nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒01‒29
six papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Are clusters more resilient in crises? Evidence from French exporters in 2008-2009 By Philippe Martin; Thierry Mayer; Florian Mayneris
  2. How Space Channels Wage Convergence: The Case of Russian Cities By Vera Ivanova
  3. Trade and The Spatial Distribution of Transport Infrastructure By Gabriel J. Felbermayr; Alexander Tarasov
  4. The Effects of Agro-clusters on Rural Poverty:A Spatial Perspective for West Java of Indonesia By Wardhana, Dadan; Ihle, Rico; Heijman, Wim
  5. Key dimensions of territorial cohesion. A review of existing sources of information on territorial cohesion By Jacek Zaucha
  6. Regional Spatial Changes in the Slovak Agriculture By BARTOVA, LUBICA; KONYOVA, VERONIKA

  1. By: Philippe Martin (Département d'économie); Thierry Mayer (Département d'économie); Florian Mayneris (Institut de recherches économiques et sociales)
    Abstract: Clusters have already been extensively shown to favor firm-level economic performance (productivity, exports, innovation etc.). However, little is known about the capacity of firms in clusters to resist economic shocks. In this paper, we analyze whether firms that agglomerate in clusters and firms that have been selected to benefit from the « competitiveness cluster » industrial policy, implemented in France in 2005, have performed better on export markets during the recent economic turmoil. We show that, on average, both agglomeration and the cluster policy are associated with a higher survival probability of firms on export markets, and conditioning on survival, a higher growth rate of their exports. However, these effects are not stronger during the 2008-2009 crisis; if anything, the opposite is true. We then show that this weaker resilience of competitiveness cluster firms is probably due to the fact that firms in clusters are more dependent on the fate of the « leader », i.e. the largest exporter in the cluster.
    Keywords: Clusters; Competitiveness clusters; Exports; Crisis; Resilience
    JEL: F1 R10 R11 R12 R15
    Date: 2016
  2. By: Vera Ivanova (National Research University Higher School of Economics)
    Abstract: Existing empirical work on the growth of Russian regions mostly covers a short time period and considers only regional-level data, while citylevel spatial data of the postreform era remain largely ignored. Using citylevel geocoded data covering 997 cities and towns from 1996 until 2013, I nd sigma- and betaconvergence across Russian cities in wages. City wages during the period under consideration display signicant and positive spatial autocorrelation. Spatial Durbin models of the Barro regression are estimated using Markov chain Monte Carlo methodology. Estimates of the spatial models for dierent weight matrices indicate that the city wage growth is signicantly aected by wage growth rates in neighboring cities, after conditioning on initial wages.
    Keywords: Russian cities, wages, convergence, spatial autocorrelation, spatial econometrics, Markov chain Monte Carlo.
    JEL: R12 O18
    Date: 2015
  3. By: Gabriel J. Felbermayr; Alexander Tarasov
    Abstract: The distribution of transport infrastructure across space is the outcome of deliberate government planning that reflects a desire to unlock the welfare gains from regional economic integration. Yet, despite being one of the oldest government activities, the economic forces shaping the endogenous emergence of infrastructure have not been rigorously studied. This paper provides a stylized analytical framework of open economies in which planners decide non-cooperatively on transport infrastructure investments across continuous space. Allowing for intra- and international trade, the resulting equilibrium investment schedule features underinvestment that turns out particularly severe in border regions and that is amplified by the presence of discrete border costs. In European data, the mechanism explains about a fifth of the border effect identified in a conventionally specified gravity regression. The framework sheds light on the welfare costs of second best investment schedules, on the effects of intercontinental trade or of privatized infrastructure provision.
    Keywords: Economic Geography;International Trade;Infrastructure Investment;Border Effect Puzzle
    JEL: F11 R42 R13
    Date: 2015–12
  4. By: Wardhana, Dadan; Ihle, Rico; Heijman, Wim
    Abstract: The agricultural sector plays an important role for rural economies. However, rural populations still face poverty as one main issue threating livelihoods. Regional concentration and specialization in agricultural production and processing is referred to as agro-clusters. These clusters might generate income possibilities so that rural poverty may be reduced. We empirically analyse this question by applying spatial econometric models because neighbouring regional economies are likely to influence each other. The analysis focuses on the 545 sub-districts of the West Java province of Indonesia where about 10% of the population live in poverty. Concentration of agricultural employment is found to have significant effects on poverty reduction in the sub-district as well as its neighbouring regions. Specialisation in agricultural output is also found to cause lower poverty rates. This implies that the government should support the regional specialization in agriculture. Based on the identification of the comparative advantage of each sub-district, the government should establish regional production nuclei in agriculture in order to boost the specialization. Care has to be taken of the spillover effects the policies will have for surrounding areas.
    Keywords: agricultural production, spatial concentration, spatial dependence, clusters, Agricultural and Food Policy,
    Date: 2015
  5. By: Jacek Zaucha (Institute for Development, Sopot, Poland, University of Gdansk, Faculty of Economics, Gdańsk, Poland)
    Abstract: The paper presents the results of the desk-based review of theories, trends and policies related to territorial cohesion with the focus on the latter one. It provides a critical examination of the past and ongoing policy discourse based on screening of the key policy documents, various projects (including ESPON ones) and results of scientific analysis. Separate section is devoted to models of territorial cohesion and attempts of their operationalization including measurement of this category or their components. The main result of the review is typology of practical application of the notion of territorial cohesion in policy making. The three main types of application of this notion have been identified:  Territorial cohesion as a process of integrating development policy towards various territorial units (e.g. via territorial keys, territorial monitoring, territorial impact assessment),  Territorial cohesion understood as a contribution of territorial assets to the economic growth (the efficiency of the territory – mainly economy of flows and territorial capital),  Territorial cohesion as a platform enabling inclusion of the specific objectives to development policies (such objectives as polycentricity spatial order etc.). The conclusions on the further research on territorial cohesion with regard to economic growth have been also formulated.
    Keywords: territorial cohesion, territorial capital, spatial integration measurement of territorial cohesion
    JEL: R11 R12 R58
    Date: 2015–08
    Abstract: This paper discusses the Slovak regional economy structural changes, development and factors of regional economic specialisation and geographic concentration of sectors with a focus on agriculture from 1995 to 2012. Specialization and sector geographic concentration were quantified by Herfindahl and Entropy indices. At the national level we found steadily growing share of crop production at the expense of animal production. Regional concentration of both, crop and animal production and animal production specialisation has been increasing. Spatial clusters of similar specialised regions were detected for crop production. Linear panel models were used to estimate the effect of selected factors on regional crop and animal production specialisation. The agricultural policy instruments, including the CAP had significant effect on regional crop and animal production specialisation patterns. Provision of the complementary national direct payments (CNDP) and investment support had positive effect on regional crop production diversification. Density of regional road network, average annual temperature in the growing season, average annual rainfall in the growing season and provision of the LFA payments had positive effect on both regional crop and animal production diversification.
    Keywords: agriculture, specialization, cluster, regions, econometric model, panel, CAP, Slovakia, Agricultural and Food Policy,
    Date: 2015

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