nep-geo New Economics Papers
on Economic Geography
Issue of 2015‒08‒30
twelve papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Professional and geographical paths: the study of three generations of PhDs By Bastien Bernela
  2. Firm's Evaluation of Location Quality: Evidence from East Germany By Alexander Eickelpasch; Georg Hirte; Andreas Stephan
  3. Industrial Agglomeration and Use of the Internet By Chia-Lin Chang; Michael McAleer; Yu-Chieh Wu
  4. House Money and Entrepreneurship By Sari Kerr; William R. Kerr; Ramana Nanda
  5. Skilled Cities, Regional Disparities, and Efficient Transport: The state of the art and a research agenda By Proost, Stef; Thisse, Jacques-François
  6. The Benefits of Geographic Diversification in Banking By Céline Meslier; Donald P. Morgan; Katherine Samolyk; Amine Tarazi
  7. The Role of Seaports for Portuguese Economic Recovery: The Port of Sines By Moreira, Paulo Pires
  8. Conditions of Diffusion of Competitiveness Clusters' Technologies: a Brief Theoretical Note By Iritié, B. G. Jean-Jacques
  9. Discrimination based on place of residence and access to employment By Mathieu Bunel; Yannick L'Horty; Pascale Petit
  10. Spatio-temporal persistence of municipal rates of business start-ups in Chile By Mauricio Oyarzo; Gianni Romani; Miguel Atienza; Marcelo Lufin
  11. Location Quotient,Coefficient of Specialization and Shift-Share By Juan Tomas Sayago-Gomez; Caleb Stair
  12. Location and Productivity of Knowledge- and Information-intensive Services (Japanese) By MORIKAWA Masayuki

  1. By: Bastien Bernela (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers)
    Abstract: Access of young PhDs to scientific position is a recurrent concern in recent empirical works. The issue of spatial mobility of researchers is also often discussed, but rarely both simultaneously. We propose a joint analysis of the determinants of occupational and geographical PhDs paths by using three Céreq generation surveys (2001, 2004, 2007). Descriptive statistics and estimation of a bivariate probit highlight the strengthening of PhDs geographical mobility, and the growing importance of publications for access to academic employment.
    Abstract: L’accès à l’emploi scientifique des jeunes docteurs est une préoccupation récurrente dans les travaux empiriques récents. Si la question de la mobilité spatiale des chercheurs fait également débat, ce sont souvent deux problématiques indépendantes. Nous proposons une analyse conjointe des déterminants des trajectoires professionnelle et géographique des docteurs à partir des données de trois enquêtes génération (2001, 2004, 2007) du Céreq. Un ensemble de statistiques et l’estimation d’un probit bivarié mettent notamment en évidence un renforcement des mobilités géographiques des docteurs, ainsi que l’importance croissante des publications pour l’accès à l’emploi académique.
    Date: 2014–11–20
  2. By: Alexander Eickelpasch; Georg Hirte; Andreas Stephan
    Abstract: Our study provides evidence for firms' evaluation of location quality. We use a 2004 survey of 6,000 East German firms that contained questions on the importance and assessment of 15 different location factors ranging from closeness to customers and suppliers, transport infrastructure, and proximity to research institutions and universities, as well as questions about the local financial institutions and region's “image”. The results show (1) a great deal of heterogeneity in terms of which firm- or regional-level characteristics are important in the evaluation of a specific location factor, (2) that the model's explanatory power is, overall, low and thus neither location characteristics nor internal factors are fully reflected in the perceptions, (3) that a firm's business situation and whether a location factor is considered important have explanatory power for perception. One policy-relevant conclusion that we derive from these findings is that location policy should consider firms' perception of a specific location in addition to improving the actual attributes of that location.
    Keywords: Location Factors, Multi-Equation System, Perception Bias, Survey Data
    JEL: R3 R12 L2
    Date: 2015
  3. By: Chia-Lin Chang (National Chung Hsing University, Taichung, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; Erasmus University Rotterdam, the Netherlands, Complutense University of Madrid, Spain); Yu-Chieh Wu (National Chung Hsing University, Taichung, Taiwan)
    Abstract: Taiwan has been hailed as a world leader in the development of global innovation and industrial clusters for the past decade. This paper investigates the effects of industrial agglomeration on the use of the internet and internet intensity for Taiwan manufacturing firms, and analyses whether the relationships between industrial agglomeration and total expenditure on internet usage for industries are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 2-digit industry categories and 358 geographical townships in Taiwan. The Heckman selection model is used to adjust for sample selectivity for unobservable data for firms that use the internet. The empirical results from two-stage estimation show that: (1) for the industry overall, a higher degree of industrial agglomeration will not affect the probability that firms will use the internet, but will affect the total expenditure on internet usage; and (2) for 2-digit industries, industrial agglomeration generally decreases the total expenditure on internet usage, which suggests that industrial agglomeration and total expenditure on internet usage are substitutes.
