|
on Economic Geography |
| By: | Moritz Breul; Miguel Atienza; Markus Grillitsch; Rhiannon Pugh |
| Abstract: | A major reason for the great interest in regional industrial path development (RIPD) is the associated hopes for positive regional development outcomes. However, up to now we know surprisingly little about the often mixed economic, social, and ecological effects of RIPD for regions. Existing studies on RIPD tend not to link to these outcomes. This special issue aims to improve our understanding of the conditions under which RIPD contributes to determining what kind of regional development and for whom. The introductory paper provides impulses how future research can link RIPD-dynamics to its broader developmental outcomes and poses urgent open questions. |
| Keywords: | regional industrial path development; path creation; sustainable development; regional development; Evolutionary Economic Geography |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2518 |
| By: | Tomoya Mori; Daisuke Murakami |
| Abstract: | This study develops a statistical model that integrates economic agglomeration theory and power-law distributions of city sizes to project future population distribution on 1-km grid cells. We focus on Japan -- a country at the forefront of rapid population decline. Drawing on official population projections and empirical patterns from past urban evolution in response to the development of high-speed rail and highway networks, we examine how ongoing demographic contraction and expected reductions in distance frictions may reshape urban geography. Our analysis suggests that urban economies will consolidate around fewer and larger cities, each of which will experience a flattening of population density as the decentralization of urban populations accelerates, while rural areas are expected to experience further depopulation as a result of these spatial and economic shifts. By identifying sustainable urban cores capable of anchoring regional economies, our model provides a framework for policymakers to manage population decline while maintaining resilience through optimized infrastructure and resource allocation focused on these key urban centers. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.08333 |
| By: | Crescenzi, Riccardo; Ganau, Roberto |
| Abstract: | Global connectivity is necessary for innovation to thrive. However, in response to external shocks, economies reduce external exposure and focus resources on internal markets. This closure is in contrast to the need for innovative solutions for recovery. We explore this paradox by looking at regional innovation in the United States in the aftermath of the Great Recession. We compare foreign direct investment (FDI) with similar domestic, inter-state investment to assess whether a ‘local innovation premium’ is associated with global connectivity vis-à-vis domestic linkages. We show that what matters for post-crisis innovation is active internationalisation through outward FDI and congruence in technological capabilities between connected territories. |
| Keywords: | innovation; foreign direct investment; domestic investment; great recession; regions; USA |
| JEL: | F21 O30 O19 O51 R12 |
| Date: | 2025–06–16 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128136 |
| By: | Pardy, Martina; Rodríguez-Pose, Andrés |
| Abstract: | This paper analyses how trade influences intra‐regional income inequality across Europe's NUTS‐2 regions. Drawing on newly compiled datasets capturing both inter‐regional trade and local‐level inequality for all EU member states plus the UK, we employ an econometric framework—complete with Instrumental Variable estimations and robust sensitivity analyses—to gauge the impact of trade on regional interpersonal inequality. In addition to examining aggregate trade, we distinguish between various trade channels, including exchanges within the EU versus those with the rest of the world, links to neighbouring regions versus non‐neighbours and domestic versus international flows. Our findings reveal that higher levels of trade are positively associated with changes in regional income inequality, as measured by the Gini coefficient. Crucially, this link depends on trading partners: trade within a single country, within the EU and with non‐neighbouring regions correlates with rising inequality, whereas international trade, trade with non‐EU partners or trade with neighbouring regions shows no statistically significant effect. These conclusions withstand a battery of robustness checks, including new control variables and a population‐weighted approach, further underscoring the role that particular types of trade play in shaping regional income disparities. |
| Keywords: | trade; interpersonal inequality; regions; Europe |
| JEL: | D63 F14 R13 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128063 |
| By: | Ronald B. Davies; Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | The hope that multinational firms will improve local employment and productivity is a driving force behind policy efforts to attract investment. Such spillovers are often motivated by technological spillovers from foreign to domestic firms. We address this possibility by using the patenting activity of foreign multinationals in Europe as a measure of affiliate activity alongside more traditional proxies. We find that local firms’ employment and labour productivity is higher when FDI activity increases, particularly when those multinationals are upstream of locals. Furthermore, this effect is particularly significant among domestic patenting firms. Thus, it seems that the benefits of inbound investment are greatest for local innovators who are exposed to inbound innovating foreigners. |
| Keywords: | spillovers; Foreign Direct Investment; Patents |
| JEL: | F23 O24 O33 O34 Q55 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:wii:wpaper:265 |
| By: | Isabella Agnes; Jessica Liu; Erin Troland; Douglas A. Webber |
| Abstract: | This paper presents an overview of how various labor market indicators differ across geography. While many indicators are often discussed in terms of national aggregates, such discussions obscure the large degree of variation that exists across localities. We primarily use counties as a geographic unit, and document both structural differences that persist over time as well as differences in the past two business cycles. The racial composition of communities plays a large role in explaining geographic differences in labor market indicators, in some cases even more so than income. We specifically focus on the importance of labor market tightness in the general economic development of counties and in the recovery from the pandemic recession. We find substantial heterogeneity in the degree of labor market tightness across counties, as measured by the vacancy rate using job postings from Lightcast, and moreover find a close connection between this rate and county income growth. Finally, we show how the distribution of labor market tightness evolved over the course of the pandemic. |
