nep-geo New Economics Papers
on Economic Geography
Issue of 2023‒12‒11
eleven papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung

  1. Spatial Data Analysis By Rüttenauer, Tobias
  2. The Geography of Structural Transformation: Effects on Inequality and Mobility By Takeda, Kohei
  3. Unveiling spatial patterns of population in Italian municipalities By Davide Fiaschi; Angela Parenti; Cristiano Ricci
  4. Understanding Erasmus mobility in European regions: a quantile-based approach By Sebastiano Cattaruzzo; Giancarlo Corò
  5. The Role of Regulation and Regional Government Quality for High Growth Firms: The Good, the Bad, and the Ugly By Amoroso, Sara; Herrmann, Benedikt; Kritikos, Alexander S.
  6. Local labor market effects of global value chain disruptions - evidence from the COVID-19 crisis By Meisiek, Anne; Meister, Moritz; Niebuhr, Annekatrin; Rudolph, Meike
  7. Quantity versus quality in publication activity: knowledge production at the regional level By Timur Gareev; Irina Peker
  8. Widening or closing the gap? The relationship between artificial intelligence, firm-level productivity and regional clusters By Nils Grashof; Alexander Kopka
  9. Measuring Tight and Loose Cultures across NUTS-2 Regions: The Regional Index of Looseness By Vincenzo Alfano; Salvatore Ercolano
  10. Ports and their influence on local air pollution and public health: a global analysis By César Ducruet; Hidekazu Itoh; Bárbara Polo Martin; Mame Astou Séné; Mariantonia Lo Prete; Ling Sun; Hidekazu Itoh; Yoann Pigné
  11. New configurations of the interface between innovation and urban spatial agglomeration: the localized industrial systems (lis) of the clothing in Fortaleza/Brazil By Edilson Pereira Junior

  1. By: Rüttenauer, Tobias
    Abstract: This handbook chapter provides an essential introduction to the field of spatial econometrics, offering a comprehensive overview of techniques and methodologies for analysing spatial data in the social sciences. Spatial econometrics addresses the unique challenges posed by spatially dependent observations, where spatial relationships among data points can significantly impact statistical analyses. The chapter begins by exploring the fundamental concepts of spatial dependence and spatial autocorrelation, and highlighting their implications for traditional econometric models. It then introduces a range of spatial econometric models, particularly spatial lag, spatial error, and spatial lag of X models, illustrating how these models accommodate spatial relationships and yield accurate and insightful results about the underlying spatial processes. The chapter provides an intuitive understanding of these models compare to each other. A practical example on London house prices demonstrates the application of spatial econometrics, emphasising its relevance in uncovering hidden spatial patterns, addressing endogeneity, and providing robust estimates in the presence of spatial dependence.
    Date: 2023–11–16
  2. By: Takeda, Kohei (National University of Singapore)
    Abstract: Economies transform at an uneven pace. This paper develops a dynamic overlapping generations model of economic geography where historical exposure to different industries creates persistence in occupational structure, and non-homothetic preferences and differential productivity spillovers lead to different rates of structural transformation. The model is calibrated to the U.S. economy from 1980 to 2010. The calibration allows us to back out measures of upward mobility and inequality, thereby providing theoretical underpinnings for the Great Gatsby Curve. The counterfactual analysis reveals that structural transformation has substantial effects on a slowdown and explains heterogeneity in upward mobility across cities.
    Date: 2023–11–10
  3. By: Davide Fiaschi; Angela Parenti; Cristiano Ricci
    Abstract: We study the evolution of population density across Italian municipalities on the based of their trajectories in the Moran space. We find evidence of spatial dynamical patterns of concentrated urban growth, urban sprawl, agglomeration, and depopulation. Over the long run, three distinct settlement systems emerge: urban, suburban, and rural. We discuss how estimating these demographic trends at the municipal level can help the design and validation of policies contrasting the socio-economic decline in specific Italian areas, as in the case of the Italian National Strategy for Inner Areas (Strategia Nazionale per le Aree Interne, SNAI).
    Date: 2023–11
  4. By: Sebastiano Cattaruzzo (Department of Economics, University Of Venice CÃ Foscari); Giancarlo Corò (Department of Economics, University Of Venice CÃ Foscari)
    Abstract: This research employs a quantile-based model to assess the key determinants of Erasmus mobility within European regions. Our analysis highlights the factors contributing to high Erasmus attractiveness, notably urbanization levels, the presence of capital cities, and the quality of governance. In contrast, regions with lower Erasmus appeal are often linked to tourism activity and the risk of developmental stagnation. A significant finding is the pivotal role of government quality, which can transform less attractive regions into more appealing destinations for Erasmus participants. We extensively examine the policy implications arising from the current hands-off approach in the management of Erasmus flows, shedding light on potential interventions to address regional disparities
    Keywords: Erasmus; mobility; policy; higher education; development; trap; regional
    JEL: I23 R11 O18 H75
    Date: 2023
  5. By: Amoroso, Sara (DIW Berlin); Herrmann, Benedikt (European Commission); Kritikos, Alexander S. (DIW Berlin)
    Abstract: High growth firms (HGFs) are important for job creation and considered to be precursors of economic growth. We investigate how product- and labor-market regulations, as well as the quality of regional governments that implement these regulations, affect HGF development across European regions. Using data from Eurostat, OECD, WEF, and Gothenburg University, we show that both regulatory stringency and the quality of the regional government influence the regional shares of HGFs. Additionally, we find that the effect of labor- and product-market regulations ultimately depends on the quality of regional governments. The institutional quality has a moderating role in dening the effect of regulations on the regional shares of HGFs. Our findings contribute to the debate on the effects of regulations by showing that regulations are not, per se, "good, bad, and ugly", rather their impact depends on the efficiency of regional governments. Our paper offers important building blocks to develop tailored policy measures that may influence the development of HGFs in a region.
