nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒01‒18
ten papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Co-worker networks, labour mobility, and productivity growth in regions By Balazs Lengyel; Rikard Eriksson
  2. Something New: Where do new industries come from? By Feldman , Maryann P.; Tavassoli , Sam
  3. Natural amenities, neighborhood dynamics, and persistence in the spatial distribution of income By Lee, Sanghoon; Lin, Jeffrey
  4. A closer look at the long-term patterns of regional income inequality in Spain: The poor stay poor (and stay together) By Daniel A. Tirado Fabregat; Alfonso Díez-Minguela; Julio Martínez-Galarraga
  5. Endogenous Infrastructure Development and Spatial Takeoff By Alex Trew
  6. Persistence and Change of Regional New Business Formation in the National League Table By Michael Fritsch; Sandra Kublina
  7. Spatial dependence in sovereign wealth funds' investments By Nicolas DEBARSY; Jean-Yves GNABO; Malik KERKOUR
  8. Efficient support of short food supply chains in Hungary: a spatial analysis By Zsofia Benedek; Bálint Balazs
  9. On the sustainability of a monocentric city : lower transport costs from new transport facilities By Gokan, Toshitaka
  10. Multi-plant Operation and Corporate Headquarters Separation: Evidence from Japanese plant-level panel data By OKUBO Toshihiro; TOMIURA Eiichi

  1. By: Balazs Lengyel (Institute of Economics - Centre for Economic and Regional Studies - Hungarian Academy of Sciences); Rikard Eriksson (Department of Geography and Economic History, Umea University)
    Abstract: This paper provides a new empirical perspective for analysing the role of social networks for an economic geography approach on regional economic growth by constructing large-scale networks from employee-employee co-occurrences in plants in the entire Swedish economy 1990-2008. We calculate the probability of employee-employee ties at plant level based on homophily-biased random network assumptions and trace the most probable relations of every employee over the full period. Then, we look at the inter-plant ties for the 1995-2008 period because the network is already well developed after five years of edge construction. We argue that these personal acquaintances are important for local learning opportunities and consequently for regional growth. Indeed, the estimated panel Vector Autoregressive models provide the first systematic evidence for a central claim in economic geography: social network density has positive effect on regional productivity growth. The results are robust against removing the old and therefore weak ties from the network. Interestingly, the positive effect of density on growth was found in a segment of the co-worker network as well, in which plants have never been linked by labour mobility previously.
    Keywords: social network, homophily, probability of ties, labour mobility, regional productivity growth, panel vector autoregression
    JEL: D85 J24 J61 R11 R23
    Date: 2015–09
  2. By: Feldman , Maryann P. (Department of Public Policy, University of North Carolina at Chapel Hill, U.S.); Tavassoli , Sam (CIRCLE, Lund University)
    Abstract: Emerging industries have great potential for both entrepreneurship and regional transformation. The emergent earliest stage of the industry lifecycle is when there is the greatest potential and when local factors matter most however we typically can only identify new industries in retrospect. This chapter provides an overview of the transformative potential of emerging industries and considers the challenges associated with studying emerging industries in real time. The chapter considers the regional context for studying new industries and offers a set of regional factors that might promote the emergence of new industries.
    Keywords: emerging industries; geography of innovation; market-pull; science-push; local economic development
    JEL: N90 O18 O33 R12
    Date: 2015–12–30
  3. By: Lee, Sanghoon (University of British Columbia); Lin, Jeffrey (Federal Reserve Bank of Philadelphia)
    Abstract: We present theory and evidence highlighting the role of natural amenities in neighborhood dynamics, suburbanization, and variation across cities in the persistence of the spatial distribution of income. Our model generates three predictions that we confirm using a novel database of consistent-boundary neighborhoods in U.S. metropolitan areas, 1880{2010, and spatial data for natural features such as coastlines and hills. First, persistent natural amenities anchor neighborhoods to high incomes over time. Second, naturally heterogeneous cities exhibit persistent spatial distributions of income. Third, downtown neighborhoods in coastal cities were less susceptible to the widespread decentralization of income in the mid-20th century and increased in income more quickly after 1980.
    Keywords: Suburbanization; Gentrification; Locational fundamentals; Multiple equilibria
    JEL: N90 O18 R23
    Date: 2015–12–15
  4. By: Daniel A. Tirado Fabregat (Dpto. Análisis Económico); Alfonso Díez-Minguela (Dpto. Análisis Económico); Julio Martínez-Galarraga (Dpto. Análisis Económico)
    Abstract: Using a novel dataset, this paper explores the evolution of regional income inequality in Spain, 1860-2010. We follow the growth literature and use spatial exploratory tools to analyse modality, mobility and spatial clustering. We find two clearly distinguishable periods. First, there was an upswing in regional inequality accompanied by a certain mobility between 1860 and 1930. This was followed by a period of regional convergence, in which mobility was rather low. In parallel to this, a geographical concentration of the richest and poorest regions took place, with wealthy Spain located in the north-east and poor Spain in the south. In the last decades convergence has come to a halt, mobility is quasi-non-existent and spatial polarization has tended to increase. A partir de recientes estimaciones históricas de PIB provincial, este trabajo explora la evolución de la desigualdad regional en España entre 1860 y 2010. Siguiendo a la literatura de crecimiento económico, se presentan diversos indicadores para analizar la modalidad, la movilidad y la aglomeración espacial de las provincias españolas. Nuestros resultados muestran la existencia de dos períodos claramente diferenciados. En primer lugar, entre 1860 y 1930 la desigualdad regional aumentó y este aumento se vio acompañado de una cierta movilidad en el ranking provincial. A partir de entonces se dio un proceso de convergencia, en el que la movilidad fue bastante reducida, y donde además se produjo una creciente concentración geográfica de las provincias más ricas y más pobres, situándose las primeras en el noreste peninsular y las segundas en el sur. En las últimas décadas el proceso de convergencia se ha detenido, la movilidad es prácticamente inexistente y la polarización espacial ha continuado aumentando.
