nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒07‒13
twelve papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. R&D, spatial proximity and productivity at firm level: evidence from Italy By Cardamone, Paola
  2. How do related variety and differentiated knowledge bases influence the resilience of local production systems? By Silvia Rita Sedita; Ivan De Noni; Luciano Pilotti
  3. The determinants of exit in Argentina: core and peripheral regions By Calá, Carla Daniela; Manjón-Antolín, Miguel; Arauzo-Carod, Josep-Maria
  4. Scientific connectivity of European regions: towards a typology of cooperative schèmes. By Mickael Benaim; Jean-Alain Héraud; Valérie Mérindol; Jean-Paul Villette
  5. A Spatial Analysis of Incomes and Institutional Quality : Evidence from US Metropolitan Areas By Jamie Bologna; Donald J. Lacombe; Andrew T. Young
  6. The Multiple Facets of Regional Innovation By Matthias Siller; Christoph Hauser; Janette Walde; Gottfried Tappeiner
  7. Revisiting the Question "More Guns, Less Crime?" New Estimates Using Spatial Econometric Techniques By Donald J. Lacombe; Amanda Ross
  8. The Brasilia experiment : road access and the spatial pattern of long-term local development in Brazil By Bird, Julia; Straub, Stephane
  9. How Diverse Can Spatial Measures of Cultural Diversity Be? Results from Monte Carlo Simulations of an Agent-Based Model By Arribas-Bel, Daniel; Nijkamp, Peter; Poot, Jacques
  10. Spatial interactions in location decisions: Empirical evidence from a Bayesian spatial probit model By Adriana Nikolic; Christoph Weiss
  11. The Effect of Railway Travel on Urban Spatial Structure By Martijn I. Dr�es; Piet Rietveld†
  12. Regional Policy and FDI Location – an Overview of the Larger New EU Member States By Gabor Hunya

  1. By: Cardamone, Paola
    Abstract: The aim of this paper is to evaluate the effect of research and development (R&D) on productivity by taking into account productivity spillovers. To this end, by using a sample of Italian manufacturing firms provided by the Xth UniCredit-Capitalia survey (2008), which covers the period 2004-2006, we have analyzed the role of R&D in firm productivity by using a spatial autoregressive model. In so doing, we have allowed the total factor productivity (TFP) of each firm to be affected by the TFP of nearby firms. Results show that R&D play an important role in Italian firm productivity. Moreover, we find evidence in favor of productivity spillovers across firms due to spatial proximity. In addition, intrasectoral R&D spillovers seem to have a relevant effect on firm productivity, while intersectoral R&D spillovers do not have a significant effect.
    Keywords: R&D, TFP, spillovers, spatial econometrics, Italian manufacturing firms
    JEL: C21 D24 O33
    Date: 2014–06–15
  2. By: Silvia Rita Sedita (University of Padova); Ivan De Noni (University of Milano); Luciano Pilotti (University of Milano)
    Abstract: This contribution attempts to systematize some first evidence on the sustainability and resilience of local production systems in the economic recession and first hypothetical phases of recovery, 2007 to 2011, focusing on the role played by diversified economy, related and unrelated variety and differentiated knowledge bases, as drivers for territorial competitiveness under unfavourable economic conditions. The results confirm the importance of related variety to growth and stability during recessions and support the creative capacity of culture, providing evidence that a moderate concentration in cultural/creative economic activities contributes to resilience and that industrial districts and international development play a positive role.
    Keywords: regional economic growth, industrial districts, sustainability, creative capacity of culture.
    JEL: R11 R12 O18
    Date: 2014–06
  3. By: Calá, Carla Daniela; Manjón-Antolín, Miguel; Arauzo-Carod, Josep-Maria
    Abstract: This paper analyses the regional determinants of exit in Argentina. We find evidence of a dynamic revolving door by which past entrants increase current exits, particularly in the peripheral regions. In the central regions, current and past incumbents cause an analogous displacement effect. Also, exit shows a U-shaped relationship with respect to the informal economy, although the positive effect is weaker in the central regions. These findings point to the existence of a core-periphery structure in the spatial distribution of exits.