    Keywords: high growth firms, regulation, quality of governments, regional development
    JEL: H11 L25 L50 R11 R50
    Date: 2023–10
  6. By: Meisiek, Anne (Institute for Employment Research (IAB), Nuremberg, Germany); Meister, Moritz (Institute for Employment Research (IAB), Nuremberg, Germany); Niebuhr, Annekatrin (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Kiel); Rudolph, Meike (Institute for Employment Research (IAB), Nuremberg, Germany)
    Abstract: "This study investigates the importance of global value chain (GVC) integration for local labor market outcomes in Germany during the COVID-19 pandemic. Although COVID-19 can be considered as a global crisis, there are at the same time strong geographical differences in its impact. We observe pronounced spatial variation in infection rates, policy responses, and behavioral changes. A rapidly growing number of studies provide evidence of heterogeneous effects of the COVID-19 pandemic on local labor markets, most of them focusing on the initial shock and often on the effects of lockdowns and economic policy measures. This paper takes a different perspective on the regional economic effects of the pandemic. We focus on the impact of disrupted GVC during the COVID-19 crisis on local labor markets and investigate whether GVC integration influenced the magnitude of the initial shock and the subsequent recovery process of regions in Germany until December 2021. Our analysis of the regional effects of GVC disruptions in Germany focuses on the bilateral GVC relationship between China and Germany because the two countries are important agents in GVC. Moreover, China was hit early and severely by the pandemic which led to a sizeable decline in the country's production and exports at the beginning of 2020. To measure regional and sectoral GVC integration, we use the 2021 edition of the OECD's Inter-Country Input-Output tables, which provide detailed information on trade in intermediate goods between 45 industries and 66 countries up to the year 2018. Using this data on international trade in intermediate products, we apply different indicators to measure the GVC integration of German sectors via imports and exports of intermediate inputs. To measure the integration of local labor markets in GVC, we quantify the regional variation in trade in intermediate goods using the variation in sectoral specialization across labor market regions. Our main outcome variable is the regional employment share of workers receiving a short-time work allowance. The extensive use of short-time work (STW) was one reason why the unemployment rate showed a relatively moderate increase during the COVID-19 pandemic in Germany. Therefore, we apply STW rather than regional unemployment rates to measure the labor market effects of GVC disruptions caused by the COVID-19 crisis. As a second outcome variable, we consider regional employment. Our descriptive results point to a clustering of highly integrated regions in southern Germany that appears to be slightly more pronounced for GVC trade with China than for GVC trade with the rest of the world. In contrast, many regions in the Northeast of Germany show a below average GVC integration. A decomposition GVC-related trade into imports and exports shows that the export component is almost twice as large as GVC-related imports in Germany. However, the export and import measures are highly correlated, indicating that when a region is strongly integrated into GVC-related trade, it is usually through both imports and exports. Regression results show that short-time work increased more strongly in 2020 in local labor markets which are characterized by an above average GVC integration with China. We detect significant effects of both an integration through exports and imports of intermediate goods, with the impact of GVC-related imports from China being somewhat stronger. The effects that we find for GVC integration with China are, however, only temporary and decline quickly during the second half of 2020. Regions that are highly integrated with the rest of the world, in contrast, do not stand out from other local labor markets in Germany when it comes to the effects of GVC disruptions. There are different potential reasons behind the swift recovery of those regions that show a high GVC integration with China. First of all, China does not differ that much from other important trade partners of Germany in 2021 when it comes to trade disruptions. Moreover, there is some first evidence on firms adjusting their production process and the procurement of inputs in response to value chain disruptions." (Author's abstract, IAB-Doku) ((en))
    Keywords: Bundesrepublik Deutschland ; China ; Pandemie ; IAB-Open-Access-Publikation ; Außenhandel ; Auswirkungen ; Beschäftigungseffekte ; Betriebsunterbrechung ; Globalisierung ; internationale Arbeitsteilung ; Kurzarbeit ; Produktionsorganisation ; regionaler Arbeitsmarkt ; Wertschöpfung ; Wirtschaftszweige ; Zulieferer ; 2021-2021
    Date: 2023–09–06
  7. By: Timur Gareev; Irina Peker
    Abstract: This study contributes to the ongoing debate regarding the balance between quality and quantity in research productivity and publication activity. Using empirical regional knowledge production functions, we establish a significant correlation between R&D spending and research output, specifically publication productivity, while controlling for patenting activity and socioeconomic factors. Our focus is on the dilemma of research quantity versus quality, which is analysed in the context of regional thematic specialization using spatial lags. When designing policies and making forecasts, it is important to consider the quality of research measured by established indicators. In this study, we examine the dual effect of research quality on publication activity. We identify two groups of quality factors: those related to the quality of journals and those related to the impact of publications. On average, these factors have different influences on quantitative measures. The quality of journals shows a negative relationship with quantity, indicating that as journal quality increases, the number of publications decreases. On the other hand, the impact of publications can be approximated by an inverse parabolic shape, with a positive decreasing slope within a common range of values. This duality in the relationship between quality factors and quantitative measures may explain some of the significant variations in conclusions found in the literature. We compare several models that explore factors influencing publication activity using a balanced panel dataset of Russian regions from 2009 to 2021. Additionally, we propose a novel approach using thematic scientometric parameters as a special type of proximity measure between regions in thematic space. Incorporating spatial spillovers in thematic space allows us to account for potential cross-sectional dependence in regional data.
