nep-geo New Economics Papers
on Economic Geography
Issue of 2017‒09‒03
eight papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Sketching the Contours of an Integrative Paradigm of Economic Geography By Hassink, Robert; Gong, Huiwen
  2. R&D policy regimes in France: New evidence from a spatio-temporal analysis By Benjamin Montmartin; Marcos Herrera; Nadine Massard
  3. The Fluidity of Inventor Networks By Michael Fritsch; Moritz Zoellner
  4. Product differentiation and entry timing in a continuous-time spatial competition model with vertical relations By Takeshi Ebina; Noriaki Matsushima
  5. A developmental model on quantifying urban policy effectiveness in port city relations By Feng, Lin; Yuan, Liwei
  6. Inequalities and Segregation across the Long-Term Economic Cycle: An Analysis of South and North European Cities By Tammaru, Tiit; Marcińczak, Szymon; Aunap, Raivo; van Ham, Maarten
  7. Decomposing Well-being Measures in South Africa: The Contribution of Residential Segregation to Income Distribution By Florent Dubois; Christophe Muller
  8. The analysis of borders effects in intra-African trade By Emilie Kinfack Djoumessi; Alain Pholo Bala

  1. By: Hassink, Robert (Kiel University); Gong, Huiwen (Kiel University)
    Abstract: Over the last twenty years, modern economic geography has been increasingly fragmented, particularly concerning its themes, on the one hand, and its schools of thought, perspectives and paradigms, on the other. Although there have been arguments in favor of engaged pluralism between the latter, what we see in reality is mainly fragmented pluralism, which is particularly problematic for the identification with the sub-discipline and the exchange with neighboring social disciplines. In order to solve this problem, in our view, we need an Integrative Paradigm of Economic Geography. In this paper, we sketch the contours of such a paradigm, which consists of a core, namely economic activities in space, place and scales and their drivers, and three inter-related ontological foundations, namely networks, evolution and institutions.
    Keywords: economic geography; pluralism; paradigms; Integrative Paradigm of Economic Geography
    JEL: R10 R11
    Date: 2017–08–28
  2. By: Benjamin Montmartin (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique); Marcos Herrera (Universidad Nacional de Salta, CONICET - Consejo Nacional de Investigaciones Científicas y Técnicas); Nadine Massard (UGA - Université Grenoble Alpes, GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes)
    Abstract: Using a unique database containing information on the amount of R&D tax credits and regional, national and European subsidies received by firms in French NUTS3 regions over the period 2001-2011, we provide new evidence on the efficiency of R&D policies taking into account spatial dependency across regions. By estimating a spatial Durbin model with regimes and fixed effects, we show that in a context of yardstick competition between regions, national subsidies are the only instrument that displays total leverage effect. For other instruments internal and external effects balance each other resulting in insignificant total effects. Structural breaks corresponding to tax credit reforms are also revealed.
    Keywords: structural breaks,R&D investment,spatial panel,Additionality,French policy mix
    Date: 2017–07
  3. By: Michael Fritsch (FSU Jena); Moritz Zoellner (Friedrich Schiller University Jena, School of Economics and Business Administration)
    Abstract: We investigate the stability of cooperative relationships between inventors and consequences for the characteristics and patent productivity of the respective regional innovation systems (RIS). The empirical analysis is for nine German regions over a period of 15 years. We find a rather high level of 'fluidity', i.e., entry and exit of actors, as well as instability of their relationships over time. The aggregate characteristics of the regional networks are, however, quite robust even with high levels of micro-level fluidity. There are both significantly positive and negative relationships between micro-level fluidity and the performance of the respective RIS.
    Keywords: Innovation networks, R&D cooperation, division of innovative labor, patents
    JEL: O3 R1 D2 D8
    Date: 2017–08–29
  4. By: Takeshi Ebina; Noriaki Matsushima
    Abstract: We study the entry timing and location decisions of two exclusive buyer-supplier relationships in a continuous-time spatial competition model. In each relationship, the firms determine their entry timing and location, and negotiate a wholesale price through Nash bargaining. Then, the downstream firm immediately determines its retail price. Our findings are as follows. Ordinarily, if the supplier of the first entrant (called the leader pair) has strong bargaining power, the equilibrium location of the leader will be closer to the center, inducing a delay in entry by the second entrant (called the follower pair). This delay implies the stronger bargaining power of the supplier in the leader pair can also benefit the buyer of the pair. The location of the leader pair can change non-monotonically with an increase in the supplier's bargaining power, which has a substantial impact on the entry timing of the follower pair. However, the greater the bargaining power of the supplier in the follower pair, the closer the leader pair will be to the edge. This implies that having greater bargaining power will enhance the profitability of the supplier in the follower pair.
