nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒10‒03
eleven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Spatial migration By Carmen Camacho
  2. Localized Technological Change and Efficiency Wages across European Regional Labour Markets By Cristiano Antonelli; Francesco Quatraro
  3. The structure and dynamics of R and D collaborations in Europe and the USA (A longitudinal and comparative perspective) By Sidonia von Proff; Rafael Lata; Thomas Brenner
  4. Local skill concentrations and district employment growth: A Spatial simultaneous equation approach for India By Ishwarya Balasubramanian
  5. An Empirical Analysis of Determinants of Multi-Dimensional Urban Sprawl By Joseph DeSalvo; Qing Su
  6. Innovation and Regional Growth in Mexico: 2000-2010 By Andrés Rodríguez-Pose; Edna MaríaVillarreal Peralta
  7. Regional issues on firm entry and exit in argentina: core and peripheral regions By Calá, Carla Daniela
  8. Where they go, what they do and why it matters: The importance of geographic accessibility and social class for decisions relating to higher education institution type, degree level and field of study By Darragh Flannery; John Cullinan
  9. Spatial panel models for the analysis of land prices By Saguatti, Annachiara; Erickson, Kenneth; Gutierrez, Luciano
  10. Food-processing industry as a basis for community dynamics and local socio-economic development. By Layal Bou-Antoun
  11. Distribución Regional de las Políticas de Desarrollo Productivo en Colombia y Brechas Regionales en Productividad y Empleo By Oskar Nupia

  1. By: Carmen Camacho (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: We develop a model economy adapting Hotelling's migration law to make individuals react to the gradient of their indirect utility. In a first version, individuals respond uniquely to utility differences. In a second phase, we insert our migration law as a dynamic constraint in a spatial model of economic growth in which a policy maker maximizes overall welfare. In both cases we prove the existence of a unique solution under certain assumptions and for each initial distribution of human capital. We illustrate some extremely interesting properties of the economy and the associated population dynamics through numerical simulations. In the decentralized case in which a region enjoys a temporal technological advantage, an agglomeration in human capital emerges in the central area, which does not coincide with the technologically advanced area. In the complete model, initial differences in human capital can trigger everlasting inequalities in physical capital.
    Keywords: Migration; spatial dynamics; economic growth; parabolic PDE; optimal control
    Date: 2013–02
  2. By: Cristiano Antonelli (Department of Economics, University of Turin - University of Turin); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS))
    Abstract: Localized technological change and efficiency wages across European regional labour markets, Regional Studies. Internal labour markets and industrial relations in Continental Europe are characterized by substantial rigidity of employed labour engendered by the tight conditions of regional labour markets. This rigidity affects both the rate and the direction of technological change. The increase of wages induces the localized introduction of biased technological change with clear effects on productivity levels. The empirical evidence across a sample of European regions confirms the significant role of the changes in wages both on the increase of the output elasticity of labour and on multifactor productivity.
