nep-geo New Economics Papers
on Economic Geography
Issue of 2018‒02‒05
eleven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Modeling interregional research collaborations in German biotechnology using industry directory data: A quantitative social network analysis By Mitze, Timo; Strotebeck, Falk
  2. The local economic impacts of regeneration projects: evidence from UK’s Single Regeneration Budget By Gibbons, Stephen; Overman, Henry G.; Sarvimäki, Matti
  3. Amenities and Geography of Innovation: Evidence from Chinese Cities By Zhang, Min; Partridge, Mark; Song, Huasheng
  4. Sources of productivity differentials in manufacturing in post-transition urban South-East Europe By Katarina Bacic; Ivana Rasic Bakaric; Suncana Slijepcevic
  5. Regional Growth Paths: From Structure to Agency and Back By Grillitsch, Markus; Sotarauta, Markku
  6. The persistence of local joblessness By Amior, Michael; Manning, Alan
  7. Creative Capital, Information and Communication Technologies, and Economic Growth in Smart Cities By Batabyal, Amitrajeet; Nijkamp, Peter
  8. Business cycle patterns in European regions By Gomez-Loscos, Ana; Gadea, M. Dolores; Bandres, Eduardo
  9. Regional income inequality in France : what does history teach us? By Sanchís Llopis, M. Teresa; Díez Minguela, Alfonso
  10. Regional Disparity and Decentralization in Pakistan: A Decomposition Analysis By Wasim, Summerina; Munir, Kashif
  11. The long-term economic implications of BREXIT for Scotland: an interregional analysis By Gioele Figus; Katerina Lisenkova; Peter G McGregor; Graeme Roy; J Kim Swales

  1. By: Mitze, Timo; Strotebeck, Falk
    Abstract: We use industry directory data as a novel source of information to model the strength of interregional research collaboration in German biotechnology. Specifically, we gather data on the number of research collaborations for biotech actors listed in the BIOCOM Year and Address book and aggregate this information to the level of German NUTS3 regions. This allows us to set up a modeling framework that treats individual regions as nodes of the biotech research network. We then specify the collaboration activity between regional nodes as a function of research and economic capacities at the regional level, the geographical proximity between regions, and policy variables. Our results show that the strength of interregional research collaboration can be related to both node properties and the relationship between nodes. As such, we find that modern locational factors are positively correlated with the extent of interregional research collaboration, while geographical distance is found to be an impediment to collaboration. The results further show that the pursuit of network and cluster policies in the biotech sector, particularly through collaborative R&D funding, is positively related to the strength of the interregional collaboration activity.
    Keywords: Biotechnology, research collaboration, cluster policy, social network analysis, count data
    JEL: C21 L65 O38 R38
    Date: 2017–02–01
  2. By: Gibbons, Stephen; Overman, Henry G.; Sarvimäki, Matti
    Abstract: We study the local economic impacts of a major regeneration programme aimed at enhancing the quality of life of local people in deprived neighbourhoods in the UK. The analysis is based on a panel of firm and area level data available at small spatial scales. Our identification strategies involve: a) exploiting the fine spatial scale of our data to study how effects vary with distance to the intervention area; and b) comparing places close to treatment in early rounds of the programme with places close to treatment in future rounds. We consider the long run impact of schemes funded between 1995 and 1997 on outcomes up to 2009. Our estimates suggest that the programme increased workplace employment in the intervention area but this had no impact on the employment rates of local residents.
    Keywords: single regeneration budget; regeneration; employment; neighbourhoods; urban policy
    JEL: H50 J08 R11
    Date: 2017–08–01
  3. By: Zhang, Min; Partridge, Mark; Song, Huasheng
    Abstract: People increasingly value amenities as their living standards improve. While the past thirty years have witnessed significant income growth in China, the role of amenities is less discussed. This paper fills the gap by investigating how amenities shape the geography of innovation in China. The empirical results based on city-level data suggest that both natural and consumer amenities are positively associated with regional innovation. Specifically, amenities related to temperature comfort, air quality, sunshine, educational resources and healthcare services matter most. Further, the analysis suggests the influence of amenities on innovation is closely linked with city characteristics such as income, density, and human capital. Therefore, to formulate innovation-driven growth, more attention should be paid to the role of amenities and amenity-related strategies should be tailored to city characteristics.
