nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒08‒20
thirteen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Economic Centrality: How Much is Economics and How Much is Geography? By Nuno Crespo; M. Paula Fontoura; Nadia Simoes
  2. Agglomeration and Innovation By Gerald Carlino; William R. Kerr
  3. Heterogeneity and distance. Some propositions on how differences across regions, firms and functions affect the role of distance in FDI location decisions. By Davide Castellani; Giulio Giangaspero; Antonello Zanfei
  4. Governance, Firm Size and Innovative Capacity: Regional Empirical Evidence for Germany By Berlemann, Michael; Jahn, Vera
  5. Agglomeration and Firm Turnover By Marjan Nasir
  6. Agglomeration economies and optimal efficiency wage By Jellal, Mohamed
  7. Cultural Offer and Distance in a Spatial Interaction Model for Tourism By Roberto Patuelli; Maurizio Mussoni; Guido Candela
  8. Urbanization and Agglomeration Benefits: Gender Differentiated Impacts on Enterprise Creation in India's Informal Sector By Ghani, Ejaz; Kanbur, Ravi; O'Connell, Stephen D.
  9. Accessibility and the Allocation of Time: Changes in Travel Behavior 1990-2010 By Martin P. Brosnan; David Levinson
  10. Application of the MESS model in space-time analysis of the unemployment rate in Poland By Iwona Muller-Fraczek; Michal Bernard Pietrzak
  11. Interpretation of structural parameters for models with spatial autoregression. By Michal Bernard Pietrzak
  12. Comparing Implementations of Estimation Methods for Spatial Econometrics By Roger Bivand; Gianfranco Piras
  13. Geografía económica de la amazonía By Adolfo Meisel Roca; Leonardo Bonilla Mejía; Andrés Sánchez Jabba

  1. By: Nuno Crespo; M. Paula Fontoura; Nadia Simoes
    Abstract: Proximity to the markets is a key determinant of the location of firms because distance still matters, as recently reported in the literature. In this paper, based on an adapted version of the most standard centrality index we propose a decomposition method which allows isolating the influence of: (i) internal and external factors; (ii) economic and geographical aspects. In order to illustrate our methodology, we consider data for 171 countries. This empirical example leads to the conclusion that the centrality level of the countries derives from different sources, requiring therefore different policy interventions in order to improve it.
    Keywords: gcentrality, peripherality, economic geography, distance.
    JEL: F14 R30
    Date: 2014–06
  2. By: Gerald Carlino; William R. Kerr
    Abstract: This chapter reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then describe how these factors are frequently measured in the data and some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).
    JEL: J2 J6 L1 L2 L6 O3 O4 R1 R3
    Date: 2014–08
  3. By: Davide Castellani (Department of Economics, Finance and Statistics, Università di Perugia); Giulio Giangaspero (Department of Social Sciences and Economics - DiSS - Sapienza University of Rome - Italy); Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. And the need to consider distance as a multifaceted concept including both spatial and institutional features has also been increasingly acknowledged in the literature. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.
    Keywords: FDIs, Multinationals, Distance, Heterogeneity.
    JEL: F23 O33
    Date: 2013
  4. By: Berlemann, Michael (Helmut Schmidt University, Hamburg); Jahn, Vera (Helmut Schmidt University, Hamburg)
    Abstract: Successful innovation is a precondition for economic prosperity. While various potential determinants of innovative activity have been considered, little empirical evidence is yet available for the influence of firm governance issues. This paper aims at filling this gap in the literature by studying whether the relative importance of owner-managed small and medium sized enterprises has an effect on regional innovative capacity. We therefore combine patent data with data from the firm database of Creditreform, containing information on the governance structure of regional operating enterprises. Using a cross section of German NUTS-3-regions, we identify a significantly positive relation between the relative importance of owner-managed SMEs and innovative capacity. This finding is highly robust when controlling for spatial correlations.