    Keywords: Induced approaches, Localized technological change, Efficiency wages, Multifactor productivity growth, Regional labour markets
    Date: 2013–12–02
  3. By: Sidonia von Proff (Economic Geography and Location Research, Philipps-University, Marburg); Rafael Lata (Foresight and Policy Development Department, Austrian Institute of Technology (AIT), Vienna); Thomas Brenner (Economic Geography and Location Research, Philipps-University, Marburg)
    Abstract: Today it is generally accepted that innovation, knowledge creation, and the diffusion of new knowledge are crucial factors for economic growth at the regional, national, as well as supra-national level, and that successful innovation is increasingly based on interactions and collaborative research activities between research actors. This study focuses on diverse dimensions of distance shaping R and D collaborations in Europe and the US during the time period 1999 to 2009. We take a comparative perspective by analyzing two different R and D collaboration networks (patents and publications) and two different economic areas, namely Europe and the US, in order to examine differences in collaboration activities. In particular, we investigate how the collaboration intensity between regions has been influenced by spatial, technological, and cultural distance and whether these distances have lost importance over time in the distinct networks. The study adopts a panel spatial interaction modeling perspective. In doing so, we explicitly take account of spatial autocorrelation issues of flows by means of Eigenvector spatial filtering techniques. European coverage is achieved by using 1260 NUTS-3 regions of the 25 pre-2007 EU member-states, as well as Norway and Switzerland. The US coverage is attained by using 955 core based statistical areas (CBSAs). The results reveal how collaborative knowledge creation and the spatial range of knowledge diffusion differs between Europe and the US, and provide direct evidence on the differences in cooperation patterns between different types of collaborative R and D from a longitudinal and comparative perspective
    Keywords: R and D Networks, Patents, Publications, Spatial Interaction Modeling, Eigenvector Spatial Filtering, distance
    JEL: C23 O38 L14 R15
    Date: 2014–09–14
  4. By: Ishwarya Balasubramanian (Indira Gandhi Institute of Development Research)
    Abstract: The focus of this paper is to explore the role of spatial distribution of skills in explaining differential growth rates of employment across Indian districts between the years 2001 and 2011 by using data from Census of India. To measure skills across districts, we use the skill-content of occupations and the occupational distribution of workers across districts. We then model employment and population growth simultaneously taking into account spatial correlation of the endogenous variables. We find that a one standard deviation increase in (cognitive) skills is associated with 0.52 standard deviation increase in the growth rate of male main workers and a 0.42 increase in the growth rate of male non-farm main workers. However, female employment has significantly decreased in initially skilled regions.
    Keywords: Skills, Occupation, Employment Growth, Education
    JEL: J24 E24 J21 R12
    Date: 2014–08
  5. By: Joseph DeSalvo (Department of Economics, University of South Florida); Qing Su (Department of Marketing, Economics and Sports Business, Northern Kentucky University)
    Abstract: This paper applies a simultaneous equation model to examine the impact of a variety of factors on four dimensions of urban sprawl: spatial size, sprawl index, and daily vehicle miles traveled per capita. The regression results indicate that the transportation cost has a negative impact on urban sprawl in terms of spatial size, land consumption per capita and daily VMT. The impact of household income on spatial size, land consumption per capita and daily vehicle miles traveled per capita are U-shaped. The impact of number of household is mixed: it has a positive impact on spatial size and daily VMT, but a negative impact on land consumption per capita. Urban growth boundary has a negative and statistically significant impact while minimum lot size has a positive impact on two dimensions of urban sprawl (spatial size and land consumption per capita). Regression results also indicate that among the variables that capture the political, social and geographic characteristics of an area, the amount of intergovernmental transfers as a percentage of local revenue has a positive and statistically impact on all four dimensions of urban sprawl while the percentage of urban fringe area overlying aquifers has such an impact on three dimensions (spatial size of an area, sprawl index, and land consumption per capita). The violent crime rate in the central cities has a positive and statistically significant impact on two dimensions of urban sprawl (spatial size and land consumption per capita).
    Keywords: multi-dimensional urban sprawl; simultaneous equation model; urban growth boundary; minimum lot size; violent urban crime rate in central city
    JEL: R10
    Date: 2013–11
  6. By: Andrés Rodríguez-Pose; Edna MaríaVillarreal Peralta
    Abstract: This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth-enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the Distrito Federal) during the period 2000-2010. The results indicate that regional economic growth across Mexican states stems from direct investment in R&D in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives.
    Keywords: economic growth, innovation, social economic conditions, regional convergence, Mexico
    JEL: R11 R12 O32 O33
    Date: 2014–08
  7. By: Calá, Carla Daniela
    Abstract: This work focuses on two fundamental and relevant questions: a) are there any differences in the regional determinants of entry and exit between developed and developing economies?; b) are there any differences in the regional determinants of entry and exit between core and peripheral regions within a single country? To address these issues, we take as a starting point a set of determinants that are generally found to be statistically significant in regional entry and exit studies using data from developed countries (e.g., demand, education, density and industrial structure). Then, we add some factors that, while potentially important in developing countries, are never considered by studies on developed countries. This is the case, for example, of the size of the informal economy, the extent of poverty or the usage of idle capacity after an economic crisis. Finally, we explore the existing of a core-periphery pattern, that is, we test whether the same factors affect entry and exit in a similar way in central and peripheral provinces.
