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on Economic Geography |
| By: | Reinhold Kosfeld |
| Abstract: | In recent times, there has been a renewed interest in cluster policies for supporting industrial and regional development. Prominent economics like Porter and Krugman emphasise the role of clusters in regional competition and show in which way clusters can positively affect competition by increasing productivity and innovation. Because of the linkage between growth and innovation, R&D intensive industries play a crucial role in cluster development strategies. Empirical cluster research has to contribute to the understanding the process of cluster formation. In particular for developing profound clusters strategies and assessing the limits cluster policy, knowledge of existing structures and tendencies is necessary. In these strategies, high-tech and research-intensive industries play a crucial role. Audretsch and Feldman argue that industries with high innovation activity tend to cluster for exploiting benefits from tacit knowledge flows. Krugman stresses that information flows and knowledge spillovers may be sensitive to geographic impediments. Since obstacles tend to rise with increasing distance, spatial clusters may be localised. If, however, geographic barriers are less relevant, the reach of tacit knowledge flows may be much larger. For regional policy the geographical level at which clusters occur is of prominent interest. Traditional concentration indices like the Gini coefficient, Theils’s inequalitiy index or the Ellison-Glaeser index are ‘aspatial’ by construction. This means that these indices disregard relevant spatial information on the distribution of a geo-referenced variable. In particular, attribute values of adjacent regions are completely ignored. Moreover, the spatial scale of clustering formation is not taken into account. First experiences with methods of exploratory spatial data analysis (ESDA) like local Moran’s I and Getis-Ord Gi statistics in pattern recognition are available. Le Gallo and Ertur (2003) utilise local indicators of spatial association to analyse the distribution of regional GDP per capita in Europe. Feser et al. (2005), Lafourcade and Mion (2007) and Kies et al. (2009) demonstrate the potential of these ESDA techniques in identifying economic clusters and spatial heterogeneity in geographical space. However, while usually local Moran’s I and Getis-Ord Gi statistics are applied in detecting economic clusters, up to now spatial scan techniques are largely ignored (Kang, 2010). In this paper, advantages and pitfalls of spatial scan tests in identifying R&D clusters are examined. Some essentials in implementing spatial scan techniques in economic clusters research are worked out. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p232&r=geo |
| By: | Johanna Vogel |
| Abstract: | This paper examines the empirical relationship between agglomeration and economic growth for a panel of 48 Central and Eastern European regions from 1995 to 2006. By agglomeration, we mean the within-regional concentration of aggregate economic activity, which we measure using the 'topographic' Theil index developed by Bruelhart and Traeger (2005). A transitional growth specification à la Mankiw, Romer and Weil (1992) is augmented with this index and estimated using panel data methods that account for endogeneity and spatial dependence. Our empirical analysis provides evidence of a positive effect of agglomeration as measured by the topographic Theil index on long-run income levels. A one standard-deviation increase in agglomeration is estimated to raise steady-state income per capita by 15%. While this effect is sizeable, it may also imply a trade-off between regional development and within-regional equality for Central and Eastern Europe. Keywords: Agglomeration, regional growth, Central and Eastern Europe, spatial econometrics, panel data econometrics JEL codes: R11, R12, C23, O52 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1089&r=geo |
| By: | Roberto Basile; Luigi Benfratello; Davide Castellani |
| Abstract: | We propose a geoadditive negative binomial model (Geo-NB-GAM) for regional count data which allows us to simultaneously address some important methodological issues, such as spatial clustering, nonlinearities and overdispersion. We apply this model to study location determinants of inward greenfield investments occurred over the 2003-2007 period in 249 European regions. The inclusion of a geoadditive component (a smooth spatial trend surface) permits us to control for spatial unobserved heterogeneity which induces spatial clustering. Allowing for nonlinearities reveals, in line with theoretical predictions, that the positive effect of agglomeration economies fades as the density of economic activities reaches some limit value. However, no matter how dense the economic activity becomes, our results suggest that congestion costs would never overcome positive agglomeration externalities. Keywords: Geoadditive models, Negative binomial models, Industrial location, European Union JEL classification: C14, C21, F14, F23 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p83&r=geo |
| By: | Slavomir Hidas; Martyna Wolska; Manfred M Fischer; Thomas Scherngell |
| Abstract: | The focus of this study is on regional knowledge production activities in Europe, with special emphasis on the interplay between agglomeration and network effects. As increasingly considered in economic geography and regional science in the recent past, regional knowledge production activities, on the one hand, still remain geographically bounded; on the other hand, knowledge production activities have become increasingly interwoven and internationalized, emphasizing the crucial importance of region-external knowledge sources for a region’s knowledge production capacity. The objective of the study is to estimate to what extent agglomeration and network effects influence knowledge production activities at the level of European regions. We use an extended regional knowledge production function framework as basis for the study, and derive a spatial Durbin model (SDM) relationship that can be used for empirical testing. The European coverage is achieved using 241 NUTS-2 regions covering the EU-25 member states. The dependent variable, knowledge production activity, is measured in terms of patent counts at the regional level in the time period 1998-2008, using patents applied at the European Patent Office (EPO). The independent variables include an agglomeration index, measured in terms of population density, and the regional participation intensity in the European network of R&D cooperation, measured in terms of the number of participations of a region in R&D joint ventures funded by the European Commission under the heading of the EU Framework programs (FPs). By this we are able to estimate the distinct effects of network participation and agglomeration on regional knowledge production. In our modeling framework, we further control for total regional R&D expenditures as widely used in regional knowledge production function frameworks and its empirical applications. In estimating the effects, we implement a panel version of the standard SDM that controls for spatial autocorrelation as well as individual heterogeneity across regions. The specification incorporates a spatial lag of the dependent variable as well as spatial lags of the independent variables. This allows for the estimation of spatial spillovers of agglomeration and network effects from neighboring regions by calculating scalar summary measures of impacts. The estimation results are expected to provide sketches of policy implications in a European and regional policy context. JEL Classification: R11, O31, C21 Keywords: Regional knowledge production, Agglomerations effects, R&D networks, European Framework Programs, knowledge production function, panel spatial Durbin model |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p393&r=geo |
| By: | Veneziano Araujo; Renato Garcia |
| Abstract: | The aim of this paper is to exam the spatial patterns of innovative performance in Brazilian industry, taking into account its regional interdependencies, and the impact of the main innovative inputs. There is a huge literature concerning regional innovation and the importance of local inputs in innovative performance. However, most of the studies use data from developed countries. This paper verifies if the role played by innovative inputs in developed countries remain important in developing ones, in which patents are proportionally rare. In this sense, it’s applied an empirical model based in the Jaffe’s (1989) knowledge production function to Brazilian regions. The model uses patents as a proxy for the innovative output and includes regional variables of local industrialand academic R&D, agglomeration characteristics and some spatial elements such as neighborhood’s innovative activities. The main results show the importance of local industrial R&D to regional innovation measured by patents, and, similarly, a relation between patenting activity of the firms and local academic research. With the purpose of evaluate which externality is more important to innovation in Brazilian regions, marshallian or jacobian externalities; the Krugman specialization-diversification index of industrial employment is adopted in the model. The importance of been close to the most innovative regions is assessed with the commonly used spatial lagged variables and the estimation results corroborates the relevance of technological spillovers spatial mediated. Finally, some efforts are made to exam other kinds of proximity as proposed by Boschma (2005) and a network weight matrix based on university-industry collaborative links, such as Ponds et al (2010), is added to the model to test the importance of non spatial proximity. The overall conclusion suggests that in Brazilian case, main innovative inputs seemed in developed countries remain important, but presents also some specificity such as a strong concentration of innovative activities in the Southeast related with the industrial agglomeration and different relative magnitude importance in some local determinants of innovation. JEL Code: O18 ;O33; R11. Key-words: Regional innovation – Patents – Spatial analysis – Brazil Area: D. Entrepreneurship, networks and innovation |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p782&r=geo |
