nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒10‒17
three papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Does firm creation depend on local context? A focus on the neighbouring effects By Nadine LEVRATTO
  2. Regional perspectives and distributional effects of European regional policies By Andrea Bonfiglio; Roberto Esposti; Francesco Pagliacci; Franco Sotte; Beatrice Camaioni
  3. Transaction Partners and Firm Relocation Choice: Evidence from the Tohoku Earthquake By Ono, Arito; Miyakawa, Daisuke; Hosono, Kaoru; Uchida, Hirofumi; Uchino, Taisuke; Uesugi, Iichiro

  1. By: Nadine LEVRATTO (EconomiX, CNRS, University of Paris Ouest Nanterre, La Défense, Centre d’Etudes de l’Emploi, Kedge Business School)
    Abstract: This paper seeks to shed some light on the influence that the characteristics of the local context in a given area and in adjacent ones exert on the entrepreneurial process. In order to make a distinction between the purely local factors and the role played by the neighbourhood, we mobilize the so-called Exploratory spatial data analysis which determines the degree of spatial dependence and its consequence on entry rate. We empirically address this question by considering the case of French employment areas from 2006 to 2010 using spatial econometric models adapted to panel data. Our results show that financial, material, human and organisational resources locally available are far from being the unique geographical determinants of firm creation. Instead, the entry rate in a given area also strongly depends on the propensity to create firms in the adjacent places. Spillover effects taking their origin in adjacent areas should thus be considered in explaining the local determinants of firm creation.
    Keywords: Firm creation, spatial dependence, spatial matrix
    JEL: L26 R11 C21
    Date: 2014
  2. By: Andrea Bonfiglio; Roberto Esposti; Francesco Pagliacci; Franco Sotte; Beatrice Camaioni
    Abstract: A major objective of this study is to analyse the evolutionary patterns of regional linkages and disparities across the EU space, especially those related to rural and peripheral/remote regions. In particular, this report assesses the economy-wide effects, in terms of GDP and employment, induced, at the European level, by the 2007-2011 CAP payments and by the possible future scenarios concerning the next programming period (2014-2020). A multiregional closed I-O approach applied at a NUTS-3 level is adopted. Particular attention focuses on the (re-) distributive effects produced by spatial and sectoral relationships. In defining regional policy, the knowledge of spillover effects is particularly strategic in that it can assist policy makers in better calibrating allocation of funds among regions and evaluating distribution of final policy effects more correctly. With reference to the next programming period, three main scenarios are analysed. Two are based on different and extreme shares of funds apportioned to basic payments. They are in turn divided into sub-scenarios based on three different criteria of regional distribution of funds devoted to basic payments: utilized agricultural area, agricultural value added and historical payments. A third scenario assumes the suppression of the actual framework based on two pillars and the transfer of all available funds to rural development policy. Results indicate that intersectoral and interregional linkages, which characterise the EU economic space, redirect a large part of effects, for any policy framework and scenario considered, from rural regions and from primary and secondary sectors (representing the main targets of policy) to urban and tertiary sectors, respectively. Moreover, they reveal that the best option for MSs in allocating basic payments among regions would be a criterion based on eligible hectares, which is the general principle on which the new CAP is based, since it would produce higher and more balanced distribution of effects among all regions. They also suggest that a total rethinking of the CAP by introducing only a single co-financed policy would lead to higher contribution to reduction in differences between rural and urban regions. Finally, the analysis shows that the policy decision taken for the 2014-2020 programming period to redistribute funds in favour of poorer regions not only is fair from an equity point of view but can also produce economic advantages for the regions directly penalised by a fund reallocation.
    Keywords: Demographic change, Ecological innovation, Economic growth path, EU integration, New technologies, Social capital as growth driver, Socio-ecological transition, Sustainable growth
    JEL: O18 Q01 R11 R58
    Date: 2014–09
  3. By: Ono, Arito; Miyakawa, Daisuke; Hosono, Kaoru; Uchida, Hirofumi; Uchino, Taisuke; Uesugi, Iichiro
    Abstract: A firm’s choice of location is very important because it reveals the firm’s dynamics. Using a unique firm-level data set, we examine whether and how the presence of incumbent transaction partners (i.e., suppliers, customers, and lender banks) affects this choice. To this end, we focus on those firms that were forced to relocate their headquarters because of the severe damage inflicted by the Tohoku Earthquake. We find that after the earthquake, firms tended to move to areas where their customers were located, but not to areas where their suppliers were located. We also find that firms tended to move to areas where the bank branches that they had transacted with were located. Further, we find that the sizable impact of the presence of incumbent customers and banks on the probability of the firms’ relocations diminished if the customers and the bank branches were also damaged by the earthquake. On balance, these results suggest that the presence of healthy transaction partners is an important factor in the firms’ choice of location.
    Keywords: relocation choice, agglomeration, transaction partners, Tohoku Earthquake
    JEL: R30 L14 G20
    Date: 2014–09

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