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on Economic Geography |
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Issue of 2024‒08‒26
nine papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Kovalenko, Tim; Schröpf, Benedikt |
| Abstract: | Although domestic establishment relocations are part of both the factor reallocation across regions and establishment dynamics within an economy, evidence on firm mobility in Germany is rather scarce. In this study, we therefore examine establishment- and regional-level patterns of firm mobility in Germany. Using rich administrative data, we document that most relocation flows go from major cities to the surrounding urban districts, suggesting sub-urbanization patterns. In terms of establishment-level characteristics, we find that middle-sized and knowledge-intensive establishments exhibit high relocation propensities. Further, establishments moving to major cities or urban districts are rather high-wage establishments while establishments moving to rural districts are rather low-wage establishments. Our regional analyses reveal that relocating establishments prefer nearby regions with (compared to their old locations) low tax burdens and low population densities. |
| Abstract: | Obwohl inländische Betriebsumzüge sowohl Teil der Faktorreallokation zwischen Regionen als auch der Betriebsdynamik innerhalb einer Volkswirtschaft sind, gibt es nur wenig Evidenz über die Mobilität von Firmen in Deutschland. In dieser Studie untersuchen wir daher die Muster der Firmenmobilität in Deutschland auf betrieblicher und regionaler Ebene. Unter Verwendung umfangreicher administrativer Daten dokumentieren wir, dass die meisten Betriebsumzüge von kreisfreien Großstädten in die umliegenden städtischen Landkreise zu beobachten sind, was auf eine Suburbanisierung der Betriebslandschaft hindeutet. In Bezug auf die Betriebsmerkmale zeigen unsere Ergebnisse, dass mittelgroße und wissensintensive Betriebe eine hohe Umzugssneigung aufweisen. Außerdem handelt es sich bei Betrieben, die in kreisfreie Großstädte oder städtische Landkreise umziehen, eher um Hochlohnbetriebe, während Betriebe, die ihren Standort in ländliche Landkreise verlagern, eher Niedriglohnbetriebe sind. Unsere regionalen Analysen zeigen, dass Betriebe, die ihren Standort verlagern, nahe gelegene Landkreise mit (im Vergleich zu ihrem alten Standort) niedriger Steuerbelastung und geringer Bevölkerungsdichte aufsuchen. |
| Keywords: | Firm Mobility, Establishment Relocation, Firm Location, Germany |
| JEL: | R10 R12 R30 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:faulre:300660 |
| By: | Simon Baumgartinger-Seiringer (Department of Geography and Regional Research, University of Vienna, Vienna, Austria); Balazs Pager (Department of Geography and Regional Research, University of Vienna, Vienna, Austria); Michaela Trippl (Department of Geography and Regional Research, University of Vienna, Vienna, Austria) |
| Abstract: | This article focuses on regions in industrial transitions (RITs) in the context of climate change mitigation and their varying paths towards sustainability, drawing on rich data from 11 regions in 9 countries in the Danube area in Europe. Inspired by recent work on green regional vulnerability, challenge-oriented regional innovation systems and transformative resilience, the article conceptualizes regional industrial transition pathways as the outcome of a complex interplay between distinct geographies of (1) vulnerability to, (2) preparedness for, and (3) responsiveness to transition pressures. Empirically, the article employs a mixed-method approach, combining quantitative analyses of regional structural conditions (focusing on vulnerability and preparedness) with qualitative investigations of agency of regional and non-regional actors (focusing on responsiveness). In doing so, the article unravels diverse pathways that regions adopt to navigate industrial transitions. We contend that these insights hold important implications for the design of tailor-made regional industrial transition strategies. |
| Keywords: | Regions in industrial transitions, vulnerability, preparedness, responsiveness, transformative resilience |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:aoe:wpaper:2403 |
| By: | Richard Hornbeck; Guy Michaels; Ferdinand Rauch |
| Abstract: | We examine “agglomeration shadows” that emerge around large cities, which discourage some economic activities in nearby areas. Identifying agglomeration shadows is complicated, however, by endogenous city formation and \wave interference" that we show in simulations. We use the locations of ancient ports near the Mediterranean, which seeded modern cities, to estimate agglomeration shadows cast on nearby areas. We find that empirically, as in the simulations, detectable agglomeration shadows emerge for large cities around ancient ports. These patterns extend to modern city locations more generally, and illustrate how encouraging growth in particular places can discourage growth of nearby areas. |
| Keywords: | agglomeration shadow, urban hierarchy, new economic geography |
| JEL: | R12 N90 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11188 |
| By: | Xavier Giroud; Ernest Liu; Holger Mueller |
| Abstract: | The vast majority of U.S. inventors work for firms that also have inventors and plants in other tech clusters. Using merged USPTO–U.S. Census Bureau plant-level data, we show that larger tech clusters not only make local inventors more productive but also raise the productivity of inventors and plants in other clusters, which are connected to the focal cluster through their parent firms' networks of innovating plants. Cross-cluster innovation spillovers do not depend on the physical distance between clusters, and plants cite disproportionately more patents from other firms in connected clusters, across large physical distances. To rationalize these findings, and to inform policy, we develop a tractable model of spatial innovation that features both within- and cross-cluster innovation spillovers. Based on our model, we derive a sufficient statistic for the wedge between the social and private returns to innovation in a given location. Taking the model to the data, we rank all U.S. tech clusters according to this wedge. While larger tech clusters exhibit a greater social-private innovation wedge, this is not because of local knowledge spillovers, but because they are well-connected to other clusters through firms' networks of innovating plants. In counterfactual exercises, we show that an increase in the interconnectedness of U.S. tech clusters raises the social-private innovation wedge in (almost) all locations, but especially in tech clusters that are large and well-connected to other clusters. |