    Date: 2023–11
  8. By: Nils Grashof; Alexander Kopka
    Abstract: Artificial intelligence (AI) is seen as a key technology for economic growth. However, the impact of AI on firm productivity has been under researched – particularly through the lens of inequality and clusters. Based on a unique sample of German firms, filling at least one patent between 2013 and 2019, we find evidence for a positive influence of AI on firm productivity. Moreover, our analysis shows that while AI knowledge does not contribute to productivity divergences in general, it increases the productivity gap between laggard and all other firms. Nevertheless, this effect is reduced through the localisation in clusters.
    Keywords: Artificial intelligence, Inequality, Productivity, Clusters, Patents, Firm-level
    JEL: O18 O30 R10
    Date: 2023–11
  9. By: Vincenzo Alfano; Salvatore Ercolano
    Abstract: This investigation quantifies the levels of cultural tightness and looseness prevalent in European societies, focusing on NUTS-2 regional divisions. Cultural dynamics occupy a pivotal role in shaping individual decision-making, particularly when addressing global risks like pandemics, environmental crises, and resource depletion. In an innovative approach, we introduce the Regional Index of Looseness (RIL) as a means to operationalize society's positioning along the spectrum of tightness-looseness. In contrast to previous cross-country studies, we harness regional data to acknowledge the intrinsic regional variations within European nations. The RIL index appraises two facets of looseness: the horizontal and vertical dimensions, providing a more nuanced understanding of societal values. The application of the RIL index to the investigation of its impact on vaccination choices and the effectiveness of NPIs offers invaluable insights for policymakers grappling with the management of global risks. This research presents a novel perspective at the regional level and scrutinizes the multi-dimensional aspects of cultural tightness and looseness.
    Keywords: tightness, looseness, culture, regional studies
    JEL: Z13 O57 I18
    Date: 2023
  10. By: César Ducruet; Hidekazu Itoh; Bárbara Polo Martin; Mame Astou Séné; Mariantonia Lo Prete; Ling Sun; Hidekazu Itoh; Yoann Pigné
    Abstract: Despite the skyrocketing growth of environmental studies in recent decades about ports and shipping, the local health impacts of ports remain largely under-researched. This article wishes to tackle this lacuna by statistically analyzing data on global shipping flows across nearly 5, 000 ports in 35 OECD countries between 2001 and 2018. The different traffic types, from containers to bulks and passengers, are analyzed jointly with data on natural conditions, air pollution, socio-economic features, and public health. Main results show that port regions pollute more than non-port regions on average, while health impacts vary according to the size and specialization of port regions. Three types of port regions are clearly differentiated, of which industrial, intermediate, and metropolitan port regions.
    Keywords: health; maritime transport; air pollution; port region; vessel movements
    JEL: I15 Q53 Q56 R11 R40
    Date: 2023
  11. By: Edilson Pereira Junior
    Abstract: The paper seeks to interpret the interface between innovation, industry and urban business agglomeration, by trying to understand how local/regional entrepreneurs and social agents use the forces of agglomeration to organize productive activities with a view to achieving greater competitiveness and strategic advantages. There are many territorial manifestations that materialize from this new reality and the text seeks to propose a reading of its characteristics based on what we call "productive spatial configurations", which represent the specific functioning of a certain innovative production process and its territorial impact. To illustrate this approach, we take as an example a case study that illustrates how productive spatial configurations manifest themselves through the revitalization of an industrial economy that incorporates innovative efforts, whether technological, process or organizational. This is the localized industrial system (LIS) of clothing and apparel in Fortaleza, Cear\'a state, Brazil, which reveals an industrial experience of resistance with significant organizational innovation in the production and distribution processes of clothing. The main objective of the proposal is to organize theoretical and empirical tools that will allow us to read the combination of economic, social and political variables in spaces where collaborative networks of companies, service centers and public institutions flourish, in the context of various industrial production processes. This could point to the progress we need to overcome the many false controversies on the subject.
    Date: 2023–11

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