nep-geo New Economics Papers
on Economic Geography
Issue of 2020‒02‒24
eleven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Understanding Regional Branching Knowledge Diversification via Inventor Collaboration Networks By Adam Whittle; Balázs Lengyel; Dieter F. Kogler
  2. Effects of cluster policies on regional innovation networks: Evidence from France By Konan Alain N’Ghauran; Corinne Autant-Bernard
  3. The Origins of Creativity: The Case of the Arts in the United States since 1850 By Karol J. Borowiecki
  4. Agglomeration and productivity in South Africa: Evidence from firm-level data By Amusa Hammed; Wabiri Njeri; Fadiran David
  5. Optimal location of economic activity and population density: The role of the social welfare function By Raouf Boucekkine; Giorgio Fabbri; Salvatore Federico; Fausto Gozzi
  7. A Spatial Model of Bank Branches in Canada By Heng Chen; Matthew Strathearn
  8. Regional Development Overview : Challenges, Adopted Strategies, and New Initiatives By Jackson,Randall W; Hewings,Geoffrey J. D.; Rey,Serge; Lozano Gracia,Nancy
  9. Regional Economic Development and Convergence Clubs in Uruguay By Diego Aboal; Bibiana Lanzilotta; Martin Pereyra; Maria Paz Queraltó
  10. A voyage in the role of territory: are territories capable of instilling their peculiarities in local production systems By Cristina Vaquero-Piñeiro
  11. Can Medium-Resolution Satellite Imagery Measure Economic Activity at Small Geographies ? Evidence from Landsat in Vietnam By Goldblatt,Ran Philip; Heilmann,Kilian Tobias; Vaizman,Yonatan

  1. By: Adam Whittle; Balázs Lengyel; Dieter F. Kogler
    Abstract: The diversification of regions into new technologies is driven by the degree of relatedness to existing capabilities in the region. However, in such case where the necessary skills for diversification are missing, the importation of external knowledge from neighbouring regions or from further away is necessary. Despite the importance of interregional knowledge flows through collaborative work, we still have a very limited understanding of how collaboration networks across regions facilitate diversification processes. The present study investigates the diversification patterns of European NUTS2 regions into new knowledge domains via CPC technology classes reported in patent applications to the European Patent Office. The findings indicate that externally oriented inventor collaboration networks increase the likelihood that a new technology enters a region. The influence of interregional ties is higher if the external knowledge sourcing is based on a diverse set of regions and if collaboration is intense within entities located in distinct regions. Further, the results demonstrate that interregional collaboration networks in general provides the final push into related diversification activities. At the same time, internal collaboration promotes entry into knowledge domains that are weakly related to already present technologies in the region. Finally, evidence shows that diverse external connections and intense collaboration within companies across distant sites compensate for missing related skills in the region.
    Keywords: Economic Diversification, Regional Knowledge Networks, Inventor Collaboration Networks, Firm Linkages, Knowledge Sourcing, Specialisation, Patent Data Analysis
    JEL: O33 O52 R11
    Date: 2020–02
  2. By: Konan Alain N’Ghauran (Univ Lyon, UJM Saint-Etienne, CNRS, GATE L-SE UMR 5824, F-42023 Saint-Etienne, France); Corinne Autant-Bernard (Univ Lyon, UJM Saint-Etienne, CNRS, GATE L-SE UMR 5824, F-42023 Saint-Etienne, France)
    Abstract: Despite the growing body of literature evaluating cluster policies, it still remains difficult to establish conclusively their structural effects on regional innovation networks. Focusing on the French cluster policy during the period 2005-2010, this study aims at evaluating how cluster policies influence the structure of local innovation networks following network topologies that may be beneficial for regional innovation. Based on a panel data of four periods and 94 NUTS3 French regions, we estimate spatial Durbin models, allowing us to identify direct, indirect and total effects of cluster policies. The results suggest that cluster policies can result in both positive and negative total effects on the structure of local innovation networks depending on regions’ technological specialisation. Beyond the heterogeneous effects, the results also highlight that cluster policies may lead to a regional competition for the strengthening of innovation networks. This finding echoed previous research pointing out the possible "beggar-thy-neighbour" effects of cluster policies.
