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on Economic Geography |
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Issue of 2024‒10‒21
nine papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Ron Boschma; Rune Fitjar; Elisa Giuliani; Simona Iammarino; |
| Abstract: | Notwithstanding the wide consensus around the undeniable positive effects of innovation, there is increasing awareness that innovations may also have their dark sides. These dark sides of innovations have received little attention in regional studies. This editorial to a special issue on The Dark Side of Innovation and its Geography argues there are clear geographical footprints to this, which are related to both the inputs and the outcomes of innovation processes. In particular, we discuss how innovation activities have geographically uneven outcomes, driving spatial inequality, and how they require material inputs located in certain places, meaning that their costs are also unevenly distributed across space. |
| Keywords: | dark side of innovation, harmful innovations, critical and conflict materials, regional inequality, geography of innovation |
| JEL: | O25 O30 O31 O33 Q34 Q55 R11 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2428 |
| By: | Sanduku Mulumba; Lawrence Edwards; David Fadiran |
| Abstract: | In this paper, we use the new economic geography (NEG) framework to estimate the extent to which spatial wage disparities in the South African manufacturing sector are an outcome of economic forces such as market access. To test the relationship, we use the anonymized tax data on employers and employees made available by the South African Revenue Service and National Treasury in collaboration with UNU-WIDER. We first document the key stylized facts that characterize the spatial distribution of wages across regions in South Africa using exploratory spatial data analysis (ESDA) techniques. |
| Keywords: | Wage differentials, Spatial econometrics, Regional economics, Income distribution, Manufacturing industries, Wages, Spatial inequality, Manufacturing firms, Estimation theory |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-52 |
| By: | Filimonovic, Dragan; Macher, Jeffrey T.; Rutzer, Christian; Weder, Rolf |
| Abstract: | We examine whether 'pioneer' regions - early leaders in generating new ideas in emerging scientific fields - develop and maintain an innovation advantage in the same fields over time. Our analysis covers 24 disruptive technologies (e.g. AI, cloud computing) in thousands of OECD regions over 20 years. The results show that pioneer regions gain a significant and growing innovation advantage over non-pioneer regions. This advantage is most pronounced in "super-cluster" regions, which are leaders in both science and related innovation. These findings highlight the importance of early scientific leadership for sustained regional innovation and suggest important policy implications. |
| Keywords: | Science, Innovation, Regional Advantage, Emerging Technology |
| JEL: | O30 O33 R11 |
| Date: | 2024–10–02 |
| URL: | https://d.repec.org/n?u=RePEc:bsl:wpaper:2024/11 |
| By: | Elodie Andrieu; John Morrow |
| Abstract: | How do firms diffuse resources and do they spillover outside headquarter intensive areas? We show R&D subsidies induce French firms to hire new workers, often in new establishments and commuting zones. Using subsidy induced labor demand shocks and past employment patterns, we estimate a within industry spillover elasticity of .26 to non-subsidy firms, rising to .35 for openings outside of headquarter areas. Spillovers are also significant across firm branches and for firms. While subsidies are nominally awarded to headquarters, firms expand to distribute spillovers more broadly. |
| Keywords: | multi-establishment firms, subsidies, directed growth, spillovers |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2035 |
| By: | James Bessen; Iain Cockburn; Jennifer Hunt |
| Abstract: | Using our own data on artificial intelligence publications merged with Burning Glass vacancy data for 2007-2019, we investigate whether online vacancies for jobs requiring AI skills grow more slowly in US locations farther from pre-2007 AI innovation hotspots. We find that a commuting zone which is an additional 200km (125 miles) from the closest AI hotspot has 17% lower growth in AI jobs' share of vacancies. This is driven by distance from AI papers rather than AI patents. Distance reduces growth in AI research jobs as well as in jobs adapting AI to new industries, as evidenced by strong effects for computer and mathematical researchers, developers of software applications, and the finance and insurance industry. 20% of the effect is explained by the presence of state borders between some commuting zones and their closest hotspot. This could reflect state borders impeding migration and thus flows of tacit knowledge. Distance does not capture difficulty of in-person or remote collaboration nor knowledge and personnel flows within multi-establishment firms hiring in computer occupations. |
| Keywords: | Technological change, Economic geography, Growth |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2038 |
| By: | Leonardo Fabio Morales; Mauricio Quiñones; Eleonora Dávalos; Luis Felipe Gaviria |
| Abstract: | Most macroeconomic labor literature on estimating matching functions does not consider spatial spillover effects. However, job search and vacancy-filling processes often involve neighboring locations, as local workers can search for and fill vacancies in nearby labor markets. We estimate a spatial spillover model using annual data for a middle-income country in Latin America. Our findings show that unemployment has a positive spatial spillover effect because an increase in the labor supply raises the probability of filling a vacancy. In contrast, vacancies have a negative spillover effect because local and neighboring vacancies compete to be filled by workers in both markets. RESUMEN: La mayor parte de la literatura laboral sobre la estimación de funciones de emparejamiento no considera los efectos de derrame espacial. Sin embargo, los procesos de búsqueda de empleo y de ocupación de vacantes a menudo involucran ubicaciones vecinas, ya que los trabajadores locales pueden buscar y cubrir vacantes en mercados laborales cercanos. En este trabajo se estima un modelo de derrame espacial utilizando datos anuales para Colombia. Nuestros hallazgos muestran que el desempleo tiene un efecto de derrame espacial positivo porque un aumento en la oferta laboral aumenta la probabilidad de ocupar una vacante. En contraste, las vacantes tienen un efecto de derrame negativo porque las vacantes locales y vecinas compiten por ser ocupadas por trabajadores de ambos mercados. |
