nep-geo New Economics Papers
on Economic Geography
Issue of 2022‒06‒13
four papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Relatedness in regional development: in search of the right specification By Yang Li; Frank Neffke
  2. Level best? The levelling up agenda and UK regional inequality By Bandeira Morais, Margarida; Lee, Neil; Fransham, Mark; Pop, Mihaela; Fransham, Mark
  3. The Policy Implications of Economic Complexity By C\'esar A. Hidalgo
  4. Convergencia regional en Colombia en el Siglo XXI By Karina Acosta; Jaime Bonet-Morón

  1. By: Yang Li; Frank Neffke
    Abstract: A large body of research has documented that the size and growth of an industry in a city or region depends on the local size of related industries. However, there is no consensus on how to best measure, either the relatedness between industries, or how well a particular industry fits a local economy as a whole. In this paper, we perform a structured search over tens of thousands of specifications to identify optimal – in terms of out-of-sample predictions – ways to construct these quantities, using a dataset that allows us to derive relatedness from co-occurrence patterns of industries in establishments, firms, regions and countries. We find that these di
    Date: 2022–04
  2. By: Bandeira Morais, Margarida; Lee, Neil; Fransham, Mark; Pop, Mihaela; Fransham, Mark
    Abstract: ‘Levelling up’ - a policy agenda focused on reducing regional inequalities - has become the new mantra in British politics. This paper reviews and critiques the agenda from its beginnings in 2019 to the publication of the 2022 Levelling Up White Paper. The agenda is an overdue recognition of gross regional inequality, and the new ‘missions’ which are set out to drive change are welcome. Yet local institutions lack capacity to deliver, there has been little genuine devolution, and the mechanisms through which the ‘missions’ will actually be delivered are unclear. Our analysis of spending commitments shows little new money has been committed, and what has been committed has tended to be through top-down competitive bids. There is a danger that levelling up becomes the latest in a list of politically useful but empty slogans which are used as a substitute for resources and devolution.
    Keywords: levelling up; inequality; regions; cities; funding; policy; ES/V013548/1
    JEL: N0
    Date: 2022–04
  3. By: C\'esar A. Hidalgo
    Abstract: In recent years economic complexity has grown into an active field of fundamental and applied research. Yet, despite important advances, the policy implications of economic complexity remain unclear. Here I organize the policy implications of economic complexity in a framework grounded on 4 Ws: "what" approaches, focused on identifying target activities and/or locations; "when" approaches, focused on when to time support for developing related and unrelated activities; "where" approaches, focused on the geographic diffusion of knowledge; and "who" approaches, focused on the role played by agents of structural change. The goal of this framework is to clarify the policy implications of recent work in economic complexity and to facilitate its continued use in regional and international development efforts.
    Date: 2022–05
  4. By: Karina Acosta; Jaime Bonet-Morón
    Abstract: Los estudios que pretenden responder si las zonas más prósperas de Colombia crecen a menor ritmo que aquellas con mayor rezago relativo han arrojado resultados dispares. Este documento actualiza las estimaciones de la convergencia beta incondicional del PIB per cápita para los primeros anos del siglo XXI, donde se han observado importantes cambios estructurales. Adicionalmente, el estudio descompone la convergencia beta por cambios sectoriales y mide su estabilidad ante variaciones del ano inicial de comparación. Este análisis se complementó con el estudio de la convergencia de otros indicadores sociales y económicos. Los resultados sugieren una beta creciente, aunque no significativa, indicando una transición de una leve convergencia a un periodo de divergencia. Además, los principales contribuyentes a la convergencia durante mayor parte del período son los sectores de minas y canteras, y el sector público. En contraste, existe evidencia de convergencia de los ingresos fiscales per cápita y una reducción más rápida de la pobreza multidimensional en las zonas con menor pobreza inicial en el último período intercensal. **** ABSTRACT: The studies aiming to answer if wealthier areas in Colombia are growing at a slower pace than poorer areas have yielded mixed results. This chapter updates such estimates of unconditional beta convergence of the GDP per capita for the first years of the 21st century, when substantial changes occurred. Furthermore, we decompose the beta by sectorial changes throughout the period while estimating it with a moving starting year. This assessment was supplemented by a convergence analysis of additional social and economic indicators. Our results suggest an increasing, yet nonsignificant, beta, indicating that Colombia is moving from a subtle convergence to a more frequent period of divergence. Moreover, we find that the primer convergence forces from most of the period are mines and quarrying along with the public sector. In contrast, there is strong evidence of tax revenues per capita convergence and an apparent faster reduction of multidimensional poverty in wealthier areas in the last intercensal period.
    Keywords: Convergencia, beta, PIB per cápita, departamentos, Colombia, convergence, beta, GDP per capita, departments, Colombia
    JEL: O47 R11 R12 C21 C12
    Date: 2022–05–18

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