nep-geo New Economics Papers
on Economic Geography
Issue of 2022‒04‒11
ten papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. The ripple effects of large-scale transport infrastructure investment By Damiaan Persyn; Javier Barbero; Jorge Díaz-Lanchas; Patrizio Lecca; Giovanni Mandras; Simone Salotti
  2. Suburbanization in the United States 1970-2010 By Redding, Stephen
  3. Understanding what attracts new residents to smaller cities By Vij, Akshay; Ardeshiri, Ali; Li, Tiebei; Beer, Andrew; Crommelin, Laura
  4. Improving government quality in the regions of the EU and its system-wide benefits for Cohesion policy By Javier Barbero; Martin Christensen; Andrea Conte; Patrizio Lecca; Andrés Rodríguez-Pose; Simone Salotti
  5. Agency and Economic Change in Regions: Using Qualitative Comparative Analysis (QCA) to identify Routes to New Path Development By Grillitsch, Markus; Sotarauta, Markku; Asheim, Björn; Fitjar, Rune Dahl; Haus-Reve, Silje; Kolehmainen, Jari; Kurikka, Heli; Lundquist, Karl-Johan; Martynovich, Mikhail; Monteilhet, Skirmante; Nielsen, Hjalti; Nilsson, Magnus; Rekers, Josefine; Sopanen, Sami; Stihl, Linda
  6. Digital Entrepreneurship Indicator (DEI): An Analysis of the Case of the Greater Paris Metropolitan Area By Dorine CORNET; Jean BONNET; Sébastien BOURDIN
  7. Effects of Policy Mix on European Regional Convergence By Ignacio Sacristán López-Bravo; Carlos San Juan Mesonada
  8. On the Use of Satellite-Based Vehicle Flows Data to Assess Local Economic Activity: The Case of Philippine Cities By Go, Eugenia; Nakajima, Kentaro; Sawada , Yasuyuki; Taniguchi, Kiyoshi
  9. A generalized framework for estimating spatial econometric interaction models By Dargel, Lukas; Thomas-Agnan, Christine
  10. Agglomerationsvorteile und kommunales Steueraufkommen. - 2., überarbeitete Auflage By Bergholz, Christian; Hundt, Christian; Osigus, Torsten

  1. By: Damiaan Persyn (University of Gottingen); Javier Barbero (European Commission - JRC); Jorge Díaz-Lanchas (Universidad Pontificia Comillas); Patrizio Lecca (PBL); Giovanni Mandras (European Commission - JRC); Simone Salotti (European Commission - JRC)
    Abstract: We analyse the general equilibrium effects of an asymmetric decrease in transport costs, combining a large scale spatial dynamic general equilibrium model for 267 European NUTS 2 regions with a detailed transport model at the level of individual road segments. As a case study we consider the impact of the road infrastructure investments in Central and Eastern Europe in the context of the EU cohesion policy programme. Our analysis suggests that the decrease in transportation costs benefits the regions targeted by the policy via substantial increases in GDP and exports compared to the baseline, and small increases in population. The geographic information embedded in the transport model leads to relatively large predicted benefits in peripheral countries such as Greece and Finland who hardly receive funds, but whose trade links cross Central and Eastern Europe and thus profit from the investments there. The richer, Western European non-targeted regions also enjoy a higher GDP after the investment in the East, but these effects are smaller. Thus, the policy reduces interregional disparities. There are rippled patterns in the predicted spillovers of the policy. In non-targeted countries, regions trading more intensely with regions where the investment is taking place on average benefit more compared to other regions within the same country, but also compared to neighbouring regions across an international border. Using regression analysis we uncover that regions which import intermediate inputs from Central and Eastern Europe enjoy the largest spillovers. These regions become more competitive and expand exports locally, at the detriment of other regions in the same country.
    Keywords: transport infrastructure; economic geography; computable general equilibrium modelling.
    JEL: C68 R11 R13 R15 R41
    Date: 2022–02
  2. By: Redding, Stephen
    Abstract: The second half of the twentieth century saw large-scale suburbanization in the United States, with the median share of residents who work in the same county where they live falling from 87 to 71 percent between 1970 and 2000. We introduce a new methodology for discriminating between the three leading explanations for this suburbanization (workplace attractiveness, residence attractiveness and bilateral com-muting frictions). This methodology holds in the class of spatial models that are characterized by a structural gravity equation for commuting. We show that the increased openness of counties to commuting is mainly explained by reductions in bilateral commuting frictions, consistent with the expansion of the interstate highway network and the falling real cost of car ownership. We find that changes in workplace attractiveness and residence attractiveness are more important in explaining the observed shift in employment by workplace and employment by residence towards lower densities over time.