| JEL: | G30 O30 R30 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32677 |
| By: | Christian Vedel (University of Southern Denmark) |
| Abstract: | Is geography destiny? What is the role of first-nature geography in determining prosperity? This paper estimates the effect of randomly removing and introducing favorable first-nature geography to a specific region using a difference in difference design. In 1825 a storm created a new natural navigable waterway, bringing trade and prosperity to the otherwise relatively isolated northwestern Denmark. 700 years prior, the same event happened in reverse, when a previous channel closed up between 1086 and 1208. The elasticity of geography-induced market access is estimated to be 1.6, corresponding to 26.7 percent population growth within a generation of the event. Demonstrated mechanisms include trade, fertility, fishing, and the rise of manufacturing. The central finding is replicated in reverse in a register of dated archaeological sites. The 1086-1208 closing caused fewer buildings and sites containing coins. The general insight is the same: First-nature geography determines the levels and location of prosperity. |
| Keywords: | First-nature, Trade, Geography, Infrastructure, Natural Experiment |
| JEL: | N01 N73 O18 R1 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:hes:wpaper:0262 |
| By: | Hyoji Choi (Inha University); Jonghyun Kim (Inha University); Donghyeon Yu (Inha University); Bogang Jun (Inha University) |
| Abstract: | This study investigates the impact of the 2018 summer heat wave on urban mobility in Seoul and the role of economic complexity in the region¡¯s resilience. Findings from subway and mobile phone data indicate a significant decrease in the floating population during extreme heat wave, underscoring the thermal vulnerability of urban areas. However, urban regions with higher complexity demonstrate resilience, attracting more visitors despite high temperatures. Our results suggest the centrality of economic complexity in urban resilience against climate-induced stressors. Additionally, it implies that high-complexity small businesses¡¯ clusters can serve as focal points for sustaining urban vitality in the face of thermal shocks within city. In the long run perspective, our results imply the possibility that people are more concentrated in high complexity region in the era of global warming. |
| Keywords: | Economic Complexity, Resilience, Heat wave, Mobility |
| JEL: | O18 R12 R30 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:inh:wpaper:2024-3 |
| By: | Josef Taalbi; Mikhail Martynovich; ; ; |
| Abstract: | While recent studies have heralded large cities as “innovation machines†, the majority of regional studies of innovation are based on patent indicators. In this paper, we compare regional patent and innovation counts in Sweden (1970-2014) and document the presence of a sizeable urban bias in patent indicators, which is primarily explained by higher patent filing propensity in urban areas. We also show that using administrative spatial units which do not account for spatial organization of economic activity tends to exacerbate this bias. This poses a problem for academic studies that wish to understand regional innovation, or policy reports benchmarking regional performance. |
| Keywords: | Regional Innovation, Patents, Urban Scaling, Urban Bias of Patents |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2422 |
| By: | Patrick Lehnert; Madison Dell; Uschi Backes-Gellner; Eric Bettinger |
| Abstract: | Despite worldwide expansion of higher education, the impact of higher education institutions on local economic activity is still poorly understood. We analyze the local economic effects of branch campus openings in Tennessee and Texas, two states representative of the underlying U.S. enrollment patterns. To overcome the lack of adequate data, we use a novel proxy for regional economic activity based on daytime satellite imagery. Applying different panel methods—traditional difference-in-differences (DD), heterogeneity-robust DD, and instrumental variables—we find positive effects. Independent data show an increase in college graduates and employment in the sectors aligned with programs offered at branch campuses. |
| JEL: | I23 I25 R11 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32679 |
| By: | Philipp Ager (University of Mannheim, CEPR); Maja U. Pedersen (University of Southern Denmark); Paul Sharp (University of Southern Denmark, CAGE, CEPR); Xanthi Tsoukli (University of Bamberg) |
| Abstract: | This study provides a comprehensive understanding of the Great Fire’s effects on London’s economic geography. Our analysis reveals both continuity and change. There was a swift postfire recovery accompanied by some shift in economic activity towards the City of Westminster by 1690, with markets spreading outside the City, but financial services largely remaining inside. Analysis of London Hearth Tax records further illustrates a significant change in the wealth distribution, with wealthier households returning to fire-impacted areas, reshaping the city’s housing and social structure. |
| Keywords: | Great Fire of London, Economic Geography, Location of economic activity |
| JEL: | N23 N93 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:hes:wpaper:0261 |