nep-geo New Economics Papers
on Economic Geography
Issue of 2019‒06‒17
six papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. The birth and development of the Italian automotive industry (1894-2015) and the Turin car cluster. By Enrietti, Aldo; Geuna, Aldo; Nava, Consuelo R.; Patrucco, Pier Paolo
  2. Effects of R&D subsidies on regional economic dynamics: Evidence from Chinese provinces By Jonathan Eberle; Philipp Boeing
  3. Using Local Public Goods to Attract and Retain the Creative Class: A Tale of Two Cities By Batabyal, Amitrajeet; Kourtit, Karima; Nijkamp, Peter
  4. Firm Behavior and Pollution in Small Geographies By Dakshina De Silva; Robert McComb; Anita Schiller; Aurelie Slechten
  5. Civil War and International Migration from Nepal: Evidence from a Spatial Durbin Model By Hari Sharma; John Gibson
  6. Disparités spatiales et financement des biens et services publics de proximité en Haïti. Le cas des budgets communaux de 2017-2018 By Christophe Providence

  1. By: Enrietti, Aldo; Geuna, Aldo; Nava, Consuelo R.; Patrucco, Pier Paolo (University of Turin)
    Abstract: By discussing the relation between the traditional Marshallian/Jacobian approach and Klepper’s concept of spinoffs and their role, this paper tries to explain the early genesis and later evolution of the Italian automotive industry, based on the for mation of the Torino’s car cluster from the late nineteenth century. Historical analysis and econometric models are integrated to identify key factors that enabled the creation and success of the automotive industry in Turin. Specifically, we investigate agglomeration economies, the role of spinoffs and institutional factors such as the level and importance of local education. Based on original archival research, we built a new database of all Italian automobile companies. Replication of Klepper’s (2007) and Boschma and Wenting’s (2007) models shows no particular influence of the Turin cluster and no early entry advantages. Our model, which integrates and extends previous contributions, confirms the existence of a spinoffs effect, and in particular the positive effect of inherited technical skills embedded in pilots. We find support also, for positive agglomeration effects at the regional level and inter industry externalities from aeronautics, a metropolitan cluster effect and the significance of metropolitan education.
    Date: 2019–04
  2. By: Jonathan Eberle (Department of Economic Geography and Location Research, Philipps University Marburg); Philipp Boeing (ZEW - Leibniz Centre for European Economic Research, Mannheim and Peking University, China Center for Economic Research (CCER), Beijing)
    Abstract: We investigate the impact of research and development (R&D) subsidies on R&D inputs of large- and medium-sized firms and on additional innovation and economic activities in Chinese provinces. A panel vector autoregressive (VAR) model and corresponding impulse response function (IRF) analysis allow us to differentiate between direct and indirect effects, which add up to total effects. We find that an increase of R&D subsidies significantly decreases private R&D investments, although there is a significant positive effect on the R&D personnel employed in firms. We interpret these findings as a partial crowding-out effect because public funds substitute some private funds while total R&D inputs still increase. Complementarily, we find a positive secondary effect on the provincial patent activity, our measure of technological progress. Interestingly, we also find potentially unintended effects of R&D subsidies on increases in the investment rate in physical capital and residential buildings. Although R&D subsidies fail to incentivize private R&D expenditures, firms increase total R&D inputs, and provincial economies benefit from secondary effects on technological progress and capital deepening.
    Keywords: China, R&D subsidies, regional economic growth, panel VAR, impulse response functions
    JEL: C33 R11 R58 O38 O47
    Date: 2019–06
  3. By: Batabyal, Amitrajeet; Kourtit, Karima; Nijkamp, Peter
    Abstract: We study the impact that the provision of a local public good (LPG) by two cities has on their ability to attract and retain members of the creative class. This creative class consists of two types of members known as engineers and artists. Engineers are wealthier than artists and they also value the LPG more. We first focus on each city in isolation. We compute the marginal value and the marginal cost of the LPG and then determine the provision of this LPG when the provision is determined by uniform contributions and majority voting. Next, we allow the creative class members to migrate between the two cities and analyze whether engineers or artists migrate, the equilibrium distribution of the creative class, and the efficiency of the LPG provision. Finally, we consider the situation in each city just before migration and study how much of the LPG is provided when proportional contributions and majority voting determine this provision. A related question we address is whether engineers or artists now have an incentive to migrate and, if yes, we identify who would like to migrate and to which city.
