nep-geo New Economics Papers
on Economic Geography
Issue of 2018‒11‒12
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Spatial Dependence and Social Networks in Regional Labor Migration By Koji Murayama; Jun Nagayasu
  2. Gentrification and pioneer businesses By Behrens, Kristian; Boualam, Brahim; Martin, Julien; Mayneris, Florian
  3. The spatial distribution of US cities By González-Val, Rafael
  4. Regional alignement and productivity growth By Ludovic Dibiaggio; Benjamin Montmartin; Lionel Nesta
  5. RIOTs in Germany – Constructing an interregional input-output table for Germany By Oliver Krebs
  6. Imports, Exports and Domestic Innovation By Boddin, Dominik
  7. Economic integration and growth at the margin: A space-time incremental impact analysis By Mitze, Timo; Breidenbach, Philipp
  8. In the shadow of coal: How large-scale industries contributed to present-day regional differences in personality and well-being By Obschonka, Martin; Stuetzer, Michael; Rentfrow, Peter J.; Shaw-Taylor, Leigh; Satchell, Max; Silbereisen, Rainer K.; Potter, Jeff; Gosling, Samuel D.
  9. “The Impact of Immigration on Native Employment: Evidence from Italy” By Stefano Fusaro; Enrique López-Bazo

  1. By: Koji Murayama; Jun Nagayasu
    Abstract: This study empirically analyzes the determinants of regional labor migration in Japan. Using spatial models of origin-destination flows and considering the network effects of labor, we obtain results more consistent with standard migration theory than previous studies. First, unlike prior research, we find that migration decisions are made by economic motivations consistent with economic theories. In particular, the unemployment rate in the destination region and income in the origin are found to be driving forces of labor migration. Second, we report that network effects, which help reduce migration costs, have encouraged the relocation of labor. Third, by using several de nitions of spatial weights, we show that spatial dependence in regional migration is more complex than what previous studies assumed.
    Date: 2018–10
  2. By: Behrens, Kristian; Boualam, Brahim; Martin, Julien; Mayneris, Florian
    Abstract: We build a time-consistent block-level dataset from 1990 to 2010 containing socio-economic characteristics of residents and information on businesses in New York. We identify both gentrifying areas and pioneer sectors characterized by atypical location decisions. The latter-mostly cultural, recreational, and creative industries-help us to better predict and understand gentrification. We find that a block's initial exposure to pioneers has a quantitatively sizable effect in predicting future gentrification. Pioneers foster gentrification through the types of workers they hire, their signal as to the future prospects of a neighborhood, and their effect on the arrival of consumption amenities.
    Keywords: Gentrification; microgeographic data; New York; pioneer businesses
    JEL: R14 R23 R31
    Date: 2018–11
  3. By: González-Val, Rafael
    Abstract: In this paper, we consider the distribution of bilateral distances between all pairs of cities to estimate K-densities using the methodology by Duranton and Overman (2005), identifying different spatial patterns. By using data from different definitions of US cities in 2010 (places, urban areas, and core-based statistical areas), we analyse the spatial distribution of cities, finding significant patterns of dispersion depending on the city size and city definition. Our results lend support to a hierarchical system of US cities in which the central cities of each subsystem are far away from each other.
    Keywords: space, city size, urban hierarchy, distance-based approach
    JEL: C12 C14 R12
    Date: 2018–09
  4. By: Ludovic Dibiaggio (Histoire et Critique des Arts - Centre d'étude et de recherche d'archéologie méditerranéenne et atlantique. UHB); Benjamin Montmartin (Observatoire français des conjonctures économiques); Lionel Nesta (Observatoire français des conjonctures économiques)
    Abstract: We propose the concept of regional alignment to suggest that synergistic relations among the scientific expertise, technological specialization and industry composition of regions affect regional productivity growth. In this paper, we test an extended conditional β-convergence model using data on 94 French departments (NUTS3) for the period 2001-2011. Our results indicate that a conditional β-convergence is associated with a σ-divergence process in the total factor productivity (TFP) growth of French regions. This process is strongly affected by the level of regional alignment. Indeed, we find evidence that regional alignment both directly and indirectly influences regional productivity growth. The indirect effect of regional alignment materializes through its leverage on R&D investment, which is one of the most important drivers of productivity growth. Moreover, using a heterogeneous coefficients model, we show that the positive effect of regional alignment on TFP growth increases with the industrial diversity of regions, which suggests that regional alignment increases the value of Jacobs externalities more than Marshall-ArrowRomer (MAR) externalities. KEY
    Keywords: Regional alignement; β-convergence; Productivity growth; Multi-regional model
    JEL: O30 O40 R11
    Date: 2018–09
  5. By: Oliver Krebs
    Abstract: Despite their importance, little is known about the spatial structure of trade and production networks within Germany and their connection to the international markets. The lack of data is problematic for regional analysis of aggregate shocks such as trade agreements and to analyze network effects of regional policies. This paper takes an in-depth look at this German production structure and trade network at the county level based on a unique data set of county level trade. I find a surprisingly vast heterogeneity with respect to specialization, agglomeration and trade partners. The paper subsequently shows how to adapt recent advances in regionalization of input-output tables to derive an interregional input output table for 402 German counties and 26 foreign partners for 17 sectors that is cell-by-cell compatible with the WIOD tables for national aggregates and can be used for impact analysis and CGE model calibration.