| Keywords: | Matching Function, Spatial Spillovers, Spatial Econometrics, Función de Emparejamiento, Efectos Espaciales, Econometría Espacia |
| JEL: | J61 J64 R12 R14 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1283 |
| By: | Matthew Roskruge (Massey University, New Zealand); Jacques Poot (University of Waikato, New Zealand) |
| Abstract: | In this paper, we present evidence from quantitative research over the last decade on how the social capital of individuals in Aotearoa New Zealand is associated with birthplace and, for migrants, years since migration. We also consider the effects of spatial sorting and ethnic diversity on social capital formation. Aotearoa New Zealand has one of the highest rates of immigration in the OECD and, consequently, one of the highest shares of foreign-born individuals in the population. Additionally, the population is characterized by high ethnic diversity and a large indigenous population, with MÄ ori representing 17 percent of the population. Using several data sources, we measure social capital by focusing on participation and volunteering in a range of community activities, perceptions of safety and inclusion, and voting in elections. Regression modelling shows that, as expected, migrants have little local social capital upon arrival. However, differences between their social capital and that of native-born individuals reduce considerably as the duration of residence in Aotearoa New Zealand increases. When the migrant share in a region is larger than the national average, migrants invest less in bridging social capital. Migrant clustering within a region increases their investment in bonding social capital. Bridging activities are associated with better employment outcomes. Less than one in five respondents in the utilized survey data report discrimination, and for migrants, discrimination declines with years of residence. However, the trend in discrimination has been upward over time and particularly affects non-European migrants and persons identifying with MÄ ori and Pacific Peoples ethnicities. Residential location matters. Greater ethnic diversity is associated with the perception of a less safe neighbourhood, but individuals in ethnically diverse regions experience relatively less discrimination. Additionally, there is more involvement in elections in such regions. In contrast, greater ethnic polarisation in regions is associated with less civic engagement and more discrimination. |
| Keywords: | social capital, ethnic diversity, bonding, bridging, linking, immigrant integration, spatial sorting |
| JEL: | F22 R11 Z13 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2412 |
| By: | BATISTA E SILVA Filipe (European Commission - JRC); DIJKSTRA Lewis (European Commission - JRC); AUTERI Davide (European Commission - JRC); CURTALE Riccardo (European Commission - JRC); DORATI Chiara (European Commission - JRC); HORMIGOS FELIU Clara (European Commission - JRC); JACOBS-CRISIONI Chris; KOMPIL Mert; PERPIÑA CASTILLO Carolina; PIGAIANI Cristian (European Commission - JRC); RIBEIRO BARRANCO Ricardo; SCHIAVONE Matteo; SULIS Patrizia (European Commission - JRC) |
| Abstract: | This report assembles a series of separate scientific contributions to the European Commission’s Ninth Report on Economic, Social and Territorial Cohesion. The report includes seven short research papers providing background and insight under three broad topics with relevance to European regional and urban policy: Urbanisation and regional economic trends; Transport and digital accessibility; and Sectoral analyses (renewable energy and tourism). Each short paper documents a novel research or analysis based on the most recent data available, thus providing up-to-date and timely evidence on issues with a strong territorial dimension. Although covering a very diverse range of topics, the contributions articulate interrelated challenges and opportunities to promote territorial cohesion in Europe. These are related to, for example, the increasing urbanisation and implications for transport and mobility, population decline in rural areas, regional economic convergence/divergence trends, the improving access to broadband in the EU, the potential role of rural areas for the green transition and tourism as a heterogeneous but overall resilient industry contributing to many EU regional economies. An efficient Cohesion Policy should envisage targeted, place-based investments that consider these and other challenges and opportunities. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138304 |
| By: | Hiroyuki Matsuyama (Graduate School of Economics, The University of Tokyo); Chigusa Okamoto (Faculty of Economics, huo University); Yasuhiro Sato (Faculty of Economcis, The University of Tokyo) |
| Abstract: | We develop a model of social integration of immigrants in which both native individuals and immigrants decide whether to accept each other’s culture and norms. While cultural acceptance leads to greater returns due to agglomeration economies, it also requires higher communication costs. We show conditions under which higher social integration of immigrants occurs in large cities and characterize the efficiency of equilibrium. Our findings are supported by data from the European Social Survey. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:tky:fseres:2024cf1236 |