nep-geo New Economics Papers
on Economic Geography
Issue of 2015‒09‒18
eleven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Technological Relatedness and Firm Productivity: Do low and high performing firms benefit equally from agglomeration economies in China? By Anthony J. Howell, Canfei He, Rudai Yang, Cindy Fan; Canfei He; Rudai Yang; Cindy Fan
  2. Spatial effects in hospital expenditures: a district level analysis By M. Lippi Bruni; I. Mammi
  3. Industry Relatedness, Agglomeration Externalities and Firm Survival in China By Canfei He; Qi Guo; David Rigby
  4. The Geography and Structure of Global Innovation Networks: Global Scope and Regional Embeddedness By Chaminade , Cristina; De Fuentes , Claudia; Harirchi , Gouya; Plechero , Monica
  5. Location Determinants of high Growth Firms By Li, Minghao; Goetz, Stephan J.; Partridge, Mark; Fleming, David A.
  6. Firm Dynamics and Regional Inequality of Productivity in China By Canfei He; Yi Zhou
  7. Industrial Agglomeration and Use of the Internet By Chia-Lin Chang; Michael McAleer; Yu-Chieh Wu
  8. The role of geographical proximity in the international knowledge flows of European firms: an overview of different knowledge transfer mechanisms By Chaminade , Cristina; Plechero , Monica
  9. A Unified Model of Spatial Price Discrimination By Eleftheriou, Konstantinos; Michelacakis, Nickolas
  10. Wider economic impacts of accessibility: a literature survey By Andersson, Matts; Dehlin, Fredrik; Jörgensen, Peter; Pädam, Sirje
  11. High speed trains and spatial equity in France By Dominique Bouf; Christian Desmaris

  1. By: Anthony J. Howell, Canfei He, Rudai Yang, Cindy Fan; Canfei He; Rudai Yang; Cindy Fan
    Abstract: Building on the evolutionary economic geography literature, we employ the density measure introduced by ? to dynamically track the impact of technological relatedness on firm productivity. We rely on advanced quantile regression techniques to determine whether technological relatedness stimulates productivity and whether the size of the effect varies for low and high performing firms. Lastly, taking China’s economic transition into account, we test whether changes in the local industrial mix brought about by China’s market reforms enable or inhibit performance-enhancing spillovers. We show that a dynamic tradeoff exists between agglomeration costs and benefits that depends, in part, on the firm’s placement along the productivity distribution: the effect of technological relatedness reduces productivity for the least performing firms, but enhances it for better performing firms. As a result, spillovers via technological relatedness lead to improvements in the geographical welfare by intensifying the learning effect for the vast majority of co-located firms, in spite of increasing productivity disparities between the bottom and top performing firms.
    Keywords: Firm Productivity, Relatedness, Agglomeration Economies, Firm Heterogeneity
    Date: 2015–09
  2. By: M. Lippi Bruni; I. Mammi
    Abstract: Geographical clusters in health expenditures are well documented and accounting for spatial interactions may contribute to properly identify the factors affecting the use of health services the most. As for hospital care, spillovers may derive from strategic behaviour of hospitals and from patients’ preferences that may induce mobility across jurisdictions, as well as from geographically-concentrated risk factors, knowledge transfer and interactions between different layers of care. Our paper focuses on a largely overlooked potential source of spillovers in hospital expenditure: the heterogeneity of primary care providers’ behaviour. To do so, we analyse expenditures associated to avoidable hospitalisations separately from expenditures for highly complex treatments, as the former are most likely affected by General Practitioners, while the latter are not. We use administrative data for Italy’s Region Emilia Romagna between 2007 and 2010. Since neighbouring districts may belong to different Local Health Authorities (LHAs), we employ a spatial contiguity matrix that allows to investigate the effects of geographical and institutional proximity and use it to estimate Spatial Autoregressive and Spatial Durbin Models.
    JEL: I11 R12 C23
    Date: 2015–09
  3. By: Canfei He; Qi Guo; David Rigby
    Abstract: The importance of agglomeration externalities for economic activities is widely recognized. Recent developments highlight the importance of industry relatedness to the performance of firms, industries and regions. This study explores the determinants of firm survival in China and tests the significance of industry relatedness using firm-level data over the period 1999-2007. Industry relatedness is developed from the co-occurrence analysis of paired industries. Results based on Cox regression models show that firms benefiting from industry relatedness and governmental supports are more likely to survive. However, the influence of relatedness varies across industries and provinces. This study highlights the significant influence of local forces on firm dynamics and enriches our understanding of regional industrial restructuring in China.
