nep-geo New Economics Papers
on Economic Geography
Issue of 2018‒10‒22
eight papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Technological Coherence and the Adaptive Resilience of Regional Economies By Silvia Rocchetta; Andrea Mina
  2. Related variety, unrelated variety and the novelty content of firm innovation in urban and non-urban locations By Marte C.W. Solheim; Ron Boschma; Sverre Herstad
  3. An assessment of EU Cohesion Policy in the UK regions: direct effects and the dividend of targeting By Marco Di Cataldo; Vassilis Monastiriotis
  4. Migration and invention in the age of mass migration By Andrea Morrison; Sergio Petralia; Dario Diodato
  5. Shedding Light on the Spatial Diffusion of Disasters By Felbermayr, Gabriel; Gröschl, Jasmin; Sanders, Mark; Schippers, Vincent; Steinwachs, Thomas
  6. Enduring Gendered Mobility Patterns in Contemporary Senegal By Isabelle CHORT; Philippe DE VREYER; Thomas ZUBER
  7. Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches By Qi, Shusen; de Haas, Ralph; Ongena, S.R.G.; Straetmans, Stefan
  8. Strukturwandel in der Wissensökonomie: Eine Analyse von Branchen-, Lage- und Regionseffekten in Deutschland By Margarian, Anne

  1. By: Silvia Rocchetta; Andrea Mina
    Abstract: This paper explores the effect of different regional technological profiles on the resilience of regional economies to exogenous shocks. It presents 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 -- and not simply diversified-- knowledge bases are better prepared to face an unforeseen downturn and display adaptive resilience. Moreover, local economies tend to be more adaptable if they innovate in sectors with the strongest growth opportunities, even though firms' net entry does not appear to contribute significantly towards resilience.
    Keywords: resilience, adaptation, innovation, technological variety, financial crisis
    Date: 2018–10–17
  2. By: Marte C.W. Solheim; Ron Boschma; Sverre Herstad
    Abstract: In this paper, we investigate whether the composition of experience-based knowledge accumulated by firms in urban and rural locations is reflected in the novelty content of their innovations. Looking at the manufacturing industry, and using Norwegian Linked Employer- Employee register data (LEED) merged with Community Innovation Survey (CIS) data, we find that unrelated experience variety within firms increases the probability of radical innovation, independently of firms' location, whereas related variety increases the probability of incremental innovation in large-city regions. These results demonstrate that innovation capacity cannot be understood from the single perspective of R&D efforts and strategy as it also depends on experiences accumulated in 'entire organizations' and the locations in which accumulation occurs. Moreover, they suggest that for manufacturing firms, urban locations are not hot spot for radical change. Instead, they support incremental innovative activities by facilitating effective sharing of knowledge between related sectors.
    Keywords: immigration, Diversity, Innovation, Related Variety, Unrelated Variety, Urban, Rural
    JEL: O31 P25 O15 O14 J24
    Date: 2018–10
  3. By: Marco Di Cataldo; Vassilis Monastiriotis
    Abstract: With the prospective exit of the UK from the European Union, a crucial question is whether EU Structural Funds have been beneficial for the country and which aspects of Cohesion Policy should be maintained if EU funds are to be replaced. This paper addresses this question through a twofold investigation, assessing not only whether but also how EU funds have contributed to regional growth in the UK over three programming periods from 1994 to 2013. We document a significant and robust effect of Cohesion Policy in the UK, with higher proportions of Structural Funds associated to higher economic growth both on the whole and particularly in the less developed regions of the country. In addition, we show that the strategic orientation of investments also plays a distinct role for regional growth. While concentration of investments on specific pillars seems to have no direct growth effects, unless regions can rely on pre-existing competitive advantages in key development areas, we unveil clear evidence that targeting investments on specific areas of relative regional need has a significant and autonomous effect on growth. These findings have important implications for the design of regional policy interventions in Britain after Brexit.
    Keywords: EU Cohesion Policy, UK, Structural Funds, regional policy design, Brexit.
    JEL: R11 O18
    Date: 2018–06
  4. By: Andrea Morrison; Sergio Petralia; Dario Diodato
    Abstract: More than 30 million people migrated to the US between the 1850s and 1920s. In the order of thousands became inventors and patentees. Drawing on an original dataset of immigrant inventors to the US, we assess the city-level impact of immigrants patenting and their potential crowding out effects on US native inventors. Our study contributes to the different strands of literature in economics, innovation studies and economic geography on the role of immigrants as carriers of knowledge. Our results show that immigrants? patenting is positively associated with total patenting. We find also that immigrant inventors crowd-in US inventors. The growth in US inventors? productivity can be explained also in terms of knowledge spill-overs generate by immigrants. Our findings are robust to several checks and to the implementation of an instrumental variable strategy.