    Keywords: natural amenities, consumer amenities, innovation, regional economy
    JEL: O31 Q55 R1
    Date: 2018–01–05
  4. By: Katarina Bacic (Knowledge Network Ltd.); Ivana Rasic Bakaric (The Institute of Economics, Zagreb); Suncana Slijepcevic (The Institute of Economics, Zagreb)
    Abstract: The paper analyses the effects of urbanization and localisation economies on manufacturing firms’ productivity across urban landscapes in post-transition South-East European (SEE) countries. Fixed-effects panel data estimations on a large sample of firms show that the factors accounting for productivity advantages of manufacturing firms in urban post-transition SEE are related to the firms and to the environment in which these firms operate. Firms located in diversified cities benefit from a productivity premium generated in this type of agglomeration, while no evidence was found that the relative specialization across industries has any effect on firm productivity levels.
    Keywords: city, manufacturing, total factor productivity, post-transition South-East Europe
    JEL: D24 R00 R12
    Date: 2017–11
  5. By: Grillitsch, Markus (Lund University); Sotarauta, Markku (University of Tampere)
    Abstract: The study of regional growth paths is a key theme in economic geography and of elemental interest for policy makers concerned with regional development. Evolutionary theory explains the path-dependent nature of regional development, and points to its open-ended nature. This paper addresses the interplay between path-dependent, structural forces and the construction and utilization of opportunities through agentic processes. Extending to the evolutionary framework, it is argued that not only history but also perceived future opportunities influence agentic processes in the present and thus shape regional growth paths. Building on recent work about foresightful, strategic and distributed agency, this paper identifies three forms of agency, Schumpeterian innovative entrepreneurship, institutional entrepreneurship and place leadership, that call for and necessitate each other in the process of shaping regional growth paths. It is argued that such a holistic view is essential to understand regional development processes and in particular structural change as manifested in economic diversification and new industrial path development.
    Keywords: Regional development; agency; path-dependency; Schumpeterian innovative entrepreneurship; institutional entrepreneurship; place leadership; economic diversification; new industrial path development
    JEL: B52 L16 O30 R10
    Date: 2018–01–31
  6. By: Amior, Michael; Manning, Alan
    Abstract: Differences in employment-population ratios across US commut- ing zones have persisted for many decades. We claim these dispar- ities represent real gaps in economic opportunity for individuals of fxed characteristics. These gaps persist despite a strong migratory response, and we attribute this to high persistence in labor demand shocks. These trends generate a \race" between local employment and population: population always lags behind employment, yield- ing persistent deviations in employment rates. Methodologically, we argue the employment rate can serve as a sufficient statistic for local well-being; and we model population and employment dy- namics using an error correction mechanism, which explicitly al- lows for disequilibrium
    JEL: J21 J23 J61 J64 R23
    Date: 2017–12–20
  7. By: Batabyal, Amitrajeet; Nijkamp, Peter
    Abstract: We study aspects of economic growth in a stylized smart city with two distinct features. First, the modeled inhabitants of this city are smart because they possess skills. Using the language of Richard Florida, these inhabitants comprise the city’s creative class and hence they possess creative capital. Second, the city is smart because it uses information and communication technologies (ICTs) and we model one specific kind of ICT use. In this setting, we first derive expressions for three growth related metrics. Second, we use these metrics to show that the economy of smart city A converges to a balanced growth path (BGP). Third, we compute the growth rate of output per effective creative capital unit on this BGP. Fourth, we study how heterogeneity in initial conditions affects outcomes on the BGP by introducing a second smart city B into the analysis. At time t=0, two key savings rates in city A are twice as large as in city B. We compute the ratio of the BGP value of income per effective creative capital unit in city A to its value in city B. Finally, we compute the ratio of the BGP value of skills per effective creative capital unit in city A to its value in city B.