    Keywords: Artist, Creative Class, Engineer, Local Public Good, Majority Voting
    JEL: H40 R11
    Date: 2019–03–07
  4. By: Dakshina De Silva; Robert McComb; Anita Schiller; Aurelie Slechten
    Abstract: We consider the relationship between the location choices of potentially polluting firms and local income. Unlike previous research in the area of economic justice, we distinguish between pollution potential and actual releases of toxic substances in the locality. We explore the relationship between profit maximizing behavior of potentially polluting firms in their choice of both location and expenditures to influence the likelihood of toxic releases and their expected financial costs. We proxy the expenditures on prudential behavior by observing the co-localization of waste remediation activities. Evidence supports the conclusion that firms behave rationally in managing risk of toxic release.
    Keywords: EKC, Environmental Justice, Agglomeration, Entry and Exit
    JEL: Q2 L6 R1
    Date: 2019
  5. By: Hari Sharma (University of Waikato); John Gibson (University of Waikato)
    Abstract: A growing literature studies microeconomic effects of war on human capital formation and labour market activity. A common research design is to relate spatially aggregated data on conflict rates at the first or second sub-national level to more spatially disaggregated survey data on outcomes of interest. Several studies focus on Nepal’s civil war, that ran for a decade from 1996, and use conflict-related deaths in Nepal’s 75 districts (the second sub-national level). Variation in the conflict-related death rate within Nepal’s districts is more than three times higher than the variation between districts. Consequently, using district-level conflict data creates a measurement error on the right-hand side of regression models, making the conflict seem more widespread, and biases econometric estimates of conflict impacts. Prior studies also ignore spatial spillovers, where local conflict may affect outcomes not only locally but also in surrounding areas. To deal with these biases, we use measures of conflict intensity for Nepal’s 3982 localities in a spatial Durbin model of the change in emigration rates between the 2001 and 2011. We distinguish emigration to India, which is informal and long-standing, from emigration to other countries that is a recent development for Nepal and requires formal recruitment and visa processes. Higher local conflict intensity is associated with slower local growth in the emigration rate between 2001 and 2011. It is mainly indirect impacts, based on the spatial lags, which matter and it is emigration to destinations other than India that was deterred by the conflict. The estimated impacts would be substantially distorted if conflict intensity was measured at the more aggregated, district-level, as in the existing literature.
    Keywords: aggregation; conflict; emigration; spatial Durbin model; Nepal Length: 27 pages
    JEL: C21 D74 F22 O15
    Date: 2019–06–15
  6. By: Christophe Providence (CREGED - Centre de Recherche en Gestion et Economie du Développement - Université Quisqueya, MEMIAD - Management, économie, modélisation, informatique et aide à la décision - UA - Université des Antilles)
    Abstract: Pendant longtemps en Haïti, le développement fut pensé comme l'apanage des autorités centrales qui ont conçu, dans des logiques nationales, des stratégies à cet effet sans forcément prendre en compte les spécificités infranationales. Cette vision de mise en projet des territoires a émergé d'un contexte et d'une histoire uniques qui impliqueraient dès lors une logique de développement unique. En prenant le cas d'études les allocations budgétaires aux communes haïtiennes pour l'année fiscal 2017-2018, nous voulons démontrer que la logique de répartition du financement des collectivités territoriales n'est ni neutre ni stratégique. L'objectif de cet article est double. D'une part, c'est de modéliser les disparités spatiales et l'instabilité structurelle sur le territoire national. D'autre part, c'est d'étudier les variations dans l'espace et d'expliquer le caractère inclusif et complémentaire du processus de développement territorial. L'analyse spatiale des dotations communales de crédits budgétaires révèle deux grandes anomalies dans la logique de financement de ces territoires. La première anomalie considère la légitimation des disparités territoriales et socioéconomiques qui vient d'un choix non éclairé des dirigeants à concevoir le territoire haïtien et les relations de proximité entre les acteurs localisés. La seconde anomalie se retrouve dans le manque de vision ou de considération globale dans la stratégie nationale pour le développement territorial. L'Etat haïtien ne peut donc pas faire une gestion prévisionnelle et stratégique du territoire car il est trop dépendant des événements conjoncturels.
    Keywords: Développement territorial,disparités spatiales,proximités,financement local,imbrication territoriale
    Date: 2018–11–10

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