nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒01‒10
four papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Trade Reforms, Foreign Competition, and Labor Market Adjustments in the U.S. By Kondo, Illenin O.
  2. The Effects of Biased Technological Changes on Total Factor Productivity: A Rejoinder and New Empirical Evidence By Cristiano Antonelli; Francesco Quatraro
  3. Spatial Econometric Analysis of Automobile and Motorcycle Traffic on Indonesian National Roads : Is It Local or Beyond City Boundaries? By Firman Permana Wandani; Yuichiro Yoshida
  4. Export diversification in the product space and regional growth: Evidence from Russia By Sergey Kadochnikov; Anna Fedyunina

  1. By: Kondo, Illenin O. (Board of Governors of the Federal Reserve System (U.S.))
    Abstract: Using data on trade-induced displacements, this paper documents that locations facing more foreign competition in the U.S. have: higher job destruction rates, lower job creation rates, and thereby lower employment rates. In contrast to standard trade theory, a model with variable markups and heterogeneous segmented labor markets is consistent with these facts. Foreign competition has a correlated effect on job destruction and job creation precisely because the most vulnerable locations also have lower productivity. Following an unexpected trade liberalization with limited mobility, employment sharply falls in the worse hit locations while welfare and employment increase in the aggregate.
    Keywords: Foreign competition; nonemployment; job flows; spatial heterogeneity
    JEL: F16
    Date: 2013–12–01
  2. By: Cristiano Antonelli (University of Torino; BRICK); Francesco Quatraro (University of Nice Sophia Antipolis; GREDEG CNRS; BRICK)
    Abstract: The paper by Ji and Wang (2013) calls new attention on the analysis of the effects of the direction of technological change. The aim of this paper is to better articulate and test the theoretical arguments that the direction of technological changes has specific effects on the efficiency of the production process and to study the incentives and the processes that lead to its introduction. The decomposition of total factor productivity growth into the bias and the shift effects enables to articulate the hypothesis that the types of technological change whether more neutral or more biased reflect the variety of the innovation processes at work. The evidence of a large sample of European regions tests the hypothesis that regional innovations systems with a strong science base are better able to introduce neutral technological changes while regional innovation systems that rely more upon learning processes and tacit knowledge favor the introduction of directed technologies a form of meta-substitution that aims at exploiting the opportunities provided by the most intensive use of locally abundant factors.
    Keywords: Biased Technological Change, Mobility, European Regions, GMM System, Transition Probability
    JEL: O33
    Date: 2014–01
  3. By: Firman Permana Wandani (Ministry of Public Works, JL); Yuichiro Yoshida (Graduate School for International Development and Cooperation, Hiroshima University)
    Abstract: This paper investigates the spatial dimensions of automobile and motorcycle trips on national roads between neighboring cities in Indonesia, using spatial econometric models. Vehicle trips are measured in terms of vehicle kilo- meters traveled (VKT) for both types of vehicles. The study finds that motorcycle trips are characteristically local because there is no sign of a spatial correlation with neighboring cities for such trips; by contrast, automobile trips are often made across city boundaries, although the models demonstrate only small spatial correlations among neighboring cities for automobile trips. The models also indicate that road capacity, gasoline prices, income in the region, population and worker density, city size, and number of public buses, have significant effects on VKT. The results suggest that in general, urban transportation policies for national roads could be less complex because local solutions may be more effective in solving the traffic problems of individual Indonesian cities.
    Date: 2013–12
  4. By: Sergey Kadochnikov; Anna Fedyunina
    Abstract: This study investigates the relationship between export structure and economic growth in Russian regions. We hypothesize that it is not industry variety per se but the variety of related industries located relatively close to each other in the product space that significantly contributes to economic growth in Russian regions. The empirical analysis presented in the paper confirms that the density of the product space around the products for which a region had a comparative advantage determined the economic development in Russian regions in the 2003-2008 period. We conclude that the presence of a local related variety of industries in a region is one of the most important regional factors in economic development.
    Keywords: export, economic growth, Russian regions
    JEL: F14 R11
    Date: 2013–12

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