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on Economic Geography |
| By: | Claire Nauwelaers; Karen Maguire; Giulia Ajmone Marsan |
| Abstract: | The Bothnian Arc is a cross-border area on the border of Finland and Sweden that covers the most populated areas along the upper Bothnian Bay, spanning 800 kilometres. It has a population of around 710 000, across 55 000 km² with an economic output of USD 31 billion. The Bothnian Arc collaboration was initiated by local authorities, with strong commitment of the mayors of the cities of Oulu and Luleå (300 kilometres apart). Despite a peripheral location in all respects, some parts of the Bothnian Arc have shown a remarkable vitality, notably Oulu (Finland), driven by an innovation ecosystem that builds on the heritage of Nokia and the contribution of Oulu University. Luleå (Sweden) has recently attracted the European Facebook data centre. The area is looking to go beyond ad hoc projects for a more strategic approach to innovation-driven collaboration to be the dynamic hub of the north. This case study is part of the project Regions and Innovation: Collaborating Across Borders . A summary of this working paper appears in a report of the same name. |
| Keywords: | Sweden, Finland, innovation, science and technology, regional growth, cross-border, regional development, regional innovation strategies, Bothnian Arc, Oulu, regional innovation, Luleä |
| JEL: | L52 L53 O14 O18 O38 R11 R58 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2013/17-en&r=geo |
| By: | Coen Teulings (University of Cambridge, United Kingdom, and University of Amsterdam, the Netherlands); Ioulia Ossokina (CPB Netherlands Bureau for Economic Policy Analysis); Henri L.F. de Groot (VU University Amsterdam, the Netherlands) |
| Abstract: | The direct impact of local public goods on welfare is relatively easy to measure from land rents. However, the indirect effects on home and job location, on land use, and on agglomeration benefits are hard to pin down. We develop a spatial general equilibrium model for the valuation of these effects. The model is estimated using data on transport infrastructure, commuting behavior, wages, land use and land rents for 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits are shown to differ sharply by workers' educational attainment. |
| Keywords: | local public goods, agglomeration, spatial equilibrium, residential sorting, land rents |
| JEL: | H54 R13 R23 |
| Date: | 2014–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140101&r=geo |
| By: | Daniel Arribas-Bel (VU University Amsterdam); Peter Nijkamp (VU University Amsterdam); Jacques Poot (The University of Waikato, New Zealand) |
| 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 generates 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 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: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140081&r=geo |
| By: | Elizabeth Ananat (Duke University); Shihe Fu (Wang Yanan Institute for Studies in Economics (WISE) Xiamen University); Stephen L. Ross (University of Connecticut) |
| Abstract: | We demonstrate a striking but previously unnoticed relationship between city size and the black-white wage gap, with the gap increasing by 2.5% for every million-person increase in urban population. We then look within cities and document that wages of blacks rise less with agglomeration in the workplace location, measured as employment density per square kilometer, than do white wages. This pattern holds even though our method allows for non-parametric controls for the effects of age, education, and other demographics on wages, for unobserved worker skill as proxied by residential location, and for the return to agglomeration to vary across those demographics, industry, occupation and metropolitan areas. We find that an individual’s wage return to employment density rises with the share of workers in their work location who are of their own race. We observe similar patterns for human capital externalities as measured by share workers with a college education. We also find parallel results for firm productivity by employment density and share college-educated using firm racial composition in a sample of manufacturing firms. These findings are consistent with the possibility that blacks, and black-majority firms, receive lower returns to agglomeration because such returns operate within race, and blacks have fewer same-race peers and fewer highly-educated same-race peers at work from whom to enjoy spillovers than do whites. Data on self-reported social networks in the General Social Survey provide further evidence consistent with this mechanism, showing that blacks feel less close to whites than do whites, even when they work exclusively with whites. We conclude that social distance between blacks and whites preventing shared benefits from agglomeration is a significant contributor to overall black-white wage disparities. |
| Keywords: | black-white wage gap, agglomeration, human capital externalities, information networks, total factor productivity |
| JEL: | J15 J24 J31 R23 R32 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2014-019&r=geo |
| By: | Or Levkovich; Jan Rouwendal (VU University Amsterdam) |
| Abstract: | In the globalized economy the presence of migrants is essential for urban and regional growth, and it is therefore important to know what makes a city an attractive place for highly skilled migrants. This paper aims to shed light on this issue by considering the location choice of highly-educated foreign workers, and if and how their valuation of urban amenities differs from domestic workers. To do so, we apply a residential location-choice model to estimate the attractiveness of residential locations in the Dutch Randstad for low and high-skilled, domestic and foreign workers, and calculate and compare their willingness to pay for each of these amenities. |
