nep-geo New Economics Papers
on Economic Geography
Issue of 2017‒05‒28
seven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. The Economic Microgeography of Diversity and Specialization By Andersson, Martin; Larsson, Johan P.; Wernberg, Joakim
  2. Growth and Agglomeration in the Heterogeneous Space: A Generalized AK Approach By Raouf BOUCEKKINE; Giorgio FABBRI; Salvatore FEDERICO; Fausto GOZZI
  3. How local are labor markets? Evidence from a spatial job search model By Alan Manning; Barbara Petrongolo
  4. New Road Infrastructure: The Effects on Firms By Stephen Gibbons; Teemu Lyytikäinen; Henry Overman; Rosa Sanchis-Guarner
  5. Local Institutional Quality and Return Migration: Evidence from Vietnam By Ngoc Thi Minh Tran; Michael P. Cameron; Jacques Poot
  6. Analysis of energy use efficiency in Japanese factories:Industry agglomeration effect for energy efficiency By Kenta Tanaka; Shunsuke Managi
  7. Les Stratégies Régionales d’Innovation de « spécialisation intelligente » en Europe (Smart Specialization Strategies) : Dynamiques territoriales endogènes et institutions exogènes By Philippe Lefebvre

  1. By: Andersson, Martin (Blekinge Institute of Technology); Larsson, Johan P. (Swedish Entrepreneurship Forum); Wernberg, Joakim (CIRCLE)
    Abstract: As cities increasingly become centers of economic growth and innovation, there is a need to understand their inner workings and organization in greater detail. We use ge-coded firm-level panel data at the sub-city level to assess the long-standing question whether agglomeration economies derive from specialization (within-industry) or diversity (between-industry). We show that these two types of externalities co-exist, but differ in their spatial distribution and attenuation within cities. There are robust positive effects of diversity and specialization on firms’ TFP growth at the local within-city neighborhood level, especially for firms in high-tech and knowledge-intensive activities. While specialization effects are bound to the local sub-city level, we demonstrate a positive effect of overall diversity also at the city-wide level. The results resonate with the idea that urban economies provide a mix of industrial diversity and specialisation. A location in a within-city industry cluster in a diversified, large city appears to let firms enjoy the benefits of local industry-specific externalities, while reaping the general city-wide benefits of a diversified city.
    Keywords: Productivity; Diversity; Specialization; Externalities; Knowledge spillovers; Attenuation; Agglomeration economies; Geocoding
    JEL: D24 L23 R12
    Date: 2017–05–10
  2. By: Raouf BOUCEKKINE (Aix-Marseille University (Aix-Marseille School of Economics and IMéRA), CNRS and EHESS); Giorgio FABBRI (Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS); Salvatore FEDERICO (Università degli Studi di Siena, Dipartimento di Economia Politica e Statistica); Fausto GOZZI (Dipartimento di Economia e Finanza, LUISS Guido Carli, Roma)
    Abstract: Abstract. We provide with an optimal growth spatio-temporal setting with capital accumulation and diffusion across space in order to study the link between economic growth triggered by capital spatio-temporal dynamics and agglomeration across space. We choose the simplest production function generating growth endogenously, the AK technology but in sharp contrast to the related literature which considers homogeneous space, we derive optimal location outcomes for any given space distributions for technology (through the productivity parameter A) and population. Beside the mathematical tour de force, we ultimately show that agglomeration may show up in our optimal growth with linear technology, its exact shape depending on the interaction of two main effects, a population dilution effect versus a technology space discrepancy effect.
    Keywords: Growth, agglomeration, heterogeneous and continuous space, capital mobility, infinite dimensional optimal control problems
    JEL: R1 O4 C61
    Date: 2017–03–28
  3. By: Alan Manning; Barbara Petrongolo
    Abstract: This paper models the optimal search strategies of the unemployed across space to characterize local labor markets. Our methodology allows for linkages between numerous areas, while preserving tractability. We estimate that labor markets are quite local, as the attractiveness of jobs to applicants sharply decays with distance. Also, workers are discouraged from searching in areas with strong job competition from other jobseekers. However, as labor markets overlap, a local stimulus or transport improvements have modest effects on local outcomes, because ripple effects in job applications dilute their impact across a series of overlapping markets.
    Keywords: job search; local labor markets; place-based policies; ripple effect
    JEL: J61 J63 J64 R12
    Date: 2017
  4. By: Stephen Gibbons; Teemu Lyytikäinen; Henry Overman; Rosa Sanchis-Guarner
    Abstract: This paper estimates the impact of new road infrastructure on employment and labour productivity using plant level longitudinal data for Britain. Exposure to transport improvements is measured through changes in accessibility, calculated at a detailed geographical scale from changes in minimum journey times along the road network. These changes are induced by the construction of new road link schemes. We deal with the potential endogeneity of scheme location by identifying the effects of changes in accessibility from variation across small-scale geographical areas close to the scheme. We find substantial positive effects on area level employment and number of plants. In contrast, for existing firms we find negative effects on employment coupled with increases in output per worker and wages. A plausible interpretation is that new transport infrastructure attracts transport intensive firms to an area, but with some cost to employment in existing businesses.
