nep-geo New Economics Papers
on Economic Geography
Issue of 2021‒09‒06
seven papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Quality of government and regional trade: evidence from European Union regions By Barbero, Javier; Mandras, Giovanni; Rodríguez-Crespo, Ernesto; Rodríguez-Pose, Andrés
  2. Does EU Cohesion Policy affect territorial inequalities and regional development? By Lionel Vedrine; Julie Le Gallo
  3. Extension of a simple mathematical model in new economic geography to continuous space By Kensuke Ohtake
  4. The Geography of Remote Work By Lukas Althoff; Fabian Eckert; Sharat Ganapati; Conor Walsh
  5. Migration-prone and migration-averse places. Path dependence in long-term migration to the US By Rodríguez-Pose, Andrés; von Berlepsch, Viola
  6. Identification and Analysis of the Evolution of Local Productive Arrangements By Welter, Caroline; Cypriano, Luiz; Centurião, Daniel
  7. The metropolitan scale By da Cruz, Nuno F.; Oh, Do Young; Badaoui Choumar, Nathalie

  1. By: Barbero, Javier; Mandras, Giovanni; Rodríguez-Crespo, Ernesto; Rodríguez-Pose, Andrés
    Abstract: Using a novel database of regional trade flows between 267 European regions for 2013, this paper examines how government quality affects trade between European Union (EU) regions. The results of a structural gravity cross-sectional analysis of trade show that trade across EU regions is highly influenced by differences in regional government quality. This influence varies by both sector of economic activity and the level of economic development of the region. The results indicate that if the less developed regions of the EU want to engage in greater interregional trade, improving their institutional quality is a must.
    Keywords: quality of government; institutions; regional policy; gravity model of trade; structural estimation
    JEL: L81
    Date: 2021–07–03
  2. By: Lionel Vedrine (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Julie Le Gallo (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: We extend the literature on Cohesion Policy effectiveness by considering how the cohesion policy affects both within regional disparities and economic growth. For that purpose, a panel database of 205 NUTS2 regions of the UE-25 for 2000-2014 is used. We estimate panel data regressions with fixed effects and a spatial autoregressive term in order to control for unobservable characteristics and spatial dependence. Our results emphasize a trade-off between within and between regional disparities for EU-25 regions over the 2000-2014 period.
    Keywords: Cohesion Policy,Regional Development,Within regional disparities,Spatial Panel Econometrics
    Date: 2021
  3. By: Kensuke Ohtake
    Abstract: We consider the extension of the mathematical models presented by Pfl\"{u}ger (2004) and Gasper et al. (2018) in new economic geography to continuous space, and investigate the behavior of its solution mathematically. The model is a system of nonlinear integral and differential equations describing the market equilibrium and the time evolution of the spatial distribution of population density. The stability of homogeneous stationary solution with evenly distributed population is shown to be unstable. Furthermore, it is shown numerically that the destabilized homogeneous stationary solution eventually forms spiky spatial distributions. The number of the spikes decreases as the preference for variety increases or the transport cost decreases.
    Date: 2021–08
  4. By: Lukas Althoff; Fabian Eckert; Sharat Ganapati; Conor Walsh
    Abstract: We show that cities with higher population density specialize in high-skill service jobs that can be done remotely. The urban and industry bias of remote work potential shaped the COVID-19 pandemic’s economic impact. Many high-skill service workers started to work remotely, withdrawing spending from big-city consumer service industries dependent on their demand. As a result, low-skill service workers in big cities bore most of the recent pandemic’s economic impact. Our findings have broader implications for the distributional consequences of the U.S. economy’s transition to more remote work.
    JEL: O33 R11 R12
    Date: 2021–08
  5. By: Rodríguez-Pose, Andrés; von Berlepsch, Viola
    Abstract: Does past migration beget future migration? Do migrants from different backgrounds, origins and ethnicities, and separated by several generations always settle – in a path dependent way – in the same places? Is there a permanent separation between migration-prone and migration-averse areas? This paper examines whether that is the case by looking at the settlement patterns of two very different migration waves, that of Europeans at the end of the 19th and early 20th centuries and that of Latin Americans between the 1960s and the early 21st century. Using Census data aggregated at county level, we track the settlement pattern of migrants and assess the extent to which the first mass migration wave has determined the later settlement pattern of Latin American migrants to the US. The analysis, conducted using ordinary least squares, instrumental variable and panel data estimation techniques, shows that past US migration patterns create a path dependence that has consistently affected the geography of future migration waves. Recent Latin American migrants have flocked, once other factors are controlled for, to the same migration prone US counties where their European predecessors settled, in spite of the very different nature of both migration waves and a time gap of three to five generations.
    Keywords: counties; Europe; Latin America; long-term; migration; migration waves; US
    JEL: F22 J15 O15 R23
    Date: 2020–03–01
  6. By: Welter, Caroline; Cypriano, Luiz; Centurião, Daniel
    Abstract: This study sought to identify and analyze the evolution of Local Productive Arrangements (LPAs) in the sectors of extractive and manufacturing industry in the state of Paran´a, from 2006 to 2016. In the methodology, the normalized Concentration Index (nCI) and the Exploratory Spatial Data Analysis (ESDA), which consisted of the application of two statistical tests, the Global Moran’s I and the Local Moran’s I. With this methodological procedure it was possible to identify 57 industrial LPAs in the state of Paran´a in 23 economic sectors, with its greatest incidence in the Metropolitan Region of Curitiba and North Central. We conclude that there is a consolidation process with positive evolution of LPAs in the analyzed period, where the regions of Londrina and Curitiba and its surroundings stand out, as well as the activities of food and beverage production; textiles and clothing; wood and furniture; and the production of machinery, equipment, rubber, and plastics.
    Keywords: Productive Agglomerations, Exploratory Analysis of Spatial Data, Productive Specialization.
    JEL: R12
    Date: 2021–08–10
  7. By: da Cruz, Nuno F.; Oh, Do Young; Badaoui Choumar, Nathalie
    Abstract: The growth of metropolitan areas is reshaping the urban landscape and governance around the world, producing new challenges but also opportunities for sustainable development and the management of territories. The ‘metropolitan scale’ is now internationally recognised as a key concept and perspective through which we should consider various socio-economic, spatial and political dimensions. However, our understanding of metropolitan dynamics is curtailed by a substantial lack of information at this scale. Global databases on metropolitan areas are very limited. To tackle the void, this paper employs simple definitions and heuristics to collect and present comparable data for 58 metropolises from five continents. There is a clear trade-off between the accuracy of the data and the comprehensiveness of datasets. We reflect on the experience to emphasise the obstacles that lie ahead of both scholars and policy-makers at all levels of government. A strong system of cities and metropolitan areas and the appropriate governance of these scales may provide the basis for a balanced socio-economic development – but first we will need to know more about these territories and communities.
    Keywords: data; functional area; governance; metropolis
    JEL: N0
    Date: 2020–05–01

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