    Keywords: Cese de Actividad; Empresas; Argentina;
    Date: 2014
  4. By: Mickael Benaim; Jean-Alain Héraud; Valérie Mérindol; Jean-Paul Villette
    Abstract: The diversity of European regions in terms of R&D and of absorptive capacities has been extensively investigated but without taking into account all dimensions of the regional innovation systems. Even though the variety of connections is a source of constraints and opportunities for the development of territories, few analytical contributions have been devoted so far to this subject and to the implications for regional public policies. This article aims at contributing to the analysis of regional research and innovation systems. It focuses on the different types of scientific connectivity present at local to global levels, and proposes a typology of European regions based on co-publication statistics. It links this characterization of European regions with regional policy issues and discusses the relevance of these measures. The typology of scientific connectivity produces new maps of European regions, and challenges the classical R&D point of view about regional systems.
    Keywords: European regions, global-local connectivity, regional public policy, absorptive capacity, scientific activities.
    JEL: O18 O31 R11 R58
    Date: 2014
  5. By: Jamie Bologna (West Virginia University, College of Business and Economics); Donald J. Lacombe (West Virginia University, Department of Agricultural and Natural Resource Economics); Andrew T. Young (West Virginia University, College of Business and Economics)
    Abstract: We use the Stansel (2013) metropolitan area economic freedom index and 25 conditioning variables to analyze the spatial relationships between institutional quality and economic outcomes across 381 U.S. metropolitan areas. Specifically, we allow for spatial dependence in both the dependent and independent variables and estimate how economic freedom impacts both per-capita income growth and per-capita income levels. We find that while economic freedom and income levels are directly and positively related, increases in economic freedom in one area result in negative indirect effects on income levels in surrounding areas. In addition, we find that economic freedom has an insignificant relationship with economic growth.
    Keywords: institutional quality, economic freedom, income levels, income growth, spatial dependence, spillovers
    JEL: O43 O12
    Date: 2014–03
  6. By: Matthias Siller; Christoph Hauser; Janette Walde; Gottfried Tappeiner
    Abstract: Measuring innovation activities involves critical decisions in selecting appropriate indicators and levels of observation. The present article contributes to the literature on this subject by addressing innovation measurement on the regional level. The dimensionality of regional innovation is examined by applying a principal component analysis on seven innovation output indicators in European regions from the Community Innovation Survey and two traditional indicators, i.e. patent applications and R&D expenses. The analysis reveals that regional innovation indeed needs to be regarded as a multidimensional concept involving technological, commercial and service innovation. These distinct innovation activities exhibit clear regional patterns with both technological and service innovation concentrated in highly developed territories and urban areas displaying particularly strong innovation performance in services. In addition, commercially successful innovation appears clustered in backward regions and may thus be seen as imitation efforts and technology transfers from areas at the innovation frontier. Overall, the elaborated findings suggest that the selection of innovation indicators in empirical analyses demands appropriate motivation and theoretical guidance.
    Keywords: regional innovation, innovation dimensions, Principal Component Analysis, patent applications, Community Innovation Survey
    JEL: R11 O31 O33
    Date: 2014–07
  7. By: Donald J. Lacombe (West Virginia University, Department of Agricultural and Resource Economics and Economics); Amanda Ross (West Virginia University, College of Business and Economics)
    Abstract: In a highly debated paper, Lott and Mustard (1997) found that allowing citizens to carry concealed handguns reduced crime. Since then, numerous researchers have questioned the validity of the findings. In addition, ongoing work has shown there is an important spatial component to crime. In this paper, we use spatial econometric techniques to estimate the impact of adoption of concealed weapons laws by some states on crime rates across the U.S. We find there are spillover effects of concealed weapons laws and that spatial dependence plays an important role when estimating the effect of these laws on crime.
    Date: 2014
  8. By: Bird, Julia; Straub, Stephane
    Abstract: This paper studies the impact of the rapid expansion of the Brazilian road network, which occurred from the 1960s to the 2000s, on the growth and spatial allocation of population and economic activity across the country's municipalities. It addresses the problem of endogeneity in infrastructure location by using an original empirical strategy, based on the"historical natural experiment"constituted by the creation of the new federal capital city Brasília in 1960. The results reveal a dual pattern, with improved transport connections increasing concentration of economic activity and population around the main centers in the South of the country, while spurring the emergence of secondary economic centers in the less developed North, in line with predictions in terms of agglomeration economies. Over the period, roads are shown to account for half of pcGDP growth and to spur a significant decrease in spatial inequality.