    Keywords: innovation; owner-managed firms; SMEs; Germany
    JEL: C21 D23 O31
    Date: 2014–07–28
  5. By: Marjan Nasir (Lahore School of Economics, Lahore, Pakistan.)
    Abstract: The geographic and industrial concentration of firms affects firm turnover, as highlighted in research on industrial organization. This study conducts a firm-level analysis to determine the impact of agglomeration on firm entry and exit in domestic industries in Punjab, Pakistan. The study also illustrates how some industries exist in clusters while others are highly dispersed. The results suggest that firm entry and exit is higher in highly agglomerated industries.
    Date: 2013
  6. By: Jellal, Mohamed
    Abstract: In this paper we consider a model of optimal efficiency and agglomeration economies .Given the presence of urban and social externalities and in the absence of corrective policy, the efficiency wage chosen in decentralized market economy is too high. Indeed, in her optimal choice of wage and employment, the representative firm does not take into account of these agglomeration positive externalities which leads to a sub optimal city size. We have shown that an optimal wage employment allocation exists and can be implemented through a subvention taxation policy if it is available.
    Keywords: Efficiency Wages, Solow Condition, Agglomeration Economies, Optimal City Size, Subvention Taxation Policy
    JEL: H21 H23 J31 J64 J68 R0
    Date: 2014–08–08
  7. By: Roberto Patuelli (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis (RCEA), Italy); Maurizio Mussoni (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis (RCEA), Italy); Guido Candela (Department of Economics, University of Bologna, Italy)
    Abstract: Culture is more and more considered as an important driver of tourism. However, it is critical, for policymakers, to evaluate the potential returns from investments in culture and generally cultural offer, in particular in multiregion settings with a potentially inefficient distribution of cultural offer. Our paper focuses on the role of distance (between the tourist’s origin and destination regions) in mediating the tourism impact of cultural offer. This research question is investigated by means of a spatial interaction model, applied to the case of Italian domestic tourism. We find that distance indeed matters: a destination’s endowment in culture appears to be more attractive for long-distance tourists, while an origin region’s endowment seems to dinsincentivate long-distance trips to a greater extent.
    Keywords: cultural offer; domestic tourism; spatial interaction model; distance; spatial competition
    JEL: C23 L83 R12 Z10
    Date: 2014–05
  8. By: Ghani, Ejaz; Kanbur, Ravi; O'Connell, Stephen D.
    Keywords: International Development, Production Economics,
    Date: 2014
  9. By: Martin P. Brosnan; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Using detailed travel surveys conducted by the Metropolitan Council of the Minneapolis/St Paul (Twin Cities) Region in Minnesota for 1990, 2000-2001, and 2010-2011, this paper conducts a detailed analysis of journey-to-work times, activity allocation and accessibility. This study corroborates previous studies showing that accessibility is a significant factor in commute durations. Adjusting land use patterns to increase the number of workers in job-rich areas and the number of jobs in labor-rich areas is a reliable way of reducing auto commute durations. The finding that accessibility and commute duration have a large affect on the amount of time spent at work shows that activity patterns are influenced by transportation and the urban environment in very impactful ways. The descriptive results of this analysis show a measurable decline in the time people spend outside of their homes as well as the amount of time people spend in travel over the past decade. Although trip distances per trip are not getting any shorter, the willingness to make those trip is declining, and as a result fewer kilometers are being traveled and less time on average is being allocated to travel.
    Keywords: Accessibility, Transport Geography, Travel Behavior, Networks
    JEL: R40
    Date: 2014
  10. By: Iwona Muller-Fraczek (Nicolaus Copernicus University, Poland); Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland)
    Abstract: The purpose of the article was a space-time analysis of the unemployment rate in polish poviats. In the research we use a model in which spatial dependence is represented in the exponential form, based on the neighborhood matrix. This model, called the Matrix Exponential model, was proposed by J.P. LeSage and R.K. Pace in 2007. It is characterized by simplicity of estimation, which can compete with other known approaches. The presented analysis was a continuation of previous purely spatial studies (Müller-Fr¹czek, Pietrzak 2011b). This article consists of three parts. Each of them provides an analysis of the unemployment rate registered in Poland at the end of the years 2004-2009. In the first part the unemployment rate was analyzed for each year separately. Almost linear changes of parameters of the space models, allowed us to build a space-time matrix exponential model MESS. It was described in the second part of the article. In the last part the results, obtained using the MESS model, were confronted with an approach based on space-time autoregressive model.
