nep-geo New Economics Papers
on Economic Geography
Issue of 2013‒10‒11
nine papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Regional growth and regional decline By Holger Breinlich; Gianmarco I.P. Ottaviano; Jonathan R.W. Temple
  2. Merger and acquisition activity as driver of spatial clustering: the spatial evolution of the Dutch banking industry, 1850-1993 By Ron Boschma; Matté Hartog
  3. Determinants of foreign technological activity in German regions - a count model analysis of transnational patents (1996-2009) By Eva Dettmann; Iciar Dominguez Lacasa; Jutta Guenther; Bjorn Jindra
  4. Weak and strong cross-sectional dependence: a panel data analysis of international technology diffusion By Ertur, C.; Musolesi, A.
  5. Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach By Zheng, Xinye; Li, Fanghua; Song, Shunfeng; Yu, Yihua
  6. Relatedness and Technological Change in Cities: The rise and fall of technological knowledge in U.S. metropolitan areas from 1981 to 2010 By Ron Boschma; Pierre-Alexandre Balland; Dieter Franz Kogler
  7. Regional Borders and Trade in Asia By Woong Lee; Chankwon Bae
  8. Growth dynamics and conditional convergence among Chinese provinces: a panel data investigation using system GMM estimator By Céline BONNEFOND
  9. Key Issues in Local Accessibility Measurement By Mathieu Bunel; Elisabeth Tovar

  1. By: Holger Breinlich; Gianmarco I.P. Ottaviano; Jonathan R.W. Temple
    Abstract: Since the early 1990s, there has been a renaissance in the study of regional growth, spurred by new models, methods and data. We survey a range of modelling traditions, and some formal approaches to the ?hard problem? of regional economics, namely the joint consideration of agglomeration and growth. We also review empirical methods and fi?ndings based on natural experiments, spatial discontinuity designs, and structural models. Throughout, we give considerable attention to regional growth in developing countries. Finally, we highlight the potential importance of processes that are speci?c to regional decline, and which deserve greater research attention.
    Date: 2013–07–06
  2. By: Ron Boschma; Matté Hartog
    Abstract: This paper investigates the extent to which merger and acquisition activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chance of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chance of banks located there. Our findings suggest that M&A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993.
    Keywords: industrial dynamics, cluster, mergers and acquisitions, banking sector, evolutionary economic geography
    JEL: O18 R00 R11
    Date: 2013–09
  3. By: Eva Dettmann (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany); Iciar Dominguez Lacasa (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany); Jutta Guenther (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany and Friedrich Schiller University Jena Faculty of Economics, Carl-Zeiss-Str. 3, 07743 Jena, Germany); Bjorn Jindra (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany and Copenhagen Business School, Department of International Economics and Management, Solbjerg Plads 3, DK-2000 Frederiksberg, Denmark and University of Sussex, Science and Technology Policy Research (SPRU) Famer, Brighton, BN1 9SL, United Kingdompostion)
    Abstract: This paper analyses the determinants of spatial distribution of foreign technological activity across 96 German regions (1996-2009). We identify foreign inventive activity by applying the ‘cross-border-ownership concept’ to transnational patent applications. The descriptive analysis shows that foreign technological activity more than doubled during the observation period with persistent spatial heterogeneity in Germany. Using a pooled count data model, we estimate the effect of various sources for externalities on the extent of foreign technological activity across regions. Our results show that foreign technological activity is attracted by technologically specialised sectors of regions. In contrast to existing findings this effect applies both to foreign as well as domestic sources of specialisation. We show that the relation between specialization and foreign technological activity is non-linear and that it is influenced by sectoral heterogeneity. Externalities related to technological diversification attract foreign R&D only into ‘higher order’ regions.
    Keywords: foreign direct investment, technology, Europe, patent information
    JEL: O32 O33 R12
    Date: 2013
  4. By: Ertur, C.; Musolesi, A.
    Abstract: This paper provides an econometric examination of geographic R&D spillovers among countries by focusing on the issue of cross-sectional dependence. By applying several unit root tests, we first show that when the number of lags of the autoregressive component of augmented Dickey Fuller test-type specifications or the number of common factors is estimated in a model selection framework, the variables (total factor productivity and R&D capital stocks) appear to be stationary. Then, we estimate the model using two complementary approaches, focusing on spatial autoregressive errors and unobserved common correlated factors. These approaches account for different types of cross-sectional dependence and are related to the concepts of weak and strong cross-sectional dependence recently developed in the literature.