    Keywords: Desigualdad regional, España, crecimiento regional, historia económica Regional inequality, Spain, Regional growth, Economic history
    JEL: C21 O18 R0 N9 N64 F14
    Date: 2015–12
  5. By: Alex Trew (University of St Andrews)
    Abstract: Infrastructure development can affect the spatial distribution of economic activity and, by consequence, aggregate structural transformation and growth. The growth of trade and specialization of regions, in turn, affects the demand for infrastructure. This paper develops a model in which the evolution of the transport sector occurs alongside the growth in trade and output of agricultural and manufacturing firms. Simulation output captures aspects of the historical record of England and Wales over c.1710-1881. A number of counterfactuals demonstrate the role that the timing and spatial distribution of infrastructure development plays in determining the timing and pace of takeoff.
    Keywords: Industrial revolution, growth, transport, spatial development.
    JEL: H54 O11 O18 O33 N13 N93 R12
  6. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Sandra Kublina (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: We investigate persistence and change of the levels of regional new business formation in West Germany over a period of thirty years. Our indicator is the position of a region in the national ranking. As indicated by previous studies, we generally find a rather high level of persistence and confirm the role of several sources of this persistence, namely, persistence in regional determinants of new business formation, distinct regional cultures of entrepreneurship, and path dependence in new business formation activity. There are, however, also a number of regions that have moved up or down in the national ranking by a considerable number of positions. We find that main factors that are related to such rank changes are R&D activities, industry diversity, and regional wage levels.
    Keywords: Entrepreneurship, new business formation, economic development, regional growth regimes
    JEL: L26 R11 O11
    Date: 2016–01–04
  7. By: Nicolas DEBARSY; Jean-Yves GNABO; Malik KERKOUR
    Keywords: , IHS transformation, interactions, spatial panel data models, Sovereign wealth funds
    Date: 2016
  8. By: Zsofia Benedek (Institute of Economics - Centre for Economic and Regional Studies - Hungarian Academy of Sciences); Bálint Balazs (Environmental Social Science Research Group)
    Abstract: There is an increasing political interest in Hungary to relocalize food. A Policy Intervention for Food Relocalization Index is introduced to quantitatively reveal how rural development programme measures should be allocated efficiently to promote local food production. Results show that present level of food activity and future prospects mismatch. Eastern Hungary has the highest potential for further development as it has relatively high level of food activity and food production capacity. The few small-scale farmers operating in Budapest area have been already engaged in short food supply chains to enjoy the various benefits (and higher profit).
    Keywords: Policy Intervention for Food Relocalization Index; Rural Development Programme; local food systems; small-scale farmers; regional differences; quantitative analysis
    JEL: Q18 R12 R58
    Date: 2015–10
  9. By: Gokan, Toshitaka
    Abstract: This paper proposes a general equilibrium model of a monocentric city based on Fujita and Krugman (1995). Two rates of transport costs per distance and for the same good are introduced. The model assumes that lower transport costs are available at a few points on a line. These lower costs represent new transport facilities, such as high-speed motorways and railways. Findings is that new transport facilities connecting the city and hinterlands strengthen the lock-in effects, which describes whether a city remains where it is forever after being created. Furthermore, the effect intensifies with better agricultural technologies and a larger population in the economy. The relationship between indirect utility and population size has an inverted U-shape, even if new transport facilities are used. However, the population size that maximizes indirect utility is smaller than that found in Fujita and Krugman (1995).
    Keywords: Econometric model, Transportation, Urban societies, Urban system, Monopolistic competition, Transport facilities
    JEL: F12 O14 R12
    Date: 2016–01
  10. By: OKUBO Toshihiro; TOMIURA Eiichi
    Abstract: This paper attempts to show (i) under what circumstances corporate headquarters (HQs) are separated from production plants and (ii) what type of plants are operated by multi-plant firms. By analyzing Japanese plant-level panel data from manufacturing censuses, we find that large-sized plants or plants intensively purchasing materials significantly tend to be separated from HQs and become a part of multi-plant operations. This suggests a role of managerial capacity. We confirm the robustness of our main findings by the dynamic switching patterns of plant status. Economic geography, such as distance from core, also appears to have impact.
    Date: 2016–01

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