nep-geo New Economics Papers
on Economic Geography
Issue of 2023‒11‒06
eight papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung

  1. Marshall meets Bartik: Revisiting the mysteries of the trade By Yasusada Murata; Ryo Nakajima
  2. Do Creative Industries Enhance Employment Growth? Regional Evidence from Colombia By Campi, Mercedes; Dueñas, Marco; Ciarli, Tommaso
  3. Agglomeration and Congestion in Latin America By Gómez-Lobo, Andrés; Sánchez González, Santiago; González Mejia, Vileydy; Calatayud, Agustina
  4. The Impact of Immigration on the Employment Dynamics of European Regions By Edo, Anthony; Özgüzel, Cem
  5. The Within-Country Distribution of Brain Drain and Brain Gain Effects: A Case Study on Senegal By Bocquier, Philippe; Cha’Ngom, Narcisse; Docquier, Frédéric; Machado, Joël
  6. Disentangling Small-Scale Solar Photovoltaic Adoption: A Spatial Analysis of Decision Factors and Localized Interactions in Germany By Tobias Stein; Lisa Sieger; Christoph Weber
  7. Tourism usage of digital collaborative economy platforms in Europe: situation, behaviours and implication for the digital policies By Mendieta-Aragón, Adrián; Rodríguez-Fernández, Laura; Navío-Marco, Julio
  8. Seizing sustainable growth opportunities from tidal stream energy in the UK By Pia Andres; Ralf Martin; Esin Serin; Arjun Shah; Anna Valero

