In addition, we study the determinants of labour turnover across NUTS1 and NUTS2 geographical units and find that it correlates positively with structural change, as measured by the Lilien index, and negatively with the degree of industrial concentration, as measured by the Herfindahl index. Once we control for sectoral shifts and industrial concentration, we note a reduction of between 25 and 40% of the regional gap in labour turnover rates. This general conclusion is robust to the use of different control variables. |
| Keywords: | regional unemployment, labour turnover, labour reallocation, structural change |
| JEL: | C33 J63 P25 P52 R23 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6954&r=geo |
| By: | Liana Carleial; Bruno Cruz |
| Abstract: | O artigo defende o argumento de que o atual momento da economia e da sociedade brasileiras é propício para o estabelecimento de uma estratégia de desenvolvimento regional. O Brasil tem 60 anos de políticas de desenvolvimento regional, mas não obteve o êxito necessário para reduzir, de forma significativa, as desigualdades regionais. Considerando que há um conjunto de investimentos em infraestrutura e em setores estratégicos da indústria fora do eixo Rio-São Paulo, a complementação desses investimentos poderá conduzir a um adensamento das estruturas produtivas das regiões mais empobrecidas. A base desse argumento é oriunda do pensamento de Celso Furtado, para quem o subdesenvolvimento é uma produção do próprio desenvolvimento do capital, em certas circunstâncias, e apresenta como características centrais a heterogeneidade estrutural, a ausência de um núcleo inovador, como os países desenvolvidos tiveram, e uma incapacidade de diversificação produtiva cuja razão maior é a histórica vulnerabilidade externa. A natureza do subdesenvolvimento tem implicações significativas para a constituição dos mercados de trabalho e, ainda, condiciona um padrão desigual de distribuição de renda. As "boas novas" do cenário brasileiro podem permitir a reversão desse quadro. Palavras-chave: Dinâmica regional, políticas de desenvolvimento regional, desenvolvimento econômico. The actual momentum of the Brazilian Economy opens an opportunity to the country to discuss a strategy for regional development. Despite 60 years of regional development policies, regional disparities remain almost unchanged. Giving the boom of investment outside the main agglomeration in São Paulo and Rio de Janeiro, indentify complementarities and linkages among this new investment decision, which can lead the less developed region to diversify economy and increase local aggregation of value. Inspired by the work of Celso Furtado, for whom the heterogeneous nature of the economic structure and the lack of diversification in these economies are the source for external vulnerability, this paper presents some ideas and suggestion for a long run strategy of regional development policy. This new scenario of the Brazilian economy may allow the reversion of the situation. Keywords: Regional dynamics, regional development policies, economic development. |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipe:ipetds:1729&r=geo |
| By: | Alberto Alesina; Stelios Michalopoulos; Elias Papaioannou |
| Abstract: | This study explores the consequences and origins of contemporary differences in well-being across ethnic groups within countries. We construct measures of ethnic inequality combining ethnolinguistic maps on the spatial distribution of groups with satellite images of light density at night. Ethnic inequality is strongly inversely related to per capita income; this pattern holds when we condition on the overall degree of spatial inequality -that is also associated with underdevelopment. We further show that differences in geographic endowments across ethnic homelands explain a sizable portion of contemporary ethnic inequality. This deeplyrooted inequality in geographic attributes across ethnic regions is also negatively related to comparative development. We also show that ethnic inequality goes in tandem with lower levels development also within countries. Using micro-level data from the Afrobarometer surveys we show that individuals from the same ethnic group are worse off when they reside in districts with a high degree of ethnic inequality. |
| Keywords: | Ethnicity, Diversity, Inequality, Development, Geography |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:bro:econwp:2012-14&r=geo |
| By: | Rafael Henrique Moraes Pereira; Vanessa Nadalin; Leonardo Monasterio; Pedro Henrique Melo Albuquerque |
