nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒10‒09
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Classifying Industries Into Types of Relative Concentration By Ludwig von Auer; Andranik Stepanyan; Mark Trede
  2. Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities By Bas Karreman; Martijn J. Burger; Frank G. van Oort
  3. Innovation Policies and New Regional Growth Paths: A place-based system failure framework By Grillitsch, Markus; Trippl, Michaela
  4. Knowledge bases, multi-scale interaction and transformation of the Vienna medical cluster By Franz Tödtling; Tanja Sinozic; Alexander Auer
  5. Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: A tale of two regions By Wyrwich, Michael; Stuetzer, Michael; Sternberg, Rolf
  6. Trade Shocks and the Provision of Local Public Goods By Feler, Leo; Senses, Mine Zeynep
  7. Spatial structures of manufacturing clusters in Cambodia, Lao People's Democratic Republic, and Thailand By Gokan, Toshitaka; Kuroiwa, Ikuo; Laksanapanyakul, Nuttawut; Ueki, Yasushi
  8. Spatial patterns of manufacturing clusters in Vietnam By Gokan, Toshitaka; Kuroiwa, Ikuo; Nakajima, Kentaro; Sakata, Shozo
  9. Equilibrium and first-best city with endogenous exposure to local air pollution from traffic By Mirjam Schindler; Geoffrey Caruso; Pierre M. Picard

  1. By: Ludwig von Auer; Andranik Stepanyan; Mark Trede
    Abstract: When some industries are overrepresented in urban areas (urban concentration), some other industries must be overrepresented in rural areas (rural concentration). Existing measures of concentration do not distinguish between these different types of concentration. Instead, they rank industries according to their degree of concentration. However, knowing the concentration type is important, when investigating the forces of agglomeration that shape the geographical distribution of an industry. Therefore, the present paper proposes a new statistical approach that classifies each industry into one of seven different geographical patterns, five of which represent different types of concentration. The statistical identification of each industry’s geographical pattern is based on two Goodman-Kruskal rank correlation coefficients. The power of our approach is illustrated by German employment data on 613 different industries in 412 regions.
    Keywords: Geographical Concentration, Archetypes, Confidence Region, Goodman-Kruskal Coefficient
    JEL: R10 R12
    Date: 2016–09
  2. By: Bas Karreman (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands); Martijn J. Burger (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands); Frank G. van Oort (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands)
    Abstract: Overseas Chinese communities are an important determinant in the location choice of greenfield investments made by mainland Chinese multinational enterprises across European regions. Conceptually embedded in a relational approach, this effect is shown through an empirical analysis of an exhaustive set of investment projects across NUTS-1 regions in 26 European countries for the period 2003-2010. When controlling for endogeneity bias and the embeddedness of existing Chinese economic activity, we find that the importance of overseas communities in the location choices of Chinese firms is based on increased access to strategic information. Our results confirm that the relationship between the size of an overseas Chinese community and the probability of Chinese investment is stronger for communities hosting newer generations of Chinese migrants; in addition, they partially corroborate that this relationship is stronger when the education level of the community’s Chinese migrants is higher. Our findings are particularly robust in the context of knowledge-intensive sectors and high value-added functions.
    Keywords: Overseas Chinese communities; China; Europe; greenfield FDI; relational view
    JEL: F20 L20 R30
    Date: 2016–09–30
  3. By: Grillitsch, Markus (CIRCLE, Lund University); Trippl, Michaela (Department of Geography and Regional Research, University of Vienna)
    Abstract: Regional economies are increasingly facing the challenge to renew their economic structures and generate innovations that break existing development paths. This calls for new innovation policy approaches that are well equipped to foster the modernisation of existing industries and nurture the development of new ones. The aim of this chapter is to provide a comprehensive place-based system failure framework for an innovation policy design that is suitable to initiate and support economic renewal processes in different region-specific contexts. Our framework rests on three pillars. The first one draws a distinction between barriers that relate to rigidities of the current industrial, knowledge and institutional structures on the one hand and impediments that hinder the emergence of new development paths on the other hand. The second conceptual cornerstone differentiates between various forms of new path development, namely path upgrading, modernization, branching, importation and new path creation. Third, to capture varying regional characteristics, we distinguish between thin, thick and specialised and thick and diversified regions. Our conceptual discussion demonstrates that each region type suffers from particular combinations of barriers to structural change. This offers a sound basis for assessing which types of new path development are most likely to occur in thin, thick and specialised and thick and diversified regions and for identifying promising policy approaches to fashion regional structural change in various regional contexts.
