nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒08‒21
twelve papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Regional development in Spain 1989-2010: capital widening and productivity stagnation By Montes-Solla, Paulino; Faiña Medín, J. Andres; Lopez-Rodriguez, Jesus
  2. On the Geography of Global Value Chains By Pol Antràs; Alonso de Gortari
  3. Does labor supply modeling affect findings of transport policy analyses? By Hirte, Georg; Tscharaktschiew, Stefan
  4. Wage growth, urbanization, and firm characteristics: Evidence for Germany By Kelle, Markus
  5. The Distribution of Technological Activities in Europe: A Regional Perspective By Rinaldo Evangelista; Valentina Meliciani; Antonio Vezzani
  6. A Spatial Production Economy Explains Zipf’s Law for Gross Metropolitan Product By Watanabe, Hiroki
  7. Ethnic Drift and White Flight: A Gravity Model of Neighborhood Formation By Jessie Bakens; Raymond Florax; Peter Mulder
  8. Seaport Status, Access, and Regional Development in Indonesia By Muhammad Halley Yudhistira; Yusuf Sofyandi
  9. The Consequences of Gentrification: A Focus on Residents’ Financial Health in Philadelphia By Ding, Lei; Hwang, Jackelyn
  10. Smart Specialisation: Creating Growth through Trans-national co-operation and Value Chains By Age Mariussen; Ruslan Rakhmatullin; Lina Stanionyte
  11. Smart Specialization as an innovation-driven strategy for economic diversification: Examples from Scandinavian regions By Asheim, Bjørn; Grillitsch, Markus; Trippl, Michaela
  12. Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firm-level Evidence from Vietnam By Daniel Rais

  1. By: Montes-Solla, Paulino; Faiña Medín, J. Andres; Lopez-Rodriguez, Jesus
    Abstract: This paper analyses the different factors that explain the pattern of economic growth in Spain along the 1989-2010 period. The results of our analysis provide strong evidence of stagnation in productivity throughout most of the period under study. The large investments and the strong growth in capital stocks were practically absorbed by an intense process of job creation. As a consequence, the capital/labour ratio and labour productivity levels had a very low growth, whereas total factor productivity (TFP) decreased over the period of analysis. Therefore unlike other European countries, Spain did not experience a phenomenon of capital deepening with an increase in productivity. The intense GDP pc growth in Spain was of a rather "extensive" type, mainly based on a capital widening process.
    Keywords: Regional development, Infrastructures, Capital widening, Productivity stagnation, Total Factor Productivity
    JEL: R10 R11 R12 R13 R14
    Date: 2015–11–03
  2. By: Pol Antràs; Alonso de Gortari
    Date: 2016–01
  3. By: Hirte, Georg; Tscharaktschiew, Stefan
    Abstract: The transport and urban economics literature applies different labor supply approaches when studying economic or planning instruments. Some studies assume that working hours are endogenous while the number of workdays is given, whereas others model only decisions on workdays. Unfortunately, empirical evidence does hardly exist on account of missing data. Against this background, we provide an assessment of whether general effects of transport policies are robust against the modeling of leisure demand and labor supply. We introduce different labor supply approaches into a spatial general equilibrium model and discuss how they affect the welfare implication of congestion policies. We, then, perform simulations and find that in many cases the choice of labor supply modeling not only affects the magnitude of the policy impact but also its direction. While planning instruments are suggested to be quite robust to different labor supply approaches, the way of modeling labor supply may crucially affect the overall welfare implications of economic instruments such as congestion tolls. Based on these findings it becomes clear which labor supply approach is the most appropriate given specific conditions. Our study also emphasizes the need for better micro labor market data that also feature days of sickness, overtime work used to reduce workdays, the actual number of leave days, part-time work, days with telecommuting etc.
    Keywords: Public Economics,Tax Efficiency,Time Allocation,Labor Supply,Pigouvian,Tax,Environmental Economics,Urban Economics,Spatial Economics,Regional Welfare,Land-Use,Zoning,CGE,Spatial Economics,Spatial Modeling,Transportation
    JEL: H2 H3 J22 Q5 R1 R4 R5
    Date: 2015
  4. By: Kelle, Markus
    Abstract: I use German administrative data for 2001-2010 to analyse the impact of urbanization and firm characteristics on wage growth of workers. I find a statistically highly significant higher within-job wage growth rate for workers in counties with a higher population density. This provides evidence that workers' productivity growth is higher in denser regions, which could be explained by faster learning or human capital accumulation of workers. However, this effect turns insignificant once I account for the number of employees of the workers' firms, the share of highly educated workers in the firm and wagelevel firm fixed effects. This indicates that such a learning effect may occur rather within firms than between workers in a region. Beyond this, the paper presents evidence that workers in denser areas also benefit more from job changes within counties. One reason for that is that workers in denser regions match more often with high-wage firms. Furthermore, I find evidence that also the efficiency of the worker-firm matches is higher in denser areas.
