nep-geo New Economics Papers
on Economic Geography
Issue of 2017‒01‒01
thirteen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Firm structure and the location decision of German manufacturing firms: Evidence from official firm-level data By Krenz, Astrid
  2. Evidence on the Within-Industry Agglomeration of R&D, Production, and Administrative Occupations By Goldman, Benjamin; Klier, Thomas H.; Walstrum, Thomas
  3. Cities and the Structure of Social Interactions: Evidence from Mobile Phone Data By Konstantin Büchel und Maximilian von Ehrlich
  4. Ageing by feet? Regional migration, neighbourhood choice and local demographic change in German cities By Neumann, Uwe
  5. Regional Distribution and Dynamics of Human Capital in China 1985-2014: Education, Urbanization, and Aging of the Population By Haizheng Li; Junzi He; Qinyi Liu; Barbara M. Fraumeni; Xiang Zheng
  6. The valuation of changes in commuting distances: An analysis using georeferenced data By Dauth, Wolfgang; Haller, Peter
  7. Macro-geographic location and internet adoption in poor countries: What is behind the persistent digital gap? By Dohse, Dirk; Lim, Cheng Yee
  8. International knowledge flows and the administrative barriers to mobility By Sultan Orazbayev
  9. Scientific research, firm heterogeneity and foreign R&D locations of multinational firms By Rene Belderbos; Bart Leten; Shinya Suzuki
  10. New Indicators of Smart Specialization: A related diversification approach applied to European Regions By Artur Santoalha
  11. Conversion of regional data between NUTS classifications. Adapting the RHOMOLO database to different uses By Montserrat López-Cobo
  12. Regionalisation of Social Accounting Matrices for the EU-28 in 2010. A regional database for RHOMOLO at NUTS 2 level By Montserrat López-Cobo
  13. Abgrenzung und Typisierung ländlicher Räume By Küpper, Patrick

  1. By: Krenz, Astrid
    Abstract: This paper uses a comprehensive, official firm-level dataset for German manufacturing firms to investigate the location decision of new firm activity in the German regional economy, differentiated by firm structure. The rich regional dimension of this dataset is investigated for the first time in regard to the location choices of firms. Results reveal that agglomeration economies play a significant role for small firms, but not for medium-sized and large firms. Whereas the market potential exerts a significant positive impact for all firms, labor costs do not exert a significant impact on large firms' location decisions.
    Keywords: Firm location,Regional economy,Agglomeration economies
    JEL: R11 R12
    Date: 2016
  2. By: Goldman, Benjamin (Standford Institute for Economic Policy Research); Klier, Thomas H. (Federal Reserve Bank of Chicago); Walstrum, Thomas (Federal Reserve Bank of Chicago)
    Abstract: To date, most empirical studies of industrial agglomeration rely on data where observations are assigned an industry code based on classification systems such as NAICS in North America and NACE in Europe. This study combines industry data with occupation data to show that there are important differences in the spatial patterns of occupation groups within the widely used industry definitions. We focus on workers in manufacturing industries, whose occupations almost always fit into three groups: production, administrative, or R&D. We then employ two approaches to document the spatial distributions of each group within an industry. First, we calculate the distribution of employment shares across local labor markets and second, we calculate a version of the Duranton and Overman (2005) agglomeration index. Both approaches reveal appreciable differences in the spatial distribution of occupation groups within most manufacturing industries. These differences have important implications for our understanding of the sources of industrial agglomeration, the spatial agglomeration of innovation, the effectiveness of local economic development initiatives, and the spatial properties of particular industries.
