nep-geo New Economics Papers
on Economic Geography
Issue of 2013‒06‒30
sixteen papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Networks, proximities and inter-firm knowledge exchanges By E. Marrocu; S. Usai; R. Paci
  2. Do labor market networks have an important spatial dimension? By Judith K. Hellerstein; Mark J. Kutzbach; David Neumark
  3. The Impact of Structural and Macroeconomic Factors on Regional Growth By Sabine D’Costa; Enrique Garcilazo; Joaquim Oliveira Martins
  4. Quantifying Urban Centrality: A Simple Index Proposal and International Comparison By Rafael Henrique Moraes Pereira; Vanessa Nadalin; Leonardo Monasterio; Pedro Henrique Melo Albuquerque
  5. The Competitiveness of Global Port-Cities: The Case of Rotterdam/Amsterdam, the Netherlands By Olaf Merk; Theo Notteboom
  6. Spatial Segregation and Urban Structure By Pascal MOSSAY; Pierre PICARD
  7. On the Spatial Economic Impact of Global Warming By Klaus DESMET; Esteban ROSSI-HANSBERG
  8. Factors behind international relocation and changes in production geography in the European automobile components industry By Jesús F. Lampón; Santiago Lago-Peñas
  9. Mobility of Knowledge. Territorial Knowledge Dynamics in luxury car industry. Beyond standard and production markets By Macneill Stewart; Hugues Jeannerat
  10. Regional Public Research, Higher Education, and Innovative Start-ups - An Empirical Investigation By Michael Fritsch; Ronney Aamoucke
  11. Existence and Uniqueness of Equilibrium for a Spatial Model of Social Interactions By Adrien BLANCHET; Pascal MOSSAY; Filippo SANTAMBROGIO
  12. The role of geography in the success of the balearic tourism industry By Cirer-Costa, Joan Carles
  13. The port of Sines:contribution for the emergence of a regional cluster By Moreira, Paulo Pires
  14. Mobility of Knowledge. The Photovoltaic Industry in Western Switzerland : The Emergence of a Multi-Local Valuation Milieu By Christian Livi; Hugues Jeannerat; Olivier Crevoisier
  15. Key features of the first phase of the national cluster program in Russia By Evgeniy Kutsenko; Dirk Meissner
  16. Un estudio sobre las disparidades regionales en Colombia a través del análisis exploratorio y confirmatorio de datos espaciales, 1985 – 2010 By Loaiza Quintero, Osmar Leandro; Moncada Mesa, Jhonny

  1. By: E. Marrocu; S. Usai; R. Paci
    Abstract: Building on previous literature providing extensive evidence on flows of knowledge generated by inter-firm agreements, in this paper we aim to analyse how the occurrence of such collaborations is driven by the multi-dimensional proximity among participants and by their position within firms’ network. More specifically, we assess how the likelihood that two firms set up a partnership is influenced by their bilateral geographical, technological, organizational, institutional and social proximity and by their position within networks in terms of centrality and closeness. Our analysis is based on agreements in the form of joint ventures or strategic alliances, announced over the period 2005-2012, in which at least one partner is localised in Italy. We consider the full range of economic activities and this allow us to offer a general scenario and to specifically investigate the role of technological relatedness across different sectors. The econometric analysis, based on the logistic framework for rare events, yielded three noteworthy results. First, all the five dimensions of proximity jointly exert a positive and relevant effect in determining the probability of inter-firm knowledge exchanges, signalling that they are complementary rather than substitute channels. Second, the higher impact on probability is due to the technological proximity, followed by the geographical one, while the other proximities (social, institutional and organizational) have a limited effect. Third, we find evidence on the positive role played by networks, through preferential attachment and transitivity effects, in enhancing the probability of inter-firm agreements.
