nep-geo New Economics Papers
on Economic Geography
Issue of 2018‒04‒09
thirteen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Economic Diversity and Regional Economic Performance: A Methodological Concern from Model Uncertainty By Jing Chen
  2. Creativity and entrepreneurship: Empirical evidence for Catalonia By Coll Martínez, Eva
  3. Do Software and Videogames firms share location patterns across cities? Evidence from Barcelona, Lyon and Hamburg By Méndez Ortega, Carles,; Arauzo Carod, Josep Maria
  4. Evaluating smart specialisation strategies : the impacts on territorial development in question By Hans-Kristian Colletis-Wahl
  5. Regional economic development in Europe, 1900-2010: a description of the patterns By Roses, Joan R.; Wolf, Nikolaus
  6. Shrinking Networks: A Spatial Analysis of Bank Branch Closures By Tranfaglia, Anna
  7. Creative industries and firm creation: disentangling causal effects through historical cultural associations By Coll Martínez, Eva
  8. The Regional Effects of a National Minimum Wage By Gabriel Ahlfeldt; Duncan Roth; Tobias Seidel
  9. Spatial Analysis of Clustering of Foreclosures in the Poorest-Quality Housing Urban Areas: Evidence from Catalan Cities By Gutiérrez Palomero, Aaron; Arauzo Carod, Josep Maria
  10. Big Data and Regional Science: Opportunities, Challenges, and Directions for Future Research By Schintler, Laurie A.; Fischer, Manfred M.
  11. Austrian Outbound Foreign Direct Investment in Europe: A spatial econometric study By Fischer, Manfred M.; Pintar, Nico; Sargant, Benedikt
  13. Aglomeración de sectores intensivos en conocimiento: una aproximación intra-urbana By Arauzo Carod, Josep Maria; Coll Martínez, Eva; Méndez Ortega, Carles,

  1. By: Jing Chen (Regional Research Institute, West Virginia University)
    Abstract: Although the role of spatial dependence has been considered in studying the relationship between economic diversity and regional economic performance, the existing literature seldom mentions model uncertainty, which mainly arises from at least two sources. One source of model uncertainty is the choice of an appropriate spatial weight matrix that describes the spatial interactions between two regions, which can be specified in a variety of ways. The second source of model uncertainty is choosing a set of control variables to model the diversity-performance relationship. To overcome these limitations, a Bayesian Model Averaging (BMA) method is used to address model uncertainty when studying the effects of economic diversity on short-term employment growth and long-term economic stability among 359 Metropolitan Statistical Areas (MSA) in the contiguous U.S. The potential spatial spillovers are also considered through spatial regression models. This empirical analysis suggests that ignoring model uncertainty can impact the estimates and our understanding of economic diversity, and it also confirms that economic diversity of neighbors plays an important role in regional economic development.
    Keywords: Specialization, Diversity, Economic Structure, Regional Economic Development, Model Uncertainty
    JEL: R11 R12 C10
    Date: 2018–03–29
  2. By: Coll Martínez, Eva
    Abstract: In recent years creativity has gained importance because of its potential to generate economic growth based on their role in the innovation processes and economic development. In this regard, this work is twofold. First, it addresses the mechanisms through which creativity promotes knowledge externalities and innovation contributing to regional economic growth and competitiveness. And second, it aims to analyse the role of creativity, diversity and innovation on entrepreneurship at a municipality level for Catalonia. To conduct this analysis, information provided by the Register of Industrial Establishments of Catalonia (REIC) – a register that includes the creation of new establishments located in Catalonia between 2002 and 2007 – , and by the Statistical Institute of Catalonia (IDESCAT) are used. Main results highlight the role of creativity in the spreading of ideas and the creation of new projects encouraging entrepreneurship at local level. However, the role of cultural diversity does not seem to be so relevant in deciding the location of new firms in Catalan municipalities. Finally, intellectual and technological productivity in the municipality (in terms of patents) favours the creation of new firms but only in municipalities closer to technologic and scientific centres. Keywords: creativity, diversity, innovation, entrepreneurship, industrial location JEL codes: O31, M14, O32, L26, O14
    Keywords: Innovacions tecnològiques -- Catalunya, Emprenedoria -- Catalunya, Localització industrial -- Catalunya, Creativitat en els negocis -- Catalunya, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  3. By: Méndez Ortega, Carles,; Arauzo Carod, Josep Maria
    Abstract: The aim of this paper is to analyse common location patterns of Software and Videogames (SVE) industry in Barcelona, Lyon and Hamburg. This is a key industry in developed countries that mainly located at core of bigger metropolitan areas, looking for agglomeration economies, skilled labour and a wide range of spillover effects existent there. Cities used in our empirical application share some common features in terms of size, manufacturing tradition and, specially, economic strategies, as they have managed to promote high-tech neighbourhoods through ambitious urban renewal policies. When analysing location patterns of firms from these industries, although our results highlight predominant role of urban cores of three cities, also indicate important specificities in terms of core-periphery. distribution of SVE’s firms. JEL Codes: R12, C60, L86, N90. Keywords: Software Industry, microgeographic analysis, spatial location patterns, Barcelona, Hamburg, Lyon
    Keywords: Localització industrial, Indústria informàtica, Videojocs -- Indústria i comerç, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  4. By: Hans-Kristian Colletis-Wahl (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Smart specialization strategies are implemented by the European Commission as a basis for the current structural policy cycle. Smart specialization corresponds to a reorientation of public policies that aim the development of European regions and, through it, economic and social cohesion of Member States. This evolution is based on a change concerning the theoretical representation of territorial dynamics, passing from regional innovation systems to new economic geography and strategic management based models, more focused on innovation and its influence on shaping regional structures. This article examines the impact of this change on the design and implementation of regional policies, as well as the evaluation of their impacts based on an ex ante evaluation of ERDF-ESF of the current Structural Funds Cycle 2014-2020.
