nep-geo New Economics Papers
on Economic Geography
Issue of 2017‒06‒25
thirteen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Agglomeration economies in the formal and informal sectors : a Bayesian spatial approach By Tanaka, Kiyoyasu; Hashiguchi, Yoshihiro
  2. Knowledge bases and relatedness: A study of labour mobility in Norwegian regions By Rune Dahl Fitjar Author-X-Name-First: Rune Dahl; Bram Timmermans Author-X-Name-First: Bram
  3. Local determinants of the spatial distribution of exporters in Poland: the role of FDI By Jaroslaw Michal Nazarczuk; Stanislaw Uminski; Tomasz Brodzicki
  4. The effect of broadband internet on establishments' employment growth: evidence from Germany By Stockinger, Bastian
  5. Smart Specialisation in EU and Chile, challenges and opportunities. Towards a transcontinental policy learning dialogue methodology By Javier Gomez Prieto; Patrice dos Santos
  6. Promoting regional growth and innovation: relatedness, revealed comparative advantage and the product space By Gloria Cicerone, Philip McCann, Viktor A. Venhorst Author-X-Name-First: Gloria; Philip McCann Author-X-Name-First: Philip; Viktor A. Venhorst Author-X-Name-First: Viktor
  7. Spatial Differencing: Estimation and Inference By Federico Belotti; Edoardo Di Porto; Gianluca Santoni
  8. A composed error model decomposition and spatial analysis of local unemployment By Cuéllar Martín, Jaime; Martín-Román, Ángel L.; Moral, Alfonso
  9. Technological Coherence and the Adaptive Resilience of Regional Economies By Silvia Rocchetta Author-X-Name-First: Silvia; Andrea Mina Author-X-Name-First: Andrea
  10. Does the abolition of border controls boost cross-border commuting? Evidence from Switzerland By Angela Parenti; Cristina Tealdi
  11. Regional differences in the Okun’s Relationship: New Evidence for Spain (1980-2015) By Bande, Roberto; Martín-Román, Ángel L.
  12. Spatial Nexus in Crime and Unemployement in Times of Crisis By Povilas Lastauskas; Eirini Tatsi
  13. The city as a driver of new mobility patterns, cycling and gender equality: travel behaviour trends in Stockholm 1985-2015 By Bastian , Anne; Börjesson, Maria

  1. By: Tanaka, Kiyoyasu; Hashiguchi, Yoshihiro
    Abstract: This paper examines whether localized clusters of similar industries produce agglomeration economies in the formal and informal sectors. We develop a Bayesian method to estimate a spatial autoregressive model with an endogenous independent variable. We use establishment-level census data that cover both formal registered and informal unregistered establishments in Cambodia. We find that the density of local employment has a significantly positive effect on productivity in the informal sector, but little effect in the formal sector. For manufacturing, a doubling of employment density increases productivity in the informal sector by 9% through local linkages and by 17% through spatial multiplier linkages, leading to a 26% increase in total. A spatial network magnifies the local impact of agglomeration economies in the informal sector.
    Keywords: Cambodia,Industry,Informal sector,Productivity,Agglomeration economies,Bayes
    JEL: C11 C21 C26 H26 O17 R12
    Date: 2017–05
  2. By: Rune Dahl Fitjar Author-X-Name-First: Rune Dahl; Bram Timmermans Author-X-Name-First: Bram
    Abstract: Two ideas have emerged as central in evolutionary economic geography in recent years: First, innovation is often the result of meetings between related ideas, and regions are therefore best served by hosting a variety of related industries. Second, innovation often comes from the combination of different knowledge bases. However, there have been few attempts at linking these approaches in empirical studies. This paper connects the dots by examining relatedness among industries with similar and different knowledge bases in specific regional contexts. We focus on regions expected to have different types of innovation systems, from the organisationally thick and diversified RIS of large cities through the more specialised RIS in intermediate cities to the organisationally thin RIS found in small rural regions. The analysis finds that industries with different knowledge bases are related in various regional settings, with combinatorial knowledge base industries having a central role in many regions. However, there are also cases of potential lock-in, where relatedness is mainly found among regions with the same knowledge base. Length:
    Date: 2017–06
  3. By: Jaroslaw Michal Nazarczuk (University of Warmia and Mazury in Olsztyn); Stanislaw Uminski (Institute for Development; Faculty of Economics, University of Gdansk); Tomasz Brodzicki (University of Gdansk, Faculty of Economics; Institute for Development, Sopot)
    Abstract: In the light of the hereto insufficient empirical evidence on the determinants of location of exporters and given the access to a unique GIS-based database for counties in Poland (LAU 1) on the distances to diverse points of interest (POIs) and infrastructure endowment, and data on regional heterogeneity, we investigate the deep determinants of exporters’ location in Poland. Our analysis is mostly driven by the concepts of NEG theory and the firms’ heterogeneity concept. With the use of econometric modelling, in the first step, we identify the determinants of regional location of exporting firms. In the second step, we try to identify the differences in the locational decisions of firms distinguished by ownership form, namely domestic and foreign-owned exporters. Our findings indicate the more predictable behaviour of foreign-owned exporters, for which the quality of transport endowment and inputs plays a more significant role in the decision in comparison to indigenous exporters, affected to a larger extent by deep-rooted factors and path-dependency. The locational preferences of FOEs are more influenced by the proximity to the airport and the motorways as well as subject to agglomeration externalities. The results point furthermore to the significance of accessibility to markets as evidenced by the role of infrastructure endowment and the role of the greater regional human capital endowment.