    Date: 2017–08
  5. By: Feng, Lin; Yuan, Liwei
    Abstract: This paper is to find the role of urban policy in dealing with port city relations and corresponding methodology in quantifying policy effectiveness. In decomposing policy, we identify the key elements in the policy and further to measure its effectiveness. Firstly, we quantify non-linear relation in port city and explain why tradition quantitative methods fail to describe non-linear port city relationship. Secondly, we use improved logistic function derived from product life cycle theory (defined as a developmental model) to identify the evolving pattern in port city and depict the development phase and key elements. Thirdly, cases of Antwerp and Hamburg are used in analyzing how urban policy is effective in enhancing port city relations. It is difficult to quantify policy effectiveness thus we focus on how key elements in these policies are enhanced in promoting port city development even though port city are at different developmental phases and these policies can solve conflict between private port governance and public urban nature.
    Keywords: developmental; policy effectiveness; port city
    JEL: R4 R5
    Date: 2017–08–30
  6. By: Tammaru, Tiit (University of Tartu); Marcińczak, Szymon (University of Tartu); Aunap, Raivo (University of Tartu); van Ham, Maarten (Delft University of Technology)
    Abstract: The aim of this paper is to get new insight into the complex relationship between social inequalities and socioeconomic segregation by undertaking a comparative study North and South European cities. Our main finding shows that during the last global economic cycle from the 1980s through the 2000s, both levels of social inequalities and socio-economic segregation have grown. However, the effects of rising levels of inequality affect levels of segregation with a strong time lag. This reminds us that the effect of the most recent economic crisis will most likely be long-term, especially in the South of Europe.
    Keywords: social inequalities, residential segregation, comparative urban studies, South Europe, North Europe
    JEL: N94 O18 P25 R21 R23
    Date: 2017–08
  7. By: Florent Dubois (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille, UM - Université du Maine); Christophe Muller (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille)
    Abstract: Despite the influential work of Cutler and Glaeser [13], whether ghettos are good or bad is still an open and debatable question. In this paper, we provide evidence that, in South Africa, ghettos can be good or bad for income depending on the studied quantile of the income distribution. Segregation tends to be beneficial for rich Whites while it is detrimental for poor Blacks. Even when we find it to be also detrimental for Whites, it is still more detrimental for Blacks. We further show that the multitude of results fuelling this debate can come from misspecification issues and selecting the appropriate sample for the analysis. Finally, we quantify the importance of segregation in the income gap between Blacks and Whites in the post-Apartheid South Africa. We find that segregation can account for up to 40 percent of the income gap at the median. It is even often a larger contribution than education all across the income distribution.
    Keywords: post-apartheid South Africa,generalized decompositions,income distribution,residential segregation
    Date: 2017–05
  8. By: Emilie Kinfack Djoumessi; Alain Pholo Bala
    Abstract: The study aims to analyze the border effects on intra-African trade through the use of a gravity specification based on the monopolistic competition model of trade introduced by Krugman (1980). The study used CEPII data on trade flows between African countries over the period 1980-2006. We accommodate for the significant number of zero trade flows between several African countries by using the Heckman correction method. The findings suggest that while the extent of market fragmentation is on average very high within the African continent, the border effects within SADC and ECOWAS are more in line with other international estimations. Whereas results indicate that border effects faced by intra-African trade are quite substantial: on average an African country trade 108 times more "with itself" than with another country on the continent. Border effects in SADC and ECOWAS are respectively about 5 and 3 times lower. The inclusion of the infrastructure indices contributes significantly to this result. Considering infrastructure is actually an interesting way to capture the effect of distribution networks which represent, along with imperfect information and localized tastes, relevant but generally omitted sources of resistance.
    Keywords: Intra-Africa Trade, Monopolistic Competition Model, Border Effect
    JEL: F12 F14 F15
    Date: 2017–08

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