    Keywords: spatial econometrics, spatial autocorrelation, spatial model MESS, space-time analysis of the unemployment rate, spatial dependence
    JEL: C21 R11 R23 J64
    Date: 2013–02
  11. By: Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland)
    Abstract: The main purpose of the article is to consider a important issue of spatial econometrics which is a proper interpretation of structural parameters of econometric models with spatial autoregression. The problem will be considered based on the example of the spatial SAR model. Another purpose of the article is to make an overview of measures of average spatial impact proposed by the subject literature (see Lesage and Pace 2009). The analysis will include such measures as Average Total Impact to an Observation, Average Total Impact from an Observation, Average Indirect Impact to an Observation, Average Indirect Impact from an Observation and Average Direct Impact. Having considered the above issues, I will introduce a set of three original measures that allow interpretation of the strength of the impact of the explanatory processes within the spatial SAR model which take the forms of average direct impact, average indirect impact and average induced impact. The use of this set of measures will be illustrated with the example of the analysis of the unemployment rate in Poland. It must be emphasized that the presented set of measures may also be designated for other spatial models. With the knowledge of the empirical form of the model and of the spatial weight matrix, the set of measures introduced simplifies significantly the complex procedure of the interpretation of the structural parameters for spatial models to the use of merely three values.
    Keywords: spatial econometrics, measures of average impact, SAR model, SDM model, spatial autocorrelation
    JEL: C21 R11 R23
    Date: 2013–02
  12. By: Roger Bivand (Norwegian School of Econonomics); Gianfranco Piras (Regional Research Institute, West Virginia University)
    Abstract: Recent advances in the implementation of spatial econometrics model estimation techniques have made it desirable to compare results, which should correspond between implementations across software applications for the same data. These model estimation techniques are associated with methods for estimating impacts (emanating effects), which are also presented and compared. This review constitutes an up to date comparison of generalized method of moments (GMM) and maximum likelihood (ML) implementations now available. The comparison uses the cross sectional US county data set provided by Drukker, Prucha, and Raciborski (2011c, pp. 6-7). The comparisons will be cast in the context of alternatives using the MATLAB Spatial Econometrics toolbox, Stata, Python with PySAL (GMM) and R packages including sped, sphet and McSpatial.
    Keywords: spatial econometrics, maximum likelihood, generalized method of moments, estimation, R, Stata, Python, MATLAB
    JEL: C21 C4 C5
    Date: 2013–01
  13. By: Adolfo Meisel Roca; Leonardo Bonilla Mejía; Andrés Sánchez Jabba
    Abstract: Este trabajo analiza la geografía económica de la región amazónica colombiana, compuesta por los departamentos de Amazonas, Caquetá, Guainía, Guaviare, Putumayo y Vaupés. Para este propósito se describen las principales características físicas, demográficas, sociales y económicas. El comportamiento de los indicadores sugiere que se trata de una de las regiones menos prósperas de Colombia, lo que se ha traducido en condiciones de vida inferiores a las del resto del país. Al indagar por los factores explicativos de este rezago, se argumenta que el aislamiento geográfico y económico de la Amazonía colombiana ha limitado la conformación de economías regionales que potencialicen el crecimiento económico. ****** ABSTRACT: This study analyzes the economic geography of the Colombian amazon, composed by the states of Amazonas, Caquetá, Guainía, Guaviare, Putumayo and Vaupés. For this purpose, we describe its main physical, demographic, social and economic characteristics. Results suggest that this is one of the least prosper areas of Colombia, which is reflected on the population’s comparatively low welfare conditions. Among the explanatory factors associated with this backwardness, we argue that the region’s geographic and economic isolation has constrained the conformation of regional economies and, hence, economic growth.
    Keywords: Economía regional, Amazonía, geografía
    JEL: I31 J10 Q20 R11 R12
    Date: 2013–10–25

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