    Keywords: immigration, innovation, knowledge spill-over, patent, age of mass migration, US
    JEL: F22 J61 O31 R3
    Date: 2018–10
  5. By: Felbermayr, Gabriel; Gröschl, Jasmin; Sanders, Mark; Schippers, Vincent; Steinwachs, Thomas
    Abstract: Climate research suggests that global warming will lead to more frequent and more extreme natural disasters. Most disasters are local events with effects on local economic activity. Hence, assessing their economic impacts with the help of econometric country-level analysis may lead to biased results. Moreover, correct identification is further complicated by the possibility that local shocks shift production and consumption to neighboring locations. In this paper, annual night-time light emission data covering about 24,000 grid cells for the years 1992-2013 are matched to geocoded information on meteorological and geological events. Spatial econometric panel methods are applied to account for interdependencies between locations. Interpreting variation in light emissions as reflecting changes in economic activity, findings convey evidence for pronounced local average treatment effects and strong spatial spillovers, particularly for weather shocks. Moreover, substantial heterogeneity across income groups and regions is identified.
    Keywords: natural disaster and weather shocks,night-time light emission,spatial spillovers,grid cell analysis
    JEL: F15 O18 O44 Q54 R12 F15 O18 O44 Q54 R12
    Date: 2018
  6. By: Isabelle CHORT; Philippe DE VREYER; Thomas ZUBER
    Abstract: This study explores internal migration patterns of men and women using individual panel data from a nationally representative survey collected in two waves, in 2006-2007 and 2010-2012, in Senegal. The data used are unique in that they contain the GPS coordinates of individuals' location in both waves. We are thus able to precisely calculate distances and map individual moves, avoiding limitations and constraints of migration definitions based on administrative units. Our results reveal major differences across gender. Women are found to be more likely to migrate than men. However, they move less far and are more likely to migrate to rural areas, especially when originating from rural areas. Education is found to increase the likelihood of migration to urban destinations, especially for women. An analysis of the motives for migrating confirms the existence of gendered migration patterns, as female mobility is mostly linked to marriage while labor mobility is frequently observed for men.
    Keywords: Internal Migration ; Gender Inequalities ; Rural-Urban Migration ; Senegal
    JEL: J16 O15 O18 R23
    Date: 2018–10
  7. By: Qi, Shusen; de Haas, Ralph (Tilburg University, Center For Economic Research); Ongena, S.R.G. (Tilburg University, Center For Economic Research); Straetmans, Stefan
    Abstract: We study how information sharing between banks influences the geographical clustering of branches. We construct a spatial oligopoly model with price competition that explains why bank branches cluster and how the introduction of information sharing impacts clustering. Dynamic data on 59,333 branches operated by 676 banks in 22 countries between 1995 and 2012 allow us to test the hypotheses derived from our model. We find that information sharing spurs banks to open branches in localities that are new to them, but that are already well served by other banks. Information sharing also allows firms to borrow from more distant banks.
    Keywords: branch clustering; informatio sharing; spatial oligolopy model
    JEL: D43 G21 G28 L13 R51
    Date: 2018
  8. By: Margarian, Anne
    Abstract: This Thuenen-Report discusses the results of an analysis of the structural change between industries in German districts. At the heart of the report is the question: “In how far is economic development structurally determined?” The theoretical outset is the new growth theory which implies that in the modern economy knowledge is the central differentiating production factor. A differentiation of variably mobile forms of knowledge makes it possible to develop theoretical expectations over industries’ distribution and development in urban and rural regions in the east and west of Germany. The empirical analysis leans mainly on a correspondingly differentiated shift-share regression within which the development of the number of firms and employees on district level can be broken down in industry- and region-effects. In a second step, the identified effects are further statistically examined in order to identify, among others, various non-linear industry effects. The analysis confirms the most important theoretically derived expectations: The economy of prospering rural areas is carried above all by the production sector, despite its own sinking employment share. The intangible knowledge that is crucial for its small and medium size firms is characterized by restricted mobility. Urban regions develop above all positively if they are attractive to knowledge-intensive businesses and highly qualified employees. Due to the differences in the mobility of relevant knowledge sources, an equalization between Germany’s west and east is more likely to take place in urban than in rural districts. Within the analysis, a change from a holistic perspective towards a focus on regional and economic details has helped to answer the initial question: Regional economic development is not totally structurally determined, but is made by firms, who, based on experience and innovation, generate competitive advantages. On the other hand, economic lags cannot simply be compensated through individual efforts because competitiveness pre-supposes experience and tacit knowledge concerning the particular technological regime. Development opportunities for structurally disadvantaged rural regions are in the exploitation of opportunities that stem from new markets and activities. The spatial implications of the digitalization and digital transformation of the economy remain ambiguous so far. If the necessary infrastructural and knowledge resources are successfully created all over the country and applied in innovative extension of existing capacities, new impulses could be generated by this technological “regime-change” for peripheral regions as well.
    Keywords: Agribusiness, Community/Rural/Urban Development, Industrial Organization
    Date: 2018–10–15

This nep-geo issue is ©2018 by Andreas Koch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.