nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒09‒11
eleven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Agglomeration economies: the heterogeneous contribution of human capital and value chains By Dario Diodato; Frank Neffke,; Neave O’Clery
  2. Can we learn anything from economic geography proper? Yes, we can! By Robert Hassink, Huiwen Gong, Fabian Faller; Huiwen Gong,; Fabian Faller
  3. Related trade linkages, foreign firms, and employment growth in less developed regions By Zoltán Elekes; Balázs Lengyel
  4. The Dispersed Multinational: Does Connectedness Across Spatial Dimensions Lead to Broader Technological Search? By Thomas J. Hannigan; Alessandra Perri; Vittoria Giada Scalera
  5. Knowledge Composition, Jacobs Externalities and Innovation Performance in European Regions By Antonelli, Cristiano; Crespi, Francesco; Mongeau, Christian; Scellato, Giuseppe
  6. Is there trickle-down from tech? Poverty, employment and the high-technology multiplier in US cities By Neil Lee; Andrés Rodríguez-Pose
  7. Spatial Equilibrium Approach to the Analysis of Income Differentials Across Russian Cities By Alexander S. Skorobogatov
  8. Measuring how the knowledge space shapes the technological progress of European regions By Silvia Rita Sedita; Ivan De Noni; Roberta Apa; Luigi Orsi
  9. Measuring Regional Ethnolinguistic Diversity in Sub-Saharan Africa: Surveys vs. GIS By Boris Gershman; Diego Rivera
  10. Application of TOPSIS Method in Condition of the Presence of Spatial Dependence By Michal Bernard Pietrzak
  11. Incomplete geocoding and spatial sampling: the effects of locational errors on population total estimation By Maria Michela Dickson; Giuseppe Espa; Diego Giuliani

  1. By: Dario Diodato; Frank Neffke,; Neave O’Clery
    Abstract: We document the heterogeneity across sectors in the impact labor and input-output links have on industry agglomeration. Exploiting the available degrees of freedom in coagglomeration patterns, we estimate the industry-specific benefits of sharing labor needs and supply links with local firms. On aggregate, coagglomeration patterns of services are at least as strongly driven by input-output linkages as those of manufacturing, whereas labor linkages are much more potent drivers of coagglomeration in services than in manufacturing. Moreover, the degree to which labor and input-output linkages are reflected in an industry’s coagglomeration patterns is relevant for predicting patterns of city-industry employment growth.
    Date: 2016–08
  2. By: Robert Hassink, Huiwen Gong, Fabian Faller; Huiwen Gong,; Fabian Faller
    Abstract: Since the launch of new economic geography by Paul Krugman there have been intensive debates between geographical economists and economic geographers both about the ways they differ from each other as well as about potential complementarities. Overman’s (2004) provocative article, titled “can we learning anything from economic geography proper?” has been not very helpful in developing the latter. By responding to his core critiques we provide a much more positive answer to his question, do justice to economic geography and show more complementarities between geographical economics and economic geography.
    Date: 2016–08
  3. By: Zoltán Elekes; Balázs Lengyel
    Abstract: How does international trade of foreign-owned companies contribute to regional economic growth in less developed regions? Are there knowledge externalities at play between co-located trade activities of foreign and domestic firms? We address the above questions by analysing the impact of technological relatedness of regional import and export activities in manufacturing, performed by foreign and domestic companies on regional employment growth in Hungary between 2000 and 2012. Results suggest that the related variety of export activities and the relatedness between import and export products benefits regional employment growth in general, while the host economy benefits more from the technological relatedness of domestic firms’ trade activities, rather than relatedness to or between foreign firms’ activities. Employment of domestic firms benefits from the trade activity of co-located foreign firms only if it is in the same product class.
