nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒05‒04
ten papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Globalization and Local Profiles of Economic Growth and Industrial Change By Dauth, Wolfgang; Suedekum, Jens
  2. The Importance of Community Attributes in Household Residential Location Decisions By Mónica Ospina; Santiago Bohórquez; Andrea Serna; Laura Castañeda
  3. University Knowledge Spillovers & Regional Start-up Rates: Supply and Demand Side Factors By Hellerstedt, Karin; Wennberg, Karl; Frederiksen, Lars
  4. Agglomeration effects of inter-firm backward and forward linkages: evidence from Japanese manufacturing investment in China By Nobuaki Yamashita; Toshiyuki Matsuura; Kentaro Nakajima
  5. Locational signaling and agglomeration By Berliant, Marcus; Chia-Ming, Yu
  6. Mapping the European ICT Poles of Excellence: The Atlas of ICT Acitvity in Europe By Giuditta de Prato; Daniel Nepelski
  7. Dynamics of Overlapping Clusters: Industrial and Institutional Revolution in the Industrial District of Aachen, 1800‐1860 By Reckendrees, Alfred
  8. Performance measure of a port-valley system: Data availability and their limits in freight transport and logistics By Verny, Jérôme; Gbaguidi, David Sedo
  9. Historical Trajectory and Knowledge Embeddedness: A Case Study in the French Perfume Cluster. By Dorota Leszczynska
  10. La localisation d’une entreprise multinationale et le savoir enraciné. L’étude de cas d’un cluster industriel By Dorota Leszczynska; Erick Pruchnicki

  1. By: Dauth, Wolfgang (Institute for Employment Research (IAB), Nuremberg); Suedekum, Jens (Heinrich Heine University Düsseldorf)
    Abstract: We analyze how globalization has affected the sectoral anatomy of regional growth in Germany over the period 1978-2008. The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend– also known as Petty's law – is not uniform across space, however. Some regions exhibit it at an even accelerated pace, while other regions have reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with "protrend", "anti-trend" or "featureless" growth. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the regional profiles of growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors.
    Keywords: structural change, local industry compositions, trade exposure, local employment growth
    JEL: R11 O14 F16
    Date: 2014–04
  2. By: Mónica Ospina; Santiago Bohórquez; Andrea Serna; Laura Castañeda
    Abstract: This study identifies how community attributes affect household residential location decisions in Medellin, Colombia. The empirical model applies the revealed preference principle: each household is assumed to have made an optimal location decision given a set of alternatives. Using household data, we estimate a conditional logit choice model for residential communities by controlling for both individual and neighborhood characteristics, including environmental attributes. The set of alternatives for each household are defined using the applicable neighborhood’s socioeconomic and geographic characteristics. The results provide an estimate of household preferences for the many characteristics of the potential choices in the choice set. In the case of Medellin, we found positive and significant preferences for public provided goods such as public schools and security but relatively low preferences for recreational and cultural spaces; households prefer that the latter be provided by the private sector.
    Keywords: Housing Demand; Neighborhood Characteristics; Environmental Economics
    JEL: R21 R23 Q50
    Date: 2013–08–27
  3. By: Hellerstedt, Karin (Jönköping International Business School); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics.); Frederiksen, Lars (Innovation Management Group, Department of Business Administration, Aarhus University,)
    Abstract: This paper investigates regional start-up rates in the knowledge intensive services and high-tech industries. Integrating insights from economic geography and population ecology into the literature on entrepreneurship, we develop a theoretical framework which captures how both supply- and demand-side factors mold the regional bedrock for start-ups in knowledge intensive industries. Using multi-level data of all knowledge intensive start-ups across 286 Swedish municipalities between 1994 and 2002 we demonstrate how characteristics of the economic and political milieu within each region influence the ratio of firm births. We find that economically affluent regions dominate entrepreneurial activity in terms of firm births, yet a number of much smaller rural regions also revealed high levels of start-ups. Knowledge spillovers from universities and firm R&D strongly affect the start-up rates for both knowledge intensive manufacturing and knowledge intensive services firms. However, the start-up rate of knowledge-intensive service firms is tied more strongly to the supply of highly educated individuals and the political regulatory regime within the municipality. This suggests that knowledge intensive service-start-ups are more susceptible to both demand-side and supply-side context than manufacturing start-ups. Our study contributes to the growing stream of research that explains entrepreneurial activity as shaped by contextual factors, most notably educational institutions that contribute to technology startups.
    Keywords: Start-ups; Spillovers; Universities; R&D; Political regime
    JEL: L26 M13 P25 R12
    Date: 2014–04–24
  4. By: Nobuaki Yamashita; Toshiyuki Matsuura; Kentaro Nakajima
    Abstract: This paper examines the agglomeration effects of multinational firms on the location decisions of first-time Japanese manufacturing investors in China for the period 1995–2007. This is accomplished by exploiting newly constructed measures of inter-firm backward and forward linkages formed in a home country. The conditional and mixed logit estimates reveal that agglomeration by first-tier suppliers and customers draws subsequent investment into a location. However, such agglomeration effects are not pervasive and do not extend to the second and third tiers. Instead, we find that agglomeration by third-tier suppliers generates a countervailing force, making a location relatively unattractive.