    Abstract: Les stratégies de spécialisation intelligente sont mises en oeuvre par la Commission européenne au sein de l’actuel cycle de politiques structurelles. La spécialisation intelligente correspond à une réorientation des politiques qui ont pour objectif le développement des régions européennes et, à travers elle, la cohésion économique et sociale des États-membres. Cette évolution repose sur un changement de grille d’analyse théorique des dynamiques territoriales, qui passe d’une représentation en termes de systèmes territoriaux d’innovation à une grille de lecture issue de la nouvelle économie géographique et du management stratégique, centrée sur l’innovation et ses répercussions sur la formation des structures économiques régionales. Cet article étudie les répercussions de ce changement sur la conception et la mise en oeuvre des politiques régionales, ainsi que sur l’évaluation de leurs impacts en se basant sur une évaluation ex ante d’un PO FEDER-FSE de l’actuel cycle de Fonds structurels 2014-2020.
    Keywords: Evaluation, regional development, smart specialisation,socio-economic impacts,Développement régional, évaluation, impacts socio-économiques, innovation,spécialisation intelligente
    Date: 2018
  5. By: Roses, Joan R.; Wolf, Nikolaus
    Abstract: We provide the first long-run dataset of regional employment structures and regional GDP and GDP per capita in 1990 international dollars, stretching over more than 100 years. These data allow us to compare regions over time, among each other, and to other parts of the world. After some brief notes on methodology we describe the basic patterns in the data in terms of some key dimensions: variation in the density of population and economic activity, the spread of industry and services and the declining role of agriculture, and changes in the levels of GDP and GDP per capita. We next discuss patterns of convergence and divergence over time and their explanations in terms of short-run adjustment and long-run fundamentals. Also, we document for the first time a secular decrease in spatial coherence from 1900 to 2010. We find a U-shaped development in geographic concentration and regional income inequality, similar to the finding of a U-shaped pattern of personal income inequality.
    Keywords: regional inequality; Europe; long-run
    JEL: D31 N1 N9 R1
    Date: 2018–03
  6. By: Tranfaglia, Anna (Federal Reserve Bank of Philadelphia)
    Abstract: As more consumers take advantage of online banking services, branch networks are declining across the country. Limited attention has been given to identifying any possible spatial patterns of branch closures and, more importantly, the community demographics where branches close their doors. This analysis uses an innovative spatial statistics concept to study financial services: Using data from 2010 to 2016, a random labelling test is conducted to understand branch closure clustering in the Philadelphia, Chicago, and Baltimore metropolitan statistical areas (MSAs). Additionally, spatial autocorrelation is tested, and an MSA-level spatial regression analysis is done to see if there is a pattern to branch closures in metropolitan areas. I find evidence of branch closure clusters in the Chicago and Philadelphia MSAs; however, this spatial pattern is only observable within the suburbs, not the primary city itself. Using a random labelling test is a methodological innovation in regional economic studies and propels our understanding of banking deserts and underserved neighborhoods.
    Keywords: branch closures; GIS; spatial autocorrelation; marked point process; random labelling test; Philadelphia; Chicago; Baltimore
    JEL: C21 G21 R12
    Date: 2018–03–20
  7. By: Coll Martínez, Eva
    Abstract: In the last decade policy makers and scholars have highlighted creative industries’ capacity to stimulate economic dynamism. However, there is still some debate about the potential effect of reverse causality on this relationship, as CIs may also be attracted to successful areas. Therefore, the aim of this paper is to disentangle the role played by the existing spatial concentration of these kinds of activity on new firm creation. In order to deal with this potential reverse causality issue this paper relies on an instrumental variable approach. The main statistical source is the REIC (Catalan Manufacturing Establishments Register), which has plant-level microdata on the location of plants in Catalan municipalities between 2002 and 2007. By using, for the first time, the foundation of cultural associations and urban population as historical instrumental variables, the results confirm CIs’ potential for new firm creation. JEL classifications: R39, Z100 Keywords: creative industries, cultural associations, industrial location, IV
    Keywords: Localització industrial, Economia de la cultura, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2017
  8. By: Gabriel Ahlfeldt; Duncan Roth; Tobias Seidel
    Abstract: We estimate the spatially differential effects of a nationally uniform minimum wage that was introduced in Germany in 2015. To this end, we use a micro data set covering the universe of employed and unemployed individuals in Germany from 2011 to 2016 and a difference†in†differences based identification strategy that controls for heterogeneity in pre†treatment outcome trends. We find that the policy led to spatial wage convergence, in particular in the left tail of the distribution, without reducing relative employment in low†wage regions within the first two years.
