nep-geo New Economics Papers
on Economic Geography
Issue of 2021‒03‒01
thirteen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Consumption access and agglomeration: evidence from smartphone data By Yuhei Miyauchi; Kentaro Nakajima; Stephen J. Redding
  2. Spatial Economics for Granular Settings By Jonathan I. Dingel; Felix Tintelnot
  3. Local entrepreneurship ecosystems and emerging industries: Case study of Cambridgeshire and Peterborough, United Kingdom By OECD
  4. Agglomeration Effects on Job Matching Efficiency: Evidence from Japan By Yudai Higashi
  5. Quality of sub-national government and regional development in Africa By Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
  6. Changes in the employment structure and in job quality in Italy: a national and regional analysis By Luciana Aimone Gigio,; Silvia Camussi; Vincenzo Maccarrone
  7. Regional and Sectoral Structures and Their Dynamics of Chinese Economy: A Network Perspective from Multi-Regional Input-Output Tables By Tao Wang; Shiying Xiao; Jun Yan; Panpan Zhang
  8. Technology Diffusion By Nancy Stokey
  9. Spatial Extension of Mixed Analysis of Variance Models By Takaki Sato; Yasumasa Matsuda
  10. The missing link: international migration in global clusters of innovation By Massimiliano CODA-ZABETTA; Christian CHACUA; Francesco LISSONI; Ernest MIGUELEZ; Julio RAFFO; Deyun YIN
  11. Centripetal and centrifugal forces in technological activities: linking regional innovation performances to EU Science & Technology policies By Daniele Archibugi; Rinaldo Evangelista; Antonio Vezzani
  12. Patent landscaping using 'green' technological trajectories By Nomaler, Önder; Verspagen, Bart
  13. Regional economic impact of Covid-19: the role of sectoral structure and trade linkages By Meinen, Philipp; Serafini, Roberta; Papagalli, Ottavia

  1. By: Yuhei Miyauchi; Kentaro Nakajima; Stephen J. Redding
    Abstract: We provide new theory and evidence on the role of consumption access in understanding the agglomeration of economic activity. We combine smartphone data that records user location every 5 minutes of the day with economic census data on the location of service-sector establishments to measure commuting and non-commuting trips within the Greater Tokyo metropolitan area. We show that non-commuting trips are frequent, more localized than commuting trips, strongly related to the availability of nontraded services, and occur along trip chains. Guided by these empirical findings, we develop a quantitative urban model that incorporates travel to work and travel to consume non-traded services. Using the structure of the model, we estimate theoretically-consistent measures of travel access, and show that consumption access makes a sizable contribution relative to workplace access in explaining the observed variation in residents and land prices across locations. Undertaking counterfactuals for changes in travel costs, we show that abstracting from consumption trips leads to a substantial underestimate of the welfare gains from a transport improvement (because of the undercounting of trips) and leads to a distorted picture of changes in travel patterns within the city (because of the different geography of commuting and non-commuting trips).
    Keywords: agglomeration, urbanization, transportation
    JEL: O18 R12 R40
    Date: 2021–02
  2. By: Jonathan I. Dingel (University of Chicago - Booth School of Business; NBER; CEPR); Felix Tintelnot (University of Chicago - Department of Economics; NBER; CEPR)
    Abstract: We introduce a general-equilibrium model of a “granular†spatial economy populated by a finite number of people. Our quantitative model is designed for application to the growing body of fine spatial data used to study economic outcomes for regions, cities, and neighborhoods. Conventional approaches invoking the law of large numbers are ill-suited for such empirical settings. We evaluate quantitative spatial models’ out-of-sample predictions using event studies of large office openings in New York City. Our granular framework improves upon the conventional continuum-of-individuals model, which perfectly fits the pre-event data but produces predictions uncorrelated with the observed changes in commuting flows.
    Keywords: Commuting, granularity, gravity equation, quantitative spatial economics
    JEL: C25 F16 R1 R13 R23
    Date: 2020
  3. By: OECD
    Abstract: This paper examines how local-level policies can strengthen entrepreneurship and innovation in the region of Cambridgeshire and Peterborough in the United Kingdom. It investigates the quality of the local entrepreneurship ecosystem for generating innovative start-ups and scale-ups and the regional conditions for generating positive industry transitions by supporting the strategic sectors of life sciences, information technologies, agri-tech and advanced manufacturing. Key areas of focus are on skills development, entrepreneurship development and knowledge exchange for local economic development. A number of policy recommendations are offered based on the analysis together with international inspiring policy practice examples.