    Keywords: networks, joint ventures, proximities, knowledge flows, strategic alliances
    JEL: R12 O33 O31 L14
    Date: 2013
  2. By: Judith K. Hellerstein (University of Maryland & NBER); Mark J. Kutzbach (U.S. Bureau of the Census); David Neumark (UCI, NBER & IZA)
    Abstract: We test for evidence of spatial, residence-based labor market networks. Turnover is lower for workers more connected to their neighbors generally and more connected to neighbors of the same race or ethnic group. Both results are consistent with networks producing better job matches, while the latter could also reflect preferences for working with neighbors of the same race or ethnicity. For earnings, we find a robust positive effect of the overall residence-based network measure, whereas we usually find a negative effect of the same-group measure, suggesting that the overall network measure reflects productivity-enhancing positive network effects, while the same-group measure may capture a non-wage amenity.
    Keywords: Networks, job matches, wages, turnover
    JEL: J15 J30 J63
    Date: 2013
  3. By: Sabine D’Costa; Enrique Garcilazo; Joaquim Oliveira Martins
    Abstract: This papers aims to understand the impact of nation-wide structural policies such as product market regulation in six upstream sectors and employment protection legislation and that of macroeconomic factors on the productivity growth of OECD regions. In particular we explore how this effect varies with the productivity gap of regions with their country’s frontier region. We use a policy-augmented growth model that allows us to simultaneously estimate the effects of macroeconomic and structural policies on regional productivity growth controlling for region-specific determinants of growth. We estimate our model with an unbalanced panel dataset consisting of 217 regions from 22 OECD countries covering the period 1995 to 2007. We find a strong statistical negative effect of product market regulation on regional productivity growth in five of the six upstream sectors considered and the effects are differentiated with respect to the productivity gap. Our estimates also reveal that dispersion of policies hurts regional productivity growth suggesting that policy complementarity can boost productivity growth. The effects of employment protection legislation are negative overall and are especially detrimental to productivity growth in lagging regions. The three macroeconomic factors we consider also influence regional performance: inflation has a negative effect on regional growth and government debt has a positive effect on average. When differentiating the effects by the distance to the frontier, trade-openness is more beneficial to lagging regions and the negative effects of inflation are less negative in lagging regions. These results reveal a strong link between nation-wide policies and the productivity of regions, which carries important policy implications, mainly that these effects should be taken into account in the policy design.
    Keywords: regional productivity growth, regional impact of structural policies, spatial impact of national policies
    JEL: E66 R12
    Date: 2013–06–13
  4. 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 tructures from different spatial patterns of jobs and resident population. The roposed urban centrality index constitutes an extension of the spatial separation index MIDELFART-KNARVIK et al., 2000). It is suggested that urban structure should e more accurately analyzed by considering a centrality scale (varying from extreme onocentricity to extreme polycentricity) rather than a binary variable (monocentric r polycentric). The proposed index controls for differences in size and shape of the eographic areas for which data is available, and can be calculated using different ariables, such as employment and population densities and trip generation rates. The roperties of the index are illustrated in simulated artificial data sets. Simulation results or hypothesized urban forms are compared to other similar measures proposed by revious literature. The index is then applied to the urban structure of four different etropolitan areas: Pittsburgh and Los Angeles in the United States; São Paulo, Brazil;and Paris, France, The index is compared to other traditional spatial agglomeration easures, such as global and local Moran’s I, and density gradient estimations.
    Date: 2012–01
  5. By: Olaf Merk; Theo Notteboom
    Abstract: This working paper offers an evaluation of the performance of the ports of Rotterdam and Amsterdam, an analysis of the impact of these ports on their territory and an assessment of policies and governance in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the ports on economic and environmental questions is studied and quantified where possible. The value added of the port clusters of Rotterdam and Amsterdam is calculated and its interlinkages with other economic sectors and regions in the Netherlands delineated. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. These include measures instituted by the port authorities, as well as by local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report‘s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the ports of Rotterdam and Amsterdam on their territory.
    Keywords: transportation, ports, regional development, regional growth, urban growth, inter-regional trade, input-output
    JEL: D57 L91 R11 R12 R15 R41
    Date: 2013–05–14
  6. By: Pascal MOSSAY; Pierre PICARD
    Abstract: In this paper, we study the social interactions between two populations of individuals living in a city. Agents consume land and benefit from intra and intergroup social interactions. We show that segregation arises in equilibrium: populations become separated in distinct spatial neighborhoods. Two- and three-district urban structures are characterized. For high population ratios or strong intergroup interactions, only three-district cities exist. In other cases, multiplicity of equilibria arises. Moreover, for sufficiently low population ratios or very weak intergroup interactions, all individuals agree on the optimal spatial equilibrium.
