nep-geo New Economics Papers
on Economic Geography
Issue of 2022‒08‒08
ten papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Tradability, Productivity, and Regional Disparities: theory and UK evidence By Patricia Rice; Anthony J.Venables
  2. Regional heterogeneity in occupational change: Using Census data to investigate employment polarisation and upgrading at NUTS-3 level By VERA-TOSCANO Esperanza; FANA Marta; FERNANDEZ MACIAS Enrique
  3. Regional economic development and convergence clubs in Uruguay By Diego Aboal; Bibiana Lanzilotta; Martín Pereyra; María Paz Queraltó
  4. Public capital and institutions' quality in the Italian regions By F. Aresu; E. Marrocu; R. Paci
  5. Levelling Up: The Need for an Institutionally Coordinated Approach to National and Regional Productivity By Philip McCannn
  6. On the road to regional ‘Competitive Environmental Sustainability’: the role of the European structural funds By MARQUES SANTOS Anabela; BARBERO JIMENEZ Javier; SALOTTI Simone; DIUKANOVA Olga; PONTIKAKIS Dimitrios
  7. Spatial network analysis of container port operations: the case of ship turnaround times By César Ducruet; Hidekazu Itoh
  8. Flow of Ideas: Economic Societies and the Rise of Useful Knowledge By Francesco Cinnirella; Erik Hornung; Julius Koschnick
  9. Neither Communes nor Fiefs: King Owned Towns, Right Negotiations and Long Run Persistence. The Case of South Italy By Elisa Borghi; Fabio Gatti; Donato Masciandaro
  10. nwxtregress: Network regressions in Stata By William Grieser; Morad Zekhnini; Jan Ditzen

  1. By: Patricia Rice (Department of Economics and St. Anne’s College, University of Oxford); Anthony J.Venables (Alliance Manchester Business School, The University of Manchester and Monash University)
    Keywords: Regional economics, lagging regions, tradability, productivity, disparities
    Date: 2022–06
  2. By: VERA-TOSCANO Esperanza; FANA Marta (European Commission - JRC); FERNANDEZ MACIAS Enrique (European Commission - JRC)
    Abstract: Using Census data, this paper proposes an empirical approach to look at differences and changes in the composition of employment across NUTS-3 level regions of six European Union countries over the period 1981 – 2011. We focus on jobs (defined as specific occupations within specific sectors) as our unit of analysis. We rank all jobs based on their average educational level and divide these distribu-tions into terciles. We accommodate the approach to compare regions to their national average and see how they evolve compared to the national trend. Our aim is to determine if regional employment structures converge over time and whether they are polarising, upgrading or downgrading. Several hypotheses regarding possible underlying factors of structural changes are further discussed. Results show a high degree of heterogeneity in the different regions. This presents considerable challenges for policymakers, as they need to gear their efforts at regional, more localised level.
    Keywords: Job polarisation, economic restructuring, technological change, Census data, regional heterogeneity
    Date: 2022–07
  3. By: Diego Aboal (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía / CINVE / Universidad de la República. Facultad de Ciencias Económicas y Administración); Bibiana Lanzilotta (CINVE / Universidad de la República. Facultad de Ciencias Económicas y Administración.); Martín Pereyra (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía / CINVE); María Paz Queraltó (CINVE)
    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 paper adds to the debate of place based versus place neutral policies in Latin America. 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.
    Keywords: regional economic development; multidimensional indicator; convergence; clubs
    JEL: O18 C33
    Date: 2020–09
  4. By: F. Aresu; E. Marrocu; R. Paci
    Abstract: This paper investigates the role played by public capital on the production level of Italian regions by specifically accounting for the quality of institutions. Our analysis, carried out over the period 2000-2019, benefits from the use of a rich dataset on public expenditures which allows us to build the regional series of public capital stock by distinguishing among public institutions in charge of the investments and sectors of intervention. While controlling for several contextual variables (human capital, social capital, technological capital, population density), main results show that public capital has a positive and significant effect on production. Most interestingly, looking at the Mezzogiorno s regions, public capital carried out by local institutions turns out to have a lower impact than in the rest of the Italian regions. On the other hand, central bodies in the South exhibit an impact higher than the average. Moreover, institutions quality exhibits a positive and significant effect on regional economic performance. These results cast serious doubts about the actual capacity of the local Southern administrations to effectively manage the enormous resources of the National Recovery and Resilience Plan and of the new European Union cohesion framework 2021-2027. Our results are also relevant for other European regions that, featuring structural traits similar to Southern Italian regions, are expected to face the same difficulties in managing public funding.
    Keywords: Public capital stock; Productivity; Italian regions; Institutions' Quality
    Date: 2022
  5. By: Philip McCannn (Alliance Manchester Business School, The Productivity Institute)
    Keywords: Productivity, Levelling Up, Institutions
    Date: 2022–07
  6. By: MARQUES SANTOS Anabela (European Commission - JRC); BARBERO JIMENEZ Javier (European Commission - JRC); SALOTTI Simone (European Commission - JRC); DIUKANOVA Olga (European Commission - JRC); PONTIKAKIS Dimitrios (European Commission - JRC)
    Abstract: We construct a novel indicator of regional competitive sustainability based on the changes over time of employment sectoral shares across all the regions of the European Union. The indicator accounts for shifts in employment towards greener and more productive sectors over the 2008-2018 period. The mapping of the indicators shows considerable regional heterogeneity in terms of both competitiveness and environmental sustainability, as well as interesting dynamics over time. We present an econometric analysis of the determinants of these sectoral shifts. It appears that the European Structural Funds are positively associated with the transition towards a more competitive and sustainable economy at the regional level. This is particularly true for the competitive dimension of the transition, with the Funds being positively associated with regional employment restructuring towards more productive sectors within each country.