    Keywords: Industry relatedness, Agglomeration Externalities, Firm Survival, China
    Date: 2015–09
  4. By: Chaminade , Cristina (CIRCLE, Lund University and INGENIO, CSIC, Spain); De Fuentes , Claudia (Sobey School of Business, Saint Mary’s University, Canada); Harirchi , Gouya (DEAMS, University of Trieste, Italy); Plechero , Monica (DEAMS – University of Trieste, Italy & CIRCLE, Lund University)
    Abstract: The increasing de-localization of innovation activities to and from emerging economies has triggered a growing interest among scholars of diverse disciplines in understanding the drivers and consequences of the increased globalization of innovation activities; In doing so, a variety of concepts have been used, from global value chain to global production networks and global innovation networks. The aim of this paper is to provide an overview of what we know about the structure and the geography of these global innovation networks, by looking, in particular, at the geographic concepts that underpin current work on global innovation networks as well as the spatial implications of the increased globalization of innovation activities.
    Keywords: global innovation networks; regional embeddedness; network structure; network geography
    JEL: O19 O33 R11
    Date: 2015–09–08
  5. By: Li, Minghao; Goetz, Stephan J.; Partridge, Mark; Fleming, David A.
    Abstract: County-level location patterns of INC5000 companies provide one map of American entrepreneurship and innovativeness, and understanding the local factors associated with these firms' emergence is important for stimulating regional economic growth and innovation. We draw on the knowledge spillover theory of entrepreneurship to motivate our regression model, and augment this theory with additional regional features that have been found to be important in the firm-location literature. Zero-inflated negative binomial regressions indicate that these firms exist in counties with larger average establishment size, higher educational attainment, and more natural amenities. Income growth, a mix of higher-paying industries, and more banks per capita are associated with a smaller presence of these types of firms, all else equal. We conclude that the local conditions favoring high growth firms are likely to be different from those favoring new firms in general, and that these conditions differ significantly in urban and rural areas and by industrial sectors.
    Keywords: Firm location, Firm revenues, High growth firms, INC5000 firms, Negative Binomial regression
    JEL: L26 R1
    Date: 2015–08–25
  6. By: Canfei He; Yi Zhou
    Abstract: Industrial change processes are underlying forces that determine the change of regional productivity. In developed market economies, less productive firms are more likely to exit while productive firms have more chance to enter and to survive. As a result, spatial inequality of firm dynamics will directly influence the inequality of regional productivity. This study investigates how firm dynamics would affect regional productivity using firm level data during 1998-2007 in China. We first estimate total factor productivity (TFP) for each firm based on the semi-parametric method proposed by Olley and Pakes (1996). Regional productivity is derived by weighing the firm TFP using gross industrial output. There is considerable spatial inequality of TFP paired with a trend of convergence over the time period of 1999-2007. Decomposition of TFP growth shows that firm entry, exit and survival do contribute to TFP change and their contributions vary across prefectures substantially. The between share holds the largest regional difference, as the most important factor contributing to the spatial inequality of regional TFP. The restructuring of SOEs has critically contributed to the spatial inequality of TFP by raising TFP in the traditional industrial bases and by facilitating the development of productive private and foreign sectors particularly in the coastal region. The finding indicates that resource reallocation across firms with different ownerships is the key mechanism to improve regional productivity.
