|
on Economic Geography |
|
Issue of 2025–04–14
nine papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Paolo Veneri (Gran Sasso Science Institute); David Burgalassi (OECD); Alison Weingarden (OECD) |
| Abstract: | This paper analyses population trends throughout Europe at a granular spatial resolution between 2011 and 2021, focusing on midsize settlements (cities and towns from 5, 000 to 250, 000 inhabitants) and their surrounding areas. Settlements were delineated following the Degree of Urbanisation definition and using the 2021 population grid provided by Eurostat. While large cities drive population dynamics in Europe, midsize settlements show highly heterogeneous population trends. The observed differences in population growth are related to specific settlement features, such as population size, urban rank, accessibility, and service provision. For midsize settlements and their respective surrounding areas, access to cities is the strongest predictor of population growth. Availability of services and amenities also matters, but only within settlements’ boundaries. In a typical daily commute region, population growth of midsize settlements is associated with growth in the rest of the region, suggesting localised spread effects with positive implications for regional development. |
| Keywords: | midsize settlements, small cities, towns, regional development, population growth |
| JEL: | R10 R11 R12 R23 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp61 |
| By: | Jing Chen; Xiaojing Li; Xiaoqi Zhou; Rongjun Ao |
| Abstract: | An increasing number of studies confirm that regional diversification is path-dependent, with new industries building on pre-existing ones. However, these studies typically overlook the role of skill capabilities and the interactions between skills and industries. In this research, based on the concept of industry-occupation cross-relatedness, the influence of skill capabilities on industrial diversification across Chinese regions was investigated. Findings indicate that regions can diversify into skill-related activities following a skill path-dependent process. Furthermore, a theoretical framework integrating industry-occupation cross- relatedness and economic complexity was introduced, which enabled the adoption of various diversification strategies based on regional skill capabilities. |
| Keywords: | Industrial evolution, cross-relatedness, path dependence, skill capabilities, Chinese regions |
| JEL: | R23 J24 O18 R11 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2508 |
| By: | Magerman, Glenn (ECARES at ULB, CEPR and CESIfo); Palazzolo, Alberto (ECARES at ULB and NBB) |
| Abstract: | This paper analyzes a policy toolbox encompassing trade, industrial, and public policies and their effects on the EU and its geographical regions. We develop a multi-sector, multi-region general equilibrium framework with imperfect competition, input-output linkages, and external economies of scale. Regional and supranational governments set policies and raise taxes and provide subsidies to fund these |
| Keywords: | Deglobalization, Regional Inequalities, Trade policy, Industrial Policy, Public Policy, Supply Chains, General Equilibrium |
| JEL: | F10 R12 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/29 |
| By: | Filip, Marinela-Daniela; Setzer, Ralph |
| Abstract: | This paper investigates the impact of regional institutional quality on economic growth and economic resilience. Using data collected by the Quality of Government Institute, we conduct a two-way fixed effect panel regression model for around 200 European regions during the period 2010 to 2021. Our findings establish a positive relationship between institutional quality and medium-term GDP growth. This effect is more pronounced in regions with low-income per capita, highlighting the importance of asymmetries across European regions. A convergence of regions with low institutional quality to the EU median would increase annual GDP per capita growth by 0.5 percentage points over the medium-term. Additionally, regions with high quality institutions are more resilient to adverse shocks and have a lower incidence of crisis. Our results suggest that regional institutional reforms, such as increasing public sector efficiency or reducing corruption, would spur growth, resilience, and convergence in the European economy. JEL Classification: O43, E02, R11, R50, C23 |
| Keywords: | economic growth, EU, reforms, regional institutional quality, resilience |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253045 |
| By: | Jie, Yangyang; Zhang, Peikang; Shen, Tiyan |
| Abstract: | Institutional changes have a significant impact on government capabilities and hierarchical relationships, especially in developing countries that characterized by governmental intervention for regional development. Using data from China's districts and counties from 1993 to 2022, this paper examines how administrative division adjustments, exemplified by the re-designation of counties as city districts, redefine the power and capability dynamics among bureaucratic entities. We find evidence that such redesignations widen regional disparities between transformed counties and other areas in four dimensions, including economic output, financial resources, fiscal capacity, and public services. We further identify three key mechanisms: reduce autonomy for former county governments, local government competition that leads to short-term efficacy, and resource siphoning from former counties to other regions. The effectiveness of the policy depends on changes in central policies, particularly on the trade-off between scale and incentives. |