| Abstract: | This study introduces a new measure of urban centrality. It identifies distinct urban structures from different spatial patterns of jobs and resident population. The proposed urban centrality index constitutes an extension of the spatial separation index (MIDELFART-KNARVIK et al., 2000). It is suggested that urban structure should be more accurately analyzed by considering a centrality scale (varying from extreme monocentricity to extreme polycentricity) rather than a binary variable (monocentric or polycentric). The proposed index controls for differences in size and shape of the geographic areas for which data is available, and can be calculated using different variables, such as employment and population densities and trip generation rates. The properties of the index are illustrated in simulated artificial data sets. Simulation results for hypothesized urban forms are compared to other similar measures proposed by previous literature. The index is then applied to the urban structure of four different metropolitan areas: Pittsburgh and Los Angeles in the United States; São Paulo, Brazil; and Paris, France, The index is compared to other traditional spatial agglomeration measures, such as global and local Moran`s I, and density gradient estimations. |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipe:ipetds:1675&r=geo |
| By: | Kai Andree; Mike Schwan |
| Abstract: | This paper develops a spatial model to analyze the stability of a market sharing agreement between two firms. We find that the stability of the cartel depends on the relative market size of each firm. Collusion is not attractive for firms with a small home market, but the incentive for collusion increases when the firm’s home market is getting larger relative to the home market of the competitor. The highest stability of a cartel and additionally the highest social welfare is found when regions are symmetric. Further we can show that a monetary transfer can stabilize the market sharing agreement. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:pot:vwldis:105&r=geo |
| By: | Jeffrey Brinkman; Daniele Coen-Pirani; Holger Sieg |
| Abstract: | We develop a new dynamic general equilibrium model to explain firm entry, exit, and relocation decisions in an urban economy with multiple locations and agglomeration externalities. We characterize the stationary distribution of firms that arises in equilibrium. We estimate the parameters of the model using a method of moments estimator. Using unique panel data collected by Dun and Bradstreet, we find that our model fits the moments used in estimation as well as a set of moments that we use for model validation. Agglomeration externalities increase the productivity of firms by about 8 percent. Economic policies that subsidize firm relocations to the central business district increase agglomeration externalities in that area. They also increase economic welfare in the urban economy. |
| Keywords: | Externalities (Economics) ; Urban economics ; Equilibrium (Economics) ; Estimation theory |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:12-26&r=geo |
| By: | Jacek Szlachta (Institute for Development, Sopot, Poland); Jacek Zaucha (Institute for Development, Sopot, Poland) |
| Abstract: | This article presents a synthesis on origin and development of the notion of territorial cohesion and its application to policy making. In particular the concept of policy teritorialisation is analyzed and discussed. Also the essence of territorial approached is examined and relevant typologies are proposed. Prospects from teritorialisation of the Cohesion Policy in the new programming period are identified and assessed in the context of spatial development of Poland. The concluding part contains the authors’ recommendations on a proper instillation of territorial cohesion issues in the reformed EU Structural Policy. |
| Keywords: | territorial cohesion, policy territorialisation, territorial approach, territorial dimension of policies, spatial development |
| JEL: | R11 R12 R58 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iro:wpaper:1203&r=geo |
| By: | Ivo Bischoff (University of Kassel); Stefan Krabel (University of Kassel) |
| Abstract: | We analyze the impact of large firms on business tax rates using data from German mu-nicipalities in Hesse in 1998-2005. Results suggest that business tax rates decrease with tax-payers’ concentration, indicating strong local lobbying power of large firms. |
| Keywords: | tax competition, yardstick competition, local business taxation, large firms, Germany |
| JEL: | F1 F16 H2 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201245&r=geo |
| By: | Eleonora Lorenzini (Department of Economics and Management, University of Pavia) |
| Abstract: | This paper draws on the literature on innovation in clusters and e-commerce to investigate how a particular kind of innovation project, the establishment of a regional e-marketplace (REM), may contribute to regional development. Using a firm-centred perspective, the role of geographical and cognitive proximity, absorptive capacity and other firm characteristics in the adoption and development of this particular type of innovation project is assessed. Hypotheses are tested with reference to the case of an REM recently established in the Italian area of Valtellina. The policy implications of the study are that REMs deserve support as an instrument of territorial development both in the establishment and in the implementation phase, more with “soft policies” than with “hard policies”. |
