nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒03‒17
seven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Exploring the Spatial Economy by Night By Bergs, Rolf
  2. The productivity effects of worker mobility between heterogeneous firms By Stockinger, Bastian; Wolf, Katja
  3. Resource rents, coercion, and local development : evidence from post-apartheid South Africa By Bastos,Paulo S. R.; Bottan,Nicolas Luis
  4. Adjustment methods of national input-output tables for harmonized and consistent multi-regional input-output databases By Inomata, Satoshi
  5. A Spatial SAR Model in Evaluating Influence of Entrepreneurship and Investments on Unemployment in Poland By Michal Bernad Pietrzak; Adam P. Balcerzak
  6. Do international flights promote FDI? : the role of face-to-face communication By Tanaka, Kiyoyasu
  7. The Impact of Stagnating Casino Revenues on State and Local Tax Receipts By Srinivasan, Arun; Lambert, Thomas

  1. By: Bergs, Rolf
    Abstract: Nocturnal satellite images may offer an interesting tool to generate socio-economically relevant data and to analyse the evolution of space, e.g. cities or rural areas, and how spatial units interact over time. So far, the major purpose of using night satellite images for economic analysis has been the search for proxies for production and population density in countries with insufficient and unreliable data infrastructure. This essentially applies to less developed countries where weak data infrastructure is often part of overall underdeveloped administrative capacities. Error variance of light emission is constant over space and independent from error in official statistics. In industrialised countries official socio-economic data are deemed sufficiently reliable, a reason why night satellite analysis has been more of relevance for developing countries. However, this only holds for purposes to derive proxies for production or population data. In fact, there is also reason to use this tool in the observation of (spatial) economic patterns and trends in the more industrialised countries. Observation of spatial distribution of rural areas, urban agglomerations, border areas or other spatial categories are to be mentioned. More importantly, underlying patterns of spatial heterogeneity, such as Zipf’s law, and spatial dependence (change of spatial autocorrelation over time) can be made visible - without distortion implied by (changing) administrative boundaries. The images analysed in this paper are satellite images of the National Oceanic and Atmospheric Administration (NOAA). The time series of nocturnal satellite imagery and the application of adequate image analysis software, such as ImageJ (in some cases to be complemented by further statistics software), provide a useful perspective for the analysis of spatial change. This paper is an essay with preliminary ideas for discussion; the approach is explorative-methodological rather than one putting an empirical focus on a defined research item.
    Keywords: Nocturnal satellite images; Image analysis; Spatial economy; Spatial dependence and heterogeneity
    JEL: R12
    Date: 2016–02–12
  2. By: Stockinger, Bastian (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Wolf, Katja (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Several empirical studies find that worker inflows from more productive or otherwise superior firms increase hiring firms' productivity. We conduct a similar analysis for Germany, using a unique linked employer-employee data set, and ranking sending and hiring establishments by their median wage. We find that inflows from superior (higher-paying) establishments do not increase hiring establishments' productivity, but inflows from inferior establishments seem to. Further analyses suggest this effect is due to positive selectivity of such inflows from their sending establishments. Our findings can be interpreted as evidence of a reallocation process by which the best employees of lower-paying establishments become hired by higher-paying establishments. This process reflects the increasingly assortative pattern of worker mobility in Germany, to which our findings suggest a micro-foundation at the establishment and worker levels." (Author's abstract, IAB-Doku) ((en))
    JEL: D24 J61 J62 R23
    Date: 2016–02–25
  3. By: Bastos,Paulo S. R.; Bottan,Nicolas Luis
    Abstract: This paper examines how the dismantling of coercive institutions associated with the end of apartheid in South Africa in 1994 affected the distribution of rents from natural resource exports. It identifies the interplay between coercive institutions and natural resource rents as an important driver of local development. Using data from the 1996 census, the paper documents large income gaps between communities located just-inside and just-outside the former self-governing territories set aside for black inhabitants. Examining relative changes between 1996 and 2011, the paper finds that spatial income convergence was considerably stronger among marginalized communities with higher initial exposure to resource rents. These results accord with standard bargaining theory in which the dismantling of coercive institutions improves the negotiating position of unionized workers in the mining industry.
