nep-geo New Economics Papers
on Economic Geography
Issue of 2019‒12‒16
eight papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. On the concentration of innovation in top cities in the digital age By Caroline Paunov; Dominique Guellec; Nevine El-Mallakh; Sandra Planes-Satorra; Lukas Nüse
  2. The Rise and Fall of US Manufacturing: Re-Examination of Long-Run Spatial Trends By Nicholas Crafts; Alexander Klein
  3. Tied in: the Global Network of Local Innovation By Ernest MIGUELEZ; Julio RAFFO; Christian CHACUA; Massimiliano CODA-ZABETTA; Deyun YIN; Francesco LISSONI, Gianluca TARASCONI
  4. Fast Locations and Slowing Labor Mobility By Coate, Patrick; Mangum, Kyle
  5. Foreign Direct Investment and Knowledge Diffusion in Poor Locations By Girum Abebe; Margaret McMillan; Michel Serafinelli
  6. Spatial Clustering Patterns of Children in Single-Mother Households in Japan By Yukiko Abe; Mizuki Kawabata; Yuki Shibatsuji
  7. Spatial Solution to Measure Regional Efficiency - Introducing Spatial Data Analysis (SDEA) By Alicja Olejnik; Agata Zoltaszek; Jakub Olejnik
  8. Geofaceting: aligning small-multiples for regions in a spatially meaningful way By Kashnitsky, Ilya; Aburto, Jose Manuel

  1. By: Caroline Paunov (OECD); Dominique Guellec (OECD); Nevine El-Mallakh (Université Paris 1 Panthéon-Sorbonne); Sandra Planes-Satorra (OECD); Lukas Nüse (Bertelsmann Foundation)
    Abstract: This paper investigates how digital technologies have shaped the concentration of inventive activity in cities across 30 OECD countries. It finds that patenting is highly concentrated: from 2010 to 2014, 10% of cities accounted for 64% of patent applications to the European Patent Office, with the top five (Tokyo, Seoul, San Francisco, Higashiosaka and Paris) representing 21.8% of applications. The share of the top cities in total patenting increased modestly from 1995 to 2014. Digital technology patent applications are more concentrated in top cities than applications in other technology fields. In the United States, which has led digital technology deployment, the concentration of patent applications in top cities increased more than in Japan and Europe over the two decades. Econometric results confirm that digital technology relates positively to patenting activities in cities and that it benefits top cities, in particular, thereby strengthening the concentration of innovation in these cities.
    Keywords: cities, digital technologies, geography of innovation, innovation, local knowledge spillovers, OECD countries, patenting
    JEL: R12 O31 O34
    Date: 2019–12–16
  2. By: Nicholas Crafts; Alexander Klein
    Abstract: We re-examine the long-run geographical development of U.S. manufacturing industries using recent advances in spatial concentration measures. We construct spatially-weighted indices of the geographical concentration of U.S. manufacturing industries during the period 1880 to 1997 using data from the Census of Manufactures and Bureau of Labor Statistics. Doing so we improve upon the existing indices by taking into account industrial structure and checkerboard problem. Several important new results emerge. First, we find that average spatial concentration was much lower in the late 20th- than in the late 19th-century and that this was the outcome of a continuing reduction over time. Second, spatial concentration of industries did not increase in early twentieth century as shown by traditional indices but rather declined, implying that we do not find an inverted-U shape pattern of long-run spatial concentration. Third, the persistent tendency to greater spatial dispersion was characteristic of most manufacturing industries. Fourth, even so, economically and statistically significant spatial concentration was pervasive throughout this period.
    Keywords: manufacturing belt; spatial concentration; transport costs
    JEL: N62 N92 R12
    Date: 2019–12
  3. By: Ernest MIGUELEZ; Julio RAFFO; Christian CHACUA; Massimiliano CODA-ZABETTA; Deyun YIN; Francesco LISSONI, Gianluca TARASCONI
    Abstract: In this paper we exploit a unique and rich dataset of patent applications and scientific publications in order to answer several questions concerned with two current phenomena on the way knowledge is produced and shared worldwide: its geographical spread at the international level and its spatial concentration in few worldwide geographical hotspots. We find that the production of patents and scientific publications has spread geographically to several countries, and has not kept within the traditional knowledge producing economies (Western Europe, Japan and the U.S.). We observe that part of this partial geographical spread of knowledge activities is due to the setting up of Global Innovation Networks, first toward more traditional innovative countries, and then towards emerging economies too. Yet, despite the increasing worldwide spread of knowledge production, we do not see the same spreading process within countries, and even we see some increased concentration in some of them. This may have, of course, important distributional consequences within countries. Moreover, these selected areas also concentrate a large and increasing connectivity, within their own country to other hotspots, and across countries through Global Innovation Networks.