| Keywords: | Regional disparity, Administrative division adjustment, Autonomy, Power structure |
| JEL: | H11 H77 R12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1589 |
| By: | Abdoulaye Kané; Nadine Levratto |
| Abstract: | This paper investigates how local factors at the local and firm levels affect French construction firms' productivity (labour productivity and total factor productivity). We use a multilevel model to disentangle firm-specific and location-specific effects. The results cover the period 2009-2019 and confirm the importance of firm-specific determinants of productivity, mainly age and size. Our results also emphasise the influence of location and local characteristics. We find that the local unemployment rate hurts productivity, and our results bring some evidence of the existence of positive external agglomeration effects. These results remain robust to analysis by company size. |
| Keywords: | French construction firms; Heterogeneity of productivity; Localisation Factors; Multilevel Models |
| JEL: | C31 D24 L74 R15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:drm:wpaper:2025-19 |
| By: | Arsène Perrot (Gran Sasso Science Institute); Fabiano Compagnucci (Gran Sasso Science Institute); Paolo Veneri (Gran Sasso Science Institute) |
| Abstract: | This paper assesses the impact of local exposure to robots on the physical health of workers and the broader population’s mental health across Italian provinces. The empirical analysis relies on data from the International Federation of Robotics to build a measure of robot penetration at the provincial level, combined with provincial-level data on workplace accidents and mental health issues provided by Italian agencies for work insurance and statistics, respectively. Our results, derived from a set of linear and non-linear models and instrumental variable approaches, highlight that robotisation has reduced the number of accidents in the workplace. At the same time, robotisation is associated with an increase in mental disorders in the local population. The effects are strongly heterogeneous across places, with large metropolitan areas experiencing a relatively greater reduction in accidents and lower prevalence of mental health issues compared to other provinces, potentially exacerbating long-standing regional well-being disparities. |
| Keywords: | Automation; Robotisation; Workers’ health; Mental health; Regional disparities |
| JEL: | I10 J01 R10 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp63 |
| By: | Lorena M. D’Agostino (University of Milano-Bicocca); Rosina Moreno (AQR-IREA, University of Barcelona); Damián Tojeiro-Rivero (ESADE-University Ramon Llull) |
| Abstract: | Taking the long-established evidence on knowledge spillovers that states that part of the new created knowledge spills over to other firms mostly located in the physical proximity, we aim at providing evidence on the role of green knowledge spillovers on firms’ innovation. We posit that in addition to internal factors, firm innovation is determined by external regional factors, among which we specifically focus on the spillovers generated by environmental EU-funded research at the regional level. The results indicate that the presence of partners engaged in EU-environmental projects in a region has a positive and significant effect on process innovation. |
| Keywords: | innovation; environment; EU-funded research; Framework Programme; region; firm JEL classification: R11; O31; O44 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:aqr:wpaper:202409 |
| By: | Andrea Bastianin (Department of Economics, Management and Quantitative Methods, University of Milan and Fondazione Eni Enrico Mattei); Chiara F. Del Bo (Department of Economics, Management and Quantitative Methods, University of Milan); Luqman Shamsudin (Fondazione Eni Enrico Mattei and Department of Environmental Science and Policy, University of Milan) |
| Abstract: | We map the mining sector in Europe, with a focus on Energy Transition Metals (ETMs), and present an in-depth analysis of the environmental impact and associated monetary costs, at the regional level, of extraction activities. We aim to offer a spatially disaggregated view of the current mining projects and associated environmental costs in terms of CO2 emissions and their monetary value. To do this, we collected global warming potential (GWP) data from Life Cycle Assessment Impact Analysis (LCIA) and linked these to their expected monetary value. By considering the full spectrum of sourced ETMs, we map the environmental, physical, and monetary impact of current mining activities in Europe, and understand what a further increase in exploiting European reserves to reduce dependence from abroad and facilitate the green transition, could imply for European regions. |
| Keywords: | Critical raw materials, Europe, Life Cycle Assessment Impact Analysis, mining, regional |
| JEL: | L72 O52 Q32 Q51 R11 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.08 |