    Keywords: Economic Theory&Research,Labor Policies,Emerging Markets,Housing&Human Habitats,Investment and Investment Climate
    Date: 2016–02–22
  4. By: Inomata, Satoshi
    Abstract: Despite the fact that input–output (IO) tables form a central part of the System of National Accounts, each individual country's national IO table exhibits more or less different features and characteristics, reflecting the country's socioeconomic idiosyncrasies. Consequently, the compilers of a multi-regional input–output table (MRIOT) are advised to thoroughly examine the conceptual as well as methodological differences among countries in the estimation of basic statistics for national IO tables and, if necessary, to carry out pre-adjustment of these tables into a common format prior to the MRIOT compilation. The objective of this study is to provide a practical guide for harmonizing national IO tables to construct a consistent MRIOT, referring to the adjustment practices used by the Institute of Developing Economies, JETRO (IDE-JETRO) in compiling the Asian International Input–Output Table.
    Keywords: Input-output tables, National accounts, International trade, Global value chains, MRIOT
    JEL: C67 F14
    Date: 2016–02
  5. By: Michal Bernad Pietrzak (Nicolaus Copernicus University, Poland); Adam P. Balcerzak (Nicolaus Copernicus University, Poland)
    Abstract: The research objective of the article is to analyse the impact of changes in the level of entrepreneurship and business investments on unemployment in Poland with the application of spatial econometrics methodology. A spatial SAR model was used to model unemployment, since this phenomenon exhibits the presence of positive spatial dependence. The research was done for 66 regions at NUTS 3 level for the year 2015. In order to provide interpretations of the results measures of average impact such as average direct impact, average indirect impact and average induced impact were applied. The obtained results indicate a positive impact of entrepreneurship and investment on decline in unemployment rate and improvement of Poland’s socio-economic situation.
    Keywords: spatial econometrics, SAR model, spatial dependence, unemployment, entrepreneurship, investments
    JEL: C21 E24
    Date: 2016–02
  6. By: Tanaka, Kiyoyasu
    Abstract: Air transportation facilitates face-to-face interactions across borders for the spatial expansion of manufacturing production. I investigate the impact of international flights on FDI entry by Japanese firms. I find that FDI entry significantly increases with the weekly frequency of flights from Japan, and the positive impact increases with a proxy for an intensity of face-to-face communication between the parent firm and foreign affiliate. The results are robust to estimation methods, additional control variables, and definitions of face-to-face communication. Thus, the results suggest that flights encourage FDI entry through a reduction in face-to-face communication costs.
    Keywords: Japan, Air transport, Foreign investments, Direct Flight, FDI, Face-to-Face Contact
    JEL: F21 F23 L9
    Date: 2016–02
  7. By: Srinivasan, Arun; Lambert, Thomas
    Abstract: In the aftermath of the Great Recession of 2007-2009, the popular press has noted a rebound in casino revenues in some states, and some expect casino revenues to grow and increase again along with any economic recovery. However, before the recent recession, there were trends indicating stagnation or a peak of casino revenues in most states, and as the last recession has indicated, casino revenues were not “recession-proof” as most had thought previously. In fact, casino revenues in most states saw big declines. In this paper, we show that the casino revenues have stagnated or declined partially due to a saturation point being reached with regard to casino gaming in many areas of the United States. The growth rate of casino revenues as well as the tax receipts for the state governments from casinos follows an ‘S’ curve which is similar to a product life cycle curve. The introduction of more gambling venues as well as putting in slot machines at race tracks may give a temporary boost to state gambling tax receipts, but longer run trends indicate that the years of casinos showing large gains in revenues may be over unless casino operations continue to re-invent themselves.
    Keywords: Casinos, Tax revenue, Life Cycle Theory, Regional Development
    JEL: H2 H27 R1 R11
    Date: 2015

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