    Date: 2016–08
  4. By: Thomas J. Hannigan (Strategic Management Department, Fox School of Business, Temple University); Alessandra Perri (Dept. of Management, Università Ca' Foscari Venice); Vittoria Giada Scalera (Amsterdam Business School, University of Amsterdam)
    Abstract: The multinational enterprise (MNE) is the superior form of organization to play arbitrageur of country differences, particularly with respect to high knowledge activities. To this end, extant IB literature has devoted significant efforts to the transfer of knowledge across countries via local embeddedness. However, in a modern business environment characterized by dispersed value chain activities and falling spatial transaction costs, collaborative innovation relationships may be far more complex. In this paper, we argue that the connectedness of inventor networks Ð rather than knowledge spillovers - may transcend requirements of local embeddedness and serve as a crucial source of new ideas and exploration into new technologies. Further, we posit that these collaborations stem out of locations at the subnational level, such as cities, and fall along the somewhat orthogonal dimensions of foreign and domestic connections. Finally, we argue that the operational footprint of the firm serves as a positive moderator on the impact of connectedness on technological exploration.
    Keywords: Innovation, Economic Geography, Regional Innovation, Connectedness, Clusters, Multinational Enterprises (MNEs)
    JEL: M16 O32
    Date: 2016–09
  5. By: Antonelli, Cristiano; Crespi, Francesco; Mongeau, Christian; Scellato, Giuseppe (University of Turin)
    Abstract: This paper analyses the role of the composition of the regional stock of knowledge in explaining innovation performance. The paper provides three main contributions. First, it investigates the relevance of Jacobs knowledge externalities in characterizing the technological capabilities at the regional level. Second, it applies the Hidalgo-Hausmann (HH) methodology to analyze knowledge composition by looking at patent data of 214 regions, located in 27 state members of the European Union (EU) during the years 1994- 2008. Third, it econometrically assesses the role of knowledge base composition in a knowledge generation function. The results of the empirical analysis confirm that the characterization of regional knowledge base through the HH indicators provides interesting information to understanding its composition and to qualify it as a provider of the Jacobs knowledge externalities that account for the dynamics of regional innovative performance.
    Date: 2016–07
  6. By: Neil Lee; Andrés Rodríguez-Pose
    Abstract: High-technology industries are seen as important in helping urban economies thrive, but at the same time they are often considered as potential drivers of relative poverty and social exclusion. However, little research has assessed how high-tech affects urban poverty and the wages of workers at the bottom of the pyramid. This paper addresses this gap in the literature and investigates the relationship between employment in high-tech industries, poverty and the labor market for non-degree educated workers using a panel of 295 Metropolitan Statistical Areas (MSAs) in the United States between 2005 and 2011. The results of the analysis show no real impact of the presence of high-technology industries on poverty and, especially, extreme poverty. Yet there is strong evidence that tech-employment increases wages for non-degree educated workers and, to a lesser extent, employment for those without degrees. These results suggest that while tech employment has some role in improving welfare for non-degree educated workers, tech-employment alone is not enough to reduce poverty.
    Date: 2016–08
  7. By: Alexander S. Skorobogatov (National Research University Higher School of Economics)
    Abstract: This paper discusses a mechanism underlying the input allocations and income distributions across Russian cities of different ages. The empirical strategy is based on using the extended version of the Glaeser-Gottlieb model to guide the interpretation of regression estimates. The results are in line with previous evidence. Newer cities tend to pay higher real wages, but this is offset by pure consumption amenities. Their opportunities to pay more are related to their productivity advantages resulting from their higher shares of skilled workforce, and more available natural resources. At the same time, these advantages and disadvantages tend to disappear with time, which gives rise to the income convergence.