    Abstract: Ich verwende deutsche administrative Arbeitsmarktdaten für die Jahre 2001 bis 2010, um den Einfluss von Urbanisierung und Firmeneigenschaften auf das Lohnwachstum von Arbeitern zu analysieren. Hierbei identifiziere ich ein signifikant höheres Lohnwachstum innerhalb des gleichen Jobs für Arbeiter in Regionen mit einer höheren Bevölkerungsdichte. Dies stellt Evidenz dafür dar, dass das Produktivitätswachstum für Arbeiter in dichter besiedelten Gebieten höher ist, was durch ein schnelleres Lernen oder Akkumulieren von Humankapital erklärt werden kann. Jedoch wird dieser Effekt insignifikant, wenn ich die Anzahl der Arbeitnehmer pro Firma, den Anteil der Arbeiter mit hohem Bildungsgrad in der Firma und "Fixed Effects" für das Lohnniveau der Firma berücksichtige. Dies deutet daraufhin, dass ein solcher Lerneffekt eher innerhalb von Firmen auftritt anstatt zwischen Arbeitern innerhalb einer Region. Darüber hinaus zeigt das Papier Evidenz dafür, dass Arbeiter in dichter besiedelten Gebieten ebenso mehr von Jobwechseln innerhalb eines Kreises profitieren. Ein Grund hierfür ist, dass Arbeiter in urbaneren Regionen häufiger zu Hochlohnfirmen wechseln. Des Weiteren finde ich Evidenz dafür, dass die Effizienz der Arbeiter-Firma-Paare in dichter besiedelten Gebieten höher ist.
    Keywords: wage growth,learning,urbanization,firm characteristics
    JEL: R11 R23 J24
    Date: 2016
  5. By: Rinaldo Evangelista (University of Camerino); Valentina Meliciani (University of LLUIS Carli); Antonio Vezzani (European Commission – JRC)
    Abstract: This study analyses the major patterns and trends in the spatial distribution of technological capacities in the EU area over the 1996-2011 period, adopting a regional perspective. More specifically, the study aims at: a) assessing the level of technological polarization in the EU area and its dynamics; b) highlighting major changes in the patterns of technological specialization of EU regions; c) identifying the technological trajectories that have been more effective, that is able to sustain long-term economic growth and facilitate catching-up processes of EU laggard regions.
    Keywords: technological specialization, technical change, regions, innovation
    Date: 2016–08
  6. By: Watanabe, Hiroki
    Abstract: This paper provides a theoretical and empirical analysis of the distribution of GDP at city level (henceforth referred to as gross metropolitan product, GMP) with the aim of bridging the gap betwen the literature on agglomeration economies and the city-size distribution. We show that 1) it shares the same characteristics to the city-size counterpart: They are both fat-tailed, and 2) a 1% increase in employment leads to a 1.117% (or 1.180% in theory) increase in GMP. Free mobility of household forces a city to operate at the size where scale economies are present, or else, the city cannot offset the reduced housing consumption and increased congestion due to crowding set off by agglomeration economies, and loses its population and GMP to elsewhere. We establish a production economy model to break down the interplay above and derive the equilibrium GMP distribution, which tests well with the US data on GMP.
    Keywords: Zipf’s Law, Gibrat’s Law, GDP by City, Production Economy
    JEL: D51 E2 R12
    Date: 2015–11–05
  7. By: Jessie Bakens (OIS, Municipality of Amsterdam, the Netherlands); Raymond Florax (Purdue University, United States; VU University Amsterdam, the Netherlands); Peter Mulder (VU University Amsterdam, the Netherlands)
    Abstract: Ethnicity has become an increasingly important factor in neighborhood formation in many developed economies. We specify a gravity model for neighborhoods to assess the role of ethnicity in intra-urban residential relocations. Migration patterns of different ethnic groups are hypothesized to depend on bilateral socioeconomic, demographic and ethnic differences between origin and destination neighborhoods. We account for heterogeneous and interdependent location preferences of natives and several immigrant groups. In addition, we incorporate friction measures of ethnic population shares and a diversity indicator to allow for nonlinear and asymmetric effects of the population composition on ethnic sorting and spatial clustering. We utilize a unique micro data set of place-to-place migrants across neighborhoods in the urban agglomerations of Amsterdam and The Hague, in The Netherlands. Our results provide evidence of ethnic drift leading to clustering of ethnic minority groups and "white flight" of native Dutch residents. Taken together, our findings suggest a preference for living among people of one's own ethnic group, but in a sufficiently diverse neighborhood. We discuss ways to extend and apply our gravity approach to further analyze intra-urban residential relocation flows.
