|
on Economic Geography |
|
Issue of 2024‒11‒11
nine papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Chenyue Bai (Dept. of Geography, Kiel University, Germany); Han Chu (Dept. of Geography, Kiel University, Germany); Robert Hassink (Dept. of Geography, Kiel University, Germany) |
| Abstract: | The regional innovation systems (RIS) concept is mature and widely used in economic geography. However, in the face of grand societal challenges and global economic uncertainty, the traditional RIS concept has been questioned and requires further consideration and discussion, to which we want to contribute in this paper. Thus, this study explores the evolution of RIS research by analyzing RIS articles published from 1992 to April 2024 using the Latent Dirichlet Allocation (LDA) model. It identifies three phases of RIS development and summarize five classic and three upcoming topics of RIS. These topics underscore the dynamic nature of RIS research and its continued relevance in addressing contemporary challenges and opportunities in regional development. Finally, this paper points out directions for future research. |
| Keywords: | Regional Innovation Systems, Latent Dirichlet Allocation, Innovation Policy, Regional Transformation |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:aoe:wpaper:2404 |
| By: | Lorenzo Incoronato (CSEF–University of Naples Federico II); Salvatore Lattanzio (Bank of Italy) |
| Abstract: | This paper studies a place-based industrial policy (PBIP) aiming to establish industrial clusters in Italy in the 1960s-70s. Combining historical archives spanning one century with administrative data and leveraging exogenous variation in government intervention, we investigate both the immediate effects of PBIP and its long-term implications for local development. We document agglomeration of workers and firms in the targeted areas persisting well after the end of the policy. By promoting high-technology manufacturing, PBIP favored demand for business services and the emergence of a skilled local workforce. Over time, this produced a spillover from manufacturing – the only sector targeted by the program – to services, especially in knowledge-intensive jobs. Accordingly, we estimate higher local wages, human capital, and house prices in the long run. We provide suggestive evidence that these persistent effects may depend on the initial conditions of targeted locations. |
| Keywords: | place-based industrial policy, employment, wages, agglomeration |
| JEL: | J24 N94 O14 O25 R58 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2419 |
| By: | Overman, Henry G.; Xu, Xiaowei |
| Abstract: | We consider disparities across local labour markets in Great Britain. Disparities in wages and employment rates are large and persistent, although smaller than 20 years ago. These disparities largely reflect the concentration of high-skilled workers, who would have better labour market outcomes wherever they live. This concentration is driven by differences in the demand for, and supply of, skills and the self-reinforcing interaction between the two, which is particularly pronounced in the highest-wage areas and at the upper end of the wage distribution. The highest-paid jobs are concentrated in London and a handful of other areas and wage disparities are mostly driven by the higher-paid. Places that offer higher earnings also have higher rents, which may entirely offset gains in earnings. Consistent with this, people in higher-paid places are no happier than those in lower-paid places. |
| Keywords: | spatial inequality; place; labour market |
| JEL: | R14 J01 J1 |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:121453 |
| By: | Stephen J. Redding (Princeton University, NBER and CEPR); Daniel M. Sturm (London School of Economics and CEPR) |
| 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: | London; England; Great Britain; United Kingdom, Agglomeration, Neighborhood effects, Second World War, Spatial Sorting |
| JEL: | F16 N9 R23 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:pri:cepsud:322 |
| By: | Francesco Molica (Joint Research Centre); Alessandra De Renzis (Gran Sasso Science Institute); Sebastien Bourdin (EM Normandie Business School) |
| Abstract: | The article discusses whether the sequence of global shocks in the period 2020-2022 has influenced the shape and orientation of EU Cohesion Policy. It argues that these crises have revived two trends posited by scholars, i.e. the re-nationalisation and Lisbonisation of the policy, in ways that hint at the emergence of a new paradigm. This shift is conceptualised as ‘hyper-Lisbonisation’ and ‘re-renationalisation’, whereby the governance of Cohesion Policy is increasingly state-centric and its objectives more contingent upon the short-term and fast-evolving priorities of the EU agenda. |
| Keywords: | European economic governance, Next Generation EU, European Union Cohesion Policy, Regional disparities |
| JEL: | R11 R58 H70 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp54 |
| By: | Elhoussaine Wahyana; Eduardo Amaral Haddad |
| Abstract: | The debate on global value chains (GVCs) has emphasized countries’ contributions to value-added creation. From an intercountry perspective, a new body of research is addingto this debate by studying how subnational regions contribute to the indicators in specific countries. Proper assessment of economic contributions is essential for designing incentive policies. This paper analyzes the role played by the main trading partners of Moroccan regions in local value chains. We use input-output (IO) analysis to decompose regional value-added in Morocco, based on different sources of domestic and foreign final demand, taking into account the differences in regional economic structures and the nature of systematic interdependence associated with the structure of inter-regional linkages in Morocco. For each final demand originating from and into one of the Moroccan regions, we estimate measures of trade in value-added (TiVA). The output decomposition of final demand into domestic and foreign demand, where the latter is broken down into the final demand from each trading partner, serves as the methodological anchor for the study. We use the inter-regional input-output table for Morocco with 2019 data. The measures of trade in value-added reveal different inter-regional and international trade integration hierarchies, with implications for regional inequality in the country. We try to answer two main questions. First, how do domestic absorption and foreign exports affect value-added generation in Moroccan regions? Second, what is the regional value-added content incorporated in the components of final demand by geographical source? |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rtrade:rp_01-24 |