| By: | Robin Lovelace; Dimitris Ballas |
| Abstract: | Transport to work is a universal phenomenon, but is uneven over space. The distribution of mode and distance statistics vary depending on a range of factors. The scale of analysis (from individual to local and regional levels), the location of the study area (e.g. urban or rural settlements), and the socio-economic characteristics of the target population all influence commuter patterns. This heterogeneity is problematic for decision makers tasked with encouraging more sustainable and less costly commuter patterns based on transport to work statistics. Existing studies on commuting fail to consider the multiple levels at which transport systems operate, and leave important questions unanswered. For example, should policies target individuals, local areas, or regions, and at what level should they operate for maximum benefit? This paper outlines this research problem, and then describes an approach for tackling it based on a case study of Yorkshire and the Humber, an economically peripheral region of the UK. Our spatial microsimulation model uses iterative proportional fitting (IPF) to simulate the characteristics of individual commuters, in terms of socio-economic class, age, sex, and income, while geographically aggregated commuter statistics are constrained by Census data. This represents a novel application of spatial microsimulation, to model commuter behaviour. The approach has the potential to allow 'what if' scenarios to be undertaken, and opens up the possibility of dynamic microsimulation to policy makers. This latter possibility is attractive because it allows scenario-based projections of the future for the evaluation of policy assumptions. The results of the static model illustrate the importance of accounting for variability at the individual level when devising transport policies. The method is discussed with respect to long term transport policy objectives at the EU level. In conclusion, our approach could provide valuable information for policy evaluation at individual, local and regional levels. Keywords: spatial microsimulation, commuting, transport policy JEL Code: R49 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p730&r=geo |
| By: | TIIU PAAS |
| Abstract: | The paper focuses on quantitative assessment of the innovation’s role in explaining regional disparities and convergence in Europe. The empirical part of the study bases on the regional GDP pc and innovation indicators on the EU-27 NUTS2 level regions. Based on the selected set of initial innovation indicators for the 262 EU NUTS2 level regions and using the principal components factor analysis method, three composite indicators of regional innovation capacity are extracted. They explain around 80 % of the variation of the initial innovation indicators. The preliminary research results show that around 60% of variability of regional GDP per capita is explained by composite indicators of regional innovation performance and additional 20% are country specific factors. Estimating convergence equations, we noticed that regional innovations tend to increase inter-regional differences, at least during the short-run period. Thus, if regional income convergence is a policy target, additional policy measures beside innovation activities should be effectively implemented |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p80&r=geo |
| By: | Gianni Guastella; Francesco Timpano |
| Abstract: | Regional Growth; Economic Convergence; Non-linear models JEL: R11, R58 Regional economic development is driven by the accumulation of production factors. More traditional factors like labour and physical capital are accumulated under the law of diminishing returns. This, in turn, allows less developed regions to better perform. Recent branches of theoretical and empirical literature have paid attention to the role of increasing returns in an attempt to explain the persistence in regional economic disparities. Increasing returns are commonly attributed either to the accumulation of non- traditional inputs such as human and knowledge capital or to the presence of local externalities generated by the spatial concentration of economic activities. The aim of the present paper is to address the importance of both decreasing and increasing returns for the economic growth of European regions. While economies will definitively converge in the long-run if production is characterized by decreasing returns, divergence is the likely outcome in presence of increasing returns. As regional growth is probably the result of a combination of both, from a policy perspective it is important to understand where the sooner stops and the latter starts. In this paper the economic performance of 186 European regions is analysed by using the ordinary growth regression approach. An empirical specification which simultaneously accounts for the presence of both decreasing and increasing returns is derived. The study is intended to examine the extent to which regional development originates from the (un)balance between convergence, driven by diminishing returns and divergence, boosted by increasing returns. Results indicate that the accumulation of traditional inputs leads the economic development of less favoured areas while the presence of increasing returns plays a more crucial role in developed regions. More in the detail increasing returns seem to be generated by the accumulation of knowledge and human capital while there is no clear evidence of agglomeration externalities. By using a non-linear specification for the growth equation it is also found evidence of important threshold effects in entering the stage of development characterized by increasing returns. Regional development process is accordingly depicted as a far more complex process than what the simple dualism between increasing and decreasing returns may help to figure out, with very important implications for policy. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p344&r=geo |
| By: | Franziska Lottmann |
| Abstract: | This empirical paper wants to analyze determinants for regional differences in German unemployment rates using a spatial panel model. The analysis of regional differences is of particular interest in the German case due to its specific history. Twenty-two years after German reunification, there are still structural differences between both parts affecting economic activity. We identify the driving factors in the whole of Germany as well as in East and West Germany separately. To our best knowledge, this study is the first contribution investigating regional unemployment in the reunified Germany. We provide evidence of spatial dependence in regional unemployment data. Taking into account theoretical contributions to this literature, we exploit 24 possible explanatory variables on 412 German districts for the period from 1999 until 2007. To select the relevant variables for our model, we apply a two-step model selection procedure. Firstly, we divide our variables into three groups according to theoretical importance. Secondly, we regress regional unemployment rates on different combinations of variables where the essential variables are always contained. As unemployment data also exhibit temporal dependence, we specify both a static and a dynamic spatial panel model. The spatial econometric literature provides various types of spatial models. To decide which type of spatial model is appropriate in our context, we apply the specification test by Debarsy and Ertur (2010, Reg. Sci. Urban Econ.). The static model specification is estimated using the quasi-maximum likelihood estimator proposed in Lee and Yu (2010, J. Econometrics) and the dynamic model is estimated using the quasi-maximum likelihood estimator proposed by Lee and Yu (2010, Econometric Theory). To incorporate the spatial information into the model, we construct different spatial weights matrices. On the one hand, we use the binary contiguity matrix and, on the other, we apply a distance-based spatial weights matrix as well as the matrix proposed in Molho (1995, J. Reg. Sci.). We extend the existing literature by the following two aspects: Firstly, we apply both a static and a dynamic spatial panel model. Hence, we exploit the panel dimension of our data and, in addition to that, we account for both spatial and temporal dependence in the data. Our results show that the spatial dynamic panel model fits the data in the best way. Secondly, we provide evidence for regional unemployment in Germany being of disequilibrium nature. This finding justifies political interventions on regional labor markets. JEL: C23, R12, R23 Keywords: regional unemployment, spatial dependence, spatial panel models, Germany |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p53&r=geo |