    Keywords: Cluster, Regional innovation, Innovation network, Policy evaluation
    JEL: L52 O33 R58
    Date: 2020
  3. By: Karol J. Borowiecki (Department of Business and Economics, University of Southern Denmark, Odense, Denmark)
    Abstract: This research illuminates the historical development of creative activity in the United States. Census data is used to identify creative occupations (i.e., artists, musicians, authors, actors) and data on prominent creatives, as listed in a comprehensive biographical compendium. The analysis rst sheds light on the socio-economic background of creative people and how it has changed since 1850. The results indicate that the proportion of female creatives is relatively high, time constraints can be a hindrance for taking up a creative occupation, racial inequality is present and tends to change only slowly, and education plays a signi cant role for taking up a creative occupation. Second, the study systematically documents and quanti es the geography of creative clusters in the United States and explains how these have evolved over time and across creative domains. Third, it investigates the importance of outstanding talent in a discipline for the local growth of an artistic cluster.
    Keywords: Creativity, artists, geographic clustering, agglomeration economies, urban history
    JEL: R1 N33 Z11
    Date: 2019–03
  4. By: Amusa Hammed; Wabiri Njeri; Fadiran David
    Abstract: Using comprehensive, anonymized tax administrative data for the 2008–14 period, we examine firm-level productivity in South Africa. Measures of firm-level productivity are included in a spatial autoregressive model that assesses spillovers from total factor productivity originating from agglomeration economies and the spatial diffusion of productivity shocks.We find that across South Africa’s firms, intermediate inputs have the highest impact on firm productivity. The results from the spatial analysis indicate that for a firm in a particular region, its clustering with other firms, having increased market power, and an extended length of stay in a particular region have a greater impact on productivity than do market conditions and firm-specific characteristics associated with firms located in neighbouring regions or municipalities.
    Keywords: Agglomeration,South Africa,Firm productivity
    Date: 2019
  5. By: Raouf Boucekkine (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, IMéRA - Institute for Advanced Studies - Aix-Marseille University); Giorgio Fabbri (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Salvatore Federico (DEPS - Dipartimento di Economia Politica e Statistica - UNISI - Università degli Studi di Siena); Fausto Gozzi (LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma])
    Abstract: In this paper, we consider a spatiotemporal growth model where a social planner chooses the optimal location of economic activity across space by maximization of a spatiotemporal utilitarian social welfare function. Space and time are continuous, and capital law of motion is a parabolic partial differential diffusion equation. The production function is AK. We generalize previous work by considering a continuum of social welfare functions ranging from Benthamite to Millian functions. Using a dynamic programming method in infinite dimension, we can identify a closed-form solution to the induced HJB equation in infinite dimension and recover the optimal control for the original spatiotemporal optimal control problem. Optimal stationary spatial distributions are also obtained analytically. We prove that the Benthamite case is the unique case for which the optimal stationary detrended consumption spatial distribution is uniform. Interestingly enough, we also find that as the social welfare function gets closer to the Millian case, the optimal spatiotemporal dynamics amplify the typical neoclassical dilution population size effect, even in the long-run.
    Keywords: Spatiotemporal growth models,Benthamite vs Millian social welfare functions,imperfect altruism,diffusion,dynamic programming in infinite dimension
    Date: 2020–02–07
  6. By: Cem Özgüzel (Université Paris 1 Panthéon-Sorbonne)
    Abstract: Spatial inequalities in Turkey are a source of considerable policy concern. In this paper, I estimate agglomeration effects for Turkish provinces to shed light on the origins of spatial inequality in productivity and provide evidence from a developing country context which literature needs. I use social security data, an administrative dataset recently made available at the NUTS-3 level, for 81 provinces of Turkey for the period 2008-2013 and carry out a twostep estimation. I use a variety of panel data techniques and historical instruments to deal with estimation concerns. I estimate an elasticity of labor productivity with respect to the density of 0.056-0.06, which is higher than in developed countries and around the levels observed in developing countries. Contrasting the evidence coming from developed countries, I find weak effects for sorting of workers across Turkish provinces based on observable characteristics.
