nep-geo New Economics Papers
on Economic Geography
Issue of 2013‒07‒05
nine papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Trade and the Topography of the Spatial Economy By Treb Allen; Costas Arkolakis
  2. A Spatial Analysis of the Role of Residential Real Estate Investment in the Economic Development of the Northeast Region of the United States By Jayaraman, Praveena; Lacombe, Donald; Gebremedhin, Tesfa
  3. Understanding the sources of spatial disparity and convergence : evidence from Bangladesh By Shilpi, Forhad
  4. Spatial Patterns of Technology Diusion: The Case of Hybrid Rice in Bangladesh By Ward, Patrick S.; Pede, Valerien
  5. Measuring tax attractiveness across countries By Keller, Sara; Schanz, Deborah
  6. Food Inflation in EU: Distribution Analysis and Spatial Effects By Angelos Liontakis; Dimitris Kremmydas
  7. A Spatial Dynamic Panel Analysis of the Environmental Kuznets Curve in European Countries By Hermann Pythagore Pierre Donfouet; P. Wilner Jeanty; Eric Malin
  8. How does space affect the distribution of the EU RDP funds? By Camaioni, B.; Esposti, R.; Lobianco, A.; Pagliacci, F.; Sotte, F.
  9. On beta and sigma convergence of Czech regions By Mazurek, Jiří

  1. By: Treb Allen; Costas Arkolakis
    Abstract: We develop a versatile general equilibrium framework to determine the spatial distribution of economic activity on any surface with (nearly) any geography. Combining the gravity structure of trade with labor mobility, we provide conditions for the existence, uniqueness, and stability of a spatial economic equilibrium and derive a simple set of differential equations which govern the relationship between economic activity and the geography of the surface. We then use the framework to estimate the topography of trade costs, productivities, amenities and the strength of spillovers in the United States. We find that geographic location accounts for 24% of the observed spatial distribution of income. Finally, we calculate that the construction of the interstate highway system increased welfare by 3.47%, roughly twice its cost.
    JEL: F10 O18 R12 R13
    Date: 2013–06
  2. By: Jayaraman, Praveena; Lacombe, Donald; Gebremedhin, Tesfa
    Abstract: Spatial dependence is an important factor in regional economic growth analysis, especially in terms of population, employment, and per capita income. This paper employs spatial econometric techniques and U.S. Census Bureau county-level data for the period of 1980-2010 to identify and estimate the impacts of residential real estate investment on the economic development of the Northeast region. A spatial panel method is used to analyze the spillover effect of county level economic development on neighboring counties
    Keywords: Residential Real Estate Investments, Spatial Econometrics, Spatial Panel, Community/Rural/Urban Development, Public Economics, Research Methods/ Statistical Methods,
    Date: 2013
  3. By: Shilpi, Forhad
    Abstract: This paper utilizes the mixed effects model to measure and decompose spatial disparity in per capita expenditure in Bangladesh between 2000 and 2010. It finds a significant decline in spatial disparity in urban areas and the country as a whole but no substantial change in rural areas. The decomposition analysis indicates that average years of education, the percentage of households with electricity connections, and phone ownership account for most of the spatial variations in welfare. Spatial convergence in urban areas can be explained primarily by the expansion of electricity and phone networks for household use. Improved access to these services had little effect on spatial disparity in rural areas. This paper offers several explanations for the difference in convergence rates between urban and rural areas.
    Keywords: Regional Economic Development,Housing&Human Habitats,Rural Poverty Reduction,Transport Economics Policy&Planning,Population Policies
    Date: 2013–06–01
  4. By: Ward, Patrick S.; Pede, Valerien
    Abstract: In this paper we demonstrate a method for measuring the eect of spatial interactions on the adoption of hybrid rice using a unique, nationally-representative data set from Bangladesh. Based on resulst from a generalized spatial two-stage least squares estimation, we have shown that neighbor eects are a signicant determinant of hybrid rice adoption. Further, using two specications of spatial systems, we show that having a network including nearby hybrid rice adopters is more in uential than having a network of more distant hybrid rice adopters, and that merely have a network with a large number of adopters may be relatively meaningless if they are far away.