    Keywords: economic geography; suburbanization; transportation
    JEL: R12 R30 R40
    Date: 2021–05–19
  3. By: Vij, Akshay; Ardeshiri, Ali; Li, Tiebei; Beer, Andrew; Crommelin, Laura
    Abstract: This project examined the current mobility and settlement patterns across Australian metropolitan and regional areas; identify key drivers of population mobility to/from both metropolitan and regional areas; and measure the relative influence of different factors (e.g. employment, infrastructure) that support migration to regional areas.
    Date: 2022–03–23
  4. By: Javier Barbero (European Commission - JRC); Martin Christensen (European Commission - JRC); Andrea Conte (European Commission - JRC); Patrizio Lecca (PBL); Andrés Rodríguez-Pose (London School of Economics); Simone Salotti (European Commission - JRC)
    Abstract: We quantify the general equilibrium effects on economic growth of improving the quality of institutions at the regional level in the context of the implementation of the European Cohesion Policy for the European Union and the UK. The direct impact of changes in the quality of government is integrated in a general equilibrium model to analyse the system-wide economic effects resulting from additional endogenous mechanisms and feedback effects. The results reveal a significant direct effect as well as considerable system-wide benefits from improved government quality on economic growth. A small 5% increase in government quality across European Union regions increases the impact of Cohesion investment by up to 7% in the short run and 3% in the long run. The exact magnitude of the gains depends on various local factors, including the initial endowments of public capital, the level of government quality, and the degree of persistence over time.
    Keywords: government quality, cohesion, economic growth, public investment, regions, EU
    JEL: C68 O17 R13 R15
    Date: 2022–02
  5. By: Grillitsch, Markus (CIRCLE, Lund University); Sotarauta, Markku (Tampere University); Asheim, Björn (CIRCLE, Lund University); Fitjar, Rune Dahl (University of Stavanger); Haus-Reve, Silje (University of Stavanger); Kolehmainen, Jari (Tampere University); Kurikka, Heli (Tampere University); Lundquist, Karl-Johan (CIRCLE, Lund University); Martynovich, Mikhail (Lund University); Monteilhet, Skirmante (University of Stavanger); Nielsen, Hjalti (Lund University); Nilsson, Magnus (CIRCLE, Lund University); Rekers, Josefine (Lund University); Sopanen, Sami (Tampere University); Stihl, Linda (CIRCLE, Lund University)
    Abstract: This paper investigates the role of human agency in 40 phases of regional economic development in 12 Nordic regions over 30 years. The paper contributes with a theoretical framework to study agency over time and a fuzzyset qualitative comparative analysis based on a unique dataset combining over 200 interviews, with printed and online sources, and quantitative data. The paper identifies which combinations of agency types and context conditions make industrial upgrading or diversification possible, and investigates how such combinations come into being. The causal claims from this analysis are illustrated with empirical examples and discussed in relation to previous literature.
    Keywords: regional development; industrial diversification; innovation; entrepreneurship; place-based leadership; institutions
    JEL: O10 O30 R11
    Date: 2022–04–04
  6. By: Dorine CORNET (Université Paris 1 Panthéon-Sorbonne, 106-112 bd de l'Hôpital, 75642 Paris Cedex 13); Jean BONNET (Normandie Univ, Unicaen, CNRS, CREM, Esplanade de la Paix, 14032 CAEN cedex 5); Sébastien BOURDIN (EM Normandie Business School, Métis Lab, 9 rue Claude Bloch, 14 000 Caen)
    Abstract: The DIGITAL ENTREPRENEURSHIP INDICATOR (DEI), which combines individual and institutional data, is designed to chart the vitality of metropolitan areas in terms of digital entrepreneurship on a suburban scale. In this study, we apply it to the case of the Greater Paris Metropolitan area. Using geographically weighted regression, we explore the spatial heterogeneity of the effect of digital entrepreneurial ecosystems on the location quotient of information and communication technology firms with fewer than 10 employees. The results highlight a positive link between the DEI and the location quotient of small ICT firms. In particular, the aspects of both ATTitudes and CAPacities (i.e., urbanization economies, Human Development Index, density of incubators, accounting and financial services, and fiber optic coverage) appear to have a significant effect on a suburban scale.
