nep-geo New Economics Papers
on Economic Geography
Issue of 2024‒01‒01
seven papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung

  1. The green transition and its potential territorial discontents By Rodríguez-Pose, Andrés; Bartalucci, Federico
  2. Urban-Biased Structural Change By Chen, Natalie; Novy, Dennis; , Perroni, Carlo; Chern Wong, Horng Chern
  3. Are EU regions ready to tackle climate change? By CAPPELLANO Francesco; MARQUES SANTOS Anabela; DOTTI Nicola Francesco
  4. Migration Drivers in Carbon-intensive Regions in the EU By Stefan Jestl; Roman Römisch
  5. Industry Agglomeration, Urban Amenities, and Regional Development in India By Subash Sasidharan; Shandre Thangavelu
  6. Foreign Direct Investment, Agglomeration, and Production Networks in Indonesian Manufacturing By Dionisius A. Narjoko
  7. Hot or not? Räumliche Analyse von Airbnb-Listings in Deutschland, Berlin, Hamburg, München und Köln By Reif, Julian

  1. By: Rodríguez-Pose, Andrés; Bartalucci, Federico
    Abstract: The impacts of climate change are unevenly distributed across territories. Less is known about the potential effects of climate policies aimed at mitigating the negative consequences of climate change while transitioning economies towards low-carbon standards. This paper presents an analytical framework for identifying and assessing the regional impacts of the green transition. We develop a Regional Green Transition Vulnerability Index, a composite measure of the regional vulnerability of European regions to the socio-economic reconfigurations prompted by the green transition. The index brings to light strong regional variations in vulnerability, with less developed, peri-urban and rural regions in Southern and Eastern Europe more exposed to the foreseeable changes brought about by the green transition. We also draw attention to the potential rise of pockets of growing ‘green’ discontent, especially if the green transition contributes, as is likely to be the case, to leaving already left-behind regions further behind.
    Keywords: green transition; environment; left-behind regions; development trap; European Union
    JEL: O56 R11
    Date: 2023–11–18
  2. By: Chen, Natalie (University of Warwick); Novy, Dennis (University of Warwick); , Perroni, Carlo (University of Warwick); Chern Wong, Horng Chern (Stockholm University)
    Abstract: Using firm-level data from France, we document that the shift of economic activity from manufacturing to services over the last few decades has been urban-biased : structural change has been more pronounced in areas with higher population density. This bias can be accounted for by the location choices of large services firms that sort into big cities and large manufacturing firms that increasingly locate in suburban and rural areas. Motivated by these findings, we estimate a structural model of city formation with heterogeneous firms and international trade. We find that agglomeration economies have strengthened for services but weakened for manufacturing. This divergence is a key driver of the urban bias but it dampens aggregate structural change. Rising manufacturing productivity and falling international trade costs further contribute to the growth of large services firms in the densest urban areas, boosting services productivity and services exports, but also land prices.
    Keywords: Agglomeration ; Cities, Export ; Firm Sorting ; Manufacturing ; Productivity ; Services ; Trade Costs
    Date: 2023
  3. By: CAPPELLANO Francesco; MARQUES SANTOS Anabela (European Commission - JRC); DOTTI Nicola Francesco
    Abstract: This paper provides quantitative evidence on the geography of regional readiness to tackle climate change using data from France, Germany, Italy, Poland, and Spain. Following Cappellano et al. (2022), we estimate a composite indicator that reports the situation of regions in these countries between 2009 and 2020 regarding the directionality of their Science and Technological Innovation and policy priorities to fight climate change. Using regression analysis, we assess the relationship between such directionality and the degree of risk of disasters (coastal floods, river floods, and landslides) they face in the short, medium, and long-term as a result of climate change effects. Results shows a positive relationship between estimated risk projection and climate change preparedness. However, a more in-depth analysis demonstrates the complexity of such geographical “problem-solution convergence”. Indeed, more developed regions are the ones that appear more ready to tackle climate change effects compared with transition and less developed regions.
    Keywords: Climate Change; Innovation; Public Policy; Regional Economics; Europe
    Date: 2023–10
  4. By: Stefan Jestl (The Vienna Institute for International Economic Studies, wiiw); Roman Römisch (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The paper analyses drivers of migration in carbon-intensive and non-carbon-intensive regions in the EU. Using a mix of econometric methods, such as spatial panel and spatial cross-sectional methods, as well as geographically weighted regressions on data for EU NUTS-2 and NUTS-3 regions, the results indicate that particularly carbon-intensive regions in Central and Eastern Europe are not only challenged by a potential decline in carbon-intensive employment but also by outward migration flows that could diminish their prospects for longer-term economic prosperity. From a policy point of view, the results indicate that policies focusing on the replacement of the lost jobs in carbon-intensive industries might not be enough for the carbon-intensive regions in Central and Eastern Europe. Instead, these regions need a simultaneous package of additional policies to improve their attractiveness.