    Keywords: locational determinants, the spatial distribution of exporters, regional trade, foreign investors, Poland
    JEL: R12 F14 R15
    Date: 2017–06
  4. By: Stockinger, Bastian (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "This study investigates the effects of local broadband internet availability on establishment- level employment growth. The analysis uses data for Germany in the years 2005-2009, when broadband was introduced in rural regions of Western Germany and in large parts of Eastern Germany. Technical frictions in broadband rollout are exploited to obtain exogenous variation in local broadband availability. The results suggest that broadband expansion had a positive effect on employment growth in the Western German service sector and a negative effect in Western German manufacturing. This pattern of results is driven by pronounced positive effects in knowledge- and computer-intensive industries, suggesting that it is the actual use of broadband in the production process that leads to complementary hiring, respectively a slowdown of employment growth, in the respective sectors. For Eastern Germany, no significant employment growth effects are found." (Author's abstract, IAB-Doku) ((en))
    JEL: J63 O33 R23
    Date: 2017–06–13
  5. By: Javier Gomez Prieto (European Commission – JRC); Patrice dos Santos (European Commission – JRC)
    Abstract: The Smart Specialisation approach is being an inspiratory driver of regional innovation not only within the European Union but beyond. This paper elaborates on the Policy Learning Dialogue: Smart Specialisation in EU and Chile which took place at the Joint Research Centre, Seville (21st November 2016). The article showcases policy reflections and outcomes derived from a fruitful discussion between practitioners of regional innovation strategies in EU and Chile, smart specialisation platform staff and experts. This policy dialogue was part of the activities carried out by the smart specialisation platform aiming at providing evidence-based support to policy makers and stakeholders of smart specialisation through common reflections focused on cooperation dynamics and joint learning.
    Keywords: Smart Specialisation; Policy learning dialogue; cooperation; European Union; Chile
    JEL: R5 O32 O1 O54
    Date: 2017–06
  6. By: Gloria Cicerone, Philip McCann, Viktor A. Venhorst Author-X-Name-First: Gloria; Philip McCann Author-X-Name-First: Philip; Viktor A. Venhorst Author-X-Name-First: Viktor
    Abstract: We adapt the product-space methodological approach of Hausmann and Klinger to the case of Italian provinces and regions in order to examine the extent to which the network connectedness and centrality of a provinceÕs exports is related to its economic performance. We construct a new Product Space Position (PSP) index which retains many of the Hausmann-Klinger features but which is also much better suited to handling regional and provincial data. We also compare PSP performance with two other export composition indices. A better positioning in the export-network product space is indeed associated with a better local economic outcomes.
    JEL: O11 R11 R12
    Date: 2017–06
  7. By: Federico Belotti; Edoardo Di Porto; Gianluca Santoni
    Abstract: Spatial differencing is a spatial data transformation pioneered by Holmes (1998) increasingly used to estimate causal effects with non-experimental data. Recently, this transformation has been widely used to deal with omitted variable bias generated by local or site-specific unobservables in a "boundary-discontinuity" design setting. However, as well known in this literature, spatial differencing makes inference problematic. Indeed, given a specific distance threshold, a sample unit may be the neighbor of a number of units on the opposite side of a specific boundary inducing correlation between all differenced observations that share a common sample unit. By recognizing that the spatial differencing transformation produces a special form of dyadic data, we show that the dyadic-robust variance matrix estimator proposed by Cameron and Miller (2014) is, in general, a better solution compared to the most commonly used estimators.
    Keywords: Spatial Differencing;Boundary Discontinuity;Robust Inference;Dyadic Data
    JEL: C12 C21
    Date: 2017–06
  8. By: Cuéllar Martín, Jaime; Martín-Román, Ángel L.; Moral, Alfonso
    Abstract: The differences in the regional unemployment rates, as well as their formation mechanism and persistence, have given rise to a great number of papers in the last decades. This work contributes to that strand of literature from two different perspectives. In the first part of our work, we follow the methodological proposal established by Hofler and Murphy (1989) and Aysun et al. (2014). We make use of an estimation of a stochastic cost frontier to breakdown the Spanish provincial effective unemployment (NUTS-3) in two different components: first one associated with aggregate supply side factors, and the other one more related to the aggregate demand side factors. The second part of our research analyzes the existence of spatial dependence patterns among the Spanish provinces in the effective unemployment and in both above mentioned components. The decomposition performed in the first part of our research will let us know the margin that the policymakers have when they deal with unemployment reductions by means of aggregate supply and aggregate demand policies. Finally, the spatial analysis of the unemployment rates amongst the Spanish provinces can potentially have also significant implications from an economic policy viewpoint since we find that there are common formation patterns or clusters of unemployment.
