nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒07‒16
six papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. European Cities and Foreign Investment Networks By Riccardo Crescenzi; Kerwin Datu; Simona Iammarino
  2. Spatial development and agglomeration economies in services -- lessons from India By Ghani,Syed Ejaz; Grover,Arti; Kerr,William Robert
  3. Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry By Tsvetkova, Alexandra
  4. Regional Health Care Decentralization in Unitary States: Equal Spending, Equal Satisfaction? By Joan Costa-Font; Gilberto Turati
  5. Made in the world? By Sébastien Miroudot; Håkan Nordström
  6. Interregionale Effekte des Wirtschaftswachstums in der Ukraine und Polen By Levoshko, Tamila

  1. By: Riccardo Crescenzi; Kerwin Datu; Simona Iammarino
    Abstract: Although one of the core questions in the study of multinational enterprises (MNEs) has been typically that of where their different operations take place, the spatial dimension of MNE investments and functions is still relatively underexplored in the literature. This paper investigates the networks formed by Foreign Direct Investment (FDI) by applying network analysis techniques drawn from the world city network literature. Data is extracted from the fDi Markets database to describe and analyse the geography of FDI flows between a set of 3,500 cities and towns within the European Union (EU) Member States and their neighbourhood. The paper identifies hierarchical patterns of relations between different types of locations, and gains a finer-scaled appreciation of sectoral and functional specialisations of different regions within Europe.
    Date: 2016–07
  2. By: Ghani,Syed Ejaz; Grover,Arti; Kerr,William Robert
    Abstract: Although many studies consider the spatial pattern of manufacturing plants in developing countries, the role of services as a driver of urbanization and structural transformation is still not well understood. Using establishment level data from India, this paper helps narrow this gap by comparing and contrasting the spatial development of services with that in manufacturing. The study during the 2001-2010 period suggests that (i) services are more urbanized than manufacturing and are moving toward the urban and, by contrast, the organized manufacturing sector is moving away from urban cores to the rural periphery; (ii) manufacturing and services activities are highly correlated in spatial terms and exhibit a high degree of concentration in just a few states and industries; (iii) manufacturing in urban districts has a stronger tendency to locate closer to larger cities relative to services activity; (iv) infrastructure has a significant effect on manufacturing output, while human capital matters more for services activity; and lastly, (v) technology penetration, measured by the penetration of the Internet, is more strongly associated with services than manufacturing. Similar results hold when growth in activity is measured over the study period rather than levels. Manufacturing and services do not appear to crowd each other out of local areas.
    Keywords: E-Business,ICT Policy and Strategies,Knowledge Economy,Transport Economics Policy&Planning,Housing&Human Habitats
    Date: 2016–06–30
  3. By: Tsvetkova, Alexandra
    Abstract: This paper tests the effect of diversity, creativity and localized competition on firm formation in US computer and electronic product manufacturing within the knowledge spillover theory of entrepreneurship (KSTE) framework. Fixed effects instrumental variable estimation results support the KSTE contention of a positive relationship between knowledge and entrepreneurship. Industrial diversity and diversity of knowledge tend to promote endogenous firm entry, whereas evidence on other factors is mixed. This points to sensitivity of conclusions in the KSTE literature to regional and industrial environments and calls for caution in interpreting and generalizing findings obtained in various settings.
    Keywords: innovation, entrepreneurship, firm formation, knowledge spillover theory of entrepreneurship, computer and electronic product manufacturing
    JEL: O1 O3 R1 R11
    Date: 2016–04–19
  4. By: Joan Costa-Font (Department of Social Policy, London School of Economics and Political Science (LSE), UK); Gilberto Turati (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy)
    Abstract: Does regional decentralization threaten the commitment to regional equality in government outcomes? We attempt to shed light on this question by drawing on unique evidence from the largest European unitary states to have engaged in countrywide health system decentralization: Italy and Spain. We estimate, decompose, and run counterfactual analysis of regional inequality in government output (health expenditure per capita) and outcome (health system satisfaction) during expansion of health care decentralization in both countries. We find no evidence of increase in regional inequalities in outcomes and outputs in the examined period. Inequalities are accounted for by differences in health system design.
    Keywords: Health Care Decentralization, Regional Inequality, Health Care, Oaxaca Decomposition
    JEL: H7 I18 I3
    Date: 2016–06
  5. By: Sébastien Miroudot; Håkan Nordström
    Abstract: In the past five years, the concept of “global value chain” (GVC) has become popular to describe the way firms fragment production into different stages located in different economies. The “made in the world” narrative suggests that production today is global with inputs coming from all parts of the world before being assembled into final products also shipped all over the world. The empirical basis of this story has however been questioned, suggesting that supply chains are regional rather than global. In this paper we offer a comprehensive review of the evidence based on the World Input-Output Database (WIOD), including new indicators counting the number of domestic and foreign production stages, border crossings and geographic length of the supply chains. The study covers 1995 to 2011. All evidence points in the same direction. The made in the world narrative is correct as far as the direction is concerned, but we still have a long way to go. On average, globalization proceeds at 40 kilometres a year.
    Keywords: Fragmentation of production, vertical specialization, global value chain
    JEL: F14 L16 L23
    Date: 2015–09
  6. By: Levoshko, Tamila
    Abstract: Die vorliegende Studie untersucht erstmalig für die Ukraine und Polen, wie stark sich das Wirtschaftswachstum der räumlich benachbarten Regionen auf die Wachstumsrate einer Region auswirkt. Die empirische Analyse erfolgt für den Zeitraum 2004-2012 anhand des Instrumentalvariablenschätzers. Die Ergebnisse zeigen, dass es negative interregionale Wachstumseffekte in der Ukraine gibt, in Polen hingegen positive. Die Ergebnisse bleiben robust in Bezug auf die Spezifikation der räumlichen Gewichtungsmatrix. Zudem wird festgestellt, dass die räumlichen FDI-Spillover-Effekte einen Einfluss auf das regionale Wirtschaftswachstum in beiden untersuchten Ländern haben.
    Keywords: Economic Growth; Spatial Effects; FDI-Spillover-Effects; Spatial Weight Matrix; Ukraine; Poland; Transition
    Date: 2016–06–28

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