    Keywords: Transport Economics Policy&Planning,Economic Theory&Research,Population Policies,Corporate Law,Urban Slums Upgrading
    Date: 2014–07–01
  9. By: Arribas-Bel, Daniel (University of Birmingham); Nijkamp, Peter (VU University Amsterdam); Poot, Jacques (University of Waikato)
    Abstract: Cultural diversity is a complex and multi-faceted concept. Commonly used quantitative measures of the spatial distribution of culturally-defined groups – such as segregation, isolation or concentration indexes – are often only capable of identifying just one aspect of this distribution. The strengths or weaknesses of any measure can only be comprehensively assessed empirically. This paper provides evidence on the empirical properties of various spatial measures of cultural diversity by using Monte Carlo replications of agent-based modeling (MC-ABM) simulations with synthetic data assigned to a realistic and detailed geographical context of the city of Amsterdam. Schelling's classical segregation model is used as the theoretical engine to generate patterns of spatial clustering. The data inputs include the initial population, the number and shares of various cultural groups, and their preferences with respect to co-location. Our MC-ABM data generating process produces output maps that enable us to assess the performance of various spatial measures of cultural diversity under a range of demographic compositions and preferences. We find that, as our simulated city becomes more diverse, stable residential location equilibria are only possible when people, particularly minorities, become more tolerant. We test whether observed measures can be interpreted as revealing unobserved preferences for co-location of individuals with their own group and find that the segregation and isolation measures of spatial diversity are shown to be non-decreasing in increasing preference for within-group co-location, but the Gini coefficient and concentration measures are not.
    Keywords: cultural diversity, spatial segregation, agent-based model, Monte Carlo simulation
    JEL: C63 J15 R23 Z13
    Date: 2014–06
  10. By: Adriana Nikolic (Department of Economics, Vienna University of Economics and Business); Christoph Weiss (Department of Economics, Vienna University of Economics and Business)
    Abstract: In the past few decades spatial econometric models have become a standard tool in empirical research. Nevertheless applications in binary-choice models remain scarce. This paper makes use of Bayesian Spatial Probit Models to model and estimate spatial interactions in location decisions. For this purpose, we focus on the Austrian retail gasoline market, which is going through a process of remarkable structural changes. A short analysis shows that, during the last decade 10.9% of the stations had left the market and a percentage of 29.6% had either left the market or had changed the brand. This paper aims at investigating this process. A special characteristic of this market is the local competition structure which is characterized by spatial dependencies along local competitors. To capture these spatial dependencies and since the dependent variable is binary in nature (an exit had taken place or not), we apply a Bayesian spatial probit model using MCMC estimation on station level data for the whole Austrian retail gasoline market. Our results suggest, that the decision to leave the market, does not only depend on own characteristics, but also on competitors. In particular, we find the exit decisions to exhibit a negative spatial correlation. Moreover, our model allows to quantify spatial spillover effects of this market.
    Keywords: Bayesian Spatial Probit Model, Exit, Gasoline retailing, Spatial competition
    JEL: L13 L81 C21
    Date: 2014–07
  11. By: Martijn I. Dr�es (VU University Amsterdam); Piet Rietveld† (University of Amsterdam)
    Abstract: We examine the effect of railway travel on urban spatial structure in a polycentric urban land use model. We focus on the role of access to the railway network. We find that if the number of train stations is limited, the degree of urbanization is higher around train stations, but the effect of railway travel on road congestion is small. By contrast, if train stations are omnipresent there is little effect on urban spatial structure, but a considerable decrease in congestion. With regard to the supply of train stations, these findings suggest that there is an important policy trade-off between congestion and urbanization.
    Keywords: general equilibrium; public transport; land use model; railway; sorting
    JEL: C68 D58 R13 R14 R4
    Date: 2014–04–29
  12. By: Gabor Hunya (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Summary The paper compares three countries (Hungary, Poland and Romania) in terms of the number of greenfield FDI projects and of GDP by NUTS-2 sub-country regions. We discuss whether the particular regions received a smaller or larger share of projects than their share in GDP. Then we outline the regional and investment policy tools applied in each of the countries, looking at their possible impact on the location choice of investors. The investigation reveals significant regional gaps in attracting new FDI projects and a dominance of the capital cities. Regional discrepancies between NUTS-2 regions in terms of per capita GDP have become marginally smaller in recent years but were mainly unrelated to the location of new foreign investments. State aid for large investments, industrial parks and special economic zones has been among the most powerful tools directing the location choice of new FDI projects.
    Keywords: FDI, industrial location, regional policy, FDI policy
    JEL: F21 F23 R30 R38 R58
    Date: 2014–03

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