nep-geo New Economics Papers
on Economic Geography
Issue of 2018‒04‒16
ten papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Growth and the Geography of Knowledge By Marta Aloi; Joanna Poyago-Theotoky; Frederic Tournemaine
  2. Where New Creative Industries Locate? Evidence from French Departments By Arauzo Carod, Josep Maria; Coll Martínez, Eva; Turcu, Camelia
  3. Regional Economic Development in Europe, 1900-2010: A Description of the Patterns By Joan R. Rosés; Nikolaus Wolf
  4. Where Do the Rich Live in a Big City? By TABUCHI Takatoshi
  5. Collaboration Networks and Innovation: How to Define Network Boundaries By Galaso, Pablo; Kovářík, Jaromír
  6. Energy Security, Employment and the Policy-Industry Interlock: Explaining the Role of Multi-Scalar Socio-Spatial Embeddedness in Industry Destabilization By Silver Sillak; Laur Kanger
  7. Innovation and Geographical Spillovers: New Approaches and Empirical Evidence By Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
  8. Innovation Networks and Clusters Dynamics By Desmarchelier, Benoît; Zhang, Linjia
  9. Wider Economic Benefits of Transport Corridors: A Policy Framework and Illustrative Application to the China-Pakistan Economic Corridor By Melecky, Martin; Roberts, Mark; Sharma, Siddharth
  10. A Data Map of Existing UK Data Sources Related to Regional Trade By Alastair Greig; Katerina Lisenkova; Graeme Roy

  1. By: Marta Aloi; Joanna Poyago-Theotoky; Frederic Tournemaine
    Abstract: We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more innovative firms. Migration costs, however, limit the concentration of economic activities in the most productive region. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more sensitive to wage differentials. The associated change in the spatial concentration of industries has positive welfare effects.
    Keywords: growth, economic geography, geographic labour mobility, innovation, knowledge spillovers, regional economics
    JEL: O41 O31 L13 J61 R32
    Date: 2018
  2. By: Arauzo Carod, Josep Maria; Coll Martínez, Eva; Turcu, Camelia
    Abstract: This paper focuses on the creative industries and the role played by the existing spatial distribution and agglomeration economies of these activities in relation to their entry decisions. Our main statistical source is the Répertoire des entreprises et des établissements (REE) provided by INSEE, which has plant-level microdata on the location of new establishments between 2006 and 2013. We use Count Data Models to show that location determinants are quite similar in creative and non-creative industries and that specialisation in creative industries positively influences entry of all industries. Keywords: creative industries, firm location, industrial organisation, France
    Keywords: Localització industrial -- França, Organització industrial -- França, Indústries culturals -- França, Indústria del lleure -- França, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  3. By: Joan R. Rosés; Nikolaus Wolf
    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 N10 N90 R10
    Date: 2018
  4. By: TABUCHI Takatoshi
    Abstract: We reveal the spatial distribution of income classes in a big city by examining housing prices and rent microdata, which increase with income. Traditional urban economic theory of a monocentric city predicts that the suburbs tend to house high income households relative to the central cities, which is often observed in U.S. cities. However, we find that the rich and poor collocate and are sorted by income near the central cities while the middle class locates almost everywhere according to the microdata of detached house prices in the Tokyo metropolitan area. By introducing the time cost of commuting to the traditional urban economic theory, we show that this international difference in the spatial distribution is attributed to the pecuniary commuting cost and the income elasticity of demand for housing space. We then show that any condominium resident locates almost everywhere in the Tokyo metropolitan area. This is because the income elasticity of demand for condominium space is close to 1 and the pecuniary cost of commuting is zero in Japan.
    Date: 2018–03
  5. By: Galaso, Pablo; Kovářík, Jaromír
    Abstract: Numerous studies in management, sociology, and economics have documented that the architecture of collaboration networks affects the innovation performance of individuals, firms, and regions. Little is known though about whether the association between collaboration patterns and innovation outcomes depends on the network geographical boundaries chosen by the researcher. This issue is crucial for both policy-makers and firms that rely on innovation. This article compares the association between collaboration networks and future patenting between regional and country-level collaboration networks. If we relate future innovation to the global, country-wide network our statistical analysis reproduces the findings of the previous literature. However, we find systematically less important effects of regional innovation patterns on subsequent patenting of innovators. Hence, managers and policy makers should choose the boundaries of the innovation networks that they look at carefully, aiming for integration into larger-scale collaboration communities.