    Keywords: neighborhood formation; ethnicity; diversity; immigrants; gravity model
    JEL: C21 F22 J15 J61 R23
    Date: 2016–08–18
  8. By: Muhammad Halley Yudhistira (Institute for Economic and Social Research (LPEM), School of Economics and Business, University of Indonesia); Yusuf Sofyandi (Institute for Economic and Social Research (LPEM), School of Economics and Business, University of Indonesia)
    Abstract: As the biggest archipelago nation, Indonesia considers port infrastructure one of the most important infrastructures in bolstering the regional economic development. In this paper, we study the impacts of access to the existing port infrastructure on regional development, i.e. income per capita, productivity, and poverty at district level in Indonesia. While other similar studies use the size of seaport, we argue that the access may be much more important. Additionally, using access variable accommodates spillover effect of the seaport for landlocked district. We define access to the nearest port as the shortest distance of the respective district to the nearest port. Our estimation results show that proximity to the main ports provides positive effect on GDP per capita, labor productivity, poverty rate, and poverty rate. We also find the importance of ports may vary between Java and non-Java regions.Length: 14 pages
    Keywords: seaport status, distance, regional economic development, seaport access, Indonesia
    Date: 2016–05
  9. By: Ding, Lei (Federal Reserve Bank of Philadelphia); Hwang, Jackelyn (Princeton University)
    Abstract: There have been considerable debate and controversy about the effects of gentrification on neighborhoods and the people residing in them. This paper draws on a unique large-scale consumer credit database to examine the relationship between gentrification and the credit scores of residents in the City of Philadelphia from 2002 to 2014. We find that gentrification is positively associated with changes in residents’ credit scores on average for those who stay, and this relationship is stronger for residents in neighborhoods in the more advanced stages of gentrification. Gentrification is also positively associated with credit score changes for less advantaged residents (low credit score, older, or longer term residents, and those without mortgages) if they do not move, though the magnitude of this positive association is smaller than for their more advantaged counterparts. Nonetheless, moving from gentrifying neighborhoods is negatively associated with credit score changes for less advantaged residents, residents who move to lower-income neighborhoods, and residents who move to any other neighborhoods within the city (instead of outside the city) relative to those who stay. The results demonstrate how the association between gentrification and residents’ financial health is uneven, especially for less advantaged residents.
    Keywords: Gentrification; Credit scores; Residential mobility
    JEL: D14 J11 J6 R23
    Date: 2016–07–29
  10. By: Age Mariussen (University of Vaasa); Ruslan Rakhmatullin (European Commission - JRC); Lina Stanionyte (European Commission - JRC)
    Abstract: S3 begins within a region/country by exploiting place-based expertise and industrial skills within the regional innovation eco-system. The paper refers to emerging research which indicates that some regions suffer from insufficient innovation eco-system complexity, followed by sub-optimal innovation performances and path lock-in. This indicates that regional innovation eco-systems could be further strengthened through transnational learning and collaboration. Several major forms of collaboration are identified. The paper suggests that macro-regional and trans-European smart specialisation strategies could be based on multi-level approaches to experimentally extend and strengthen regional innovation eco-systems. In order to achieve robust and long-lasting outcomes, these experiments could apply some existing S3 tools. Here, an important issue is the transition from temporary programmes, projects and networks to new institutional frameworks for co-evolution and collaboration between smart specialised regions. The next important step is to exploit the European diversity identified through regional RIS3 strategies. The long-term challenge is the strengthening of emergent European and macro-regional systems of innovation, and thus supporting the regions.
    Keywords: policy analysis; R & D; research; collaboration; policy; innovation; ecosystem
    Date: 2016–08
  11. By: Asheim, Bjørn (University of Stavanger); Grillitsch, Markus (CIRCLE, Lund University); Trippl, Michaela (CIRCLE, Lund University)
    Abstract: This book chapter provides conceptual and empirical foundations for smart specialisation, a policy approach of far-reaching importance in the European context. We interpret the very notion as “diversified” specialisation into areas of existing or potential competitive advantage, which differentiates a region/nation from others. “Smart” relates to the identification of these areas through a process of entrepreneurial discovery, in which all actors are mobilized to be able to discover domains for securing existing and future competitiveness. Competitive advantage through smart specialization can be promoted in all types of industries but based on the industry specific modes of innovation and knowledge bases, which is illustrated through case studies in Denmark, Sweden, and Norway. Depending on the preconditions, we find that variegated strategies of smart specialisation are pursued, including building the absorptive capacity of DUI based firms by increasing their research based competence (introducing analytical knowledge), combining unrelated knowledge bases to move into new related and unrelated industries, combining related knowledge bases to move into unrelated industries, and moving into high-value added niches by introducing symbolic knowledge in traditional sectors.
    Keywords: Smart specialisation; policy; innovation; economic diversification; entrepreneurial discovery; knowledge bases; new path development; competitive advantage; regions
    JEL: O18 O30 O38 P48 R10 R58
    Date: 2016–08–12
  12. By: Daniel Rais
    Abstract: SECO Working Paper No. 10/2016 by Stephan Kyburz and Huong Quynh Nguyen
    Date: 2016–08–16

This nep-geo issue is ©2016 by Andreas Koch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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