    Keywords: Firm Dynamics, Regional Inequality, TFP, Decomposition Method, China
    Date: 2015–09
  7. By: Chia-Lin Chang (Department of Applied Economics, Department of Finance, National Chung Hsing University, Taiwan); Michael McAleer (Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam and Tinbergen Institute, The Netherlands, Department of Quantitative Economics, Complutense University of Madrid, and Institute of Economic Research, Kyoto University.); Yu-Chieh Wu (Department of Applied Economics. 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
  8. By: Chaminade , Cristina (CIRCLE, Lund University); Plechero , Monica (DEAMS – University of Trieste, Italy & CIRCLE, Lund University)
    Abstract: The paper provides an overview of the international knowledge flows in Europe particularly looking at the drivers and consequences of such flows as well as the general trend. It distinguishes between different types of mechanisms for the acquisition and transfer of knowledge from trade to research and technological collaboration, mobility of human capital and FDI. The paper is empirical in nature and targeted to a wider audience. The analysis reveals that proximity matters significantly for the mobility of human capital as well as for the establishment of collaborative networks. In both cases, intra-Europe knowledge flows are more important that extra-Europe knowledge flows, thus pointing to the role of the European market facilitating these forms of exchange. The patterns of offshoring of R&D as well as trade networks are rather different- more global than intra-European. In other words, trade and investment networks are more dispersed globally than mobility of human capital and research and technological networks.
    Keywords: Exports of high tech products; international research collaboration; international mobility of researchers; offshoring of R&D; Europe
    JEL: F20 O30
    Date: 2015–09–08
  9. By: Eleftheriou, Konstantinos; Michelacakis, Nickolas
    Abstract: We present a general model of mixed oligopoly, where competing firms exercise spatial price discrimination. Our findings indicate that the Nash equilibrium locations of firms are always socially optimal irrespective of the number of competitors, the level of privatization, the form of the transportation costs and the number and/or the varieties of the produced goods. An immediate implication of this result is that this form of competition is preferable from a welfare point of view.
    Keywords: Mixed oligopoly; Social optimality; Spatial competition; Differentiated goods
    JEL: L13 L32 L33 R32
    Date: 2015–09–10
  10. By: Andersson, Matts (KTH); Dehlin, Fredrik (PwC Norway); Jörgensen, Peter (WSP); Pädam, Sirje (WSP)
    Abstract: This paper starts out with by discussing the definitions of Wider Economic Impacts/Benefits and regional development. Each area where WEIs could be present is then treated: economic growth (production and cost function studies), labour market (agglomeration, labour supply), commodity market and housing market. A theoretical background is given, the empirics are summarized and the relation to CBA is discussed.
    Keywords: Wider economic impacts; Wider economic benefits; Regional development; Cost-benefit analysis; Agglomeration; Labour supply; Labour market; Housing market; Commodity market
    JEL: D61 E24 H40 R40
    Date: 2015–09–10
  11. By: Dominique Bouf (LET - Laboratoire d'économie des transports - CNRS - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE]); Christian Desmaris (LET - Laboratoire d'économie des transports - CNRS - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE], IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon)
    Abstract: This paper addresses the issue of high speed trains (TGV) and spatial equity through the example of France. We begin with an examination of various concepts corresponding to the word equity. With these concepts, we address the TGV's impacts on the French regions from three dimensions: economic development, prices and financing. First, with a simple model, we show that high speed rail has contrasting territorial effects on growth of GDP per capita, combining polarization and diffusion. Beyond that, the pricing system, applying some methods of yield management, is not fair either. As for the financing of LGV network, the amount and nature of the contributing are highly dependent on the infrastructure considered. Regarding this question, the development of high-speed lines is spatially unfair.
    Abstract: Ce papier vise à qualifier les effets des trains à grande vitesse (TGV) en France sur l'équité spatiale. A cette fin, nous commençons par examiner divers concepts contenus par ce mot polysémique. Avec ces concepts, nous nous interrogeons sur les impacts du TGV sur les régions françaises à partir de trois dimensions : le développement démographique et économique, les prix et le financement. Nous montrerons tout d’abord, par un modèle simple, que la grande vitesse ferroviaire présente des effets territoriaux contrastés sur la croissance du PIB par habitant, combinant polarisation et diffusion. Au-delà, la tarification propre au TGV, fondée sur une forme de « yield management », apparaît comme opaque, peu orientée par les coûts et spatialement inéquitable. Quant au financement du réseau de LGV, le montant et la nature des contributeurs varient fortement selon la ligne considérée. En cela, le développement des lignes à grande vitesse est spatialement inéquitable.
    Keywords: French regions,Funding,High-speed trains,Pricing,Regional development,Spatial equity,Equité spatiale, Développement régional, Financement, Tarification, Trains à grande vitesse
    Date: 2015

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