    Keywords: hybrid rice, technology spillover, spatial diffusion, social network, Crop Production/Industries, International Development, International Relations/Trade, Research Methods/ Statistical Methods, O13, O33, Q12,
    Date: 2013–06–03
  5. By: Keller, Sara; Schanz, Deborah
    Abstract: This paper develops a new tax measure - the Tax Attractiveness Index - reflecting the attractiveness of a country's tax environment and the tax planning opportunities that are offered. Specifically, the Tax Attractiveness Index covers 16 different components of real-world tax systems, such as the statutory tax rate, the taxation of dividends and capital gains, withholding taxes, the existence of a group taxation regime, loss offset provision, the double tax treaty network, thin capitalization rules, and controlled foreign company (CFC) rules. We develop methods to quantify each tax factor. The Tax Attractiveness Index is constructed for 100 countries over the 2005 to 2009 period. Regional clusters in the index as well as in the application of certain tax rules can be observed. The evaluation of individual countries based on the index corresponds - but is not totally identical - with the OECD's black respectively grey list. By comparing the Tax Attractiveness Index with the statutory tax rate, we reveal that even high tax countries offer favorable tax condi-tions. Hence, the statutory tax rate is not a suitable proxy for a country's tax climate in any case since countries may set other incentives to attract firms and investments. --
    Keywords: tax measure,tax attractiveness,tax planning,multinational company
    Date: 2013
  6. By: Angelos Liontakis (Department of Agricultural Economics & Rural Development, Agricultural University of Athens, Greece); Dimitris Kremmydas (Department of Agricultural Economics & Rural Development, Agricultural University of Athens, Greece)
    Abstract: In the European Union homogenous inflation forces are expected to prevail due to the increased economic integration, especially after the creation of the single currency area. This expectation is directly related to the issue of inflation convergence which has gained increasing attention by both academia and policy makers in Europe. While the examination of the core inflation is of great importance for macroeconomic policy, the prominent role of disaggregate inflation indices and especially food inflation has been also frequently emphasized in the literature. However, the issue of food inflation convergence has been largely ignored in empirical studies. This study explores the evolving distribution of the food inflation rates in the EU-25 member states, using the distribution dynamics analysis and covering the period from January 1997 to March 2011. This analysis rests on the assumption that each country represents an independent observation which provides unique information that can be used to estimate the transition dynamics of inflation. However, we show that inside EU-25, spatial autocorrelation prevails and therefore, the independency assumption is violated. To insure spatial independence, the Getis spatial filter is implemented prior to the distribution dynamics analysis. The results of the analysis confirm the existence of convergence trends which are even more clear after the spatial filtering procedure, indicating, on the one hand, the influence of spatial effects on food inflation and, on the other hand, the effectiveness of Getis spatial filtering.
    Keywords: European Union, inflation, convergence, spatial filtering
    JEL: E31 C21 R12
    Date: 2013
  7. By: Hermann Pythagore Pierre Donfouet (CREM CNRS, UMR 6211, University of Rennes 1, France); P. Wilner Jeanty (Kinder Institute for Urban Research & Hobby Center for the Study of Texas Rice University); Eric Malin (CREM CNRS, UMR 6211, University of Rennes 1, France)
    Abstract: Previous studies in the environmental Kuznets curve have overlooked spatial interdependence and this could bias the estimates. This paper therefore addresses the issue of spatial interdependence in the environmental Kuznets curve by using panel data on European countries over the period of 1961-2009. The results obtained from the spatial dynamic panel suggest a significant degree of persistence in the per capita CO2 emissions in European countries over time. Furthermore, it has been found that per capita CO2 emissions in a nearby country lead to a domestic increase in per capita CO2 emissions and overall, the results are robust irrespective of the concept of neighborhood.
    Keywords: Environmental Kuznets curve, spatial dynamic panel
    JEL: Q56 C21
    Date: 2013–06
  8. By: Camaioni, B.; Esposti, R.; Lobianco, A.; Pagliacci, F.; Sotte, F.
    Abstract: This paper aims at investigating what influences the distribution of the RDP funds across the EU space. Eventually, funds allocation is the consequence of some political decision. Nonetheless, this political decision can not be directly observed. While the allocation across countries and, when present, across NUTS2 regions is explicitly decided ex-ante, the allocation at a lower territorial level can only be observed ex-post. This “local” allocation depends not only on the top-down decision taken at some national or local political level but also on the bottom-up (or local) capacity to attract and use these funds. To investigate this more “local” level, funds distribution across 1300 EU NUTS3 regions is considered. Three different effects are admitted as major drivers of this spatial allocation. The country effect takes into account the well known differentials in the size and intensity of support across EU countries. The rural effect captures the fact that, at least in principle, the more rural a given region is the larger is the amount of RDP support it is expected to receive. In practice, however, this effect may vary according to alternative definition of rurality, The last effect is the pure spatial effect and expresses the influence on the amount of support received by a region of the bordering regions and, in particular, of their degree of rurality. These effects are estimated adopting and estimating alternative spatial model specifications: the spatial Durbin model, the SEM and the SAR model.
    Keywords: spatial econometrics, EU rural development policy, rurality indicators, Agricultural and Food Policy, Community/Rural/Urban Development, Research Methods/ Statistical Methods, R58, Q01, O18,
    Date: 2013–06
  9. By: Mazurek, Jiří
    Abstract: The aim of the article is to examine beta and sigma convergence of fourteen Czech regions during 1995-2009. Using real GDP per capita panel data from the Czech Statistical Office it was found that Czech regions σ-diverged in the period and this divergence was accelerating in time regardless of whether the capital city Prague was included among regions or not. Also, statistically significant β-divergence was present during the same period. There are two main possible reasons for the divergence: inequalities in foreign and domestic investments as well as the accumulation of human and physical capital in the most attractive regions, while less competitive regions were left behind. Policy implications necessary to reverse the situation include government’s support of investments in poorer regions and also gaining more financial resources from European ESF and ERDF funds.
    Keywords: β-convergence Czech Republic; Czech regions; divergence; GDP per capita; σ-convergence
    Date: 2013–07–01

This nep-geo issue is ©2013 by Andreas Koch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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