    Keywords: Agglomeration, Backward and forward linkages, Location choice of multinational enterprises
    JEL: F23 L22 R3
    Date: 2014
  5. By: Berliant, Marcus; Chia-Ming, Yu
    Abstract: Agglomeration can be caused by asymmetric information and a locational signaling effect: The location choice of workers signals their productivity to potential employers. The cost of a signal is the cost of housing at that location. When workers' marginal willingness to pay for housing is negatively correlated with their productivity, only the core-periphery (partially stratified) equilibria are stable. When workers' marginal willingness to pay for housing and their productivity are positively correlated, there is no core-periphery equilibrium. The urban wage premium is explained when there is core-periphery equilibrium. Furthermore, location can at best be an approximate rather than a precise sieve for high-skill workers.
    Keywords: Agglomeration; Adverse Selection; Asymmetric Information; Locational Signaling
    JEL: D51 D82 R13
    Date: 2014–04–19
  6. By: Giuditta de Prato (European Commission – JRC - IPTS); Daniel Nepelski (European Commission – JRC - IPTS)
    Abstract: The EIPE project aims to identify ICT R&D&I-related activities which are geographically concentrated and which demonstrate high performance in ICT innovative activities: the European ICT Poles of Excellence. This is the third EIPE Report and it presents the results of an empirical mapping of ICT activity in Europe and the ranking of the top European NUTS 3 regions based on their performance in the EIPE Composite Indicator (EIPE CI). It also ranks the individual 42 indicators which contributed to the building of the EIPE composite indicator. This report offers a snapshot of the performance of regions that are identified as the main locations of ICT activity in Europe. It is meant to provide a comprehensive picture of how ICT activity is distributed across Europe and where its main locations are. This information is expected to give a better overview of the European ICT landscape.
    Keywords: ICT; information and communication technologies; innovation, R&D, ICT industry; region; Europe; Poles of Excellence; clusters; indicators; methods
    JEL: O32 O52 R12 R28
    Date: 2014–04
  7. By: Reckendrees, Alfred
    Abstract: The economic transition characterizing the process of European industrialization in the 19th century was concentrated on regions rather than on states. In the first half of the 19th century, the region of Aachen (in the west of Prussia) pioneered on the territory of the German states and developed to a powerful industrial district. The implementation and diffusion of the factory system and the economic impact of adapted and new institutions make the core of this paper. Reciprocal interconnections between firms of different clusters shaped the region and created economic dynamics. Investments transgressed the boundaries of single industries and new industries emerged. One important feature of the regional production system was cross-sectional knowledge transfer; a second was institutions supportive to this process.
    Keywords: Germany, Industrialization, Factory System, Joint-Stock-Companies, Development
    JEL: N63 N94 O14
    Date: 2014–04
  8. By: Verny, Jérôme; Gbaguidi, David Sedo
    Abstract: This article seeks to measure the performance of a complex geoeconomic system such as a port-valley. Public and private decision-makers involved in the development of a port-valley system need innovative methodological advances in freight transport data collection and production. This research fits into a development process of modelling frameworks in order to overcome different economic geography problems in freight transport and logistics. Within these frameworks, using descriptive statistics and time series analysis techniques, the purpose to be undertaken will allow for e¢ cient and robust indicators which will contribute to measure the performance of this type of geoeconomic system. The study of these spatial and temporal phenomena will be inspired by works in macroeconomics and evolutionary biology in order to provide a general framework that will simplify all stakeholders decision-making process. In the empirical studies, we will focus our attention on modelling (1) the dynamics of traffic registered by the seaports of a valley, (2) the synergy of the economic sectors present in a valley and (3) the main activities of stakeholders involving in specific transport and logistics sector of this valley. However, gaps in terms of availability of data in the fields of economic geography make it difficult to implement this kind of study and indirectly to measure the efficiency in stakeholders decision-making process. The construction of a database that will reflect current and historical situations of the port-valley activities stands out as a preliminary and inevitable step.
    Keywords: Port-valley system, Spatial-temporal freight data, Markov switching model, Multi-table models.
    JEL: P52 R1 R4
    Date: 2014–04
  9. By: Dorota Leszczynska
    Abstract: Much of the research on clusters refers to trajectories as a central feature of regional development. In this article, we explore changes within a French perfume cluster in order to show how a theory of cluster trajectory could be improved by an analysis of this specific case. Using central concepts from Mahoney’s theory, we analyse the historical sequences of the development trajectory of this regional cluster and put forward a conceptual model and a case study. In particular, we argue that embedded knowledge and innovation influence trajectory sequences in the long and discontinuous history of the cluster. Our research has also led us to identify some types of managerial behaviour that support embedded knowledge.
    Keywords: trajectory, regional development, embedded knowledge, cluster, historical sequences
    Date: 2014–04–29
  10. By: Dorota Leszczynska; Erick Pruchnicki
    Abstract: Research works haven’t yet shed much light on the performance of the location choice of multinational companies. The aim of this publication is to highlight the link between geographically embedded knowledge, the location of a multinational company and its consequential performance. We put forward a conceptual approach allowing to formulate the bases of a mathematical modelisation. A case-study is carried out within the industrial cluster in Grasse. Our research has led us to highlight some types of managerial behaviours which will ensure the location performance within a cluster.
    Keywords: mathematical modelisation, embedded knowledge, cluster, location, performance
    Date: 2014–04–29

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