  1. By: Yasusada Murata (College of Economics, Nihon University); Ryo Nakajima (Department of Economics, Keio University)
    Abstract: We identify a causal effect of top inventor inflows on patent productivity of local inventors by combining the idea-generating process described by Marshall (1890) with the Bartik (1991) instruments involving state taxes and commuting zone characteristics of the United States. We find that the local productivity gains go beyond organizational boundaries and co-inventor relationships, which implies the partially nonexcludable good nature of knowledge in a spatial economy and pertains to the mysteries of the trade in the air. Our counterfactual experiment suggests that the spatial distribution of inventive activity is substantially distorted by the presence of heterogeneity in state taxes.
    Keywords: knowledge spillovers, knowledge sharing, Bartik instruments, mysteries of the trade, idea-generating process
    JEL: R12 O31 J61 C26
    Date: 2023–09–28
  2. By: Campi, Mercedes; Dueñas, Marco; Ciarli, Tommaso
    Abstract: Do creative industries have positive spillovers for the local economy in middle-income countries, for instance by attracting creative workers who benefit entrepreneurs and workers in other industries? Creative industries are considered highly innovative and productive and several studies in high-income countries have revealed such spillovers. However, the institutional and economic settings in middle-income countries may not be as conducive to them. Creative industries represented between 2.7 and 3.3 percent of Colombian employment in 2008 and 2017. Using granular employment data, we study their agglomeration patterns between 2008 and 2017. We nd agglomeration in the largest cities (Bogota, Medellin, and Cartagena) and in a few smaller cities. Using methodologies from prior studies yields a positive relationship between creative industry agglomeration and employment in non-creative services industries. However, after controlling for endogeneity using a shift-share instrumental variable approach, we nd, contrary to analyses of high-income countries, no signicant impact of an increase of creative industries employment on employment growth in other industries.
    Keywords: agglomerations;employment growth;Colombia
    JEL: Z18 O10 D62
    Date: 2022–02
  3. By: Gómez-Lobo, Andrés; Sánchez González, Santiago; González Mejia, Vileydy; Calatayud, Agustina
    Abstract: In this paper we explore the possible impact of urban congestion on agglomeration economies for a cross-section set of cities in Latin America. We use travel time data from Tom Tom to estimate wage regressions equations controlling for city size and congestion. We use population in each city in the 19th and early 20th century as instruments for current city size (measures by population). In our baseline estimates, we find an elasticity of wages to city size of 0.05, very similar to previous research in the region. When congestion is included in the estimation, we find that agglomeration economies are reduced. This holds even after using rain-days and average yearly as an instrument for congestion. Our results imply that congestion is a drag on economic productivity. This indirect cost of congestion is considerably larger economically than the direct cost measured as the loss of valuable time for citizens.
    Keywords: automovil;aglomeración;congestión;economic productivity;agglomeration economies
    JEL: R41 R48
    Date: 2022–02
  4. By: Edo, Anthony (CEPII, Paris); Özgüzel, Cem (OECD)
    Abstract: This paper provides the first evidence on the regional impact of immigration on native employment in a cross-country framework. By exploiting the richness of the European Labour Force Surveys and past censuses, we show that the rise in the share of immigrants across European regions over the 2010-2019 period had a modest impact on the employment-to-population rate of natives. However, the effects are highly uneven across regions and workers, and over time. First, the short-run estimates show adverse employment effects in response to immigration, while these effects disappear in the longer run. Second, low-educated native workers experience employment losses due to immigration, whereas high-educated ones are more likely to experience employment gains. Third, the presence of institutions that provide employment protection and high coverage of collective wage agreements exert a protective effect on native employment. Finally, economically dynamic regions can better absorb immigrant workers, resulting in little or no effect on the native workforce.
    Keywords: immigration, employment, labour supply, employment dynamics
    JEL: F22 J21 J61
    Date: 2023–09
  5. By: Bocquier, Philippe (University of the Witwatersrand, Johannesburg); Cha’Ngom, Narcisse (LISER); Docquier, Frédéric (LISER); Machado, Joël (LISER)
    Abstract: Existing empirical literature provides converging evidence that selective emigration enhances human capital accumulation in the world's poorest countries. However, the within-country distribution of such brain gain effects has received limited attention. Focusing on Senegal, we provide evidence that the brain gain mechanism primarily benefits the wealthiest regions that are internationally connected and have better access to education. Conversely, human capital responses are negligible in regions lacking international connectivity, and even negative in better connected regions with inadequate educational opportunities. These results extend to internal migration, implying that highly vulnerable populations are trapped in the least developed areas.
    Keywords: human capital, migration, selection, brain drain, brain gain, Senegal
    JEL: J24 J61 O15 R23 E24
    Date: 2023–10
  6. By: Tobias Stein; Lisa Sieger; Christoph Weber (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen)
    Abstract: The existence of spatial patterns in the adoption of small-scale solar photovoltaic (PV) systems is widely accepted in the academic literature. The diffusion of these systems depends on decisions of heterogenous units, often households, that form their decision based on unit characteristics and attitudes, the built environment, economic and physical factors, as well as peer effects. When including several of these factors, many studies use macro-level datasets, which have a limited ability to capture ‘real’ small-scale spatial patterns. Using data on a 1 km² grid level for Germany, we identify spatial patterns of adoption while also controlling for highly localized explanatory variables. Spatial dependence is estimated and tested with spatial econometric models. Using this set of small-scale data, we show that spatial clustering affects the adoption of residential PV systems, which is increasing with larger neighborhood sizes. Further, the presence of large-scale PV installations has strong direct and also indirect, i.e., spillover effects on the adoption of rooftop PV installations. Finally, spillover effects from defined neighborhoods are found to become statistically insignificant with larger distances, promoting the use of such small-scale data.
    Keywords: Solar PV adoption, Spatial econometrics, Adoption behavior, Energy transition
    JEL: C31 Q28 Q55 R12
    Date: 2023–10
  7. By: Mendieta-Aragón, Adrián; Rodríguez-Fernández, Laura; Navío-Marco, Julio
    Abstract: This research analyses how tourists using digital sharing economy platforms have behaved in the European Union, whether there are differences between European regions and how they have evolved with the pandemic. Using spatial econometric techniques, this study provides a comparative analysis, in space and time, that identifies regional inequalities in terms of the intensity of demand for accommodation offered on digital sharing economy platforms. In particular, different clusters of high intensity of collaborative tourism have been detected, and spatial spillover effects and interdependencies of European regions in collaborative tourism have been recognised, finding a positive spatial autocorrelation in the intensity rate of collaborative tourism. An effect of tourist destination saturation on the use of accommodation offered on digital sharing economy platforms has also been observed. Several digital public policy implications have been discussed, promoting regulatory coordination at the interregional and pan-European levels to avoid inequalities and imbalances across Europe.
    Keywords: Digital tourism, platforms' economy, digital policies, European regions, sharing, ESDA, spatial models
    Date: 2023
  8. By: Pia Andres; Ralf Martin; Esin Serin; Arjun Shah; Anna Valero
    Abstract: This is the decade for managing the immense risks of climate change, and delivery on net zero. That means rapidly increasing the share of renewable sources in our energy mix alongside a step-change in energy and resource efficiency. Energy transitions will look different in different parts of the world and will be most sustainable if countries leverage the unique opportunities offered by their local geographies to cut emissions as quickly as possible. As an island nation, the UK has a uniquely rich marine energy resource. Using this resource is an opportunity the UK cannot afford to miss as it works to fulfil its own target of net zero as well as its international commitments under the Paris Agreement. This report adds to a growing evidence base concluding that tidal stream energy presents a clear sustainable growth opportunity for the UK due to the net zero, energy security and regional growth benefits it offers. Given its predictability, tidal stream energy offers important complementarities with other renewable sources of generation and in turn, the potential to improve the overall resilience of the energy system. The report also showcases the UK's innovative specialisms in tidal stream technologies, pointing out an opportunity for the UK to export its expertise in the future to many other countries around the world that have the potential to deploy tidal stream energy - if it acts quickly to establish a strong domestic sector.
    Keywords: Green Growth, growth, policy, net zero, Technological change, employment, Economic geography, UK Economy
    Date: 2023–06–22

This nep-geo issue is ©2023 by Andreas Koch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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