nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒09‒29
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Regional dynamics and start-ups: Evidence from French departments in 2011 By Nadine Levratto; Denis Carré
  2. Spatial Takeoff in the First Industrial Revolution By Trew, Alex
  3. Spatial convergence and growth in Indian agriculture: 1967-2010 By Tirtha Chatterjee
  4. Technology Spillovers and International Borders: A Spatial Econometric Analysis By Amjad Naveed; Nisar Ahmad
  5. The Spatial Polish Wage Curve with Gender Effects: Evidence from the Polish Labor Survey By Badi Baltagi; Bartlomiej Rokicki
  6. Cross-Hauling and Regional Input-Output Tables: The Case of the Province of Hubei, China By Yongming Huang; Anthony T. Flegg; Timo Tohmo
  7. Regional Structures and Mobility Dispositions: A Multilevel Proportional- & Partial-Proportional Odds Approach By Christoph Kern
  8. Theory of the Urban Firm: A Revival? By Joseph DeSalvo; Louis Eeckhoudt
  9. Le sous-développement rural en Kabylie, une approche par les milieux innovateurs By Akli Akerkar

  1. By: Nadine Levratto; Denis Carré
    Abstract: This paper seeks to determine the exact role played by regional dynamics in the creation of companies. The notion that territorial dynamics influence entrepreneurial activity seems to be backed up, first of all, by the fact that it is at the regional level that the direct influence of the ecosystem of wealth and of material, human and organizational resources is strengthened through agglomeration effects. We empirically address this question considering the case of French departments in 2011. In order to take into account the role played by the neighbourhood and the resulting spatial dependence, we estimate the sensitivity of both the overall entry rate and the entry rate in the manufacturing industry using spatial econometric estimation techniques, an approach which enables us to control the effect of spatial autocorrelation. Our results show that the creation of companies highly depends on local factors and that the source of local dependence differs according to the entry rate used as an explained variable. Whereas a spatial lag applies at the overall level, the creation of companies in the manufacturing industry is more oriented by exogenous shocks so that a spatial error model is more appropriate.
    Keywords: entrepreneurship, entry rate, spatial dependence, French departments
    JEL: L26 R11 C21
    Date: 2014
  2. By: Trew, Alex
    Abstract: Using the framework of Desmet and Rossi-Hansberg (forthcoming), we present a model of spatial takeoff that is calibrated using spatially-disaggregated occupational data for England in c.1710. The model predicts changes in the spatial distribution of agricultural and manufacturing employment which match data for c.1817 and 1861. The model also matches a number of aggregate changes that characterise the first industrial revolution. Using counterfactual geographical distributions, we show that the initial concentration of productivity can matter for whether and when an industrial takeoff occurs. Subsidies to innovation in either sector can bring forward the date of takeoff while subsidies to the use of land by manufacturing firms can significantly delay a takeoff because it decreases spatial concentration of activity.
    Keywords: Endogenous growth, first industrial revolution, economic geography, structural change,
    Date: 2013
  3. By: Tirtha Chatterjee (Indira Gandhi Institute of Development Research)
    Abstract: Inter-state diversity has been a perennial feature of Indian agriculture. The study probes if per capita income in Indian agriculture has converged across states in the last four and a half decades. It finds strong evidence in favour of beta convergence but not in favour of sigma convergence. Spatial econometric techniques used in the study aid in identifying the impact of spatial neighbours on the growth of a state. Results indicate significant spatial dependence among states. The study also identifies the drivers of growth agriculture in the last four and a half decades and results indicate that infrastructure like roads, irrigation, electricity aid in growth and so do quality of human capital. Hence, investments targeting higher quality of infrastructure, both physical and human and efficient water management will aid in agricultural growth in India.
    Keywords: Agriculture, growth, regional convergence, spatial dependence
    JEL: O13 O18 R12 R15
    Date: 2014–09
  4. By: Amjad Naveed (Department of Border Region Studies, University of Southern Denmark); Nisar Ahmad (Department of Border Region Studies, University of Southern Denmark)
    Abstract: The borders of the EU are open for the movement of resources but still there can be some strong negative effects of international borders on productivity and knowledge spillovers compared to the internal regional borders. These negative effects could be due to language barriers, cultural differences, local rules and regulation, legal issues, property rights, etc. These effects of international borders have economic significance that needs to be controlled when analyzing the regional knowledge spillovers. This aspect related to international borders has not been fully taken into account in the existing literature related to knowledge spillovers. Ignoring this effect might under or overestimate the effect of knowledge and technology spillovers. The results show that technology and knowledge spillovers are mainly coming from internal neighbor regions only, whereas spillovers across the international borders are statistically insignificant. Moreover, the results show that not properly incorporating border effects will lead to inaccurate estimates of the spillovers.