| Keywords: | clusters, innovation policy, e-commerce, proximity, Italy |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:pav:demwpp:demwp0003&r=geo |
| By: | Guilherme Mendes Resende |
| Abstract: | O objetivo deste estudo é combinar micro e macroavaliações dos Fundos Constitucionais de Financiamento do Nordeste (FNE) focando a análise no caso do estado do Ceará com vistas a controlar pela heterogeneidade espacial. Busca-se mensurar os impactos dos empréstimos do FNE-industrial sobre o crescimento do emprego e o crescimento da produtividade do trabalho em nível micro (empresa) e o crescimento do Produto Interno Bruto (PIB) per capita em nível macro (municipal) durante os anos de 2000- 2003 e 2000-2006. O estudo do caso do Ceará pode ajudar na melhor interpretação dos resultados obtidos para a região Nordeste como um todo. Sabe-se que, na presença de heterogeneidade espacial, os resultados podem variar ao longo do espaço, por exemplo, de um estado para outro. De fato, os resultados sugerem que os micro e macroimpactos do FNE-industrial no estado do Ceará apresentam uma magnitude maior daqueles observados para toda a região Nordeste. Palavras-chave: avaliação de impacto; FNE; Ceará. The main goal of this paper is to combine micro and macro-evaluations of the Constitutional Financing Funds for the Northeast (FNE) focusing on the analysis of Ceará state in order to control for spatial heterogeneity. It aims to measure the impact of the FNE industrial loans on employment and labour productivity growth at the micro (firm) level and on GDP per capita growth at macro (municipalities) levels for the 2000-2003 and 2000-2006 periods. The case of Ceará may help to better understand the results obtained for the Northeast region as a whole. In fact, the results suggest that micro and macro-impacts of FNE-industrial in the state of Ceará have a higher magnitude than those observed in the Northeast region as a whole. Keywords: impact evaluation; FNE; Ceará. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipe:ipetds:1777&r=geo |
| By: | Juan Carmona Pidal (Universidad Carlos III de Madrid); Markus Lampe (Universidad Carlos III de Madrid); Joan Ramón Rosés (Universidad Carlos III de Madrid) |
| Abstract: | This paper discusses how Spain’s urban housing markets reacted to the far-reaching changes that affected the demand for dwellings during the first phase of the ruralurban transition process. To this end, we construct a new hedonic index of real housing prices and assemble a cross-regional panel dataset of price fundamentals. The results of our econometric analysis suggest that urban housing markets did not face supply constraints and responded swiftly to the growing demand for accommodation. In light of this new evidence, we conclude that housing markets were not a burden for Spanish economic development and that Spain’s urban infrastructure and institutional framework and were suitable for the housing needs at the time. |
| Keywords: | Hedonic prices; Demand and Supply of Housing; Regulation in Housing Markets. |
| JEL: | N93 N94 R30 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0030&r=geo |
| By: | Satyajit Chatterjee; Burcu Eyigungor |
| Abstract: | A tractable production-externality-based circular city model in which both firms and workers choose location as well as intensity of land use is presented. The equilibrium structure of the city has either (i) no commuting ("mixed-use" form) or (ii) a central business district (CBD) of positive radius and a surrounding residential ring. Regardless of which form prevails, the intra-city variation in all endogenous variables displays the negative exponential form: x(r) = x(0)e¯Øxr (where r is the distance from the city center and Øx depends only on preference and technology parameters). An application is presented wherein it is shown that population growth may lead to a smaller increase in land rents in cities that cannot expand physically because these cities are less able to exploit the external effect of greater employment density. |
| Keywords: | Land use |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:12-25&r=geo |
| By: | Andrew J. Cassey; Ben O. Smith (School of Economic Sciences, Washington State University) |
| Abstract: | The Ellison-Glaeser (1997) index is an unbiased statistic of industrial localization. Though the expected value of the index is known, ad hoc values are used to interpret the extent of localization. We improve on the interpretation of the index by simulating condence intervals while varying the underlying parameters of the lognormal distribution of plant employment size and the number of plants in the industry. In the data, we nd cases whose index value is above the ad hoc threshold that are not statistically signicant. We nd many cases below the ad hoc threshold that are statistically signicant. |
| Keywords: | Ellison-Glaeser, localization, herfindahl, simulation, confidence interval |
| JEL: | C63 L11 R14 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:cassey-7&r=geo |