    Keywords: innovation, networks, patents, network boundary, boundary specification problem
    JEL: O31 O32 O34 R11
    Date: 2018–03–08
  6. By: Silver Sillak (Institute of Social Studies, University of Tartu, Estonia); Laur Kanger (Science Policy Research Unit, University of Sussex, UK; Institute of Social Studies, University of Tartu, Estonia)
    Abstract: Existing literature on industry destabilization has relatively neglected the embeddedness of industries to their regional and national contexts. This might result in overestimating the potential for industry destabilization in specific localities. Combining the Dialectic Issue LifeCycle (DILC) model and the geography of transitions literature this article analyses the developments in the Estonian oil shale energy industry between 1995-2016. We show that the ties between the industry and its local context serve as an important stabilizing mechanism offsetting the destabilizing pressures as conceptualized by the DILC model. The cancelling out of two mechanisms on a local level leads to a misalignment of scales where the continued presence of global pressure of climate change is not matched by local dynamics. Hence in contrast to what the DILC model implies, there is no straightforward transmission of international pressures on local industries: instead this process is mediated through and likely heavily influenced by national and regional considerations. The findings imply that for industry destabilization and energy transitions to occur, not only the regime but also its connections to the local context need to be destabilized and transformed.
    Keywords: energy transitions, industry destabilization, geography of transitions, socio-spatial embeddedness, multi-scalarity
    Date: 2018–04
  7. By: Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
    Abstract: This special issue concerns the generation of knowledge and geographical spillovers, and it includes a selection of papers that cover existent research gaps with respect to the role of space in the promotion of knowledge spillovers and innovation. These papers analyse different typologies of innovation processes carried out in several geographical areas and highlight heterogeneities of these processes, after focusing on several determinants in innovation. Empirical results indicate the positive role of geographical spillovers and the importance of accurate matching among firms, in industry and with regard to regional characteristics, in order to ensure the generation of knowledge and innovation. Keywords: innovation, geography, spillovers. JEL Codes: O30, R10
    Keywords: Innovacions tecnològiques -- Direcció i administració, Economia regional, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  8. By: Desmarchelier, Benoît (Lille 1 University); Zhang, Linjia (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: Contributions in terms of clusters life cycle indicate that intense interactions between a variety of agents within the cluster are essential to its success. Despite being accepted by the literature, this view has not yet been confirmed by analyses of large temporal networks of interactions within industrial clusters. This paper proposes to fill this gap by building and studying the innovation networks of three clusters over a 10 years period. We find that clusters’ growth is all but smooth and that low assortativity and preferential attachment among agents can constitute safeguards against clusters decline. Also, we bring evidence that clusters’ innovation networks are resilient to decline. This observation supports contributions advocating for non-deterministic lifecycles in which clusters can still grow, even after a period of pronounced decline.
    Keywords: Industrial Clusters, Network Science, Dynamics
    Date: 2018–04–01
  9. By: Melecky, Martin; Roberts, Mark; Sharma, Siddharth
    Abstract: This paper discusses a new policy framework to appraise proposals of large transport infrastructure investments—transport corridors—and applies it to the China-Pakistan Economic Corridor (CPEC). The framework emphasizes the need to focus the appraisal of transport corridor investments on outcomes that go beyond savings in travel time and reductions in vehicle operating costs, and even beyond intermediate outcomes such as trade and agglomeration. The focus should be on the ultimate benefits that households along a corridor, and, more generally, society, can attain—such as increased consumption, better jobs, and greater equity. It also emphasizes the need to identify and manage trade-offs. For example, household income could increase at the expense of environmental degradation. Or alongside winners, a corridor, may also create many losers. The appraisal framework is applied to Pakistan’s portion of the CPEC, using reduced-form econometrics and allowing the impacts of transport corridors to depend on initial market conditions and institutions. The simulations suggest important heterogeneous impacts of CPEC among districts in Pakistan stemming from the variations in restrictions on land use and in secondary education across connected districts.
    Keywords: Infrastructure; Transport Corridors; Economic Corridors, Wider Economic Benefits; Consumption; Poverty; Jobs; Gender; Air Pollution; Pakistan; China.
    JEL: F15 H54 R12 R40
    Date: 2018–03–08
  10. By: Alastair Greig; Katerina Lisenkova; Graeme Roy
    Abstract: Considering the political importance of devolution, and emerging economic issues in UK’s trade policy arising from Brexit, there’s a pressing demand for data which can help understand internal trade flows within the UK. This paper is the first in a series which seeks to understand and evaluate the feasibility of producing robust interregional trade flows statistics for the UK.
    Keywords: regional trade, UK, regional economic statistics
    JEL: R12 F15 E01
    Date: 2018–03

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