    JEL: C23 C5 F0 O3
    Date: 2013
  5. By: Zheng, Xinye; Li, Fanghua; Song, Shunfeng; Yu, Yihua
    Abstract: This study employs spatial panel techniques to examine determinants of regional allocation of infrastructure investment made by the central government. Using a sample of 31 Chinese provinces over the 2001-2008 period, we derived four major empirical findings. First, there exist substantial spatial interactions of central government's investment across regions. Second, the central investment exhibits a highly persistent effect. Third, the central government attempts to balance equity and efficiency in its decision-making. Last, the political factor plays a significant role in the regional infrastructure investment.
    Keywords: Infrastructure investment; efficiency-equity tradeoff; spatial interaction
    JEL: C33 H54 R0
    Date: 2013–10–06
  6. By: Ron Boschma; Pierre-Alexandre Balland; Dieter Franz Kogler
    Abstract: This paper investigates by means of USPTO patent data whether technological relatedness was a crucial driving force behind technological change in 366 U.S. cities from 1981 to 2010. Based on a three-way fixed effects model, we find that the entry probability of a new technology in a city increases by 30 percent if the level of relatedness with existing technologies in the city increases by 10 percent, while the exit probability of an existing technology decreases by 8 percent.
    Keywords: relatedness, technological change, urban diversification, U.S. cities, technology space
    JEL: O33 R11 L65 D83
    Date: 2013–09
  7. By: Woong Lee (KIEP - Korea Institute for International Economic Policy); Chankwon Bae
    Abstract: This paper investigates the effect of regional borders on trade in Asia. The regional borders define the three regions of Asia : South, Southeast, and East Asia. Regional trade indicates the flows of trade within a region, whereas regional border trade means trade across regions. A gravity model is augmented with the region dummies to estimate the regional border effects that capture any and all time-invariant factors promoting or impeding regional trade. The main finding is that regional border effects are asymmetric on the three regions in Asia. There is a large and significant regional border effect on South Asia, small on Southeast Asia, and negligibly negative on East Asia. The significant and positive regional border effect in South Asia suggests that countries share intrinsic factors facilitating trade between the countries in this region. Although the regional border effect of Southeast Asia is positive, its magnitude shows little difference between its regional trade and regional border trade. Finally, the estimate on East Asia presents a completely different picture from the actual data. It implies that there exist some factors leading to active regional border trade between East Asia and other Asian regions.
    Keywords: Border Effect, Regional Borders, Natural Trading Partners, the gravity model
    JEL: F13 F14 F15
    Date: 2013–09
  8. By: Céline BONNEFOND
    Abstract: The paper aims at contributing to the debate on conditional convergence across Chinese provinces by using the most recent techniques of dynamics panel data models. The analysis covers twenty nine Chinese provinces from 1995 to 2009 and is based on the estimation of growth equations using system GMM estimator. Three main results can be drawn from the empirical investigations conducted as part of this study. First, investment in physical capital and education have played an important role in promoting economic growth and may be considered as mean of reducing regional disparities. Second, the hypothesis of conditional convergence is verified over the period 1995-2009. Third, the speed of convergence is found to be faster during the period 2004-2009, which indicates that Chinese provinces have converged more quickly over the most recent period. We suggest that this result may be a consequence of the implementation of regional development programs during the 2000s, and that it may also reflect the existence of growth spillover effects.
    Keywords: China, regional disparities, growth, conditional convergence, dynamic panel data, system GMM
    JEL: C33 P25 R11
    Date: 2013
  9. By: Mathieu Bunel (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes 1 - Université de Caen Basse-Normandie, TEPP - Travail, Emploi et Politiques Publiques - CNRS : FR3435 - Université Paris-Est Marne-la-Vallée (UPEMLV)); Elisabeth Tovar (EconomiX - CNRS : UMR7166 - Université Paris X - Paris Ouest Nanterre La Défense)
    Abstract: This methodological paper shows that using different local job accessibility models (LJAs) leads to significantly different empirical appreciations of job accessibility. Matching several exhaustive micro data sources on the Paris region municipalities, the paper benchmarks a representative set of LJA measurement models used in the recent literature and an original model where job availability is fully estimated according to a set of individual characteristics, job competition is fully modelled on the local labour market and frontier effects are controlled for. We show that the model-induced empirical differences are spatially differentiated across the Paris region municipalities, and that failing to fully estimate job availability may lead to overestimation of the job accessibility levels of underprivileged municipalities.
    Keywords: job accessibility measurement, Paris region, geo-referenced micro-data
    Date: 2013

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