    Date: 2013–06
  7. By: Klaus DESMET; Esteban ROSSI-HANSBERG
    Abstract: We propose a dynamic spatial theory to analyze the geographic impact of climate change. Agricultural and manufacturing firms locate on a hemisphere. Trade across locations is costly; firms innovate; and technology diffuses over space. Energy used in production leads to emissions that contribute to the global stock of carbon in the atmosphere, which affects temperature.<br />The rise in temperature differs across latitudes, and its effect on productivity also varies across sectors. We calibrate the model to analyze how climate change affects the spatial distribution of economic activity, trade, migration, growth, and welfare. We assess quantitatively the impact of migration and trade restrictions, energy taxes, and innovation subsidies.
    Date: 2013–06
  8. By: Jesús F. Lampón (University of Vigo & REDE); Santiago Lago-Peñas (University of Vigo & REDE & IEB)
    Abstract: This article analyses business strategies in the automobile sector to determine the key factors behind production relocation processes in automobile components suppliers. These factors help explain changes in production geography in the sector not only in terms of location advantages but also from a perspective of corporate strategies and decision-making mechanisms within firms. The results obtained from an empirical study in Spain during the period 2001-2008 show how the components sector has used relocation to meet the requirements for efficiency imposed by automobile manufacturers. The search for lower labour costs, production concentration and specialisation in order to obtain economies of scale and improved productivity are found to be the main factors determining relocation in the sector. These processes are facilitated by the operational flexibility of the multinational firms that dominate the sector which allows them to transfer resources internationally. Lean supply, technological requirements for production processes and the integration of production plants in the institutional environment are the main barriers to such processes of mobility, and may also determine the geographical destination of migrated production.
    Keywords: Production relocation, automobile components sector, geography, Spain, Europe
    JEL: F2 F23 L2 L23
    Date: 2013
  9. By: Macneill Stewart; Hugues Jeannerat (Group of Research in Territorial Economy GRET, Faculty of Letters and Human Sciences, University of Neuchâtel, Switzerland)
    Abstract: At regional level a number of models, such as innovation systems and cluster have been developed which have been influential on this policy support. Policy initiatives based around these models are firmly rooted in a technological model of innovation and a standard market situation which takes little account of the socio-economic environment and the potential for downstream based innovation. Here we present a case study of the automotive industry in the UK West Midlands region where we consider innovation networks and knowledge developments associated with a shift from the standard market, largely prevalent in the sector, towards a status based market. We observe how, in the status market, composite knowledge networking and interaction with consumers is integral to the innovation process.
    Keywords: Territorial knowledge dynamics, production market, status market, territorial innovation models, EURODITE
    JEL: D71 D81 G1 G23 Q01 R11 R51
    Date: 2013–01
  10. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Ronney Aamoucke (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: Based on detailed information about the regional knowledge base, particularly about universities, we find that regional public research and education have a strong positive impact on new business formation in innovative industries but not in industries classified as non-innovative. Measures for the presence and size of public academic institutions have more of an effect on the formation of innovative new businesses than indicators that reflect the quality of these institutions. We find relatively weak evidence for interregional spillovers of these effects. Our results clearly demonstrate the importance of localized knowledge and, especially, of public research for the emergence of innovative new businesses.
