|
on Economic Geography |
|
Issue of 2025–10–13
four papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Klaus Desmet; Dávid Krisztián Nagy; Esteban Rossi-Hansberg |
| Abstract: | This paper studies how human capital shapes the economic geography of development. We develop a model in which the cost of acquiring human capital varies across space, and regions with higher human capital innovate more. Locations are spatially connected through migration and trade. There are localized agglomeration economies, and human-capital-augmenting technology diffuses across space. Using high-resolution data on income and schooling, we quantify and simulate the model at the 1° x 1° resolution for the entire globe. Over the span of two centuries, the model predicts strong persistence in the spatial distribution of development — unlike spatial dynamic models without human capital, which predict convergence. Proportionally lowering the cost of education in sub-Saharan Africa or Central and South Asia raises local outcomes but reduces global welfare, whereas the same policy in Latin America improves global outcomes. An alternative policy equalizing educational costs across sub-Saharan Africa generates relatively worse outcomes, as population reallocates within the region toward less productive areas. Central to these results is the estimated negative correlation between the education costs and local fundamentals, as well as inefficiencies in the spatial allocation due to externalities. |
| JEL: | E24 F10 I24 J24 O11 O18 O33 R12 R23 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34310 |
| By: | Mahmoud Arbouch Eduardo Amaral Haddad; Eduardo Amaral Haddad |
| Abstract: | AMorocco’s strong macroeconomic performance over the past two decades—anchored in infrastructure modernization, industrial diversification, and renewable energy leadership—has positioned it as a success story in the Global South. Yet these achievements mask persistent regional disparities that undermine inclusive development. Coastal regions such as Casablanca-Settat and Tangier-Tétouan-Al Hoceima dominate economic activity, while hinterland and southern provinces face structural disadvantages in employment, connectivity, and public services. Drawing on the Williamson hypothesis of an inverted U-shaped relationship between growth and inequality, this policy brief situates Morocco on the upward slope of rising regional disparities. It examines the historical roots of spatial imbalance, the limits of decentralization, and the structural concentration of growth in metropolitan hubs. While recent reforms, including the New Development Model (2021) and the Investment Charter (2022), aim to foster territorial equity, sustained progress will require a shift toward territorially sensitive policies that empower regions to drive more balanced and inclusive national development. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:p45_25 |
| By: | Francisco B. Galarza Arellano; Jonatan Amaya |
| Abstract: | We study how the interaction between the protective effect of local institutions and the amplifying effect of road infrastructure jointly shape deforestation in the Peruvian Amazon. Using data from 289 districts, we construct a local institutional index via principal components analysis and estimate a Spatial Durbin Model to capture both direct and indirect (spillover) effects on cumulative deforestation between 2001 and 2023. Our results show that stronger local institutions are associated with a 5.51 p.p. reduction in cumulative deforestation, 1 p.p. stemming from a district’s own institutions (direct effect) and 4.51 p.p. from those of neighboring districts (indirect effect). However, this protective role is entirely offset by proximity to paved roads, suggesting that road infrastructure significantly undermines institutional effectiveness. Our findings indicate that effective responses to deforestation cannot rely on isolated local actions. Because institutional spillovers extend across district borders, strengthening local governance requires coordination among municipalities. At the same time, road development—while important for connectivity and growth—can undermine institutional capacity to protect forests if not carefully managed. An integrated policy framework that combines institutional strengthening with strategic infrastructure planning is therefore essential to ensure that road investments reinforce, rather than weaken, collective efforts to curb forest loss. |
| Keywords: | Deforestation, Institutions, Roads, Amazon, Spatial analysis |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:apc:wpaper:211 |
| By: | Daisuke Fujii (RIETI); Taisuke Nakata (University of Tokyo); Takeki Sunakawa (Hitotsubashi University) |
| Abstract: | We propose a new measure of monthly prefecture-level GDP in Japan. Our measure is derived in two steps. In the first step, we compute the production-side GDP and expenditure-side GDP using a variety of official statistics. In the second step, we compute the simple average of the two levels and make an adjustment to it to ensure consistency with the official national quarterly GDP. For more recent periods when official statistics are not available, we estimate monthly GDP using alternative data. Our monthly prefecture-level GDP measures can be used to analyze various economic questions at regional levels. |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:cfi:fseres:cf582 |