| By: | D'Artis Kancs; Enrique Lopez-Bazo; Fabio Manca; Damiaan Persyn |
| Abstract: | The objective of the present paper is to study the impact of R&D investment on inter-regional labour migration and inter-sectoral labour reallocation in the EU, specifically at regional level. In order to capture important general equilibrium effects, we employ a structural NEG model called RHOMOLO. The RHOMOLO model is a dynamic spatial general equilibrium (DSGE) modelling framework capturing 270 NUTS2 regions in EU-27, and decomposing the economy into 6 sectors. The current base year of RHOMOLO, and to which structural parameters’ estimates are used to calibrate the model, is 2007. As a first step of our analysis we econometrically estimate both (i) within country and (ii) across countries migration flows as a function of relative population, relative real wages per employee, relative unemployment rate and regional connectivity (as proxied by bilateral trade between origin and destination regions normalised by the total of their GDP). Our econometric findings suggest that within-country migration is subject to much the same economic forces as between-country migration, with estimates of the coefficients of relative wages and relative unemployment within in the same range. Secondly, we econometrically estimate the R&D and human capital elasticities, which are key parameters in the semi-endogenous growth module of RHOMOLO to assess the impact of R&D investment on TFP growth. In our next step we produce regional scenarios for R&D investments according to the objective of the Europe 2020 strategy and use them to simulate a shock in R&D investments at the regional levels needed to meet the Europe 2020 strategy. Finally, we combine the previous work together in order to simulate the impact on employment levels of regional R&D investments through the geographically heterogeneous effect that they have on migration flows and on labour supply in each EU region. The geographical distribution of R&D expenditures is shown to affect migration flows as well as employment levels at the regional level by increasing skills in those regions affected by R&D expenditures. Spillover effects on neighbouring regions are also observed. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p808&r=geo |
| By: | Lionel VEDRINE |
| Abstract: | This paper analyzes the relationships between the degree of decentralization of public policy and the emergence of horizontal strategic interactions. We analyze the structural funds allocation process in determining how the structure of governance of cohesion policy aects the development of strategic interactions between regional governments. We develop a political agency model in which we capture the eect of the governance structure of public policy on the decision of voters to acquire information on the activities of local governments. We show that the appearance of spatial interactions resulting from a mechanism of 'yardstick competition' is increasing with the degree of policy decentralization. From an empirical analysis of the 2000-06 period, we con firm the proposed model by showing that spatial interactions are more intense when the policy governance is decentralized. This work highlights a new source of spatial interaction in the allocation of grants from institutional determinants in addition to socioeconomic factors studied so far. Keywords: Intergovernmental grant allocation, European Union, Political agency, Yardstick competition, Information acquisition, Spatial econometrics. JEL: C31, C71, D86, H77. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p760&r=geo |
| By: | Nicola Pontarollo; Elisa Montresor; Francesco Pecci |
| Abstract: | The aim of our analysis is the evaluation of the total and sectoral convergence of labour productivity between 182 regions of EU12 in the period 1991-2006. The selected sectors are agriculture, manufactory, market and non-market services. We adopt a β- and σ-convergence approach along with a methodology based on Getis’ spatial filters that allows decomposing variables into their spatial and a-spatial components ensuring their spatial independence. This last point is fundamental to avoid i) omitted variables and/or problems of bias and/or inconsistency of coefficients in growth regressions, ii) bias in the computation of variance. The cited econometric approach also permits to identify spatial regimes of regions with high and low productivity, respectively ‘core’ and ‘periphery’. Our results show significant σ-convergence in aggregate labour productivity, market and non-market services in the first years and a slightly divergence in the second period. Sigma-divergence is present only in manufactory sector when spatial factors are not considered, while in agriculture a strong convergence is perceivable. The analysis highlights that if we do not take into account spatial effects, σ-convergence is overestimated. In the second part of the paper, we evaluate β-convergence for total labour productivity and for each sector. We considered five cases: the whole sample (EU12) without dummies, with country dummies and with spatial regime dummies, the ‘core’ and the ‘periphery’; finally we take into account singularly each spatial regime. The same estimation performed with and without spatially filtered variables leads to different results. While β-convergence process takes place in all cases and with all techniques, countries dummies are statistically significant only when spatial effects are not considered. In case of spatially filtered variables, the dummies, whose aim is to take into account the specificity of an agglomeration of regions, lose their significance, both theoretical and statistical, because the spatial factors embedded in each variable, and strictly connected with the country or convergence club to which they belong, are removed. The interesting point, however, is the lack of significance of dummies for spatial regimes. This finding, common both to filtered and unfiltered variables and to all sectors, is a little surprising because the identified spatial regimes are interpretable (and often interpreted) like convergence clubs. In conclusion, this paper shows that economic structure has to be considered together with spatial structure. These two factors affect themselves reciprocally and, for a full and reliable explanation of regional economic dynamics both must be formally included in the analysis. JEL classification: C14, O52, R11, R15 Key words: Spatial econometrics, convergence, sectoral labour productivity |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p559&r=geo |
| By: | Daniel Felsenstein; Michael Beenstock |
| Abstract: | This paper looks at the determinants of regional housing construction using Israeli panel data. We propose a simple model of regional housing markets in which people prefer to live where housing is cheaper and building contractors prefer to build in regions where housing is more expensive. We distinguish between relative profitability, which establishes a relationship between regional construction through regional house prices, and spatial spillovers. The latter may be induced, for example, by scale economies in which building costs in a region are affected by construction in neighboring regions, thereby inducing a spatial lag in building construction. We find that models are miss-specified unless they incorporate these spillovers. More specifically our results point to housing construction being locally cointegrated, and that local price elasticity of supply ranges from 0.45 – 0.65. We also find substitution from neighboring regions and a strong national complementarity effect that offsets neighbor substitution. Finally, we look at policy complementarities between the public and private sectors in construction and find that public sector housing crowds-in private construction when share exceeds 8%. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p134&r=geo |
| By: | Andreas P. Cornett; Nils Karl Soerensen |
| Abstract: | Innovation and entrepreneurship are key factors in current regional development initiatives, derived from the concepts of new economic growth theory. The aim of this paper is to combine an assessment of innovative and entrepreneurial performance with the spatial distribution and functional linkages of certain types of economic clusters. The hypothesis is that clustered regions with high entrepreneurial and innovative performance have higher growth than non- innovative/entrepreneurial regions or regions with a more scattered economic structure. The clustering and in some cases even the polarization of economic activities metropolitan regions can lead to excess growth, and contribute to a process of convergence between nations, but will also turn regional economic divergence back on the national economic development agenda. The purpose of this paper is to provide in deep information on these processes in an international and perspective based on European empirical evidence. The first part of the paper addresses the development and growth issue in a theoretical development policy perspective. The impacts of innovation (measured by innovation scoreboard data) and entrepreneurship (GEM data etc.) on regional growth are estimated individual and combined as well as dummies for various levels of industrial clustering (measured by location quotients and the change of LQ) are included. Within these groups we study the process of convergence by use of the traditional measures of convergence. The findings are compared with traditional geographical convergence results, enabling an analysis based both on traditional geographical adjacent regions, often characterized by a common institutional framework, and regions characterized by common features in economic performance terms. Based on the empirical results and the findings of the literature survey in the first part of the paper the final section provides an assessment of the overall trends in economic convergence and disparities and the drivers behind this process. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p631&r=geo |