    Keywords: Green transition, public support, sectoral employment, European regions
    Date: 2022–07
  7. By: César Ducruet; Hidekazu Itoh
    Abstract: This research investigates the determinants of ship turnaround times at about 2,300 container ports between 1977 and 2016, based on nearly 3 million daily vessel movements. It adopts a multilevel approach combining territorial and network indicators to characterize ports, and proposes a new methodology calculating shipping delays. Main results reveal that port connectivity, Gross Domestic Product per capita, the number of vessel calls, and island location foster efficient port operations. Conversely, urban population, voyage delays at sea, maximum ship size, and upstream location increase turnaround time. While average turnaround time and inter-port sailing time have both regularly declined, operational and technological changes in the ports and maritime sector - especially after the 2007/8 global financial crisis - accelerated intra-port time and slowed down inter-port time. This relational and spatial approach also underlines the geographic differentiation of ship times nationally and regionally, as it is far from being randomly distributed on the globe.
    Keywords: congestion; containerization; liner shipping networks; port cities; ship turnaround time; uncertainty
    JEL: L90 N70 R40
    Date: 2022
  8. By: Francesco Cinnirella (University of Bergamo); Erik Hornung (University of Cologne); Julius Koschnick (London School of Economics)
    Abstract: Economic societies emerged during the late eighteenth-century. We argue that these institutions reduced the costs of accessing useful knowledge by adopting, producing, and diffusing new ideas. Combining location information for the universe of 3,300 members across active economic soci-eties in Germany with those of patent holders and World’s Fair exhibitors, we show that regions with more members were more innovative in the late nineteenth-century. This long-lasting effect of societies arguably arose through agglomeration economies and localized knowledge spillovers. To support this claim, we provide evidence suggesting an immediate increase in manufacturing, an earlier establishment of vocational schools, and a higher density of highly skilled mechanical workers by mid-nineteenth century in regions with more members. We also show that regions with members from the same society had higher similarity in patenting, suggesting that social networks facilitated spatial knowledge diffusion and, to some extent, shaped the geography of innovation.
    Keywords: Economic Societies, Useful Knowledge, Knowledge Diffusion, Innovation, Social Networks
    JEL: N33 O33 O31 O43
    Date: 2022–07
  9. By: Elisa Borghi; Fabio Gatti; Donato Masciandaro
    Abstract: According to the literature, historical episodes of local self-governing institutions can explain why differences in socio-economic performances among different territories can persist over centuries. Such assumption has been tested comparing free city-states (Communes) and feudal towns in Italy, Germany, Switzerland and United Kingdom. This paper explores a third and novel category: the King-owned towns. King-owned towns (KOTs) were present in South Italy when the Kingdom delegated jurisdictional and fiscal powers to the town ruling class, creating a self-governance setting, where the community representatives systematically implemented articulated right negotiations with the Crown, which in turn influenced the evolutions of the municipal statutes of their towns. We interpret this collective action as a mechanism that can explain the persistence effects. Empirically, we find that, given a town, its past king-owned experience is correlated with today outcomes, both in terms of current economic performances and civil capital. These results offer evidence that the KOT status is more similar to the Commune experience than to the fief experience.
    Keywords: Self-Governance, Long Run Persistence, Economic History, Political Institutions, Culture, Economic Geography, Italy
    JEL: D72 H10 N44 O43 O52 K00 R10
    Date: 2022
  10. By: William Grieser (Texas Christian University); Morad Zekhnini (Michigan State University); Jan Ditzen (Free University of Bozen-Bolzano)
    Abstract: Network analysis has become critical to the study of social sciences. While several Stata programs are available for analyzing network structures, programs that execute regression analysis with a network structure are currently lacking. We fill this gap by introducing the nwxtregress command. Building on spatial econometric methods (LeSage and Pace 2009), nwxtregress uses MCMC estimation to produce estimates of endogenous peer effects, as well as own-node (direct) and cross-node (indirect) partial effects, where nodes correspond to cross-sectional units of observation, such as firms, and edges correspond to the relations between nodes. Unlike existing spatial regression commands (for example, spxtregress), nwxtregress is designed to handle unbalanced panels of economic and social networks as in Grieser et al. (2021). Networks can be directed or undirected with weighted or unweighted edges, and they can be imported in a list format that does not require a shapefile or a Stata spatial weight matrix set by spmatrix. Finally, the command allows for the inclusion or exclusion of contextual effects. To improve speed, the command transforms the spatial weighting matrix into a sparse matrix. Future work will be targeted toward improving sparse matrix routines, as well as introducing a framework that allows for multiple networks.
    Date: 2022–06–10

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