    Keywords: Dinámica Empresarial; Creación de Empresas; Cese de Actividad; Relación Centro-Periferia; Economía Regional; Argentina;
    Date: 2014–05
  8. By: Darragh Flannery (Department of Economics, University of Limerick); John Cullinan (School of Business and Economics, National University of Ireland, Galway)
    Abstract: The factors influencing the decision of school leavers to participate in higher education has been extensively investigated previously. This has mainly focused on the influence of characteristics such as parental education level, social class and spatial factors on the decision to participate in higher education at a broad level. However, given the influence the type of tertiary education pursued may have on future labour market outcomes, an understanding of the factors behind more specific higher education outcomes decisions is important. Within this context, this paper focuses on the influence of geographic accessibility and social class on young people when making decisions relating to higher education institution type, degree level and field of study pursued using a rich Irish dataset. We estimate this relationship using a bivariate probit framework and controlling for a range of other variables we find evidence of significant spatial and socio-economic effects on these higher education outcomes.
    Keywords: higher education institution type, degree level, field of study, geographic accessibility, social class
    Date: 2013–02
  9. By: Saguatti, Annachiara; Erickson, Kenneth; Gutierrez, Luciano
    Abstract: The paper investigates the determinants of cropland value in 12 selected Midwestern U.S.A. States in the years 1971- 2009. We adopt the Ricardian Present Value Model (PVM) as the theoretical framework, and therefore focus on the relationship between land value and cash rents, expecting to find a positive one. In order to model the spatial effects that characterize the data, we estimate a spatial dynamic panel data model with fixed individual effects. The employed dataset represents an improvement with respect to earlier studies because it refers to a rather homogeneous sample of States and only to cropland rather than farmland in general, and also excludes the value of buildings from the value of farmland. Also, net, rather than gross, cash rents per acre of cropland are used, as this reflects the net return to the landowner. Our results allow the computation of short and long run cropland value elasticity to cash rents, whose close-to-1 value appears to support the PVM. We also highlight the importance of taking spatial effects into consideration when addressing this field of analysis.
    Keywords: farmland values, cash rents, present value model, spatial econometrics., Agricultural Finance, Financial Economics, Research Methods/ Statistical Methods, C23, G12, Q14,
    Date: 2014
  10. By: Layal Bou-Antoun (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I)
    Abstract: The idea behind this paper is to counter traditional thinking on economic and social development that considers development as dependent byproduct of macroeconomic policies led by governments, or as a sole byproduct of entrepreneurial dynamics on the micro level. The idea we are defending here is that the "Community" as defined by German sociologist Ferdinand Tönnies, (a tighter and more cohesive social entity) is a context where the "social" and "economic" are less separated and where the spatial dimension becomes more significant. This context could be an adequate analytical framework and a tool for regional development in the context of a developing country like Lebanon.
    Keywords: community, local development, wine industry, Bekaa, Lebanon
    Date: 2014–04–25
  11. By: Oskar Nupia
    Abstract: Este trabajo estudia las principales Políticas de Desarrollo Productivo (PDP) ejecutadas en Colombia por el gobierno central durante las últimas décadas, la distribución regional de sus recursos y su impacto sobre las brechas regionales en productividad laboral (PL) y tasas de ocupación (TO). Se encuentra que: (1) aunque existe una alta dispersión regional en la asignación de recursos de las PDP, esta ha tendido a disminuir; (2) con algunas excepciones, la asignación de recursos de las PDP exhibe poca correlación con el crecimiento de la PL y la TO; (3) el impacto de las PDP sobre las brechas regionales en PL y TO es bajo, ya sea porque no se han asignado con criterios redistributivos o por la baja correlación entre su asignación y el crecimiento de estas variables.
    Keywords: Políticas de desarrollo productivo, política distributiva, productividad laboral, tasa de ocupación, brechas regionales.
    JEL: O25 O40 R11 R12
    Date: 2014–08–07

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