    Keywords: Germany, regional trade, input-output tables, proportionality
    JEL: R15 R12 F17
    Date: 2018–11
  6. By: Boddin, Dominik
    Abstract: By crawling online data, I create a new long-term patenting panel dataset for Germany to identify the causal effect of trade integration with Eastern Europe and China on patenting in the period 1993-2012. I exploit the cross-regional variation in the German industry structure and use trade flows to other advanced economies as instruments for regional import and export exposure. I find that an increase in the net trade exposure (defined as import- minus export exposure) causes an increase in regional patenting. This effect is purely driven by a positive link between import exposure and innovation, whereas export exposure does not influence innovation. Interestingly, the effects are heterogeneous across exposure origin. The positive link between import exposure and innovation is fully explained by trade integration with Eastern Europe. Increasing integration with China has no effects on innovation.
    JEL: F14 O30 R11 R12
    Date: 2018
  7. By: Mitze, Timo; Breidenbach, Philipp
    Abstract: We use the case of EU enlargement in 2004 to investigate the impact of economic integration on regional income growth. Being particularly interested in studying the effects 'at the margin', we track the relative performance of regions adjacent to both sides of the integration border vis-à-vis non-border regions. We use a space-time incremental difference-in-difference (IDiD) analysis to account for spatial spillovers, early anticipation and adjustment dynamics over time. Our findings indicate that EU-15 regions up to a distance of 100 km from the integration border experience positive integration effects, but we do not observe additional income growth effects for NMS-10 border regions compared to non-border regions. The results are found to be robust for alternative regression specifications including doubly robust estimation, varying sample settings and placebo tests. Country-specific estimates for the EU-15 finally indicate that in particular East German regions have benefited from EU enlargement potentially reflecting their proximity to Poland as largest NMS market, their favorable investment conditions, i.e. modern infrastructure, and preferential historical ties to the NMS-10.
    Keywords: economic integration,regional income growth,EU enlargement,spatial spillovers,space-time incremental difference-in-difference estimation
    JEL: C23 F15 O47 R11
    Date: 2018
  8. By: Obschonka, Martin; Stuetzer, Michael; Rentfrow, Peter J.; Shaw-Taylor, Leigh; Satchell, Max; Silbereisen, Rainer K.; Potter, Jeff; Gosling, Samuel D.
    Abstract: Recent research has identified regional variation of personality traits within countries but we know little about the underlying drivers of this variation. We propose that the Industrial Revolution, as a key era in the history of industrialized nations, has led to a persistent clustering of well-being outcomes and personality traits associated with psychological adversity via processes of selective migration and socialization. Analyzing data from England and Wales, we examine relationships between the historical employment share in large-scale coal-based industries (coal mining and steam-powered manufacturing industries that used this coal as fuel for their steam engines) and today’s regional variation in personality and well-being. Even after controlling for possible historical confounds (historical energy supply, education, wealth, geology, climate, population density), we find that the historical local dominance of large-scale coal-based industries predicts today’s markers of psychological adversity (lower Conscientiousness [and order facet scores], higher Neuroticism [and anxiety and depression facet scores], lower activity [an Extraversion facet], and lower life satisfaction and life expectancy). An instrumental variable analysis, using the historical location of coalfields, supports the causal assumption behind these effects (with the exception of life satisfaction). Further analyses focusing on mechanisms hint at the roles of selective migration and persisting economic hardship. Finally, a robustness check in the U.S. replicates the effect of the historical concentration of large-scale industries on today’s levels of psychological adversity. Taken together, the results show how today’s regional patterns of personality and well-being may have their roots in major societal changes underway decades or centuries earlier.
    Keywords: Industrial Revolution, regional well-being, adversity, Big Five personality traits, historical factors
    JEL: I31 N93
    Date: 2018
  9. By: Stefano Fusaro (AQR-IREA. University of Barcelona.); Enrique López-Bazo (AQR-IREA. University of Barcelona.)
    Abstract: Whether host countries economically benefit or not from immigration is a longstanding debate. In this paper, by taking advantage of the consistent variation of foreign - born workers' settlements across local labor market, we investigate the impact of immigration on native employment in Italy over the period 2009 -2017. Both the country and the time span considered represent an interesting novelty that adds a further piece of evidence to the existing literature. Despite the fact that immigration has recently become a major issue, the studies on the impact of immigration into Italy are indeed relatively scarce. In addition, the peculiar institutional framework of Italy, that plays a crucial role in the extent to which local labor markets are able to absorb immigration induced supply shocks, makes this analysis particularly relevant. Likewise, the period analyzed is of extreme interest since it is characterized by the combination of the economic downturn and by an unprecedented increase of the migratory in inflows. Overall, the results contradict the belief that immigrants \take away jobs from natives" and present a scenario in which foreign -born workers have an average negligible impact on native employment o pportunities.Consistently with the canonical model of immigration however, when distinguishing the native population by education levels, the results indicate a positive impact on high -educated natives and a strong negative one on low -educated. Nevertheless, after controlling for immigrants’ “skill - downgrading” and for natives' over -education, the negative impact estimated for the latter experiences a consistent reduction.
    Keywords: Immigration; Employment; Local Labor Markets; Shift-Share; Bartik Instrument; Italian Provinces JEL classification: J15; J61; R23-
    Date: 2018–07

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