nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒06‒28
five papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces By Giulio Cainelli; Sandro Montresor; Giuseppi Vittucci Marzetti
  2. Transportation Costs and the Spatial Organization of Economic Activity By Stephen J. Redding; Matthew A. Turner
  3. An examination of the drivers of spatial employment and population growth within the rural economy By Patton, Myles; Feng, Siyi
  4. Probabilistic flows of inhabitants in urban areas and self-organization in housing markets By Takao Hishikawa; Jun-ichi Inoue
  5. Odleg³osc ekonomiczna w modelowaniu zjawisk przestrzennych z wykorzystaniem modelu grawitacji By Michal Bernard Pietrzak, Justyna Wilk

  1. By: Giulio Cainelli (University of Padova); Sandro Montresor (University of Bologna); Giuseppi Vittucci Marzetti (University of Milano - Bicocca)
    Abstract: The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998-2007), we estimate a spatial dynamic panel model via a GMM estimator and analyze the short-run impact of specialization and variety on firm exit. Specialization negatively affects firm exit rates in the short-run. The effect is particularly significant for low-tech firms. The impact of variety on firm mortality rates at the industry level is instead less clear, although still negative and significant for low-tech firms.
    Keywords: Firm exit, Localization, Spatial agglomeration, Specialization, Variety. Classification-JEL: R11, R12, L11, G20.
    Date: 2013–10
  2. By: Stephen J. Redding; Matthew A. Turner
    Abstract: This paper surveys the theoretical and empirical literature on the relationship between the spatial distribution of economic activity and transportation costs. We develop a multi-region model of economic geography that we use to understand the general equilibrium implications of transportation infrastructure improvements within and between locations for wages, population, trade and industry composition. Guided by the predictions of this model, we review the empirical literature on the effects of transportation infrastructure improvements on economic development, paying particular attention to the use of exogenous sources of variation in the construction of transportation infrastructure. We examine evidence from different spatial scales, between and within cities. We outline a variety of areas for further research, including distinguishing reallocation from growth and dynamics.
    JEL: F15 R12 R40
    Date: 2014–06
  3. By: Patton, Myles; Feng, Siyi
    Abstract: Regional employment and population change have displayed considerable spatial disparities within Northern Ireland in recent years. It is important to gain a better understanding of the causes of these spatial disparities to facilitate the development of effective policies to promote economic growth within the rural economy. Growth equilibrium models provide a means to examine the multiple, integrated economic, social and geographical factors that contribute to economic growth and analyse their synergistic effect on each other (Adelaja et al., 2009). This modelling framework has been developed to analyse the interaction of economic phenomena occurring in spatial dimensions and account for interdependencies between population and employment change. This study applies the growth equilibrium model framework to analyse the linkages between population and employment patterns and other exogenous determinants of spatial growth within Northern Ireland. The analysis is based on ward level data over the period 2001 to 2007. The analysis suggests that employment and population growth are interdependent. An increase in population has a positive impact on employment, while an increase in employment has a positive impact on population. Moreover, there is evidence that the spatial spillover effects are significant, indicating that changes in employment/population growth in one region has knock-on impacts on neighbouring regions.
    Keywords: Rural development, regional growth and growth equilibrium model, Community/Rural/Urban Development, International Relations/Trade, Labor and Human Capital, Research Methods/ Statistical Methods, Q1, R1, R2,
    Date: 2014–04
  4. By: Takao Hishikawa; Jun-ichi Inoue
    Abstract: We propose a simple probabilistic model to explain the spatial structure of the rent distribution of housing market in city of Sapporo. Here we modify the mathematical model proposed by Gauvin et. al. Especially, we consider the competition between two distances, namely, the distance between house and center, and the distance between house and office. Computer simulations are carried out to reveal the self-organized spatial structure appearing in the rent distribution. We also compare the resulting distribution with empirical rent distribution in Sapporo as an example of cities designated by ordinance. We find that the lowest ranking agents (from the viewpoint of the lowest `willing to pay') are swept away from relatively attractive regions and make several their own `communities' at low offering price locations in the city.
    Date: 2014–06
  5. By: Michal Bernard Pietrzak, Justyna Wilk (Nicolaus Copernicus University, Wroc³aw University of Economics, Poland)
    Abstract: The paper discusses the issue of an economic distance and its significance in modeling phenomena occurring in regional space. Economic distances between regions were deter-mined and their influence on internal migration flows in Poland in the period 2000-2010 was examined. The period before Poland’s accession to the EU, as well as two periods re-ferring to the changes in economic trend and the intensity of domestic migrations, was considered. The economic distance is one of the most significant determinants of internal migration flows. In comparison to the geographical distance, it undergoes changes in time and space. Furthermore it affects the intensity of flows between regions in the opposite di-rection. Higher economic distance results in more intensive interactions between regions.
    Keywords: economic distance, regional development, gravity model, internal migrations
    JEL: C21 J11 O11 O15 R11 R23
    Date: 2014–03

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