    Date: 2019–08–20
  7. By: Heng Chen; Matthew Strathearn
    Abstract: This research aims to empirically analyze the spatial distribution of bank-branch networks in Canada. We study the market structure (both industrial and geographic concentrations) within the networks’ own or adjacent postal areas. Our empirical framework considers branch density (the ratio of the total number of branches to the area size) by employing a spatial two-way fixed-effects model. Our main finding is that there are no effects associated with market structure; however, there are strong spatial socioeconomic effects from the networks' own and nearby areas. In addition, we also study the effect of spatial competition from rival banks: we find that large banks and small banks tend to avoid markets dominated by their competitors.
    Keywords: Firm dynamics; Market structure and pricing
    JEL: L1 R3
    Date: 2020–01
  8. By: Jackson,Randall W; Hewings,Geoffrey J. D.; Rey,Serge; Lozano Gracia,Nancy
    Abstract: Despite the increasing attention in recent years to the spatial dimensions of economic development, consideration of the importance of space and the recognition that macro, aspatial perspectives can prove to be misleading are not new. Around the world, much of the disappointment with the outcomes from spatial interventions may be traced to a lack of understanding of how regional economies work. This paper reviews the challenges that the consideration of regions brings into economic analysis. This work provides an overview of some of the key methods and tools that can be used to gain a better understanding of how regional economies work. The review aims to guide practitioners and analysts in the use of tools for regional economic analysis and inform discussion of the challenges regions face and the opportunities on which they can build.
    Date: 2019–11–11
  9. By: Diego Aboal; Bibiana Lanzilotta; Martin Pereyra; Maria Paz Queraltó
    Abstract: This work contributes to the regional development literature by constructing a multidimensional indicator of regional development and carrying out a convergence analysis applying the novel methodology of Philips and Sul (2007). The convergence analysis contrast processes of global and in clubs convergence of regions in Uruguay in the period 2007-2015. The findings rule out the hypothesis of global convergence for the period analyzed, but it identifies convergence in clubs, distinguishing 3 clubs with specific development dynamics. The paper adds to the debate of place based versus place neutral policies.
    Keywords: Regional economic development, multidimensional indicator, convergence, clubs
    JEL: O18 C33
    Date: 2020–02–13
  10. By: Cristina Vaquero-Piñeiro
    Abstract: Are territories capable of instilling their peculiarities on local production systems? Which are the territorial determinants that support this linkage? We answer to these questions theoretically and empirically. Firstly, this paper presents a conceptual voyage in the notion of territory by tapping into two different research branches: regional and agricultural economics. Thereafter, the integrated framework developed through the literature review is used to investigate the relevance of territory from an empirical point of view. We do that looking at Protected Designation of Origin (PDO) as proxies of local productions due to their intrinsic and official relation with their region-of-origin. The analysis focuses on Italy, is conducted at municipality level and exploits logit dynamic panel models. Findings confirm that embedded productions reflect the combination of socio-economic, historical, institutional, natural and cultural features. In some cases, an ex-ante level of development is a relevant precondition for establishing successful agri-food systems.
    Keywords: Integrated approach, local development, Geographical Indications, agri-food systems, Italy
    JEL: O13 O20 P25 Q18 C23
    Date: 2020–02
  11. By: Goldblatt,Ran Philip; Heilmann,Kilian Tobias; Vaizman,Yonatan
    Abstract: This study explores the potential and the limits of medium-resolution satellite data as a proxy for economic activity at small geographic units. Using a commune-level dataset from Vietnam, it compares the performance of commonly used nightlight data and higher resolution Landsat imagery which measures daytime light reflection. The analysis suggests that Landsat outperforms nighttime lights at predicting enterprise counts, employment, and expenditure in simple regression models. A parsimonious combination of the first two moments of the Landsat spectral bands can explain a reasonable share of the variation in economic activity in the cross-section. There is however poor prediction power of either satellite measure for changes over time.
    Date: 2019–12–17

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