nep-geo New Economics Papers
on Economic Geography
Issue of 2024‒05‒06
ten papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung

  1. Regional productivity, inequalities, potential causes, and institutional challenges By Michael Kenny; Philip McCann; Raquel Ortega-Argilés
  2. Neighborhood effects: Evidence from wartime destruction in London By Stephen J. Redding; Daniel M. Sturm
  3. Changing from within: the interplay between imaginary, culture and innovation system in regional transformation By Huiwen Gong; Bernhard Truffer
  4. Local Economic Development Through Export-Led Growth: The Chilean Case By Andrés César; Guillermo Falcone
  5. The Propensity for Patenting in the Italian Regions By Leogrande, Angelo
  6. Moran's I 2-Stage Lasso: for Models with Spatial Correlation and Endogenous Variables By Sylvain Barde; Rowan Cherodian; Guy Tchuente
  7. Retaining population with water? Irrigation policies and depopulation in Spain over the long term By Ignacio Cazcarro; Miguel Martín-Retortillo; Guillermo Rodríguez-López; Ana Serrano; Javier Silvestre
  8. Land Inequality and Long-Run Growth: Evidence from Italy By Pablo Martinelli Lasheras; Dario Pellegrino
  9. The rescaling of institutional rationalities for shaping opportunity spaces By Käsbohrer, Andrea; Grillitsch, Markus; Zademach, Hans-Martin
  10. Multi-dimensionale regionale Ungleichheit in Deutschland: Eine Analyse aus ökonomischer und raumwissenschaftlicher Perspektive By Hülz, Martina; Krätzig, Sebastian; Siegloch, Sebastian; Streng, Martin