    Keywords: difference-in-differences, employment, Germany, minimum wage, wage inequality
    JEL: J31 J58 R12
    Date: 2018
  9. By: Gutiérrez Palomero, Aaron; Arauzo Carod, Josep Maria
    Abstract: This paper uses data on housing stock owned by financial entities as a result of foreclosures to analyze (1) the spatial logic of Spain’s mortgage crisis in urban areas, and (2) the characteristics of the types of housing most affected by this phenomenon. Nearest-Neighbor Index and Ripley’s K function analyses were applied in two Catalan cities (Tarragona and Terrassa). The results obtained show that foreclosures tend to be concentrated in the most deprived neighborhoods. The general pattern of clustering also tends to be most intense for smaller and cheaper housing. Our findings show that home foreclosures have been concentrated in only a few neighborhoods and precisely in those containing the poorest-quality housing stock. They also provide new evidence of the characteristics and spatial patterns of the housing stock accumulated by banks in Catalonia as a result of the recent wave of evictions associated with foreclosures. Keywords: foreclosures; evictions; clustering; Nearest-Neighbor Index; Moran’s I; Ripley’s K; Catalonia
    Keywords: Execució hipotecària, Desnonament, Béns immobles, Bancs, Catalunya, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  10. By: Schintler, Laurie A.; Fischer, Manfred M.
    Abstract: Recent technological, social, and economic trends and transformations are contributing to the production of what is usually referred to as Big Data. Big Data, which is typically defined by four dimensions -- Volume, Velocity, Veracity, and Variety -- changes the methods and tactics for using, analyzing, and interpreting data, requiring new approaches for data provenance, data processing, data analysis and modeling, and knowledge representation. The use and analysis of Big Data involves several distinct stages from "data acquisition and recording" over "information extraction" and "data integration" to "data modeling and analysis" and "interpretation", each of which introduces challenges that need to be addressed. There also are cross-cutting challenges, which are common challenges that underlie many, sometimes all, of the stages of the data analysis pipeline. These relate to "heterogeneity", "uncertainty", "scale", "timeliness", "privacy" and "human interaction". Using the Big Data analysis pipeline as a guiding framework, this paper examines the challenges arising in the use of Big Data in regional science. The paper concludes with some suggestions for future activities to realize the possibilities and potential for Big Data in regional science.
    Keywords: Spatial Big Data, data analysis pipeline, methodological and technical challenges, cross-cutting challenges, regional science
    Date: 2018
  11. By: Fischer, Manfred M.; Pintar, Nico; Sargant, Benedikt
    Abstract: This paper focuses on Austrian outbound foreign direct investment (FDI, measured by sales of Austrian affiliates abroad) in Europe over the period 2009-2013, using a spatial Durbin panel data model specification with fixed effects, and a spatial weight matrix based on the first-order contiguity relationship of the countries and normalised by its largest eigenvalue. Third-country effects essentially enter the empirical analysis in two major ways: first, by the endogenous spatial lag on FDI (measured by FDI into markets nearby the host country), and, second, by including an exogenous market potential variable that measures the size of markets nearby the FDI host country in terms of gross domestic product. The question whether the empirical result is compatible with horizontal, vertical, export-platform or complex vertical FDI then depends on the sign and significance levels of both the coefficient of the spatial lag on FDI and the direct impact estimate of the market potential variable. The paper yields robust results that provide significant empirical evidence for horizontal FDI as the main driver of Austrian outbound FDI in Europe. This result is strengthened by the indirect impact estimate of the market potential variable indicating that spatial spillovers do not matter. (authors' abstract)
    Keywords: Foreign direct investment; panel econometrics; spatial econometrics; spatial Durbin model; fixed effects
    Date: 2016–04–19
    Date: 2018
  13. By: Arauzo Carod, Josep Maria; Coll Martínez, Eva; Méndez Ortega, Carles,
    Abstract: Este trabajo analiza los procesos de aglomeración de sectores intensivos en conocimiento a efectos de determinar la intensidad y el alcance especial de las economías de aglomeración que explican la concentración de determinadas actividades en unas áreas muy concretas de las grandes ciudades. Para ello se utilizan datos de empresa procedentes del Registro Mercantil. A partir de esos datos se calculan dos funciones relativas basadas en la distancia (M y m) que permiten analizar tanto las dinámicas de aglomeración a nivel de sectores concretos como las de coaglomeración entre parejas de sectores. Nuestros resultados preliminares apuntan a unas especificidades sectoriales, en forma de pautas de aglomeración diferenciadas, y urbanas, dado que la base de datos contiene información de empresas localizadas en las áreas metropolitanas de Madrid y Barcelona. Palabras clave: economía urbana, funciones M, funciones m, aglomeración Códigos JEL: R00, R39
    Keywords: Economia urbana, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018

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