    Keywords: digital entrepreneurial ecosystem, urban area, innovation, spatial econometrics
    JEL: R12 L26 O31 P25
    Date: 2022–04
  7. By: Ignacio Sacristán López-Bravo; Carlos San Juan Mesonada
    Abstract: This paper analyses the impact of the fiscal-monetary policy mix on the convergence on per capita income of the least developed regions (Objective 1) of the European Union (EU 28) during the implementation of the three European Structural and Investment Funds (ESIF) programmes between 2000 and 2020. The Solow-Swan growth model with control variables allows us to assess the absorption capacity of regions in the different phases of the economic cycle. The empirical results show the effectiveness of EU Regional and Cohesion Policy. However, the combination of fiscal and monetary policy shows an impact that is asymmetric, depending on the region. Thus, a policy mix of fiscal restraint and monetary expansion would boost growth in all regions, but would slow down the convergence process in Objective 1 regions.
    Date: 2022
  8. By: Go, Eugenia (Asian Development Bank); Nakajima, Kentaro (Hitotsubashi University); Sawada , Yasuyuki (University of Tokyo); Taniguchi, Kiyoshi (Asian Development Bank)
    Abstract: The lack of suitable data is a key challenge in ex-post policy evaluations. This paper proposes a novel data to measure local economic activities using vehicle counts in each 500 meter (m) x 500 m tile. The metric is derived from high resolution satellite images using a machine learning algorithm. Using the opening of the new international airport terminal in Cebu, Philippines, as a quasi-experiment, we estimate the impact of the new infrastructure on the local economy of Metro Cebu. Results of the difference-in-differences analysis show that the new terminal significantly increased vehicle traffic in urban Cebu. The effect decays with distance from the airport, is stronger in areas where hotels are located, and is most pronounced in the peak months for international tourists. These findings imply that the opening of the new international terminal has enhanced Cebu's local economy through international tourism.
    Keywords: transportation infrastructure; satellite imagery data
    JEL: R11
    Date: 2022–03–14
  9. By: Dargel, Lukas; Thomas-Agnan, Christine
    Abstract: In the framework of spatial econometric interaction models for origin-destination flows, we develop an estimation method for the case when the list of origins may be distinct from the list of destinations, and when the origin-destination matrix may be sparse. The proposed model resembles a weighted version of the one of LeSage and Pace (2008) and we are able to retain most of the efficiency gains associated with the matrix form estimation, which we illustrate for the maximum likelihood estimator. We also derive computationally feasible tests for the coherence of the estimation results and present an efficient approximation of the conditional expectation of the flows.
    Keywords: spatial econometric interaction models; zero flow problem
    JEL: C01 C21
    Date: 2022–03–01
  10. By: Bergholz, Christian; Hundt, Christian; Osigus, Torsten
    Abstract: Using the example of German districts and independent cities (kreisfreie Städte), we find that latter generate higher gross domestic product (GDP) per inhabitant as well as larger tax revenues per inhabitant. Accordingly, independent cities generate a GDP of €50,854 per inhabitant and record tax revenues of €1,739 per inhabitant, while in municipalities belonging to districts the GDP is €32,029 per inhabitant and tax revenues per inhabitant are €1,283. In order to analyze the positive correlation between GDP and tax revenues, we look in particular at the role of (net) agglomeration economies. Furthermore, we argue that agglomeration economies increase local governments´ tax revenues per inhabitant through two distinct channels. First, agglomeration economies lead to rising local value added that again ends up in a greater local tax base and in greater local tax revenues (indirect channel). Second, local governments can directly tax local agglomeration economies by increasing their tax multipliers (direct channel). Looking at total tax revenues, our empirical results suggest that the indirect channel is quantitatively more important than the direct channel. However, the extent to which both channels come into play varies considerably across the examined types of tax revenues. While the direct channel is most important for non-agricultural/non-forestry land property tax, the indirect channel plays a more important role for the three business-related taxes. Property tax for agricultural and forestry land shows a high negative effect, especially in the case of the direct channel. The reason for this is that there are no agglomeration-related rents for agricultural and forestry land that can be taxed. Finally, we can show that the business-related tax revenues (business tax, income tax, value added tax) per inhabitant are systematically lower in Eastern Germany than in Western Germany, which is mainly due to the lower average GDP per inhabitant of Eastern German districts and independent cities.
    Keywords: Community/Rural/Urban Development, Financial Economics, Political Economy, Public Economics
    Date: 2022–04–05

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