    Keywords: New business formation, innovative start-ups, universities, regional knowledge
    JEL: L26 L60 L80 O18 R12 R30
    Date: 2013–06–24
  11. By: Adrien BLANCHET; Pascal MOSSAY; Filippo SANTAMBROGIO
    Abstract: We extend Beckmann's spatial model of social interactions to the case of a two-dimensional spatial economy involving a large class of utility functions, accessing costs, and space-dependent amenities. We show that spatial equilibria derive from a potential functional. By proving the existence of a minimiser of the functional, we obtain that of spatial equilibrium. Under mild conditions on the primitives of the economy, the functional is shown to satisfy displacement convexity, a concept used in the theory of optimal transportation. This provides a variational characterisation of spatial equilibria. Moreover, the strict displacement convexity of the functional ensures the uniqueness of spatial equilibrium. Also, the spatial symmetry of equilibrium is derived from that of the spatial primitives of the economy. Several examples illustrate the scope of our results. In particular, the emergence of multiplicity of equilibria in the circular economy is interpreted as a lack of convexity of the problem.
    Date: 2013–06
  12. By: Cirer-Costa, Joan Carles
    Abstract: A really large tourist destination, such as the Balearic Islands cannot be defined as a single geographic space without regional differentiation; it spans several islands within each of which are a multiplicity of coastal areas with very varied geographical morphology and differing degrees of exploitation for tourism. We aim to conduct a statistical analysis of the standard features of such coastal areas to determine the geographic base common to the entire Balearic archipelago as a mass tourist destination. Our analysis is based on the different theoretical concepts of a destination as they appear in tourist literature: A geographically defined area, a group consumption brand name, a location defined by a concrete offer, and so on, and the industrial district concept as initially proposed by Marshall and later developed by authors, such as Krugman and Becattini. We set out to conduct a fundamentally quantitative analysis for which purpose we established a database containing 41 categories of geographical, commercial and business data for each of the 82 Balearic tourist areas. This information is integrated into a statistically homogenous set of values that enables the application of the Agglomerative Hierarchical Clustering (AHC) statistical method. The results obtained show that the islands of Menorca and Formentera constitute minor products in clear contrast with the major destinations of Mallorca and Ibiza. The latter two have developed a model composed of a pattern of large areas that are virtually indistinguishable from each other. Each zone can accommodate almost every kind of tourist wishing to visit the Balearic Islands, regardless of nationality, family status or economic level. A final result indicates that the large local hoteliers have developed a very special trading model: Targeting a specific niche of tourist demand while offering a wide geographical distribution of their establishments.
    Keywords: Mass tourism, Balearic Islands, hotels, tourism cluster, industrial district.
    JEL: L83 R12 R14
    Date: 2013–06–19
  13. By: Moreira, Paulo Pires
    Abstract: The design of what is outlined in this paper is not confined to study the port of Sines in a logic of pure port management, not even only as the decomposed observation of flows originated by the so-called industrial complex, since until now, the economic history was charged of such anatomical structural analysis. What is called for is beyond the mere circumstances prevailing or the sum of the parts and aims to look Sines in a multidimensional way as an open system, characterized by how parts are organized and how together they can contribute to economic revitalization, sustainable development and social cohesion of a considerable portion of the national territory. In other words, we assume the possibility of the occurrence of a regional cluster supported on the global networks of the maritime chain.
    Keywords: Sines; maritime chain; logistic gateway; maritime clusters. clusters.
    JEL: R1
    Date: 2013–06–15
  14. By: Christian Livi; Hugues Jeannerat; Olivier Crevoisier (Group of Research in Territorial Economy GRET, Faculty of Letters and Human Sciences, University of Neuchâtel, Switzerland)
    Abstract: Various territorial innovation models have been developed since the 1980s, offering a new perspective on how certain regional production systems have grown out of the innovation and training processes specific to certain local milieus. These models reflect a process of economic globalisation characterised by the increased mobility of goods and services but limited by those production factors which underpin innovation such as knowledge and innovation capital. This article reconsiders this approach, taking into account the new equally increased mobility of those cognitive and financial resources. It also seeks to understand how innovation embeds in a broader valuation system. Taking as its case study western Switzerland’s photovoltaic industry, the concept of the ‘innovative milieu’ is re-examined in the context of ever-increasing economic, political and social interest in sustainable development. Finally, in this revisited approach to territorial innovations, the use of the term ‘multi-local valuation milieu’ is proposed.