    Keywords: Agglomeration; automobiles; manufacturing industries; labor markets; occupations
    JEL: J24 L6 L62 O10 R12
    Date: 2016–11–14
  3. By: Konstantin Büchel und Maximilian von Ehrlich
    Abstract: Social interactions are considered pivotal to urban agglomeration forces. This study employs a unique dataset on mobile phone calls to examine how social interactions differ across cities and peripheral areas. We first show that geographical distance is highly detrimental to interpersonal exchange. We then reveal that individuals residing in high-density locations do not benefit from larger social networks, but from a more efficient structure in terms of higher matching quality and lower clustering. These results are derived from two complementary approaches: Based on a link Formation model, we examine how geographical distance, network overlap, and sociodemographic (dis)similarities impact the likelihood that two agents interact. We further decompose the effects from individual, location, and time specific determinants on micro-level network measures by exploiting information on mobile phone users who change their place of residence.
    Keywords: Social Interactions; Agglomeration Externalities; Network Analysis; Sorting
    JEL: R1 R23 Z13 D85
    Date: 2016–12
  4. By: Neumann, Uwe
    Abstract: In countries with an ageing population, regional migration may accentuate local progress in demographic change. This paper investigates whether and to what extent diversity in ageing among urban neighbourhoods in Germany was reinforced by regional migration during the past two decades. The old-industrialised Ruhr in North Rhine- Westphalia serves as a case study representing an advanced regional stage in ageing. The analysis proceeds in two steps. First, variation in the pace of neighbourhood-level demographic change over the period 1998-2008 is examined using KOSTAT, an annual time series compiled by municipal statistical offices. Second, a discrete choice model of household location preferences is applied to study the underlying demographic sorting process. The second step draws on microdata from a representative population survey carried out in 2010. During the 1990s and 2000s, in contrast to earlier decades, age differentials in location preferences became more profound and city centres became more popular as residential location. Rapid "ageing by feet" now affects neighbourhoods, where the influx is low, particularly low-density housing areas of the outer urban zone. Neighbourhood-level demographic sorting proceeds at a somewhat slower pace in the Ruhr than in the more prosperous cities of the nearby Rhineland (Bonn, Cologne and Dusseldorf). In the process of regional adaptation to demographic change, greater diversity in the age structure of neighbourhood populations may turn out to be an advantage in the long-run competition over mobile households.
    Keywords: ageing,segregation,neighbourhood sorting,discrete choice
    JEL: C21 C25 O18 R23
    Date: 2016
  5. By: Haizheng Li; Junzi He; Qinyi Liu; Barbara M. Fraumeni; Xiang Zheng
    Abstract: Given the challenges in quantifying the role of human capital on economic development, measuring human capital itself becomes an important issue. It is desirable to have a comprehensive human capital measure that goes beyond the traditional measures based on education attainment, yet is relatively simple to obtain. In this study, we apply the Jorgenson-Fraumeni human capital measurement framework and modify it to estimate provincial level human capital in China. We produce a provincial level panel dataset from 1985 to 2014 that is ready to use, with various J-F based and traditional human capital measures. We then combine the provinces into four different regions that are at different stages of economic development and discuss the regional pattern and trend of human capital, as well as their correlation with other economic indicators such as GDP and physical capital. Moreover, we conduct a Divisia decomposition analysis to investigate the contribution of different factors, such as education, urbanization, population aging and gender composition, to the quantity and quality growth of human capital in each region.