    Keywords: regional innovation policy; place-based system failures; regional structural change; new regional industrial path development
    JEL: O33 O38 R11 R58
    Date: 2016–10–04
  4. By: Franz Tödtling; Tanja Sinozic; Alexander Auer
    Date: 2016
  5. By: Wyrwich, Michael; Stuetzer, Michael; Sternberg, Rolf
    Abstract: Studies on the influence of entrepreneurial role models (peers) on the decision to start a firm ar-gue that entrepreneurial role models in the local environment (1) provide opportunities to learn about entrepreneurial tasks and capabilities, and (2) signal that entrepreneurship is a favorable career option thereby reducing uncertainty that potential entrepreneurs face. However, these studies remain silent about the role of institutional context for these mechanisms. Applying an ex-tended sender-receiver model, we hypothesize that observing entrepreneurs reduces fear of fail-ure in others in environments where approval of entrepreneurship is high while this effect is signif-icantly weaker in low approval environments. Taking advantage of the natural experiment from recent German history and using data from the Global Entrepreneurship Monitor Project (GEM), we find considerable support for our hypotheses.
    Keywords: Fear of failure, role models, peer effect, entrepreneurial intentions, Global Entrepreneurship Mon-itor, East Germany
    JEL: D1 L26 M13 P20 R23 Z13
    Date: 2016
  6. By: Feler, Leo (Johns Hopkins University); Senses, Mine Zeynep (Johns Hopkins University)
    Abstract: We analyze the impact of trade-induced income shocks on the size of local government, and the provision of public services. Areas in the US with declining labor demand and incomes due to increasing import competition from China experience relative declines in housing prices and business activity. Since local governments are disproportionately funded through property and sales taxation, declining property values and a decrease in economic activity translate into less revenue, which constrains the ability of local governments to provide public services. State and federal governments have limited ability to smooth local shocks, and the impact on the provision of public services is compounded when local income shocks are highly correlated with shocks in the rest of the state. The outcome is greater inequality not only in incomes but also in the quality of public services and amenities across US jurisdictions.
    Keywords: trade shocks, housing prices, intergovernmental transfers, public finance, public goods
    JEL: F14 F16 H41 H70 R12 R23
    Date: 2016–09
  7. By: Gokan, Toshitaka; Kuroiwa, Ikuo; Laksanapanyakul, Nuttawut; Ueki, Yasushi
    Abstract: Examining the spatial structure of clusters is essential for deriving regional development policy implications. In this study, we identify the manufacturing clusters in Cambodia, the Lao People's Democratic Republic, and Thailand, using two indices—global extent (GE) and local density (LD)—as proposed by Mori and Smith (2013). We also analyze four different combinations of these indices to highlight the spatial structures of industrial agglomerations. Since industrial clusters often spread over administrative boundaries, the GE and LD indices—along with cluster mapping—display how the detected clusters fit into specific spatial structures.
    Keywords: Manufacturing industries, Industrial structure, Industrial agglomeration, Cluster analysis, Cambodia, Lao PDR, Thailand
    JEL: L60 R12 R14
    Date: 2016–09
  8. By: Gokan, Toshitaka; Kuroiwa, Ikuo; Nakajima, Kentaro; Sakata, Shozo
    Abstract: The formation of industrial clusters is critical for sustained economic growth. We identify the manufacturing clusters in Vietnam, using the Mori and Smith (2013) method, which indicates the spatial pattern of industrial agglomerations using the global extent (GE) and local density (LD) indices. Spatial pattern identification is extremely helpful because industrial clusters are often spread over a wide geographical area and the GE and LD indices—along with cluster mapping—display how the respective clusters fit into specific spatial patterns.
    Keywords: Manufacturing industries, Industrial structure, Industrial agglomeration, Cluster analysis, Vietnam
    JEL: L60 R12 R14
    Date: 2016–08
  9. By: Mirjam Schindler (IPSE, Université du Luxembourg); Geoffrey Caruso (IPSE, Université du Luxembourg); Pierre M. Picard (CREA, Université du Luxembourg, CORE Université catholique de Louvain)
    Abstract: Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technolo- gies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper com- pares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe.
    Keywords: residential choice, traffic-induced air pollution, localized pollution exposure, urban structure
    JEL: R11 R14 R41
    Date: 2016

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