    Keywords: carbon-intensive regions, green transition, regional migration
    JEL: Q50 R11 R23
    Date: 2023–11
  5. By: Subash Sasidharan (Indian Institute of Technology (IIT), Madras); Shandre Thangavelu (Jeffrey Cheah Institute of Southeast Asia, Sunway University and Institute for International Trade, University of Adelaide)
    Abstract: Industrial agglomeration is an important component to create efficiency and externalities for industrial growth and competitiveness for the Indian economy. In this paper, we examine the spatial location of Indian firms and industry agglomeration at district and township level for the Indian economy. Particularly, we examine the impact of urban amenities in driving the industrial agglomeration in the Indian economy using firm-level data. We carefully control for township-level urban amenities, as well as firm level characteristics in affecting the industry agglomeration. As opposed to previous stateand district-level studies, we examine the impact of urban amenities at a more disaggregated township level for 2011. The study also examines the impact of urban amenities on manufacturing, as well as the services sector. The empirical analysis findings indicate a positive correlation between town-level disparities in industry agglomeration and various amenities, including education, healthcare, energy, transportation, finance, and cultural resources. These results remain consistent when considering alternative measures of agglomeration and conducting sub-sample analyses.
    Keywords: Industrial Agglomeration; Urban Amenities
    JEL: F15 O15
    Date: 2023–09–13
  6. By: Dionisius A. Narjoko (Economic Research Institute for ASEAN and East Asia)
    Abstract: This study examines the importance of globalisation - defined by international production networks - in determining foreign direct investment (FDI) flows into Indonesian manufacturing since 2000. It is motivated by the fact that the extent of connection between the Indonesian and the global economy had increased after the 1997-98 Asian financial crisis. Models of FDI are estimated by utilising plant-level data and various trade and tariff data. Production networks or agglomeration are found to play an important role in driving FDI in Indonesia's manufacturing sector, at least for the period 2000-2015. This study provides the insight that agglomeration could be utilised to increase FDI in Indonesia. This not only improves the productivity of the sector targeted by the investment but also promotes productivity growth. Creating more agglomeration areas could therefore be a policy direction taken by Indonesia to help increase FDI.
    Keywords: Indonesia, foreign direct investment, production networks, agglomeration
    JEL: O14 F12 F21
    Date: 2023–05–04
  7. By: Reif, Julian
    Abstract: Die Buchungsplattform Airbnb ist zu einem relevanten Buchungskanal im Tourismus weltweit geworden. Mit Blick auf die vielfältigen sozio-ökonomischen Auswirkungen der Plattform ist die Kenntnis über die räumliche Lage des Airbnb-Angebots von hoher Bedeutung. Für Deutschland gibt es bisher keine umfassende, auf die räumliche Verteilung des Airbnb-Angebotes abzielende, Analyse. Der vorliegende Artikel untersucht daher die räumliche Konzentration von Airbnb-Angeboten in Deutschland und den vier einwohnerstärkstem Städten Deutschlands. Erstmals werden neben visuellen Analysen auch mit Hilfe von räumlicher Statistik Maßzahlen zur Airbnb-Konzentration vorgelegt. Dabei wird die Methodik der räumlichen Autokorrelation verwendet. Die Ergebnisse zeigen, dass es eine starke positive räumliche Konzentration des Airbnb-Angebots gibt. Bundesweit zeigen sich über 2.200 statistisch signifikante Airbnb-Hotspots, die sich i. d. R. an der Verteilung der deutschen Großstädte orientieren. Der Blick auf die Millionenstädte ergibt ebenfalls eine starkes räumliches Konzentrationsmaß. In Berlin sind die Airbnb-Listings am stärksten konzentriert, gefolgt von Köln, Hamburg und München. Die Ergebnisse dienen als Grundlage für weitere Forschung und als Ansatz für planerische Fragestellungen.
    Abstract: Airbnb has become a relevant booking channel for tourism. As the socio-economic impacts of the platform are much discussed, knowledge about the spatial location of Airbnb-Listings is of high importance. However, so far there is no comprehensive analysis of the spatial distribution of Airbnb offers in Germany. This paper, therefore, examines the spatial concentration of Airbnb in Germany and the four largest cities. For the first time, measures of Airbnb concentration are presented using spatial autocorrelation. Findings reveal that there is a strong spatial concentration of Airbnb-Listings in Germany and the four major cities with over a million inhabitants. We found over 2, 200 statistically significant Airbnb hotspots, which are generally oriented towards the distribution of the major German cities. Furthermore, Airbnb offers are most concentrated in Berlin, followed by Cologne, Hamburg, and Munich. Results serve as a basis for further research and as an approach to planning issues.
    Keywords: Räumliche Autokorrelation, Moran's I, Airbnb-Listings, Big Data, Städtetourismus, Spatial Autocorrelation, Moran's I, Airbnb-Listings, Big Data, Urban Tourism
    Date: 2022

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