    Keywords: Unemployment, Local labor markets, Spatial dependence
    JEL: E24 J64 R11
    Date: 2017–06–19
  9. By: Silvia Rocchetta Author-X-Name-First: Silvia; Andrea Mina Author-X-Name-First: Andrea
    Abstract: This paper explores the effect of different regional technological profiles on the resilience of regional economies to exogenous shocks. We conduct an empirical examination of the determinants of resilience through panel analyses of UK NUTS III level data for the 2004-2012 period. The results indicate that regions endowed with technologically coherent Ð and not simply diversified Ð knowledge bases are better prepared to face an unforeseen downturn and display resilience. Moreover, local economies tend to be more adaptable if they innovate in sectors with the strongest growth opportunities, even though firmsÕ net entry does not appear to contribute significantly towards resilience.
    JEL: O30 R11 O33
    Date: 2017–06
  10. By: Angela Parenti; Cristina Tealdi
    Abstract: In this paper we study the effects of Switzerland implementing the Schengen agreement in December 2008 on labour mobility. As vehicles are allowed to cross borders without stopping and residents in border areas are granted freedom to cross borders away from fixed checkpoints, we expect cross-border commuting to Switzerland to be higher after Switzerland joined the Schengen area. Using data from the European Labour Force Survey (ELFS), we estimate a Differencein-Differences model and find that the individual probability to crossborder commute to Switzerland has increased from a minimum of 3.2 percentage points to a maximum of 7 percentage points, according to different model specifications. Our result is particularly important due the timely and meaningful policy implications.
    Keywords: Schengen Agreement, LabourMobility, Commuting Costs, Policy Implementation.
    JEL: D04 J61 R10 R23
    Date: 2017–01–01
  11. By: Bande, Roberto; Martín-Román, Ángel L.
    Abstract: This paper provides new empirical evidence on the relationship between the unemployment rate and the output growth in Spain at the regional level. The “gap version” with the output growth on the left-hand side of the equation is our benchmark model. We observe in our estimates that all coefficients are significant and show the expected negative sign. Significant regional differences in the Okun’s relationship, both for the short run and the long run, are found. These results are robust to two different specifications for the gaps: the HP filter and the QT procedure. In the final part of the paper, we also find that the OLS and the GMM estimates for panel data exhibit a similar pattern and that there is a clear asymmetry in the Okun’s relationship in booming and recession phases of the Spanish business cycle.
    Keywords: Okun’s Law, unemployment, GDP, Spanish regions.
    JEL: C23 E23 J64 R11 R23
    Date: 2017–06
  12. By: Povilas Lastauskas (Bank of Lithuania); Eirini Tatsi (Stockholm University, Swedish Institute for Social Research (SOFI))
    Abstract: Space is important. In this paper we use the global financial crisis as an exogenous shock to the German labor market to elucidate the spatial nexus between crime and unemployment. Our contribution is twofold: first, we lay down a parsimonious spatial labor market model with search frictions, criminal opportunities, and, unlike earlier analyses, productivity shocks which link criminal engagement with employment status. Second, we seek empirical support using data on the 402 German regions and years 2009 – 2010, in a setting that not only allows for crime spatial multipliers but also circumvents reverse causality by exploiting exogenous changes in unemployment due to the crisis. As predicted by our theory, the destruction of the lowest productivity matches, measured by increases in unemployment rates, has a significant impact on pure property crime (housing burglary and theft of/from motor vehicles) and street crime. The analysis offers important implications for local government policy.
    Keywords: Crime, Unemployment, Spatial Econometrics, Global Financial Crisis
    JEL: C31 J64 K42 R10
    Date: 2017–02–02
  13. By: Bastian , Anne (KTH); Börjesson, Maria (KTH)
    Abstract: We analyse changes in individual travel behaviour in Stockholm County over 30 years, using three large cross-sectional travel survey data sets. We show how travel patterns diverge over time between city, suburban and rural residents. We relate these diverging travel patterns to changes in the labour market, ICT use and the digital/knowledge economy, land-use and transport policy, increased gender equality, and population size, composition and location.
    Keywords: Travel behavior; Land use policy; Urban; Agglomeration; Car use; Bicycling; ICT
    JEL: R40
    Date: 2017–06–20

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