    Keywords: Industrial agglomeration and clusters; Global innovation; Internet penetration; Manufacturing firms; Sample selection; Incidental truncation
    JEL: D22 L60
    Date: 2015–08–17
  4. By: Sari Kerr; William R. Kerr; Ramana Nanda
    Abstract: We examine the relationship between house prices and entrepreneurship using micro data from the US Census Bureau. Increases in house prices are often thought to drive entrepreneurship through unlocking the collateral channel for bank loans, but this interpretation is challenged by worries regarding omitted variable biases (e.g., rising local demand) or wealth effects (i.e., that people with more valuable homes are more likely to enter entrepreneurship for reasons other than access to collateral). We construct an empirical environment that utilizes very localized price changes, exploits variations in initial home values across residents in the same zip code, and embeds multiple comparisons (e.g., owners vs. renters, homestead exemption laws by state). For the United States during the 2000-2004 period, the link of home prices to the rate of entrepreneurship through home equity channels is modest in economic magnitude. This is despite a focus on a time period that experienced the largest concentration of US home price growth over the last two decades. Even when we do connect home equity to entrepreneurship, part of the effect is linked to an increased demand for entrepreneurship. While housing collateral plays a role in the entry that we observe, it does not seem to be a major barrier to entrepreneurship in our context.
    JEL: E44 G21 L26 M13 R12 R31 R32
    Date: 2015–08
  5. By: Proost, Stef; Thisse, Jacques-François
    Abstract: The three themes of this survey—cities, regions, and transport—are closely intertwined and gathered in the category R of the JEL Classification System. We discuss cities and regions in separate sections because they are different spatial units facing specific problems. Transport issues affect both cities and regions and are discussed in each relevant section. The introductory remarks explain both the reason for this division, as well as what spatial economics is all about. Because general economists have barely met the words cities, regions, and transport during their studies, we explain what the field of spatial economics is and define basic concepts that might not currently be in their tool box. The second section is devoted to cities; the third focuses on regions. We conclude with general policy recommendations.
    Keywords: cities; congestion; land; region; trade; transport
    JEL: R00
    Date: 2015–08
  6. By: Céline Meslier (LAPE - Laboratoire d'Analyse et de Prospective Economique - unilim - Université de Limoges - Institut Sciences de l'Homme et de la Société); Donald P. Morgan (Federal Reserve Bank of New-York - Federal Reserve Bank of New-York); Katherine Samolyk (Consumer Financial Protection Bureau - Consumer Financial Protection Bureau); Amine Tarazi (LAPE - Laboratoire d'Analyse et de Prospective Economique - unilim - Université de Limoges - Institut Sciences de l'Homme et de la Société)
    Abstract: We estimate the benefits of intrastate and interstate geographic diversification for bank risk and return, and assess whether such benefits could be shaped by differences in bank size and disparities in economic conditions within states or across U.S. states. For small banks, only intrastate diversification is beneficial in terms of risk-adjusted returns but for very large institutions both intrastate and interstate expansions are rewarding. However, in all cases the relationship is hump-shaped for both intrastate and interstate diversification indicating limits for banks of all size. Moreover, we also find geographic expansion to reduce bank risk. Our results indicate that both small banks and very large banks could still benefit in terms of risk-adjusted returns from further geographic diversification. Disparities in economic conditions as measured by the dispersion in unemployment rates either across counties or states impact the benefits of diversification. At initially low levels of intrastate diversification, expanding in new markets allows small banks to further reduce their risk in the presence of higher economic disparities. However, when they get more diversified, this effect is reduced.
    Date: 2015–05–26
  7. By: Moreira, Paulo Pires
    Abstract: The expansion for new export markets seems as inevitable as a challenge to the Portuguese economic recovery. Due to its peculiar geographical location Portugal is conditioned by the need to cross Spanish territory to reach central Europe. Moreover and assuming country’s geographical asymmetries where the coastline continues to be the main interface zone comprising nearly 70% of the population located within a 50 km littoral stripe, the adoption of an integrated policy for ports and other related activities appears as imperative. Portuguese continental ports are more than ever assuming a paramount role to surmount land-side constraints. Easy access to the foreland diminishes adverse land connections and mitigates the weak results arising from the hard task to capture cargo in the competitive hinterland. In order to understand the economic role this sector plays in the opening of new export markets, and pointing out expected growth opportunities and the threats that can arise from close proximity with major competitors, this paper cast a glance over the major continental Portuguese seaport. By giving an appropriate evaluation of the actual status and recommending further policies to adopt this paper aims to contribute for the interdisciplinary studies field applied to ports, using the framework of economic geography and spatial analysis rather than a port-specific approach.
