nep-geo New Economics Papers
on Economic Geography
Issue of 2019‒02‒04
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Incubators, accelerators and regional economic development By Madaleno, Margarida; Nathan, Max; Overman, Henry; Waights, Sevrin
  2. Relatedness and the Resource Curse - Is there a liability of relatedness? By Rune Dahl Fitjar; Bram Timmermans
  3. The making of the modern metropolis: evidence from London By Heblich, Stephan; Redding, Stephen J.; Sturm, Daniel M.
  4. Marshallian vs Jacobs Effects: Which One Is Stronger? Evidence for Russia Unemployment Dynamics By Demidova, Olga; Kolyagina, Alena; Pastore, Francesco
  5. Spatial spillovers of the cultural employment growth in Brazilian municipalities By de Santana Ribeiro, Luiz Carlos; Carneiro Rios Lopes, Thiago Henrique; Borges Ferreira Neto, Amir; Rodrigues dos Santos, Fernanda
  6. The Economic Complexity of US Metropolitan Areas By Benedikt S. L. Fritz; Robert A. Manduca
  7. The missing ingredient: Distance - Internal migration and its long-term economic impact in the United States By Viola von Berlepsch; Andrés Rodríguez-Pose
  8. Quantifying wide economic impacts of agglomeration for transport appraisal: existing evidence and future directions By Graham, Daniel J.; Gibbons, Stephen
  9. The contribution of foreign migration to local labor market adjustment By Amior, Michael

  1. By: Madaleno, Margarida; Nathan, Max; Overman, Henry; Waights, Sevrin
    Abstract: A growing wave of co-location programmes promises to boost growth for young firms. Despite great public and policy interest we have little idea whether such programmes are effective. This paper categorises accelerators and incubators within a larger family of ‘co-location' interventions. We then develop a single framework to theorise workspace-level impacts. We summarise available evaluation evidence and sketch implications for regional economic policy. We find clear evidence programmes are effective overall. But we know little about how effects operate – or who benefits. Providers and policymakers should experiment further to establish optimal designs.
    Keywords: incubators; accelerators; entrepreneurship; clusters; cities; economic development
    JEL: L2 O32 R30 R58
    Date: 2018–09
  2. By: Rune Dahl Fitjar; Bram Timmermans
    Abstract: The literature on relatedness emphasizes the benefits of co-location with related industries, as knowledge spillovers promote innovation and regional branching. However, resource competition between industries which rely on related capabilities has not largely been considered. The resource curse literature argues that resource competition produces adverse effects for other industries when extractive industries expand. However, this literature has not considered whether this depends on the relatedness between the resource industry and these other industries. This paper brings together these two strands of literature. We examine the relationship between the oil and gas industry in Norway and its related industries during a period of rising oil prices and an expansion of the oil and gas industries. We conduct the analysis at the national scale, as well as in the most oil-specialised region of Stavanger, in order to examine how these dynamics play out at a regional, as well as national level. An analysis of the labor flow between the petroleum and related industries using a Norwegian linked employer-employee database reveals that higher wages increase the likelihood of moving from related industries into petroleum, but reduce the likelihood of moving in the opposite direction. The petroleum industry recruits the most productive workers from related industries and returns its least productive workers. Consequently, we argue that relatedness is not an even playing field: There may be losers, as well as winners, from relatedness.
    Keywords: Relatedness, resource curse, petroleum, labour mobility, Norway
    JEL: R11
    Date: 2019–01
  3. By: Heblich, Stephan; Redding, Stephen J.; Sturm, Daniel M.
    Abstract: Modern metropolitan areas involve large concentrations of economic activity and the transport of millions of people each day between their residence and workplace. We use the revolution in transport technology from the invention of steam railways, newly-constructed spatially-disaggregated data for London from 1801-1921, and a quantitative urban model to provide evidence on the role of these commuting flows in supporting such concentrations of economic activity. Steam railways dramatically reduced travel times and permitted the first large scale separation of workplace and residence. We show that our model is able to account for the observed changes in the organization of economic activity, both qualitatively and quantitatively. In counterfactuals, we find that removing the entire railway network reduces the population and the value of land and buildings in Greater London by 20 percent or more, and brings down commuting into the City of London from more than 370,000 to less than 60,000 workers.
    Keywords: agglomeration; urbanization; transportation
    JEL: O18 R12 R40
    Date: 2018–09
  4. By: Demidova, Olga (NRU HSE, Moscow); Kolyagina, Alena (NRU HSE, Moscow); Pastore, Francesco (Università della Campania Luigi Vanvitelli)
    Abstract: This paper is devoted to the study of diversification and specialization influence on one of the main indicators of Russian labour market, the unemployment growth. The purpose of the work is to find out which effects dominate in the Russian regions, Marshallian or Jacobs, and whether this predominance is stable for different time intervals. The following hypotheses were empirically tested: 1) the dependence of the unemployment rate on the degree of concentration or diversification is non-monotonic due to possible overlapping effects of urbanization and localization; 2) the influence of the degree of concentration or diversification on the level of unemployment depends on the time period. To test these hypotheses nonparametric additive models with spatial effects were used. Both hypotheses found empirical confirmation. It was shown that in Russia, depending on the period, various effects dominated: in 2008-2010, and 2013-2016 Marshallian effects predominated, while in 2010-2013, Jacobs effects dominated.