    Keywords: exhaustible resources, urban development, consumer amenities
    JEL: R12 Q32 O13
    Date: 2016
  8. By: Silvia Rita Sedita; Ivan De Noni; Roberta Apa; Luigi Orsi
    Abstract: This work aims to investigate the features of the regional knowledge space that are more likely to be conducive to technological progress (TP), either in terms of dimension and relevance. We acknowledge the importance of knowledge assets for new knowledge production and we identify more or less path dependent processes that allow a region to be more competitive in terms of innovation potential. In particular, adopting an evolutionary view of regional development, we consider a regional knowledge space as composed of a knowledge base (KB) and a selection environment (SE), which differently affect the technological progress of the region. Empirical evidence come from a quantitative analysis of 269 European regions, whose data are included in the RegPat database. Results show that the variety of KB impacts positively on the technological progress at large. The variety of SE impacts positively only on the technological progress in terms of relevance, while the size of the SE impacts positively only on the quantitative side of the technological progress. Unrelated variety of KB and SE affects technological progress more widely than their correspondent related variety indicators.
    Date: 2016–08
  9. By: Boris Gershman; Diego Rivera
    Abstract: This paper compares two approaches to measuring subnational ethnolinguistic diversity in Sub-Saharan Africa, one based on censuses and large-scale population surveys and the other relying on the use of geographic information systems (GIS). The two approaches yield sets of regional fractionalization indices that are moderately positively correlated, with a stronger association across rural areas. These differences matter for empirical analysis: in a common sample of regions, survey-based indices of deep-rooted diversity are much more strongly negatively associated with a range of development indicators relative to their highest-quality GIS-based counterparts.
    Keywords: African development, ethnolinguistic diversity, GIS, subnational analysis
    JEL: O10 O15 Z13
    Date: 2016
  10. By: Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland)
    Abstract: The theme of the paper is focused on the application TOPSIS method in condition of the presence of spatial dependence. The occurrence of positive spatial dependence is embedded in the majority of economic phenomena. According to Tobler’s first law of geography, one of the key issues in doing the regional research is considering spatial location. Failure to consider the existing spatial dependence for the analysed phenomena can lead to cognitive errors. Therefore the purpose of this article is to take into account the issue of the consideration of spatial dependence within the TOPSIS method. The realisation of the objective set in the present article allowed the development of the procedure for constructing the spatial taxonomic measure of development sTMD using the TOPSIS method. Spatial dependence will be taken into account by using the potential strength of the interaction between the regions. The spatial taxonomic measure of development (sTMD) calculated by means of the modified TOPSIS method allows to determine the trend in the level of the development of the phenomenon under study, assuming the impact of the spatial mechanisms.The spatial taxonomic measure of development (sTMD) defined in that way has been applied in the analysis of the situation on the labour market in Poland. The study will be carried out for the territo-rial composition of 66 subregions (NUTS 3 level) as of 2013. The research allowed us to assess the situation in 2013 and to identify the trend in the development of the labour market. The analysis appointed to the usefulness of the proposed measure sTMD, which is complementary to the use of the others taxonomic measure in the process of explaining the economic reality. The use of the spatial taxonomic measure of development allows expanding the results by conclusions concerning the trend in development of the analysed phenomenon.
    Keywords: numeric taxonomy, TOPSIS, Taxonomic Measure of Development, spatial econometrics, spatial dependence
    JEL: C21 J01 O10
    Date: 2016–09
  11. By: Maria Michela Dickson; Giuseppe Espa; Diego Giuliani
    Abstract: Due to the increasing availability of georeferenced microdata in several fields of research, surveys can benefit greatly from the use of the most recent spatial sampling methods. These methods allow to select spatially balanced samples, which lead to particularly efficient estimates, by incorporating the distances among the exact locations of statistical units into the design. Unfortunately, since locations of units are rarely exact in practice due to imperfections in the geocoding processes, the implementation of spatial sampling designs is actually often limited. This paper aims at demonstrating that spatial sampling designs can be implemented even when spatial information is not completely accurate. In particular, by means of a Montecarlo sampling simulation study about the estimation of water pollution, it is proved that the use of spatial sampling methods still lead to more spatially balanced samples, and more efficient estimates, also when the geocoding of population is not exact.
    Keywords: GPS uncodified, Locational Accuracy, Spatial Sampling Methods, Estimation
    Date: 2016

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