| Keywords: | urban amenities, foreign workers |
| JEL: | R53 R11 |
| Date: | 2014–07–22 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140093&r=geo |
| By: | Florida, Richard (University of Toronto’s Rotman School of Management and Global Research Professor at NYU); Mellander , Charlotta (Prosperity Institute of Scandinavia, Jönköping International Business School (JIBS), & Centre of Excellence for Science and Innovation Studies (CESIS), Sweden.) |
| Abstract: | The prevailing geographic model for high-technology industrial organization has been the “nerdistan,” a sprawling, car-oriented suburb organized around office parks, of which Silicon Valley is the prototypical example. This seems to contradict a basic insight of urban theory, which associates dense urban centers with higher levels of innovation, entrepreneurship and creativity. Our research examines the geography of recent venture capital finance startups in the United States across metros and within a subset of them by neighborhood and finds compelling evidence that the model is changing. Venture capital investments are clustering in larger, denser urban centers with high levels of human capital, like San Francisco and Lower Manhattan, as well as in walkable suburbs. We suggest that the suburban model might have been an historical aberration, and that innovation, creativity, and entrepreneurship are realigning in the same urban centers that traditionally fostered them. |
| Keywords: | Venture capital; investments; start-ups; cities; suburbs |
| JEL: | G20 O31 R00 |
| Date: | 2014–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0377&r=geo |
| By: | Cellini, Roberto; Di Caro, Paolo; Torrisi, Gianpiero |
| Abstract: | The concept of resilience has attracted increasing interest in regional economics. In the flourishing literature, however, results are far from being conclusive, even when referring to the same case study. Undoubtedly, this mixed evidence potentially stems also from different operationalization of the multifaceted resilience concept; the main difference being between studies using GDP series and those measuring regional economic performance in terms of fluctuations in employment levels. The different choices and the subsequent results, far from being interpreted as lack of robustness, are research specific; nevertheless, it is important to address what kind of relationship – if any – exists between the two measures. To this end, we analyse and compare the results concerning the regional resilience in Italy, over the last 40 years, focussing on the differences deriving from the choice between the two aforementioned measures. Our analysis reveals that the information contained in the different series, rather than being alternative and overlapping, is complementary. |
| Keywords: | Resilience, Adverse shock, Impact effect, Recovery. |
| JEL: | C32 O18 R11 R12 |
| Date: | 2014–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59660&r=geo |
| By: | Alberdi Pons , Xabier (Deusto Business School (DBS), Universidad de Deusto); Gibaja Martíns, Juan José (Deusto Business School (DBS), Universidad de Deusto); Parrilli, Mario Davide (Deusto Business School (DBS), Universidad de Deusto and DBS and Orkestra-Basque Institute of Competitiveness) |
| Abstract: | Interaction is a central feature of well-functioning and integrated Regional Innovation Systems. However, it does not necessarily occur in an automatic fashion, denoting the existence of various system problems that may block learning and other crucial innovation processes. “Intermediaries” are organizations that encompass an increasing role in overcoming these problems. Still, they have not been adequately framed and assessed. The paper meets this need and presents a number of developments. First, we identify and categorize intermediaries according to some specific Innovation System problems they tap into, while we also include them in a novel intermediary component. Second, we operationalize sets of quantitative variables that permit new preliminary assessments. This methodology also permits new empirical insights that help framing more specific policy tools. The empirical analysis roots on an ad hoc data exploitation stemming from various surveys conducted by the Spanish Official Statistical Institute (INE) and the Spanish Venture Capital Association (ASCRI). We conduct multivariate techniques such as Multiple Factor and Cluster Analysis. The methodology creates a new typology that sorts Spanish regions according to the presence -or absence- of intermediaries when dealing with system problems. We find dissimilar outputs across regions. The latter might demand that their intermediary components are provided with strategic recommendations in response to specific system requirements. |
| Keywords: | regions; innovation systems; system problems; intermediaries; Spain; multiple factor analysis |
| JEL: | O18 R15 R50 R58 |
| Date: | 2014–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_020&r=geo |
| By: | AGO Takanori; MORITA Tadashi; TABUCHI Takatoshi; YAMAMOTO Kazuhiro |
| Abstract: | It is assumed in new trade theory and new economic geography that the supply of labor is fixed, which is not true in real labor markets. We develop a model of new trade theory by incorporating an elastic labor supply and analyze the impacts of technological progress on the equilibrium outcomes of working hours and economic welfare. We first show that the labor supply curve is backward bending. We then show that working hours in developed countries are longer in the first stages of development, but shorter in the second stages of development. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14062&r=geo |