    Keywords: concentration, diversification, unemployment, spatial effects, nonparametric models
    JEL: J64 L16 L25 L52 R23
    Date: 2018–12
  5. By: de Santana Ribeiro, Luiz Carlos; Carneiro Rios Lopes, Thiago Henrique; Borges Ferreira Neto, Amir; Rodrigues dos Santos, Fernanda
    Abstract: The Brazilian cultural sector is rarely explored in the literature, especially considering all municipalities at the same time in an economic and spatial perspective. This paper aims to measure the level of specialization, urbanization and diversification externalities on the cultural employment growth rate in Brazilian municipalities between 2006 and 2016. To do so, spatial econometric models are used. The main results indicate there are no spatial associations regarding cultural employment growth in Brazil. The lack of complementarity of this sector, associate with the lack of incentives for its development, particularly in small municipalities, helps to explain our results.
    Keywords: cultural activities; Brazilian municipalities; spatial econometrics; specialization externalities
    JEL: R12 Z10
    Date: 2019–01–15
  6. By: Benedikt S. L. Fritz; Robert A. Manduca
    Abstract: We calculate measures of economic complexity for US metropolitan areas for the years 2007-2015 based on industry employment data. We show that the concept of economic complexity translates well from the cross-country to the regional setting, and is able to incorporate local as well as traded industries. The largest cities and the Northeast of the US have the highest average complexity, while traded industries are more complex than local-serving ones on average, but with some exceptions. On average, regions with higher complexity have a higher income per capita, but those regions also were more affected by the financial crisis. Finally, economic complexity is a significant predictor of within-decreases in income per capita and population. Our findings highlight the importance of subnational regions, and particularly metropolitan areas, as units of economic geography.
    Date: 2019–01
  7. By: Viola von Berlepsch; Andrés Rodríguez-Pose
    Abstract: This paper examines if internal migrants at the turn of the 20th century have influenced the long-term economic development of the counties where they settled over 100 years ago. Using Census microdata from 1880 and 1910, the distance travelled by American-born migrants between birthplace and county of residence is examined to assess its relevance for the economic development of US counties today. The settlement patterns of domestic migrants across the 48 continental states are then linked to current county-level development. Factors influencing both migration at the time and the level of development of the county today are controlled for. The results of the analysis underline the economic importance of internal migration. Counties that attracted American-born migrants more than 100 years ago are significantly richer today. Moreover, distance is crucial for the impact of internal migration on long-term economic development; the larger the distance travelled by domestic migrants, the greater the long-term economic impact on the receiving territories.
    Keywords: Internal migration, distance, long-term, economic development, counties, US
    JEL: J61 N11 O15 R23
    Date: 2019–01
  8. By: Graham, Daniel J.; Gibbons, Stephen
    Abstract: This paper is concerned with the Wider Economic Impacts (WEIs) of transport improvements that arise via scale economies of agglomeration. It reviews the background theory and empirical evidence on agglomeration, explains the link between transport and agglomeration, and describes a three step procedure to appraise agglomeration impacts for transport schemes within Cost Benefit Analysis (CBA). The paper concludes with a set of recommendations for future empirical work on agglomeration and transport appraisal.
    Keywords: agglomeration; transport; cost benefit analysis
    JEL: R1 R4
    Date: 2018–07
  9. By: Amior, Michael
    Abstract: The US suffers from large regional disparities in employment rates which have persisted for many decades. It has been argued that foreign migration offers a remedy: it “greases the wheels” of the labor market by accelerating the adjustment of local population. Remarkably, I find that new migrants account for 30 to 60 percent of the average population response to local demand shocks since 1960. However, population growth is not significantly more responsive in locations better supplied by new migrants: the larger foreign contribution is almost entirely offset by a reduced contribution from internal mobility. This is fundamentally a story of “crowding out”: I estimate that new foreign migrants to a commuting zone crowd out existing US residents one-for-one. The magnitude of this effect is puzzling, and it may be somewhat overstated by undercoverage of migrants in the census. Nevertheless, it appears to conflict with much of the existing literature, and I attempt to explain why. Methodologically, I offer tools to identify the local impact of immigration in the context of local dynamics.
    Keywords: migration; geographical mobility; local labor markets; employment
    JEL: J61 J64 R23
    Date: 2018–11

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