    Keywords: entrepreneurship, industry transition, knowledge exchange, regional policy, skills
    JEL: J24 L52 L53 R58
    Date: 2021–02–02
  4. By: Yudai Higashi (Graduate School of Humanities and Social Sciences, Okayama University and Research Institute for Economics and Business Administration, Kobe University, JAPAN)
    Abstract: This paper examines the effect of agglomeration on the regional efficiency of matching of job seekers and vacancies by using Japanese regional panel data. We find that a higher population density improves or at least does not deteriorate regional matching efficiency for most of the sample periods, suggesting that the benefit of agglomeration tends to be significant. However, the effect is significantly negative in 2011 when a serious earthquake and tsunami occurred in Japan, suggesting that the congestion effect is superior to the benefit of agglomeration when labor markets suffer from damages, such as those caused by natural disasters.
    Keywords: Job search; Matching function; Agglomeration; Local labor market
    JEL: J64 R11
    Date: 2021–01
  5. By: Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
    Abstract: Despite widespread interest in government quality and economic development, the role of sub-national government has been largely overlooked. This represents an omission in Africa, given ongoing processes of devolution in much of the continent. In this article, we consider the impact of sub-national government institutions on economic development in 356 regions across 22 African countries. We create a novel index of sub-national government quality based on large-scale survey data and assess its impact on regional economies using satellite data on night light luminosity. To address causality concerns, we instrument sub-national government quality with data from pre-colonial societies. Our results show a positive and significant relationship between sub-national government quality and regional economic development, even when controlling for the quality of national level institutions. Better sub-national governments are a powerful but often overlooked determinant of development in Africa.
    Keywords: institutions; quality of government; regions; Africa; decentralisation
    JEL: R14 J01
    Date: 2021–02–01
  6. By: Luciana Aimone Gigio, (Banca d'Italia); Silvia Camussi (Banca d'Italia); Vincenzo Maccarrone (University College Dublin, School of Business)
    Abstract: This paper contributes to the literature on changes in the employment structure, focusing on the job quality created and destroyed in Italy and in its regions in the years 2011-17. To do so, we apply a ‘jobs-based’ approach methodology similar to the one developed by Eurofound researchers and we use Labour Force Survey data from the Italian National Institute of Statistics (ISTAT). Our findings suggest that in the period, Italy experienced a polarisation pattern skewed towards lower-paid jobs, whereas we observe an upgrading trend at the average EU level. This pattern is the result of diverging trends across Italy: while the central and northern regions are responsible for the growth not only in the share of workers in low quality occupations but also in higher quality ones, southern Italy contributed exclusively to the increase in low-paid jobs. The latter area is the only one experiencing a clear downgrading trend over the years 2011-17. Sectoral trends are partially responsible for these patterns. Furthermore, we find that in recent years, the economic divide between northern-central and southern regions has widened. Within each macro-area, the contribution of different regions to the total trends was heterogeneous, in particular in the South of Italy, where some regions contributed positively to employment growth in higher paid jobs too, although their role was overshadowed by those that performed worse.
    Keywords: job quality, labour market
    JEL: J21 R11
    Date: 2021–02
  7. By: Tao Wang; Shiying Xiao; Jun Yan; Panpan Zhang
    Abstract: A multi-regional input-output table (MRIOT) containing the transactions among the region-sectors in an economy defines a weighted and directed network. Using network analysis tools, we analyze the regional and sectoral structure of the Chinese economy and their temporal dynamics from 2007 to 2012 via the MRIOTs of China. Global analyses are done with network topology measures. Growth-driving province-sector clusters are identified with community detection methods. Influential province-sectors are ranked by weighted PageRank scores. The results revealed a few interesting and telling insights. The level of inter-province-sector activities increased with the rapid growth of the national economy, but not as fast as that of intra-province economic activities. Regional community structures were deeply associated with geographical factors. The community heterogeneity across the regions was high and the regional fragmentation increased during the study period. Quantified metrics assessing the relative importance of the province-sectors in the national economy echo the national and regional economic development policies to a certain extent.