| By: | Marija Maksin; Sasa Milijic; Nikola Krunic |
| Abstract: | After the establishment of the new legislative framework on planning and construction, territorial organization of the Republic of Serbia and regional development, as well as adoption of the Spatial Plan of the Republic of Serbia 2010-2020 (SPRS), the strategic spatial plans at regional level have been elaborated. Over the last few years, the total of 10 regional spatial plans (RSP) have been either adopted or in final stage of elaboration, five of them for peripheral rural regions of Serbia. The paper analyzes concepts and models used in planning the sustainable territorial development of peripheral, rural and mountain regions in Serbia. It refers to several key questions of sustainable territorial development of peripheral regions: accessibility, urban-rural development, rural settlement network and depopulation of peripheral mountain areas, tourism development, sustainable natural resources utilization and potentials for trans-border cooperation. One of the models discussed is for rural settlement network. Aging of rural population and depopulation of peripheral mountain regions hinders the preservation of micro rural centers, in particular the provision of public and commercial services. Emerging model is of mobile services, now developed dominantly for social and medical services, which can be expanded to almost all services, or combined with the revitalization of micro rural centers, namely those within urban centers’ gravity zone, main transport corridors or tourism destinations. Potentially most attractive tourism assets are located at peripheral regions of Serbia. Spatial pattern of assets allows for dispersed development of tourist nodes, gateways and paths. The question is how much of dispersion or concentration in the spatial pattern of tourism infrastructure and supply is acceptable and sustainable. The benefits and constraints for implementing some of proposed models are discussed. Short critical overview on constrains of regional development and implementation of regional spatial plans related to undeveloped regional level of governance, as well as to weak vertical and horizontal coordination of other levels of governance has been indicated. The purpose of this paper is to discuss the challenges and possibilities of regional spatial planning to contribute sustainable regional territorial development of peripheral and rural regions. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p721&r=geo |
| By: | Mellander, Charlotta (Jönköping International Business School); Florida, Richard (University of Toronto) |
| Abstract: | The past couple of decades have seen what amounts to skills revolution in urban and regional economic research. From industrial location theory and Alfred Marshall’s concern for agglomeration to more recent research on high-tech districts and industrial clusters firms and industries has been the dominant unit of analysis. But since the 1990s there has been a growing focus on skills. This broad research thrust includes studies of human capital; the creative class and occupational class more broadly; and physical, cognitive and social skills, among others. This research highlights the growing geographic divergence of skills across cities and metros and their effects on regional innovation, wages, incomes and development broadly. A growing literature notes the growing importance of place in organizing and mobilizing these skills. Studies have focused on the role of amenities, universities, diversity and other place-related factor in accounting for the growing divergence of skills across locations. This article summarizes the key lines of research that constitute the skills revolution in urban and regional research. |
| Keywords: | Human capital; creative class; regional development |
| JEL: | O15 O30 |
| Date: | 2012–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0266&r=geo |
| By: | Gianni Guastella; Frank van Oort |
| Abstract: | Regional economies are continuously evolving shifting from more traditional manufacturing toward more service-oriented production systems. Despite the increasing relevance of services, however, the analysis of innovation at the regional aggregate level has mainly focused on manufacturing, gathering the attention on the role of R&D expenditure as input in the production process and, in some cases, accounting for research-based knowledge externalities. In this paper the role of Knowledge Intensive Business Services is studied and their contribution to the regional aggregate innovation is evaluated. The aim is twofold. First is to provide insights on the role covered by KIBS as a second knowledge infrastructure. Second is to examine the extent to which KIBS operate as bridges between the general purpose analytical knowledge produced by scientific universities and more specific requirement of innovative firms. A role commonly acknowledged to KIBS is in fact that of knowledge transferors. If on the one side it is however clear to whom they transfer knowledge, their client firms, on the other it is not as clear from whom the knowledge is originally transferred. For this reason a major attention in this work is dedicated to scientific universities considered as a primary source of knowledge. Being this knowledge analytical and highly codified, it probably can be more easily accessed by nearby located firms having higher opportunities of research collaboration and less easily by firms located in different regions. It is argued that KIBS, in transferring knowledge from universities to firms, are therefore specially important in the latter case. To test hese hypothesis a knowledge production function is estimated for a sample of 200 EU NUTS II regions including also information of university research and KIBS concentration. Parameters are estimated using the heteroschedasticity-consistent G2SLS estimator for spatial models and the evidence suggests that the contribution of KIBS to regional innovation is considerable. In fact accounting for the knowledge embedded in business services can considerably contribute to explain the cross-regional variation in innovative activities. Furthermore it is find that the KIBS contribution is more sizeable in regions in which there are not scientific universities. The highlighted results have important policy implications asking to rethink to how much effective an R&D-centered innovation strategy could be, at least in some regions. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p424&r=geo |
| By: | Tomaz Dentinho; Vasco Silva |
| Abstract: | The optimization of the location of public services in the villages and neighborhoods in the city of Huambo in Angola results in a hierarchical system of central places that can be calibrated to give different hierarchies according to the accessibility level. This result is achieved for 300 villages and neighborhoods in the city of Huambo by minimizing the number of centers subject to the restriction that the service is available at a minimum distance. Other solutions are found that maximize the net benefit distribution centers. At the end multicriteria is used to study the resilience of the centers to alternative weights of the criteria and different accessibility ranges. The solutions are used to design roads, local authorities and market shares. Keywords: location, central places, agglomeration economies, Africa JEL: R12 - Size and Spatial Distributions of Regional Economic Activity; R58 - Regional Development Planning and Policy |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p254&r=geo |
| By: | Roberta Capello; Camilla Lenzi |
| Abstract: | In this paper, we aim at re-assessing the undisputed positive relationship between innovation and economic growth by questioning the view that R&D (and formal knowledge in general) equates innovation and innovation equates regional growth. We rather propose that these linkages are strongly mediated by local territorial assets and explore this relationship at the regional level (NUTS2) for 262 regions of the European Union. In doing so, we rely upon an original database encompassing several knowledge and innovation indicators, ranging from R&D expenditures, patent data, to newly released data on different types of innovation: product, process and marketing and/or organizational innovation, derived from the Community Innovation Survey 2002-2004 wave. The data set also includes several variables aimed at capturing different elements characterizing possible different attitudes and patterns of innovation that we control for, such as regional preconditions for knowledge and innovation creation and acquisition (namely, accessibility, trust, structural funds funding, foreign direct investments). The results of the analysis confirm that R&D is an important driver of economic growth. However, this result hides a larger territorial heterogeneity and needs some qualifications. Firstly, only regions strongly endowed with elements supporting knowledge creation processes are likely to benefit from the positive returns to R&D; a critical mass of R&D investments is therefore needed in order to exploit the eventual benefits arising from increasing returns to research expenditures. Secondly, once controlling for innovative behavior, R&D does not show anymore a significant impact on GDP growth. In fact, whereas the growth benefits accruing from R&D look rather selective and concentrated in a relatively small number of regions, the benefits accruing from innovation look not only of greater magnitude but more pervasive and beneficial for a larger number of regions. From these findings, we ultimately draw ad-hoc policy suggestions. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p187&r=geo |