    Keywords: patents, scientific publications, geocoding, global innovation networks, clusters, geography of innovation
    JEL: O30 F20 F60
    Date: 2019
  4. By: Coate, Patrick (National Council on Compensation Insurance); Mangum, Kyle (Federal Reserve Bank of Philadelphia)
    Abstract: Declining internal migration in the United States is driven by increasing home attach-ment in locations with initially high rates of population turnover. These “fast” locations were the population growth destinations of the 20th century, where home attachments were low, but have increased as regional population growth has converged. Using a novel measure of attachment, this paper estimates a structural model of migration that distinguishes moving frictions from home utility. Simulations quantify candidate explanations of the decline. Rising home attachment accounts for most of the decline not attributable to population aging, and its effect is consistent with the observed spatial pattern.
    Keywords: declining internal migration; labor mobility; home attachment; rootedness; local ties; conditional choice probability estimation
    JEL: C50 J61 R11 R23
    Date: 2019–12–02
  5. By: Girum Abebe (EDRI, Ethiopia); Margaret McMillan (Tufts); Michel Serafinelli (University of Essex)
    Abstract: We use a plant level survey to identify interactions between domestic plants and foreign direct investment (FDI) in Ethiopia’s manufacturing sector. Almost one third of Ethiopian plants report being linked to FDI through labor sharing, forward and backward linkages and competition in input and output markets. Domestic plant managers report that through these linkages with FDI, they learn about production processes, managerial and organizational practices and exporting. We quantify the spillovers from FDI at the local level by comparing changes in total factor productivity (TFP) among domestic plants in districts where a large greenfield foreign plant produced and districts where FDI in the same industry and around the same time was licensed but not yet operational. Over the four years starting with the year of the FDI opening, the TFP of domestic plants is 11 percent higher in treated districts, employment in these domestic plants increases and new domestic plants open.
    Keywords: Foreign Direct Investment, productivity, localized knowledge spillovers, plant-to-plant labor mobility.
    JEL: F21 R10 D24
    Date: 2019–10
  6. By: Yukiko Abe (Faculty of Economics and Business, Hokkaido University); Mizuki Kawabata (Faculty of Economics, Keio University); Yuki Shibatsuji (Graduate School of Economics, Keio University)
    Abstract: We examine spatial clustering patterns of children living in single-mother households in Japan, where the risk of poverty among these children is extremely high. Our analysis employs spatial panel data at the municipal level in 2000 and 2010. The Global and Local Moran's I statistics reveal significant spatial clustering of children in single-mother households. The spatial clusters of these children are located mostly in Hokkaido and western Japan. The spatial clustering patterns of children under the ages of 6 and 18 are similar, but the older children under age 18 are more spatially clustered. Moreover, from 2000 to 2010, the spatial clustering intensified for children under 18, whereas it weakened for children under 6. The regression results of spatial fixed-effects models indicate that from 2000 to 2010, the proportions of children in single-mother households increased in areas with low income growth, high out-migration rate, and slow growth in the availability of childcare centers. The results of this study can help identify the areas that need policy attention.
    Keywords: Children in single-mother households, Spatial clustering patterns, Spatial statistics, Spatial panel data models, Japan
    JEL: J13 C21 R23
    Date: 2019–11–18
  7. By: Alicja Olejnik (University of Lodz); Agata Zoltaszek (University of Lodz); Jakub Olejnik (University of Lodz)
    Abstract: The main objective of this paper is to introduce a new approach to measuring efficiency in regional studies through SDEA (Spatial Data Envelopment Analysis). The paper offers a proper mathematical elaboration and a highlight of the differences between classic DEA and newly developed method. Presented literature review and the discussion on theoretical examples, proves the need for new solution to measure regional efficiency, which takes into consideration region-specific spatial context. The introduced method, SDEA, incorporates explicitly spatial interactions (via the W matrix) into the model through spatially weighted inputs and outputs. An example study concerning healthcare efficiency of European regions will be presented to illustrate SDEA. We confront the efficiency results of classic DEA with results of SDEA, which is expanded by the spatial equivalents of inputs and outputs. The results suggest that classic DEA undervalues the regional healthcare efficiency, underestimating the region-specific spatial context.
    Keywords: spatial data envelopment analysis (SDEA), regional efficiency, spatial interaction, healthcare, diseases of affluence
    JEL: C44 C31 R15 I15
    Date: 2019–10–22
  8. By: Kashnitsky, Ilya (Netherlands Interdisciplinary Demographic Institute); Aburto, Jose Manuel
    Abstract: BACKGROUND: Visualizing multiple relevant dimensions while preserving spatial structure and readability is challenging. Here we demonstrate the use of geofaceting to meet this challenge. OBJECTIVE: Using data on young adult mortality in the 32 Mexican states from 1990 to 2015, we demonstrate how aligning small multiples for territorial units, often regions, according to their approximate geographical location--geofaceting--can be used to depict complex multi-dimensional phenomena. RESULTS: Geofaceting reveals the macro-level spatial pattern while preserving the flexibility of visualization technique choice for the small-multiples. Creating geofaceted visualizations gives all the advantages of standard plots in which one can adequately display multiple dimensions of a dataset. CONCLUSIONS: Compared to other ways of small-multiples arrangement, geofaceting improves the speed of regions’ identification and exposes the broad spatial pattern.
    Date: 2019–08–07

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