    Keywords: productivity, employment, accessibility, transport
    JEL: D24 O18 R12
    Date: 2017–05
  5. By: Ngoc Thi Minh Tran (University of Waikato); Michael P. Cameron (University of Waikato); Jacques Poot (University of Waikato)
    Abstract: This paper examines the link between local institutional quality in the home country and locational choices of international return migrants. We scrutinize the locational choices of Vietnamese return migrants to the south central and the south regions in 2014. Binary and multinomial regression models are fitted to identify the influence of migrants’ individual attributes and the characteristics of regional destinations within Vietnam, with the main focus placed on regional institutional quality. Our analysis reveals that both individual-specific and region-specific variables are significantly related to Vietnamese return migrants’ choices when registering for permanent residency back in their home country. Older migrants are more likely to return to regions other than the central city, as are male migrants. More remarkably, we provide compelling evidence of the positive role of institutional quality at the local level in these migration decisions. Moreover, the effect of institutional quality differs by the characteristics of migrants: regions with better institutional quality are more attractive to younger return migrants, and to those who returned from host countries with better institutional quality. Our findings are strongly robust across different econometric specifications and alternative measures of host country institutional quality at the national level.
    Keywords: return migration; institutional quality; locational choice; Vietnam
    JEL: F22 O15 R23
    Date: 2017–05–15
  6. By: Kenta Tanaka (Faculty of Economics, Musashi University); Shunsuke Managi (Urban Institute, Kyushu University)
    Abstract: Improving energy efficiency is the one of the best environmental/resource policy. Previous studies have measured energy efficiency in the industrial sector. We further contribute understanding what factors affect energy efficiency changes. This study measures energy efficiency based on plant level data in the Japan'paper/pulp industry and cement industry as energy intensive sectors. We then reveal the relationship between industry agglomeration effect and energy efficiency of each factory. Our results show several important findings. First, energy efficiency has improved in recent years in the paper and pulp industry as well as the cement industry. However, the factors for improvement of energy efficiency differ between each industry. Second, industry agglomeration affects energy efficiency. In the paper and pulp industry, the same industry agglomerations contribute to improvements in the energy efficiency. However the agglomeration effect is negative for energy efficiency in the cement industry.
    Keywords: Energy efficiency, Productivity analysis, Industry agglomeration, Data envelopment analysis
    Date: 2017–05
  7. By: Philippe Lefebvre (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Alors que les dynamiques territoriales d’agglomération des activités et d’innovation sont : 1) souvent abordées comme des dynamiques spontanées, qui relèvent de différences de ressources entre territoires (nouvelle économie géographique) ou de dynamiques endogènes propres à un territoire et à son histoire (économie géographique institutionnelle, économie géographique évolutionniste, école des proximités) ; 2° parfois abordées comme des dynamiques résultant d’initiatives délibérées mais venant toujours du territoire lui-même et de ses acteurs (toujours dans une logique d’endo-genèse territoriale), - nous proposons ici d’examiner le cas où des cadres institutionnels exogènes au territoire tentent de s’imposer à lui, d’intensifier ou de ré-orienter les dynamiques territoriales à l’œuvre. Quoique peu étudié comme tel, ce cas de figure est déjà très répandu (politiques publiques de clusters, par exemple) et ne cesse de gagner en importance (notamment à travers les politiques publiques territoriales énoncées par des autorités supra-territoriales). L’article étudie le cas des stratégies régionales d’innovation en France, des stratégies dont les règles d’élaboration et de formulation sont imposées depuis 2000 par la Commission européenne à toutes les régions européennes qui veulent pouvoir bénéficier, au titre de l’innovation, des très importants financements du FEDER". Partant de ce cas, il s'efforce d'apporter des éléments de réponse à quatre des grandes questions qui se posent dans les rapports entre dynamiques territoriales endogènes et cadrages institutionnels exogènes au territoire : 1. Les cadrages institutionnels exogènes sont-ils porteurs de représentations, implicites ou explicites, des dynamiques territoriales actuelles ou des dynamiques territoriales visées et souhaitables à terme ? Sont-ils contraignants ou respectueux des dynamiques territoriales existantes ? 2. Comment les territoires, avec leurs dynamiques endogènes, intègrent-ils ces règles ou y réagissent ? Rétroagissent-ils sur la conception des règles qui tentent de s’imposer à eux de l’extérieur ? Parviennent-ils à infléchir ces règles dans le sens d’une plus grande prise en compte de leurs dynamiques propres ? 3. Comment ces cadrages institutionnels, exogènes aux territoires et conçus pour s’imposer à plusieurs territoires à la fois, sont-ils conçus par les autorités supra-territoriales agissantes ? 4. Enfin, quels impacts – qualitatifs (en terme d’orientations) ou quantitatifs (en terme d’importance relative) – ont ces cadrages institutionnels sur les dynamiques territoriales (y compris les dynamiques endogènes) ?
    Keywords: innovation, smart specialization strategies, Régions, Europe, H2020, institutions, policy process
    Date: 2017–03–24

This nep-geo issue is ©2017 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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