    Date: 2021–02
  8. By: Nancy Stokey (University of Chicago - Department of Economics)
    Abstract: The importance of new technologies derives from the fact that they spread across many different users and uses, as well as different geographic regions. The diffusion of technological improvements, across producers within a country and across international borders, is critical for long run growth. This paper looks at some evidence on adoption patterns in the U.S. for specific innovations, reviews some evidence on the diffusion of new technologies across international boundaries, and looks at two theoretical frameworks for studying the two types of evidence. One focuses on the dynamics of adoption costs, the other on input costs.
    JEL: O14 O33
    Date: 2020
  9. By: Takaki Sato; Yasumasa Matsuda
    Abstract: This paper proposes a spatial extension of mixed analysis of variance models for spatial multilevel data in which individual belongs to one of spatial regions, which are called spatial error models for multilevel data (SEMM). We have introduced empirical bayes estimation methods in two steps because SEMM models which are defined by two level equations, individual and regional levels, can be regarded as a Bayesian hierarchal model. The first step estimator based on quasi-maximum likelihood estimation methods specifies the hyper parameters and has been justified in asymptotic situations, and posterior distributions for the parameters are evaluated with the hyperparameters estimated in the first step. The proposed models are applied to happiness survey data in Japan to demonstrate empirical properties.
    Date: 2021–02
  10. By: Massimiliano CODA-ZABETTA; Christian CHACUA; Francesco LISSONI; Ernest MIGUELEZ; Julio RAFFO; Deyun YIN
    Abstract: In this chapter we look at the global network of innovative agglomerations, with a focus on their degree of internationalization and on the actors behind it – particularly high-skilled migrants. Using worldwide patent and publication geo-localized data, we identify all Global Hotspots of Innovation (GIHs) and Niche Clusters (NCs) worldwide, and study their success as a function of their international connections. In particular, we compare organizational ones, such as international collaborations orchestrated by multinational firms’ collaborations, to personal ones, which may derive from migration to/from the GIHs and NCs. We find a strong role of the latter, always comparable and sometimes larger than the former.
    Keywords: patents; publications; agglomeration; internationalization; migration
    JEL: O30 F20 F60
    Date: 2021
  11. By: Daniele Archibugi (Department of Management, Birkbeck College, University of London); Rinaldo Evangelista (chool of Law, University of Camerino, Italy); Antonio Vezzani (Department of Economics, Roma Tre University, Italy)
    Date: 2021–01
  12. By: Nomaler, Önder (UNU-MERIT); Verspagen, Bart (UNU-MERIT, Maastricht University)
    Abstract: We present a number of green technology patent landscaping exercises, based on a method that we developed earlier to identify the main technological trends in a very large (i.e., universal) patent citation network comprising all patented technologies. This method extracts a so-called network of main paths, where we interpret each path as a technological trajectory in the sense of Dosi (1982). We use co-occurrence on the technological trajectories as the main metric to build a network of technological relations, with green/non-green, the technology class (4-digit IPC classes) and geographical location (countries) as the main dimensions along which we observe green technology. The technology landscaping exercise visualises these networks. In this way, we draw a detailed map of green technologies (along with the particular non-green technologies that contribute thereto or benefit therefrom), in which we find both very broad and general areas (such as ICT or medical and health), and specific green technologies, such as batteries, wind power and electric vehicles. In the geography- based map, we find specific European and non-European areas. In all our landscaping maps, non-green technologies play a large role, indicating that sectoral and geographical progress in greentech cannot be fully understood independently of developments in particular fields of non-greentech technologies.
    Keywords: green technology, technological trajectories, patent citations, patent landscaping
    JEL: O31 O33 Q55
    Date: 2021–02–08
  13. By: Meinen, Philipp; Serafini, Roberta; Papagalli, Ottavia
    Abstract: The paper provides an ex-post analysis of the determinants of within-country regional heterogeneity of the labour market impact of COVID-19. By focussing on the first wave of the pandemic in the four largest euro area economies, it finds that the propagation of the economic impact across regions cannot be explained by the spread of infections only. Instead, a region’s economic structure is a significant driver of the observed heterogeneity. Moreover, our results suggest that a region's trade relations, both within and across countries, represent a relevant indirect channel through which COVID-19 related disruptions affect regional economic activity. In this regard, the analysis depicts vulnerabilities arising from potential disruptions of the highly integrated EU supply chains. JEL Classification: R11, F14, J40, R15
    Keywords: COVID-19 pandemic, input-output linkages, regional differences, sectoral exposure, short-time work
    Date: 2021–02

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