    Keywords: Territorial innovation models, Innovative milieu, Photovoltaic industry, Regional economy, Valuation, Multi-local valuation milieu
    JEL: D71 D81 G1 G23 Q01 R11 R51
    Date: 2013–04
  15. By: Evgeniy Kutsenko (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Dirk Meissner (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics)
    Abstract: Cluster policy is recognized as one of the pivotal elements of state-of-art innovation policy. State support for clusters helps to take into account regional peculiarities and engage the most innovative local actors into the process of innovation policy drafting and implementation. Cluster development stimulates trust building and enhances knowledge spillovers among different organizations in the region. Finally the cluster approach makes innovation policy more systemic by coordinating measures aimed to support different actors (large companies, SMEs, universities, venture funds) towards comprehensive efforts linking the most perspective localized industries (ecosystems). The development of clusters has been determined as one of the priorities of the Strategy of Innovative Development of the Russian Federation for the period to 2020 which was confirmed end 2010. In the framework of this Strategy the first national cluster program was launched in 2012. The paper is devoted to the detailed description of the background of the national cluster program in Russia and its first phase – the selection of the pilot innovative clusters – which was implemented last year. Special attention is given to the comparison of planned design of the Russian cluster program with such widely known cluster programs as the BioRegio, InnoRegio and Les poles de competitivite. The similarities and peculiarities of the Russian program have been defined that allowed to identify several most significant areas for improvement.
    Keywords: Clusters, knowledge spillovers, cluster policy, innovation policy.
    JEL: O14 O17 O25 O38 O43 P16 R11 R53
    Date: 2013
  16. By: Loaiza Quintero, Osmar Leandro; Moncada Mesa, Jhonny
    Abstract: The aim of this paper is to study the evolution of regional differences in Colombia from 1993 to 2005. This paper uses information at the municipal (county) level about poverty and city council’s income. It is found that Colombia’s political territory is polarized around two classes of clusters: one of low poverty and high income city councils, and other of widespread poverty and low income municipalities. The first cluster is located in the country’s interior, in the Andean region and is delimited by the country’s three main cities. The second cluster comprises the bulk of the Atlantic (North) and Pacific (West) regions, as well as the Southern and Eastern parts of Colombia. Apparently, there’s evidence pointing to some positive externalities arising from proximity to one of the main three cities or being close to the transit corridors that connect each of them. Finally, three spatial regression models are estimated that found, rather surprisingly, that there’s been a slow process of convergence among Colombia’s municipalities (in tributary income). This result may by explained mainly through a process of contagion that is taking place mainly in the neighborhood of Colombia’s top three metropolitan areas, as the gap with the more distant and poor municipalities persists. El objetivo de este trabajo es estudiar la evolución de las diferencias entre regiones en Colombia, desde 1985 hasta 2010. Este artículo utiliza información a escala municipal sobre el nivel de pobreza y el nivel de ingresos. Se encuentra que el territorio Colombiano está polarizado alrededor de dos clusters: uno compuesto por municipios con baja pobreza y alto ingreso tributario, y otro de alta pobreza y bajos ingresos tributarios. El primero está ubicado en el interior del país, en la región andina y está delimitado por las tres ciudades principales en Colombia. El segundo comprende el grueso de la región Atlántica y Pacífica, y partes del Sur y el Oriente del país. Aparentemente, hay evidencia que apunta a la existencia de externalidades positivas que surgen de la proximidad a alguna de las tres ciudades principales o de la cercanía a los corredores viales que las conectan. Finalmente, se ajustan tres modelos de regresión espacial, los cuales encuentran de manera un poco sorprendente que existe un lento proceso de convergencia entre las municipalidades de Colombia (en ingresos tributarios). Este resultado puede ser explicado principalmente a través de un proceso de contagio que está teniendo lugar en las cercanías de las tres principales áreas metropolitanas, puesto que las brechas con respecto a poblaciones más distantes aún persisten.
    Keywords: Regional economics, regional disparities, exploratory spatial data analysis, spatial regression, convergence. Economía regional, análisis exploratorio de datos espaciales, regresión espacial, convergencia.
    JEL: C21 R10 R12
    Date: 2013–06–20

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