nep-geo New Economics Papers
on Economic Geography
Issue of 2015‒03‒27
six papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Urban Social Structure, Social Capital and Spatial Proximity By Patacchini, Eleonora; Picard, Pierre M; Zenou, Yves
  2. Migration Externalities in Chinese Cities By Pierre-Philippe Combes; Sylvie Démurger; Shi Li
  3. Who benefits from state corporate tax cuts? A local labour markets approach with heterogeneous firms By Juan Carlos Suárez Serrato; Owen Zidar
  4. Analysing and Managing Urban Sprawl and Land Take By BENCARDINO, Massimiliano; IOVINO, Giorgia
  5. The Cluster Initiatives By Katarína Kramárová; Margaréta Nadányiová; Eva Kicova
  6. The Effects of Polish Special Economic Zones on Employment and Investment: Spatial Panel Modelling Perspective. By Cizkowicz, Piotr; Cizkowicz-Pekala, Magda; Pekala, Piotr; Rzonca, Andrzej

  1. By: Patacchini, Eleonora; Picard, Pierre M; Zenou, Yves
    Abstract: We develop a theoretical model where the existence and intensity of dyadic contacts depend on location. We show that agents tend to interact more with agents that are highly central in the network of social contacts and that are geographically closer. Using a unique geo-coded dataset of friendship networks in the United States, we find evidence consistent with this model. The main empirical challenge, which is the possible endogenous network formation, is tackled by employing a Bayesian methodology that allows to estimate simultaneously network formation and intensity of network contacts.
    Keywords: Bayesian estimation; endogenous network formation; geographical space; Social interactions; social space
    JEL: R1 R23 Z13
    Date: 2015–03
  2. By: Pierre-Philippe Combes (Groupement de Recherche en Économie Quantitative d'Aix-Marseille); Sylvie Démurger (CNRS); Shi Li
    Abstract: We analyse the impact of internal migration in China on natives’ labour market outcomes. We find evidence of a large positive correlation of the city share of migrants with natives’ wages. Using different sets of control variables and instruments suggests that the effect is causal. The large total migrant impact (+10% when one moves from the first to the third quartile of the migrant variable distribution) arises from gains due to complementarity with natives in the production function (+6.4%), and from gains due to agglomeration economies (+3.3%). Finally, we find some evidence of a stronger effect for skilled natives than for unskilled, as expected from theory. Overall, our findings support large nominal wage gains that can be expected from further migration and urbanisation in China.
    Keywords: migration; urban development; agglomeration economies; wage disparities; China.
    Date: 2015–03
  3. By: Juan Carlos Suárez Serrato (Duke University); Owen Zidar (The University of Chicago,Booth School of Business)
    Abstract: This paper estimates the incidence of state corporate taxes on the welfare of workers, landowners, and firm owners using variation in state corporate tax rates and apportionment rules. We develop a spatial equilibrium model with imperfectly mobile firms and workers. Firm owners may earn profits and be inframarginal in their location choices due to differences in location-specific productivities. We use the reduced-form effects of tax changes to identify and estimate incidence as well as the structural parameters governing these impacts. In contrast to standard open economy models, firm owners bear roughly 40% of the incidence, while workers and landowners bear 30-35% and 25-30%, respectively.
    JEL: H22 H25 H32 H71 R30 R23 R58 J32 F22 F23
    Date: 2015
  4. By: BENCARDINO, Massimiliano (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); IOVINO, Giorgia (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)
    Abstract: In this paper «land take» and its drivers within the urbanization process is studied with a focus on recent developments in Italy. Several sources of information, recently made available by national and European agencies, are used to highlight the main characteristics of land take, its determinants, its spatial pattern and its evolutionary trends. Finally, after a short review of initiatives, actions and policies designed and implemented at different institutional levels (local, national, European) to tackle the question of urban sprawl and land take, we focus on some critical issues such as: reliability of measurement, scale of spatial planning, policy coordination and re-distributional aspects arising from the regulation of land property and rent.
    Keywords: Land take; Urban sprawl; Spatial planning; Italy
    JEL: Q01 Q24 Q28
    Date: 2014–12–30
  5. By: Katarína Kramárová (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics); Margaréta Nadányiová (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics); Eva Kicova (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics)
    Abstract: The development of the national economy of any country is (besides others) highly addicted to the economic success of its business entities. However, due to the process of trade globalization and market liberalization, the business environment has become more competitive that requires companies to build up own competitiveness not only in the domestic, but as well in the international measure. If we take into account the fact that approximately 99% of Slovak businesses are formed by small and medium enterprises (SMEs), next that our economy has character of opened one (in the meaning of export and import transaction), to compete with rival multinational companies is a question of their daily survival. The way how to support the development and competitiveness of such kind companies (that the practice has proved as well), consequently the regional and national economic development, the concept of business clusters is considered. “Business clusters are a striking and common feature in today´s economy, nonetheless it is not exactly a new phenomenon – it has been the object of attention from a wide variety of social scientists†(Kuah, 2002, p. 207), economists and practitioners for much of this century. Currently, in broader sense of word, we may talk about the clustering of different economic activities – about the close cooperation between cluster members (constituents) such as different kinds of entrepreneurs of different size and business history, universities, independent research institutions, trade associations, and government and its institutions. The role of business clusters has become increasingly important for the Slovak economy, too.The presented paper deals with the concept of business clusters. Briefly, at first its theoretical aspects are discussed (mainly from the point of view of its ability to support building competitive advantages for businesses and regional/national economy). Then we focus on brief presentation of the Slovak cluster policy and official cluster initiatives in Slovakia.
    Keywords: cluster, cluster initiatives, cluster policy, competitiveness, cooperation, globalization, innovations, regional development
    JEL: F43 R11
    Date: 2014–12
  6. By: Cizkowicz, Piotr; Cizkowicz-Pekala, Magda; Pekala, Piotr; Rzonca, Andrzej
    Abstract: We estimate the set of panel and spatial panel data models of employment and investments for 379 Polish counties over the period 2003-2012. We take advantage of a unique firm-level dataset for Polish Special Economic Zones (SSEs), which includes about 30,000 observations. We find that SSEs have substantial positive effects on employment: jobs in a given SSE create jobs outside the SSE in hosting county and even more jobs in neighbouring counties. Effect of SSEs on investments is weaker, but still positive. Investments in a given SSE neither crowd out nor crowd in investments outside the SSE. Thereby, they add one to one to capital stock in hosting county. Our findings are robust to changes in estimation methods, sample composition, set of explanatory variables and spatial weight matrix.
    Keywords: special economic zones, regional economic development, economic policy tools, panel data models, spatial panel data models
    JEL: C21 C23 H25 H32 R15
    Date: 2015–03–20

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