    JEL: I25 O15 O18 O53 R12
    Date: 2016–12
  6. By: Dauth, Wolfgang (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Haller, Peter (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "We analyze the causal effect of commuting on wages, using a large sample of German job changers. Information on their home and workplace addresses in combination with road navigation software allows us to calculate exact door-to-door commuting distances with an unprecedented degree of precision. We use a theoretical model on spatial job search to motivate our empirical strategy. By focusing on job moves, we can use panel data techniques and control for unobserved individual heterogeneity. We find an asymmetric valuation of distance changes. Job changers value a reduction of their commuting distance higher than an increase. Apparently, individuals are not able to capitalize the full costs of commuting in their wages. A large part of this effect can be explained by sorting into certain firms at different distances and the rest by individual wage bargaining." (Author's abstract, IAB-Doku) ((en))
    JEL: J31 J64 R12 R40
    Date: 2016–12–20
  7. By: Dohse, Dirk; Lim, Cheng Yee
    Abstract: The paper investigates the determinants of Internet adoption in poor countries, focusing on the role of macro-geographic location (neighborhood). It is argued that neighboring countries are interconnected by various kinds of spillovers, including knowledge spillovers as well as spillovers of norms and attitudes that affect individual adoption behavior. The empirical findings support the view that Internet adoption is affected by adoption rates in neighboring countries, even when controlling for a wide range of covariates. Addressing potential endogeneity concerns using an instrumental variables approach moreover suggests these relationships to be causal. The findings imply that international policies to support Internet adoption in poor countries might be more effective if they target groups of neighboring countries rather than single countries in order to better exploit spillovers between neighboring countries.
    Keywords: internet adoption,poor countries,macro-geographic location,spillovers
    JEL: O30 L96 R10
    Date: 2016
  8. By: Sultan Orazbayev (University College London)
    Abstract: The literature on diffusion of knowledge has shown positive influence of physical and cultural proximity, common Language and contiguity on the speed and magnitude of international knowledge flows. Knowledge diffusion is also facilitated by co-location, even temporary one, which helps researchers form personal ties and exchange tacit information through face-to-face contact. However, the ability of researchers to disseminate the results of their work, especially recent or on-going research, through temporary co-location (including international conferences, workshops and seminars) will be affected by the administrative barriers to mobility (‘paper walls’), for example travel visas. This paper uses a gravity-style empirical model to examine the link between the administrative barriers to mobility of the skilled work- ers (and students) and the magnitude/direction of international knowledge flows between 45 countries from 1990 to 2014. Additional calculations use information on travel visa requirements between 134 countries in year 2004. The results suggest that higher administrative barriers to mobility between countries are associated with reduced bilateral knowledge flows, especially of recent knowledge, and this negative effect can persist for about 9 years. The persistent effect of ‘paper walls’ is asymmetric and a country’s ability to import knowledge is affected more by the administrative barriers of the knowledge-exporting country, suggesting that co-location plays an important role for successful transfer of knowledge.
    Keywords: visa; diffusion of knowledge; academic mobility; skilled workers; immigration policy
    JEL: F10 F29 O33 R10
    Date: 2016–12–22
  9. By: Rene Belderbos; Bart Leten; Shinya Suzuki
    Abstract: We examine the influence of host countries’ scientific research strengths on global R&D location choices by multinational firms. In an analysis of 277 new R&D activities identified for 175 firms in 40 host countries and 30 technology fields, we find that the strength of relevant university research positively affects the likelihood that host countries attract foreign R&D. When allowing for firm heterogeneity, university scientific research appears only a significant factor for firms with a strong science orientation in their R&D activities. Host countries’ corporate scientific research has no systematic influence on R&D location choices. Empirical results are replicated in an analysis at the regional level covering regions in Europe the US, and Japan.
    Keywords: R&D Internationalization, Knowledge sourcing, Absorptive capacity, Industry-science links
    Date: 2016–12
  10. By: Artur Santoalha (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway)
    Abstract: This paper proposes two new indicators of S3 (Smart Specialization) to investigate where different European regions stand in terms of this policy concept. The first indicator is designed to quantitatively rank regions in a given year, and the other is elaborated to capture the evolution of S3 over time. The suggested indexes are based on the concept of technological relatedness, and applied to the case of European regions (NUTS 2) by means of the OECD REGPAT database. The results suggest that the process of S3 is more developed in regions located at the core of the European continent, as well as in Northern European regions. In contrast, the regions located in Southern and Eastern Europe persistently present lower scores than other European regions.