    Keywords: Creative Capital, Creative Class, Economic Growth, Skills, Smart City
    JEL: O33 R11
    Date: 2018–01–16
  8. By: Gomez-Loscos, Ana; Gadea, M. Dolores; Bandres, Eduardo
    Abstract: The aim of this paper is threefold. First, we analyze the comovements of the business cycles of European regions. Second, we date these business cycles, for the first time in the literature, and identify clusters of regions with similar business cycle behavior, using Finite Mixture Markov models. Third, we develop a new index to measure within-country homogeneity. We find that comovement among regions is, on average, quite low, although it increased during the convergence process prior to the euro cash changeover and after the onset of the Great Recession. We identify five different groups of European regions. We also find heterogeneity in the size of border effects.
    Keywords: Business cycle dating, comovements, clusters, regions, Finite Mixture Markov models.
    JEL: C32 E32 R11
    Date: 2018–01
  9. By: Sanchís Llopis, M. Teresa; Díez Minguela, Alfonso
    Abstract: This paper studies regional income inequality in France since mid-nineteenth century. Given the dominant role played by Île-de-France and the city of Paris, which inspired the publication of “Paris et le désert française” (Gravier, 1947) and a debate on regional development in the aftermath of World War II, France seems an ideal scenario to examine the dynamics of regional income. In doing so, we first document the existing evidence before and after the development of national accounting. Using different approaches, several studies have produced regional (département, NUTS3) Gross Domestic Product (GDP) estimates from 1840 to 1930. Thus, our first contribution is to present these findings, assess the appropriateness of each methodology, and address potential concerns. The comparison of existing estimates for 1861-1930 raises some doubts about the pattern of regional inequality followed since 1861 to 1911. Hence we present new estimates for 1860-1930 based in the Geary and Stark (2002) method. In short, our estimates sum up new evidence in favour of an incessant decline in regional inequality since mid 19th up to 1930 and turn down the hypothesis of a potential U-shaped pattern in France since mid 19th century to nowadays. Additionally, we found that the use of nominal relative wages could overestimate the level or regional income inequality.
    Keywords: France; Regional inequality; Economic History
    JEL: R11 O18 N94 N93
    Date: 2018–01–01
  10. By: Wasim, Summerina; Munir, Kashif
    Abstract: The main objective of the study is to analyze the changing trends of social (education and health) inequalities before and after decentralization at the inter-regional and intra-regional level in Pakistan from 2005 to 2015. Coefficient of variation and decomposition of Theil inequality index are used to evaluate the spatial dimensions of inequality at the provincial and rural-urban level. Results of CV indicate high disparity in the education and health sectors at both inter-provincial and intra-regional level. Decomposition of education inequality indicates improvement at provincial level. Rural population has high education inequality than urban. Results of Theil index predict that health inequality has narrowed in the women health in the period of decentralization. Disparity level of child health shows the existence of inequality at both the provincial and rural-urban levels. This situation even persists in the decentralization period. Although the situation of Diarrhoea treatment has improved at the provincial level but there are stark differences in the inequality level of rural and urban population. Within and between group inequality at the provincial and rural-urban level indicates a stable and decline in education and health inequality. Decentralization has slightly improved the situation in both areas, however, such economic and social policies should be adapted which helps to eliminate the issue of regional inequality and develop the lagging areas.
    Keywords: Regional Disparity, Social Inequality, Decentralization, Pakistan
    JEL: D63 I14 I24 R58
    Date: 2017–10–30
  11. By: Gioele Figus (Centre for Energy Policy, University of Strathclyde); Katerina Lisenkova (Department of Economics, University of Strathclyde); Peter G McGregor (Department of Economics, University of Strathclyde); Graeme Roy (Department of Economics, University of Strathclyde); J Kim Swales (Department of Economics, University of Strathclyde)
    Abstract: The analysis of this paper offers a cautionary tale about the economic cost of European disintegration. Scotland offers an interesting twist on that story as somewhere that voted to remain part of the EU but is now negatively affected, even though it is less directly exposed to EU trade than the UK, and even if it were to achieve a softer Brexit such as EEA or even full EU membership (as it has aspirations to do). The analysis includes potentially important lessons for the many nations and regions in which there exists pressures to move away from trade liberalisation and towards protectionism.
    Keywords: Scotland, BREXIT, CGE modelling, trade
    JEL: R13 C18 F15
    Date: 2017–11

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