    Keywords: total factor productivity, knowledge spillovers, European regions, spatial econometrics, Extended Spatial Durbin Model
    JEL: C31 D24 O49 O52 R10
    Date: 2014–09
  5. By: Badi Baltagi (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Bartlomiej Rokicki (University of Illinois)
    Abstract: This paper reconsiders the Polish wage curve using individual data from the Polish Labor Force Survey (LFS) at the 16 NUTS2 level allowing for spatial spillovers between regions. In addition it estimates the total and gender-specific regional unemployment rate elasticities on individual wages. The paper finds significant spatial unemployment spillovers across Polish regions. In addition, it finds that the results for the Polish wage curve are sensitive to genderspecific regional unemployment rates. This is especially true for women.
    Keywords: Wage Curve; Fixed Effects; Spatial Spillovers; Regional Labor Markets
    JEL: C26 J30 J60
    Date: 2014–08
  6. By: Yongming Huang (Institute for Development of Central China and Center for Industrial Development and Regional Competitiveness, Wuhan University); Anthony T. Flegg (Department of Accounting, Economics, and Finance, University of the West of England); Timo Tohmo (School of Business and Economics, University of Jyväskylä)
    Abstract: Data for the Chinese province of Hubei are used to assess the performance of Kronenberg’s CHARM, a method that takes explicit account of cross-hauling when constructing regional input-output tables. A key determinant of cross-hauling is held to be the heterogeneity of the products of individual sectors, which is estimated using national data. However, contrary to the authors’ earlier findings for Finland, CHARM does not generate reliable estimates of Hubei’s sectoral exports, imports and volume of trade. It is crucial, therefore, especially in relatively small regions, to make adequate allowance for any known divergence between regional and national technology and heterogeneity.
    Keywords: regional input-output, non-survey methhods, CHARM, cross-hauling, China
    JEL: C67 C83 R15
    Date: 2014–07
  7. By: Christoph Kern
    Abstract: In the light of persistent regional disparities in Germany, a wide range of studies discuss the role of regional characteristics in explaining the mobility behavior of individuals. Although multi-stage mobility theories underline the importance of regional structures particularly within the first stage of the decision-making process - whereas the actual mobility behavior is often seen as being dependent on intervening factors and restrictions - only few studies consider contextual characteristics while modeling mobility intentions or dispositions. Above all the potentially varying subjective evaluation of local opportunity structures of different groups of actors is rarely taken into account in previous empirical investigations. In order to close this gap, the present study models mobility dispositions as a function of individual as well as regional covariates and also includes interactions between these two levels. With this approach, some light can be shed on the underlying mechanisms concerning regional structures in the decision-making process. The empirical findings show considerable main and interaction effects regarding the local labor market situation and, to a somewhat lesser extent, concerning the development of the regional economic climate. Formally, the empirical models are implemented using a multilevel proportional- as well as partial-proportional odds approach, whereby it is possible to relax the restrictive assumption of equal effects of the covariates at every stage of the ordered outcome variable. The incorporation of small scale structural features is enabled by the usage of SOEP-Geodata.
    Date: 2014
  8. By: Joseph DeSalvo (Department of Economics, University of South Florida); Louis Eeckhoudt (Ieseg School of Management -- Lille)
    Abstract: The theory of the urban firm has been moribund for thirty years. We believe this is due to the perception that the theory cannot generate testable hypotheses. In fact, the theory yields unambiguous comparative static results. We find location and land use directly related to product price and inversely related to land rent. The theory is also amenable to risk analysis. We show that both product-price and land-rent risk lead the firm to choose less land and a location closer to the CBD than under certainty. We hope that our contribution rekindles interest in the theory of the urban firm.
    Date: 2013–11
  9. By: Akli Akerkar (Marchés, Organisations, Institutions et Stratégies d'Acteurs, INRA; Centre International d'Etudes Supérieures en Sciences Agronomiques)
    Abstract: L’Indice de Développement de l’Economie Rurale (IDER) qui est de 0,310 montre que les territoires ruraux de la wilaya de Bejaïa peinent à sortir de leur sous-développement. Bien qu’elle renferme de nombreuses ressources génériques (matières premières, énergie, épargne privée importante) et des ressources spécifiques (savoir-faire traditionnels et artisanaux, savoirs faire industriels, un fort sentiment d’appartenance), la région se caractérise par la fragilité de sa base économique : une vocation agricole contrariée, un tissu industriel dominé par les entreprises de petites taille et tournant le dos aux potentialités locales, un chômage élevé, un exode rural massif, des migrations importantes, etc. L’approche en termes de milieux innovateurs semble une piste pertinente pour expliquer ce paradoxe « à savoir l’existence des conditions nécessaires au développement n’assure pas forcément celui-ci » (Bouguermouh, 2002, p 183). En mobilisant les travaux du GREMI, nous essayons de montrer que c’est la fragilité d’un milieu socio-économique territorialisé qui bloque l’émergence d’un système économique rural intégré, susceptible de jeter les bases d’un décollage économique de la région.
    Keywords: milieu socio-économique territorialisé, sous développement rural, kabylie, algériedéveloppement localdéveloppement rural, gouvernance territorialeinnovation
    Date: 2014

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