    Date: 2016–12
  11. By: Montserrat López-Cobo (European Commission – JRC)
    Abstract: This technical report presents the methodology followed to transform regional data between different NUTS classifications in RHOMOLO, the regional computable general equilibrium model developed by the European Commission to evaluate the impact of Cohesion Policy. This method has been designed for the conversion between NUTS 2006 and NUTS 2010 in both directions, but the same philosophy could be extended to transform data between any pair of NUTS classifications. It has been applied to the construction of two regional databases for RHOMOLO-v2 in 2010, one covering the EU-27 regions according to NUTS 2006, the other for the EU-28 regions according to NUTS 2010.
    Keywords: NUTS, EU-28, regional database
    JEL: D57 E16 R10
    Date: 2016–12
  12. By: Montserrat López-Cobo (European Commission – JRC)
    Abstract: This paper presents the regionalisation methodology followed to build a regional database for RHOMOLO, the regional computable general equilibrium model developed by the European Commission to evaluate the impact of Cohesion Policy. This report describes the methodology used to develop two sets of regional Social Accounting Matrices for the EU-28 at NUTS 2 level, according to both the NUTS 2006 and the NUTS 2010 classifications. The starting point is the set of national SAMs developed for the model by à lvarez-Martínez and López-Cobo (2016). The national SAMs are subsequently regionalised by means of non-survey techniques using the available regional statistical data from Eurostat, inter-regional bilateral trade flows developed ad hoc for this project and inter-regional transport cost data from the TRANSTOOLS project. The initial regional data prepared for RHOMOLO v2 included only the EU-27 and NUTS 2006, but following the adhesion of Croatia to the European Union on January 1st 2013, in this paper we also include a national SAM and two regional SAMs for Croatia.
    Keywords: social accounting matrices, regional database, EU-28
    JEL: D57 E16 R12 R13
    Date: 2016–12
  13. By: Küpper, Patrick
    Abstract: In diesem Working Paper wird eine Methodik zur Abgrenzung und Typisierung ländlicher Räume entwickelt, um diese Räume anhand von Daten der amtlichen Statistiken beschreiben und analysieren zu können. Hierzu werden zwei Dimensionen definiert, jeweils mit mehreren Indikatoren operationalisiert und mit Hilfe einer Hauptkomponentenanalyse zu je einem Index aggregiert. Zum einen wird die Dimension Ländlichkeit genutzt, um ländliche von nicht-ländlichen Regionen abzugrenzen und um innerhalb dieser Raumkategorie zwischen eher ländlichen und sehr ländlichen Räumen zu unterscheiden. Die Ländlichkeit ist tendenziell umso ausgeprägter, je geringer die Siedlungsdichte, je höher der Anteil land- und forstwirtschaftlicher Fläche, je höher der Anteil der Ein- und Zweifamilienhäuser, je geringer das Bevölkerungspotenzial und je schlechter die Erreichbarkeit großer Zentren ist. Zum zweiten wird die Dimension sozioökonomische Lage verwendet, um die ländlichen Regionen in solche mit guter und weniger guter sozioökonomischer Lage auszudifferenzieren. Damit wird die Erkenntnis aufgegriffen, dass mit Ländlichkeit keineswegs automatisch sozioökonomische Problemlagen einhergehen. Durch die Kombination beider Dimensionen entstehen so neben dem nicht-ländlichen Raumtyp vier Typen. Im Ergebnis der Abgrenzung leben 57,2 % der Einwohner Deutschlands in ländlichen Räumen auf 91,3 % der Fläche. Die Bevölkerungsanteile der vier ländlichen Raumtypen sind relativ ausgeglichen und liegen zwischen ca. 11 und 16 %.
    Keywords: Ländlichkeit,sozioökonomische Lage,Strukturstärke bzw. -schwäche,Raumstrukturtypen,Siedlungsstruktur,Zentrenerreichbarkeit,Peripherie,Deutschland,rurality,socio-economic conditions,economic viability and weakness,spatial classification,settlement pattern,centrality,periphery,Germany
    JEL: I00 R12 R23 R5
    Date: 2016

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