| By: | Sebastien Bourdin |
| Abstract: | The purpose of this paper is to introduce the simulation platform Geocells. For modelling the uncertain efficiency of the regional policy we had set up a cellular automata. An application of this model focuses on the European regions’ behaviour according to the variation in aid granted by the European Union and to neighbourhood effects. Taking into account the regional disparities, the analysis of European regions relative positions from the angle of macroeconomic and budgetary indicators, the cellular automaton Geocells allows an assesment of the overall effectiveness of the regional policy, and measures the influence in the modification of granting rules. The issue of the solidarity effort between State members and the regions, as well as their adequacy to the cohesion principles displayed in the European texts and treaties is at the centre of the debates on European regional policy. The main questioning is about the European public policies’ ability to adjust disparities produced by the single market. The use of a simulation platform through cellular automaton aims at answering the question of knowing on which conditions (of settings in terms of budgetary redistribution), according to which duration of financial aid programs, and according to which objective levels of reduction, convergence, or adjustment, European solidarity policies could be effective. Methodologically, this cellular automata Geocells is based on interrelated processes between variables (like time periods, growth rates in the GDP per head, flows of public investments) and three geographical levels (european level, national level and regional level). To these principles officially ratified by the European Commission, we have added to our model a spatial dynamic parameter: the hypothesis of the role of spatial interactions and of contiguity effects in the regions’ trajectories. Despite many regional growth models analyse the region as a stand-alone unit and ignore spatial interaction phenomena linked to proximity, neighbourhood, or contiguity effects, we wanted to uderline the role of the diffusion by contact with neighbouring regions,. For the assesment we used well known indicators such as beta or sigma convergence. Beyond the scientific literature, the concept of convergence is one of the three priority objectives of the EU's Cohesion Policy for 2007-13. After each simulation the impact of mixed policy related to regional development is evaluated by the Moran index of spatial autocorrelation.. The aim is these calculations is an attempt to optimize bothly convergence ratios and what territorial pattern will be shaped by these policy choices. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p163&r=geo |
| By: | Mihaela-Nona Chilian |
| Abstract: | The paper attempts to identify with the help of a panel model the presence of common or divergent development patterns and some significant factors of competitiveness at national and regional level (mainly regarding investment and employment, overall and by main economic sectors). The results for Romania and its development regions reveal specific ways of GDP formation for each region (the presence of „regional economiesâ€), based on different mixes of factors, augmented or not by certain economic policies, and also some differences in the sectoral development patterns of the regions. Keywords: competitiveness, panel data models, regional development, regional policy JEL Classification: C23, O18, R12, R15 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p110&r=geo |
| By: | Høgni Kalsø Hansen; Lars Winther |
| Abstract: | The paper analyses the geography of talent and the impact of the public sector. For more than two decades, talent and human capital have increasingly been seen as major source for economic growth in the capitalist knowledge economy. In much of the contemporary literature in urban and regional studies talent and human capital, however, often remain a generic input. This is contrasted by several recent studies that all have pointed to the importance of the diversity of talents in the economy. We provide another dimension to this debate and examine the diversity of talent by dividing between public and private employed talents to understand the spatial dynamics of talents and urban and regional employment growth. Therefore we are in this paper concerned with the spatial division of talent and how locations and concentrations of talent have impact on urban and regional economic growth in terms of job growth. First, we examine what kind of geographies of talent that exists in Denmark to get a better understanding of the spatial dynamics of talent. Secondly, we examine the relationship between growth of talents and total employment growth among Danish municipalities, and thirdly, we examine if there is a bias of talent towards the largest cities and urban landscapes as claimed in the literature. Further, the direct impact of the welfare state is examined in terms of public employed talents to come to a better understanding of how talents and job growth are related. The public sector in Denmark accounts for 30.6 % of total national employment and 43.1 % of the Danish talent in 2006. Thus, the welfare state plays a major role in the Danish economic economy in terms of distributing jobs and job growth and especially job opportunities for talents across space. In this sense, the public sector is an interesting lens to discuss regional development through because of the location dynamics are politically resolved. Thus, this paper answers the following three research questions: (I) What is the geography and impact of talent in the Danish knowledge economy? (II) Does the public sector contribute to less unequal regional growth? (III) Can distinguishing between public and private employed talent contribute to a more differentiated understanding of the regional job growth? Keywords: Talents, human capital, employment growth, welfare state, economic geographies R1 - General Regional Economics |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p633&r=geo |
| By: | Sabine D'Costa; Enrique Garcilazo; Joaquim Oliveira Martins |
| Abstract: | We aim to understand the impact of nation-wide structural policies such as product market regulation and employment protection legislation and that of macroeconomic factors such as trade exposure, inflation and the level of government debt on the economic growth of regions in the OECD. In particular we seek to explore how the impact of these nation-wide factors might vary across regions depending on their productivity gap with the most productive region in their country. Our hypothesis is that regional productivity growth is positively related to the productivity growth of the leading region within the country and positively related to the productivity gap with the region that has the highest level of productivity in the country (in other words productivity growth increases with distance to the productivity frontier as lagging regions catch up). We use a policy-augmented growth model in which the effects of macroeconomic and structural policies are estimated in addition to the usual determinants of regional growth, physical and human capital and regional labour market density. Our methodology enables us to test simultaneously the catching-up effect, the influence of the productivity growth of the leading region, and the effect of nation-wide policies and how this might vary with distance to the frontier. We use panel data on 335 regions in 30 OECD countries defined at territorial level 2, taken from the OECD Regional Database, between 1996 and 2007. We first find that the growth of frontier regions in OECD countries has a positive effect on regional growth. Secondly, regional growth increases in the productivity gap with the frontier region within the country. Thirdly, we find that nation-wide factors do affect regional growth, and sometimes differentially according to the productivity gap with the frontier region, advocating in favour of place-based policy responses. We consistently identify a negative effect of product market regulation on regional growth, which is larger for lagging regions than for leading regions. The negative effect of regulation on economic indicators has been empirically demonstrated, however we show that this effect is more detrimental to lagging regions. Employment protection legislation and inflation have a negative impact on regional growth overall, while trade exposure and government debt have a positive effect on regional growth on average. Key words: regional economic growth; structural policies; catching-up; lagging regions. JEL codes: R10; R11. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p745&r=geo |
| By: | Iris Wanzenböck; Thomas Scherngell; Rafael Lata |