| By: | Stefania Miricola; Giorgio Ricchiuti; Margherita Velucchi |
| Abstract: | In the context of a local economy, the attraction of foreign investment is key player, given the positive effects that arise, both directly and indirectly, within the host region. This paper assesses the impact of regional characteristics, such as an R&D-friendly economic environment and institutional quality, on the longevity of companies targeted by foreign investments. We examine the survival probability of a sample comprising over 100, 000 foreign-owned manufacturing firms operating within the European Union (EU-28). A multi-level approach enables the evaluation of both firm- and location-specific features at two distinct geographical scales. Our findings indicate that government quality within national boundaries plays a pivotal role, not only in attracting foreign capital but also in promoting a long-term presence. Financial development at the national level exerts a profound influence on the survival of foreign affiliates, reducing the risk of exit by approximately 99%. |
| Keywords: | Regional economy, Survival, Multinational Enterprises, Multilevel analysis, Local Institutions |
| JEL: | F23 C14 C41 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_19.rdf |
| By: | Dunn , Richard A.; Babkin, Anton; Sandler, Austin; Curtis, Katherine; Adamson, Clayton; Peters, Sara |
| Abstract: | There is a nascent discussion among policymakers and researchers that rural areas may be disadvantaged by their location within the supply-chain as providers of raw and minimally processed inputs to centers of production located elsewhere. This paper makes several important contributions to this emerging policy discussion. First, we formalize a new concept of intermediate circularity that characterizes the production and trade of intermediates, i.e., goods and services that are transformed and combined to produce other goods and services. Second, we use this model to derive a collection of measures that quantify the shape of economic activity. Third, we calculate feasible versions of these measures by applying the input-output framework and we compare their distribution across metro and non-metro counties of the United States. Finally, we estimate the relationship between these measures of intermediate circularity and indicators of economic performance. We find that the distributions of intermediate circularity indicators differ across metro and non-metro counties, as do their correlations with economic growth. Intermediate inputs tend to account for a larger share of output in non-metro counties and are more intensively exported. These attributes are associated with lower growth in both metro and non-metro counties. On the other hand, while using intermediate inputs is associated with growth in non-metro counties, the opposite is true in metro counties. Implications for policymakers who might consider incentivizing the spatial reorganization of economic activity with the aim of increasing rural prosperity, reducing urban-rural inequality, or improving the resilience of rural economies are discussed. |
| Keywords: | Community/Rural/Urban Development, International Relations/Trade, Supply Chain |
| Date: | 2024–07–28 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:347605 |
| By: | Dunn , Richard A.; Babkin, Anton; Sandler, Austin; Curtis, Katherine; Adamson , Clayton; Peters, Sara |
| Abstract: | The economies of rural America continue to lag those in metropolitan areas with many experiencing significant hardship, but there is increasing agreement among researchers and policymakers that existing place typologies are inadequate for addressing urban-rural disparities. Because these typologies emphasize the urban end of the rural-urban continuum with rural treated as the undifferentiated residual category, the complex interaction of economic, demographic, and social factors that define rural places are ignored. To address this challenge, we have developed a data-driven approach to identify connections between places based on the spatial distribution of potential supply chain linkages to generate a new typology–Economic Catchment Areas (ECAs) thereby illuminating place-to-place connections obscured in existing place hierarchies. To do so, we construct county-to-county potential trade flows in intermediate inputs as the solution to a transportation distance loss function. Counties that would serve as the most important user of inputs for at least one other county are classified as destinations of an ECA, while all the counties for which the destination would be the largest user of their inputs are the sources of the ECA. For rural source counties, we then estimate the relationship between business, economic, demographic, and health outcomes in ECA destination counties and outcomes in their associated source counties. We find that these are positively related, highlighting the potential usefulness of the ECA framework for studying heterogeneity in economic and demographic outcomes among rural U.S. counties. |
| Keywords: | Community/Rural/Urban Development, International Relations/Trade |
| Date: | 2024–07–28 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:347606 |