    Keywords: Port of Sines; Economic recovery; Economic geography; Spatial analysis; Transport networks; International trade
    JEL: R11 R42 R53 R58
    Date: 2015–08–19
  8. By: Iritié, B. G. Jean-Jacques
    Abstract: Competitiveness clusters (or innovation clusters) are the focal point of french new industrial policy. They are based on classical cluster model and its well-known agglomeration positive externalities and on benefits of cooperation. After a brief literature review of cluster theory, we focus on the theoretical conditions under which french innovation clusters can foster production and diffusion of technological innovations. Our critical analysis points out three non-exhaustive conditions: (i) the capacity to coordinate and to incitate cooperation in R\D; (ii) the capacity to favor production and technological knowledge transfer; (iii) the capacity to promote and to keep R\D appropriation by cooperating innovators.
    Keywords: innovation cluster, coordination, cooperation, installed base, organisational absorptive capacity, collective appropriation.
    JEL: O20 O30 R10 R30
    Date: 2015–07–22
  9. By: Mathieu Bunel (LEDi - Laboratoire d'Economie de Dijon - UB - Université de Bourgogne - CNRS, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS); Yannick L'Horty (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS); Pascale Petit (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS)
    Abstract: This study’s novelty lies in the experimental measuring of place of residence effects derived from a multi-level protocol that allows one to discern the effects at different levels of spatial aggregation: large administrative units (the "département" in France), municipalities, and neighbourhoods. This protocol was applied to two administrative units (Seine-Saint-Denis and 3 the city of Paris) in the Paris region, which are geographically close but quite different in terms of socio-economic status, in order to compare the effects associated with three types of neighbourhoods: favoured areas, intermediate reputation areas , and disadvantaged areas.
    Date: 2014–06
  10. By: Mauricio Oyarzo (Departamento de Economia, Universidad Catolica del Norte); Gianni Romani (Departamento de Administracion, Universidad Catolica del Norte); Miguel Atienza (Departamento de Economia, Universidad Catolica del Norte); Marcelo Lufin (Departamento de Economia, Universidad Catolica del Norte)
    Abstract: This work investigates the spatio-temporal persistence of municipal rates of business startups in Chile between 2005 and 2011, using the database of the Internal Revenue Service (SII). The analysis was made with descriptive statistical, non-parametric tests and econometric models. The results show persistent spatio-temporal clusters, representing favorable and unfavorable environments for entrepreneurship, as well as a high probability of any municipality remaining in the same cluster. The factors that explain persistence reveal distinct effects on start-up creation for each level of municipal entrepreneurship, which suggests the need for policies that take into account the spatial differences in entrepreneurial dynamism.
    Keywords: entrepreneurship, regional development, spatio-temporal persistence, spatial clusters
    JEL: M13 R11 R1
    Date: 2015–07
  11. By: Juan Tomas Sayago-Gomez (Regional Research Institute, West Virginia University); Caleb Stair (Regional Research Institute, West Virginia Univers)
    Abstract: This technical document describes the foundations for three different regional economic functions implemented in MATLAB and R. These functions are Location Quotients, Coefficients of Localization, and Shift-Share Analysis.
    Keywords: location quotient, coefficient of specialization, shift share methodology
    JEL: C6 C63 C65 R10 R58
    Date: 2015–07–28
  12. By: MORIKAWA Masayuki
    Abstract: Knowledge-intensive business services (KIBS), which produce skill-intensive services used as intermediate inputs, are becoming important for the economic growth and international competitiveness of advanced countries. This paper, using establishment- and firm-level micro data, analyzes the productivity of knowledge- and information-intensive services such as information services, publishers, and design services. We focus on the effect of urban density on the productivity of these services. According to the estimations, doubling the employment density of municipalities is associated with an average of around 5% higher labor productivity of the services providers, which is larger than that found in the manufacturing industry. However, the size of the economies of density is heterogeneous by individual services, suggesting that the services to be promoted by small and medium cities are different from the services for which large metropolitan cities such as Tokyo and Osaka have strong comparative advantages.
    Date: 2015–08

This nep-geo issue is ©2015 by Andreas Koch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.