| Abstract: | In the recent past, regional, national and supranational Science, Innovation and Technology (STI) policies have emphasized supporting interactions and networks between organisations of the innovation system. The policy instrument of the EU in this context are the European Framework Programmes (FPs) that support pre-competitive R&D projects, creating a pan-European network of actors performing joint R&D. In this study, we focus on the embeddedness of European regions in this network. By embeddedness we refer to the notion of centrality in the sense of the Social Network Analysis (SNA) literature. In network theory, vertices that have a more prominent and central network position will more likely benefit from network advantages than actors that have a more distant, peripheral position in the network. A higher network embeddedness of a region, i.e. of organisations located in that region, may increase information and knowledge access in the network, and, thus, create a competitive advantage when it comes to the formation of new collaborations and alliances. The objective of the study is to explain why some regions are able to obtain a better network embeddedness in the European network of R&D cooperation than other regions. For this reason we aim to identify determinants that influence a region´s embededdness, involving region-internal factors, such as regional characteristics on their innovation capability, their economic structure and technological specialisation, as well as region-external factors considering the influence of these variables in the neighbourhood of a specific region, referred to as spatial spillovers. To address this question we employ spatial panel modelling techniques, explicitly taking into account the time dimension in our data and the influence of spillovers by specifying a panel spatial durbin error model (SDEM). The dependent variable is the regions’ centrality in the FP network for the years 1998-2006, using a sample of 241 NUTS-regions of the EU-25 member states. We aggregate individual FP cooperations to the regional level leading to a network where the nodes are represented by regions and the edges by cross-region collaboration intensities. Using these matrices we calculate a region’s centrality relying on two different centrality concepts, namely betweeness- and eigenvector centrality. The independent variables involve regional characteristics related to a region’s knowledge production capacity and a region’s general economic structure. The results will significantly enrich our understanding of the relationship between a regions network embededdness and its internal and external characteristics. JEL Classification: C02, C49, L14, O39, O52 Keywords: R&D cooperation, European Framework Program, large-scale networks, network embeddedness, panel spatial Durbin model |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p451&r=geo |
| By: | Özge Öner; Viroj Jienwatcharamongkhol |
| Abstract: | Previous studies in regional science show that the size of a city has a scaling effect on many variables such as population, economic growth and number of creative employees. This type of relation can also be observed between the size of the networks that emerge between individuals and the cities that are hosting them. These networks are known to emerge within the same industry, as well as across different industries. Alternatively, we propose that the construct of these networks is dependent on the occupations and/or the skills of individuals. However, the city must have an optimal size in relation to the size of a network, taking various spatial and industry specific characteristics into account. Following the decreasing-returns-to-scale argument, we expect a sigmoid curve for different degrees of network-city size relationship. Hence this paper aims to determine the optimal size of a city where an individual would benefit most from a network he/she is a member of. Using geo-coded Swedish micro-data, the paper contributes to the existing literature by analyzing the research question from a micro departure point to draw a macro level conclusion. Keywords: network, city size, micro-data JEL: R12, D85 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p963&r=geo |
| By: | Irina Slepukhina |
| Abstract: | The objective of the paper is to analyze a city network of the Russian Federation (the RF) in order to understand how the existing urban pattern correlates with the aim and strategic directions of a contemporary regional policy. To reach this goal the present hierarchy of Russian urban system will be analyzed, on the base of population size, level of urban functions and accessibility of transport system. The paper will present strengths and weaknesses of current urban system structure. The regional development of the RF has specific features due to a set of historical, political, economical and social aspects. The Soviet period of planned economy had significantly influenced the territorial development of the country. For a long time Russia had been in a self-isolation condition and, as result, it had the unique planned system with their specific terminology, distributive mechanisms and administrative regulations. In the contemporary Russia regional planning is switching over to a new stage. Apparently Russia seems have been reached the era of so-called “regional revolution†later than the other industrial countries. Now we can observe a creep from sectoral (industrial) planning to territorial development planning. On the one hand, Russia tries to devise a regional development strategy based on the principles of polarization. The budget levelling policy is substituted by the growth pole policy. The “open question†is: which regions and cities could be the poles for the future country’s development? Thereby, realization of a new regional policy demands development of a suitable information, data base, statistics, researches, etc. On the other hand, in the RF is emerging a progressive bifurcation between socio-economic policies and spatial planning. The regional policy is realized without territorial binding. The role and place of the city is indefinite in the regional policy. The issue concerning which cities should be alive in national and global competition is still under discussion. The research methodology is based on the analysis of existing planning and strategic documents of the federal, regional and local levels in the RF, as well as on a retrospective analysis of Russian population settlement pattern and in carrying out a comparative analysis. The adequacy of research will be ensured by using a statistical data of the RF. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p482&r=geo |
| By: | Toshiharu Ishikawa |
| Abstract: | Regional governments carry out a series of plans to attract firms to the area to stimulate the economic activity. The firms which are enticed to locate at the area are selected according to the characteristics of the regional economy. These firms are expected to operate the production processes in harmony with the regionÂfs characteristics and develop sustainably the regionÂfs economy. While the firms that plan to build a new factory select a region in a large geographical area for the new establishment to maximize profits. They compare the regionsÂf characteristics in terms of their own interests and determine the region for the factory. It is important for both regional governments and firms to understand the social and economic characteristics of regions and their comparative advantages. Present paper, first, examines the process of the location decision-making of a firm in these days in which economic globalization is common. It is theoretically elucidated in this examination why the characteristics of regional economy play an important role in a firmÂfs decision-making on the location of a factory. And then, using the empirical analysis of the relationships between Japanese regional economies and urban systems laid in the regions, the paper shows that the structure of urban system influences the regionÂfs social and economic performances. It is concluded from the analysis that the urban systems laid on the regions should be paid more attention by both regional governments and firms because the urban system is related with social and economic achievements in a region and it influences the profit level of the firms and the regionÂfs power to attract firms to the area. Keywords: Urban system, Firm's location, Social health, Chaotic phenomenon Second best location, Prospective area JEL:R30 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p43&r=geo |
| By: | Daria Zvirgzde; Javier Revilla Diez |