  1. By: Michael Kenny (Bennett Institute for Public Policy, University Cambridge); Philip McCann (The Productivity Institute, The University of Manchester); Raquel Ortega-Argilés (The Productivity Institute, The University of Manchester)
    Keywords: Productivity, UK regional inequality, UK institutions
    Date: 2023–11
  2. By: Stephen J. Redding; Daniel M. Sturm
    Abstract: We use the German bombing of London during the Second World War as an exogenous source of variation to provide evidence on neighborhood effects. We construct a newly-digitized dataset at the level of individual buildings on wartime destruction, property values, and socioeconomic composition in London before and after the Second World War. We develop a quantitative spatial model, in which heterogeneous groups of individuals endogenously sort across locations in response to differences in natural advantages, wartime destruction and neighborhood effects. We find substantial and highly localized neighborhood effects, which magnify the direct impact of wartime destruction, and make a substantial contribution to observed patterns of spatial sorting across locations.
    Keywords: agglomeration, neighborhood effects, second world war, spatial sorting
    Date: 2024–04–09
  3. By: Huiwen Gong (Center for Innovation Research, Business School, University of Stavanger, Norway); Bernhard Truffer (Department of Environmental Social Science, Eawag, Switzerland)
    Abstract: This paper investigates how leading industrial regions may maintain their leadership positions when being confronted with deep and radical transformations of their core industries. Focusing on the evolution of the German automotive sector in Baden-Württemberg over the past two decades, we introduce a theoretical framework for a layered regional architecture that weaves together regional imaginaries, innovation culture, and system change processes. We argue that in response to disruptive threats, active engagement with regional imaginaries becomes essential. The paper critiques conventional approaches in regional innovation policy for overlooking the critical role of the region's intangible facets as vantage points for policy intervention. Hence, it champions a strategy centered on actively shaping regional imaginaries while concurrently fostering the necessary cultural and tangible system transformations.
    Keywords: regional transformation, leading industrial regions; regional imaginaries; regional innovation culture; regional innovation system
    Date: 2024
  4. By: Andrés César (CEDLAS-IIE-FCE-UNLP & CONICET); Guillermo Falcone (CEDLAS-IIE-FCE-UNLP & CONICET)
    Abstract: We study the causal impact of export growth on Chilean local economic development during 2000–2006 by exploiting spatial and temporal variations in local exposure stemming from the interaction of past differences in industry specialization across local labor markets and the evolution of tariffs cuts and exports across industries. We find that growing exports implied a significant reduction in labor informality and labor income gains in more exposed local markets, driven by job creation and wage growth in the formal sector. These effects concentrate on senior skilled workers. Exposed locations also exhibit a greater relative decline in the poverty rate.
    JEL: F14 F16 J23 J31 O17 Q02 R12 R23
    Date: 2024–04
  5. By: Leogrande, Angelo
    Abstract: In this article I analyzed the propensity for patenting in Italian regions through the use of ISTAT-BES data. The static analysis shows the presence of a significant gap between the northern regions and the southern regions in the period between 2004 and 2019. The econometric analysis applied with panel models highlights the relationships that the propensity to patent has with respect to the determinants of innovation systems at regional level. The results are critically discussed with economic policy recommendations.
    Date: 2024–03–25
  6. By: Sylvain Barde; Rowan Cherodian; Guy Tchuente
    Abstract: We propose a novel estimation procedure for models with endogenous variables in the presence of spatial correlation based on Eigenvector Spatial Filtering. The procedure, called Moran's $I$ 2-Stage Lasso (Mi-2SL), uses a two-stage Lasso estimator where the Standardised Moran's I is used to set the Lasso tuning parameter. Unlike existing spatial econometric methods, this has the key benefit of not requiring the researcher to explicitly model the spatial correlation process, which is of interest in cases where they are only interested in removing the resulting bias when estimating the direct effect of covariates. We show the conditions necessary for consistent and asymptotically normal parameter estimation assuming the support (relevant) set of eigenvectors is known. Our Monte Carlo simulation results also show that Mi-2SL performs well against common alternatives in the presence of spatial correlation. Our empirical application replicates Cadena and Kovak (2016) instrumental variables estimates using Mi-2SL and shows that in that case, Mi-2SL can boost the performance of the first stage.
    Date: 2024–04
  7. By: Ignacio Cazcarro (Universidad de Zaragoza, ARAID); Miguel Martín-Retortillo (Universidad de Alcalá); Guillermo Rodríguez-López (Universidad de Zaragoza); Ana Serrano (Universidad de Zaragoza, IA2); Javier Silvestre (Universidad de Zaragoza, IEDIS)
    Abstract: Depopulation, especially, but not only, rural, has become a major concern across many countries. As one type of place-based policy, irrigation has been claimed to contribute to resettling populations and reducing outward migration, by increasing agricultural output, productivity, and competitiveness and, consequently, employment and living standards. This paper aims to elucidate on the relationship between irrigation and population for Spain, historically and currently the most irrigated country and one of the most depopulated countries in Europe. We use municipal-level data over the period 1910-2011 and exploit a staggered difference-in-differences design. Overall, we find an effect on population only for irrigation developments that started in the relatively distant past. In any case, effects are temporary or tend to level off. We also consider trade-offs. We discuss the policy implications of the findings in light of current policies, and in terms of environmental and economic costs of increasing the intensity of irrigation.
    Keywords: Depopulation, place-based policies, irrigation programs, long-term view, staggered DiD, Spain
    JEL: J11 Q15 Q25 R11 N54 N94
    Date: 2024–04
  8. By: Pablo Martinelli Lasheras (Universidad Carlos III de Madrid, and Figuerola Institute); Dario Pellegrino (Bank of Italy)
    Abstract: This paper explores the role of landownership distribution in shaping the Italian post-WWII long-run growth experience (1951-2001). By exploiting an extraordinarily high-quality sub-national dataset, we find a strong and robust negative relationship between private landownership inequality and different measures of economic development and structural change during the Economic Miracle. Our results show that a relatively egalitarian agrarian milieu was conducive to the most successful growth model in post-WWII Italy: the ‘industrial districts’, the flexible network of small and medium-sized enterprises whose origins can be traced back to the 1950s. Widespread access to property and family farming was key to accelerating structural transformation. We find the effect of land inequality to be driven by the compression of the resources available to the lower-middle rural class. The intensity of sharecropping and rent-paying tenancy among non-owning farmers is also associated with higher growth, mitigating the growth-depressing effects of land inequality. The growth-enhancing effects of access to property are limited by minimum asset value levels and fade above a certain threshold, consistent with the existence of credit constraints and poverty traps that shape structural transformation in the long run.
    Keywords: land inequality, wealth distribution, structural change, long-run economic growth
    JEL: O1 O4 N3 Q1 R1
    Date: 2024–03
  9. By: Käsbohrer, Andrea (Catholic University Eichstätt-Ingolstadt); Grillitsch, Markus (CIRCLE, Lund University); Zademach, Hans-Martin (Catholic University Eichstätt-Ingolstadt)
    Abstract: By integrating the concept of opportunity spaces into the debate on multi-scalarity in transitions, this paper explains how and why actors engage in institutional change processes across scales. Opportunity spaces for change conceptualize a multi-scalar institutional architecture as structure for agency and take account of the future-past-dimension of agency. Actors rescale institutional rationalities by carrying out institutional work across scales with the intention to strengthen an industrial path. Our conceptual elaborations are illustrated by in-depth interviews and participant observation of industry associations in the market for residential storage systems in Germany. Af-ter having constructed and exploited a national opportunity space for this niche, particularly indus-try associations and companies engage in institutional work fostering the national implementation of EU legislation and affecting legislation, discourses and standards at a European scale. While insti-tutional semi-coherence is found as constraining condition for rescaling institutional rationalities, holding positions at multiple scales enhances agency.
    Keywords: Multi-scalarity; transitions; agency; opportunity space; institutional work; energy
    JEL: L50 O33 R11 R58
    Date: 2024–04–15
  10. By: Hülz, Martina; Krätzig, Sebastian; Siegloch, Sebastian; Streng, Martin
    Abstract: Diese Arbeit erstellt ein umfassendes Bild der regionalen Ungleichheit in Deutschland in einer Vielzahl von Größen. Ziel ist es, eine umfassende Sichtweise auf die Komplexität räumlicher Disparitäten zu entwickeln. Neben der wirtschaftlichen Perspektive sind Aspekte der Daseinsvorsorge, nachhaltiger räumliche Entwicklung und sozial-ökologische Aspekte einbezogen. Um die multi-dimensionale Ungleichheit zu erfassen und zu beschreiben, werden zunächst 40 Indikatoren verwendet. Diese werden zu zwölf Dimensionen der Ungleichheit verdichtet. In einem dritten Schritt werden auf Grundlage der Ungleichheits-Dimensionen Clusteranalysen auf Kreisebene durchgeführt. Diese werden durch Fallstudien und kleinräumige Betrachten einzelner Regionen ergänzt. Es wird deutlich, dass die seit der Wiedervereinigung signifikanten Ost-West-Differenzen immer noch sichtbar sind. Allerdings werden auch markante Unterschiede zwischen urbanen und ländlichen Räumen und zwischen Nord- und Süddeutschland sichtbar.
    Keywords: Regionalökonomie, Regionalwissenschaften, Multidimensionale Ungleichheit, Deutschland
    JEL: R10 R12 R23 R51
    Date: 2024

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