| Keywords: | Geographic Inequality; Job Postings; Job Vacancies; Unemployment Rates |
| JEL: | J20 J60 R00 |
| Date: | 2025–06–02 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-40 |
| By: | Giuseppe Arbia; Luca Morandini; Vincenzo Nardelli |
| Abstract: | This paper investigates Large Language Models (LLMs) ability to assess the economic soundness and theoretical consistency of empirical findings in spatial econometrics. We created original and deliberately altered "counterfactual" summaries from 28 published papers (2005-2024), which were evaluated by a diverse set of LLMs. The LLMs provided qualitative assessments and structured binary classifications on variable choice, coefficient plausibility, and publication suitability. The results indicate that while LLMs can expertly assess the coherence of variable choices (with top models like GPT-4o achieving an overall F1 score of 0.87), their performance varies significantly when evaluating deeper aspects such as coefficient plausibility and overall publication suitability. The results further revealed that the choice of LLM, the specific characteristics of the paper and the interaction between these two factors significantly influence the accuracy of the assessment, particularly for nuanced judgments. These findings highlight LLMs' current strengths in assisting with initial, more surface-level checks and their limitations in performing comprehensive, deep economic reasoning, suggesting a potential assistive role in peer review that still necessitates robust human oversight. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.06377 |
| By: | Rodríguez-Pose, Andrés; Bartalucci, Federico; Rau, Genadiy |
| Abstract: | This article provides a comprehensive analysis of the growing regional divide in Kazakhstan, examining the dimensions and implications of spatial inequality in a country that has experienced robust economic growth in recent decades. We employ convergence analysis, a Regional Development Trap Index, and a Regional Competitiveness Index to measure territorial inequalities across Kazakhstan. Our findings reveal that whilst the country has achieved relatively rapid aggregate economic growth, this has been accompanied by a widening territorial divide. Wealth and economic activities are becoming increasingly concentrated in major urban centres such as Almaty and Astana, whilst other regions —particularly those in the south— continue to lag significantly behind. These results highlight an increasingly polarised nation, where certain regions benefit from economic dynamism and Kazakhstan's international integration, whilst others remain trapped in low-growth equilibria. The article concludes by offering targeted policy recommendations aimed at promoting inclusive growth, enhancing regional competitiveness, and reducing spatial disparities throughout Kazakhstan. |
| Keywords: | regional inequalities; Kazakhstan; agglomeration economies; globalisation; convergence; development traps; regional competitiveness; spatial disparities; institutional quality; inclusive growth |
| JEL: | R11 O18 R58 P25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128410 |
| By: | Emily Chung (University of Cambridge) |
| Abstract: | Spatial studies of British Victorian cities have been historically limited either in scope or specificity due to the unwieldiness of census data. However, recent developments in geographic information systems (GIS) and the digitization of historical source material have created new possibilities for the exploration of geodemographic patterns. For the case of Manchester, the ‘shock city’ of the British industrial revolution, these advancements are especially pertinent in order to settle long-standing debates as to the extent of segregation in the city. This article presents a method for the highly granular georeferencing of census data for the Manchester township for the second half of the nineteenth century by drawing on historical material including geographic and commercial surveys. In linking households to specific buildings, we present new possibilities for studies of heterogeneity and neighbourhood patterns at a range of scales. This approach ultimately lays the groundwork for future revisitations of nineteenth-century cities and the traditional claims which have been made around their urban dynamics. |
| JEL: | N93 R14 |
| Date: | 2025–04–24 |
| URL: | https://d.repec.org/n?u=RePEc:cmh:wpaper:45 |
| By: | Amal, Nair; Sabyasachi, Tripathi |
| Abstract: | Rapid urbanization has catalyzed economic growth, especially for developing nations, and their urban populations have seen a dramatic rise, hence requiring an understanding of and policymaking on socioeconomic issues. The paper presents important factors that determine the population growth in major urban agglomerations around the world with over 5 million inhabitants. The determinants of urban population size in 2020 and population growth rates from 2010-2020 were analyzed using OLS and quantile regression models based on data with geographical, environmental, demographic, political, and infrastructural variables. The main results show that proximity to transportation infrastructure, annual temperature, initial population size, population density, and the number of educational institutions are essential facilitating factors for urban populations. In contrast, port city status, annual precipitation, and CO2 emissions show negative impacts. Many of these same factors are also significant in population growth rates, though state capital status and congestion in traffic flow negatively relate to growth. The results indicate a complex variety of factors that shape global urban growth and imply some policy directions for sustainable urban development investments in education, environmental protection, and transport infrastructure. This research contributes to understanding the dynamics of global urbanization. |
| Keywords: | Urban population growth, Demographic factors, Environmental variables, Infrastructure, Sustainable urban development. |
| JEL: | O18 R11 R12 |
| Date: | 2025–05–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124672 |