| Abstract: | Globalisation as a dominant tendency of the XXI century has initiated the rise of the scale and dynamics of economic interactions on the international, national and regional levels. Regions have started to compete as the sources of economic growth since the disproportional levels of their development led to the escalation of the disparities on the global economic platform. Experience of the most successful and highly developed states clearly shows that the growth of the competitive economy on the macro-level is only possible through the accumulation of the regional economic potentials on the meso-level. The notion of international regional competitiveness has been paid attention to in economic and regional science literature, but still there is no one single definition of what a competitive region means. The paper presents the author’s own definition of an internationally competitive regional economy as the starting point of the assessment of the scientific and innovative potentials of the regions of Ukraine, their link to the regional competitiveness of the Ukrainian economy and its regional attractiveness towards FDI. Analysis of the impact of FDI on the local business, of whether MNCs do add value to the local regional growth, situating the regional competitive advantage, of the level of embeddedness of MNCs into regional innovation systems as the primary sources of regional competitiveness is introduced in the paper within the methodology framework of the survey carried out in three regions of Ukraine within the SEARCH Project of the Seventh Framework Programme. Formulation of strategic policies targeting at raising the level of the regional competitiveness stands as a coherent discussion focus after cluster models of boosting the levels of international competitiveness with the means of increasing the level of productivity and economic connectivity are proposed. The paper aims at, firstly, the assessment of the theoretical aspects and up-to-date methodologies of the analysis of the international competitiveness of the regions; secondly, at identification of the system of determinants of the level of international competitiveness of the regions within the conditions of globalisation; thirdly, at the study of the economic potential of the regions of Ukraine as one of the drivers of regional competitiveness; and fourthly, the paper will come up with the strategic ways of accumulation of the innovative competitiveness of the regions of Ukraine. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p312&r=geo |
| By: | Peter Warda; Urban Gråsjö; Charlie Karlsson |
| Abstract: | In this paper we focus on one type of externality, namely knowledge spillovers. Empirical studies on effects of knowledge spillovers in Europe have normally focused on localized effects, either on total factor productivity or knowledge production in terms of patent output. The purpose of this paper is to quantitatively review the empirical literature on spatial knowl-edge spillovers in Europe by means of meta-analysis. Our aim is to determine the extent to which such spillovers have been empirically documented as well as the spatial reach of these spillovers. In addition, we will apply meta-regression-analysis to analyze the determinants of observed heterogeneity across and between publications. Our results show that if total local R&D expenditure in a European region increases by 1%, the number of patents in that region increases, on average, by 0.482%. Spatial knowledge spillovers induce a positive effect on local knowledge production, however, this effect proves to be marginally small. Spatial weighting regime seems to matter. If R&D expenditures in other regions are weighted by distance in kilometers or minutes (instead of a binary contiguity matrix) then the spillover effect will on average be larger. Also, public R&D expenditure is found to have a lower impact on local patent production compared to private R&D expenditure. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p622&r=geo |
| By: | Emanuela Marrocu; Raffaele Paci |
| Abstract: | The aim of this paper is to assess the role played by creativity and other components of human capital on the process of economic growth for 257 regions in the 27 member countries of the European Union. We first decompose the regional human capital endowment to distinguish between the educational component (the share of individuals with a university degree) and the creativity component, which considers the actual occupations of individuals in specific jobs like science, engineering, education, arts and entertainment. We define three non overlapping categories of human capital (creative graduates, bohemians and non creative graduates) which are simultaneously included in a spatial model as determinants of regional growth measured by labour productivity. After extending the analysis to control for other relevant factors which may affect regional development, such as physical, technological and social capital, cultural diversity, industrial and geographical characteristics, we provide robust evidence on the growth enhancing effects of graduates, in particular for those of the creative category. Keywords: human capital, creativity, regional growth JEL code: C21, J24, O40, R11 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p375&r=geo |
| By: | AKSEL ERSOY |
| Abstract: | This paper explores and unpacks the nature of the processes shaping regional economic growth in Turkey using an econometric modelling strategy. Economic modelling is an important approach to the analysis and understanding of regional growth and development. Over the decades, there have been a range of attempts to measure and understand the dynamics of regional growth through the modelling of underlying internal and external forces. However, existing empirical research in this field has focussed on regions in economically advanced and technologically innovative economies and comparable studies of less developed and emerging countries and their regions that suffer from poverty, unemployment and regional disparities are far fewer. As a consequence, the broader picture of the dynamics of regional development in less developed countries, particularly its social and political origins and the overall changes in regional inequality, have remained elusive and less clear. However, as globalization deepens and processes such as Europeanization and regionalization facilitate and accelerate the implementation of externally developed policies, less developed and emerging economies have started to adopt the ‘successful’ regional economic planning policies and practices developed and implemented in totally different national contexts. The problem with this issue is that those policy ideas have only partial relevance in the developed country context potentially making them even less relevant in developing economies. To explore this problem, this paper seeks to understand, empirically, the drivers of local and regional development in Turkey and how they can be used to develop a theoretically informed econometric analysis in the context of an emerging market economy. Not only has this form of analysis not been undertaken in Turkey, but the theories of local and regional economic development have had a major impact on the Turkish regional planning process. A set of econometric models is developed to explore the validity of a range of theoretical propositions in explaining the trajectories of regional economic change in Turkey between 2004 and 2008. Growth is calibrated in terms of employment and changing rates of unemployment in the chosen time period in the eighty one provinces of Turkey. The results of the study explain that implications of the current local and regional economic development theories are a Curate’s Egg – good in parts – because these theories are only partially relevant in the Turkish context. JEL codes: R10 Abstract content: Regional growth, emerging economies, Turkey |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p179&r=geo |
| By: | Alexander Pelyasov; Nadezhda Zamyatina |
| Abstract: | The main idea of the research is to investigate how the communication processes could result in the location of productive forces in contemporary Russian regions. The results are based on utilizing several traditional and new methods of regional analysis. We have analyzed: 1) Inter-regional skilled migrants flows, including special case of PhD holders (the official statistics of arrivals and departures for all Russian regions for 2008--2010); 2) Internet links between 40 Russian universities’ sites (the selected universities are located in 25 Russian cities; the results of more than 1800 retrieval requests were investigated); the number of internet links was compared with the national scientific, educational, and other University ratings; 3) career paths studied on the material of Internet social networks for the case of Tomsk University graduates (more than 1200 students graduated from the University in 2006-2009); 4) location of new biotechnology firms in the cluster of the city of Biysk. We have elaborated several lines of research. 1) Location of the new industries (like biotechnology) and communication pattern between economic actors in this industry. 2) Spatial structure of the Higher Education Institutions in contemporary Russia, their status and mobility patterns of the labor force. 3) Different location behavior among post-graduates of Tomsk University, representing specific assets like specialists in chemistry and physics, and common assets like specialists in arts and applied mathematics. For example the significant portion of specialists in physics born in small towns around Tomsk move to such R&D centers like Snezhinsk and Sarov located more than 1000 km far from Tomsk; the specialists in chemistry born in south cities move to the labor markets of the Russian North; the graduates in arts and applied mathematics tend to stay in Tomsk or to move back to the cities where they were born. 4) Different location behavior among skilled migrants and PhD holders (for example in 2008-2010 PhD holders moved to such peripheral regions as Altai and Kurgan which were losing both the skilled population as a whole and the total population); Regional competitive advantage is closely related with the local communication process. Location or relocation of the most innovative activities depend on the model of local community communication as well as on the scale and substance of its outward communication network. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p57&r=geo |
| By: | João Pereira; Aurora Galego |
| Abstract: | The issue of regional wage differentials is relevant both for policy proposes and general public discussion. A sound knowledge of the distribution of wage inequalities and their causes is essential for defining policy measures for reducing spatial income inequalities. A range of empirical studies have analysed regional wage differentials for a number of countries (Blackaby and Manning, 1990; Blackaby and Murphy, 1995; Duranton and Monastiriotis, 2002; GarcÃÂa and Molina, 2002). Typically, these studies are based on OLS estimates and the decomposition method devised by Blinder (1973) and Oaxaca (1973), which focuses on the analysis of wages differences at the mean of the conditional earnings distribution. This approach provides a reasonable description of wage distributions when they are unimodal, symmetric and have similar variances (Butcher and Dinardo, 2002). However, in general, these conditions may be not fulfilled. Therefore, wage differentials should be analysed along the entire wage distribution. This paper seeks to build on previous research in a number of different ways. Firstly, unlike most previous studies, we estimate regional wage equations by quantile regression in order to analyse the effect of covariates at several points on the wage distribution. Secondly, we apply the quantile-based decomposition method suggested by Machado and Mata (2005) and Melly (2005a, 2006) to decompose regional wage differentials at several points of the wage distribution. This method is of a semi-parametric nature, which allows for the estimation of significance tests and confidence intervals of wage decomposition effects (characteristics and returns). This marks a clear difference in relation to the non-parametric method suggested by Dinardo et al. (1996) and Butcher and Dinardo (2002) and applied by Motellón et al. (2011), which does not allow such significance tests to be performed. To the best of our knowledge, this is the first application of the methods proposed by Machado and Mata (2005) and Melly (2005a, 2006) in the context of regional wage differentials. We consider the case of Portugal, a small country with significant and quite stable regional wage differentials (Vieira et al., 2006; Pereira and Galego, 2011). Our findings reveal that coefficients estimates along the wage distribution for each region and between the various regions are not stable. Moreover, these findings confirm previous evidence as to the existence of significant regional wage differences between the Lisboa region and the other regions, and also reveal increasing differentials across the wage distribution. Finally, with regard to the regional wage decomposition, we conclude that both the part relating to differences in characteristics and the part relating to differences in returns to these characteristics are in general statistically significant and increase across the entire wage distribution. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p19&r=geo |
| By: | Jan Suchacek |
| Abstract: | Transport, social as well as some other types of infrastructure represent an important component of system macrostructures. In advanced countries, these system macrostructures are usually – though not necessarily – approximately bound to the existing settlement system. There are only little doubts that the role of infrastructure in local and/or regional development is an indispensable one. Activities of local and/or regional actors can be substantially facilitated or hampered by existing spatial distribution of infrastructure. The same – with even higher intensity – applies to also to post-transition countries among which the Czech Republic can be ranked. Thus, the main objective of this article consists in the analysis and interpretation of the quality and distribution of selected transport, education, research, health, technical and information infrastructure in the Czech Republic. Modern approaches to territorial development typically consider the relative harmony between spatial distribution of population and corresponding infrastructure as guaranteed. This may be the case of leading advanced nations, however less frequently it applies to their post-transition counterparts. Subsequently, the article attempts to disclose both strengths and weaknesses of the spatial profile of infrastructure in the Czech Republic. Spatial analysis of infrastructure in this country will be pragmatically conducted at NUTS III level covering self-governing regions. Selection of indicators as well as territorial scale has been influenced also by qualitative and quantitative limitations still existing in the Czech regional statistics. Key Words: infrastructure, NUTS III regions, settlement system, regional development, Czech Republic JEL Codes: R10, R40, H54, O18 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p358&r=geo |
| By: | DIMITRIOS KYRKILIS; SIMEON SEMASIS |
| Abstract: | This paper attempts to explore the effects of post-war war economic development model followed in Greece. The model is characterized by both the neglect of Greek agriculture and the emphasis on industrialization, mainly around the two major cities, Athens and Thessaloniki. The model has to develop a strong industrial sector but to inflate services and it devastated agriculture. At the regional level the uneven growth path that has been adopted perpetuated between urban and tourist areas on the one hand and the rural regions on the other. KEYWORDS: Economic development model, Greek agriculture, industrialisation, urbanisation, income disparities, regional development, economic crisis. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p804&r=geo |
| By: | Martin Henning; Erik Stam; Rik Wenting |
| Abstract: | The concept of path dependence has gained momentum in the social sciences, particularly in economic geography. In this paper, we explore the empirical literature on path dependence and path creation in regional economic development. We offer a critical reflection on these studies and outline commonalities and problems in research designs and empirical testing. Our review suggests that the popularity of the concept of path dependence in regional studies has led to a cacophony of studies rather than a purposeful accumulation of knowledge around the concept. To remedy this situation, we identify gaps and suggest guidelines for future empirical research on the role of path creation and path dependence in uneven regional development. |
| Keywords: | path dependence, path creation, regional development, economic geography |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1219&r=geo |
| By: | Kristian Giesen; Jens Suedekum |
| Abstract: | In this paper we show that the double Pareto lognormal (DPLN) parameterization provides an excellent fit to the overall US city size distribution, regardless of whether 'cities' are administratively defined Census places as in Eeckhout (2004) or economically defined area clusters as in Rozenfeld et al. (2011). We then consider an economic model that combines scale-independent urban growth (Gibrat's law) with endogenous city creation. City sizes converge to a DPLN distribution in this model, which is much better in line with the data than previous urban growth frameworks that predict a lognormal or a Pareto city size distribution (Zipf's law). |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p106&r=geo |
| By: | Evangelia Papapetrou (Bank of Greece and University of Athens); Dimitrios Bakas (University of Athens) |
| Abstract: | The purpose of the paper is to examine the nature of Greek unemployment allowing for cross-sectional dependence among Greek regions and for the presence of structural breaks. The paper contributes to the literature assessing the stochastic properties of Greek regional unemployment rates using recently developed and more powerful panel unit-root tests, such as the Lagrange Multiplier (LM) panel unit root test of Im et al. (2010), that allow for level and trend breaks, heterogeneity and cross-sectional dependence in the panel. The results show that in all cases, after taking into account the fact that regional unemployment rates in Greece are subject to a structural break both in mean and the slope of the series, the null hypothesis of a unit root is not rejected, indicating that the Greek regional unemployment series are non-stationary with the presence of a structural break. |
| Keywords: | Unemployment; Hysteresis; Panel unit root tests; Structural breaks; Cross-section dependence |
| JEL: | C32 C33 E24 J64 R23 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:bog:wpaper:146&r=geo |
| By: | Angelika Jaeger; Fabian Kreutzer |
| Abstract: | The influence of tertiary education on the economic development of a region is a topic of special interest and prevalent object of studies and discussions of regional economists. Universities are frequently referred to as 'creative hubs'. Researching universities are generally expected to be one of the key institutions around which growth occurs, determining the direction of regional economic development. Especially the large number of highly-educated graduates is of eminent importance in terms of regional competitive advantages. If graduates remain in the university's region, they form and enrich a highly educated labour force and support knowledge and innovation transfer from the university to the regional economy, networks, and enterprises. Human capital has traditionally been observed to be one of the most important resources of regions and one of the key factors explaining economic growth. In any economic region, gaining insights into the phenomenon of regional graduate migration and the determinants and reasons behind it is highly relevant for regional economic analysis and a prerequisite for policy recommendations. This holds especially true for old industrial regions with structural problems and low economic growth potential - as the Central Lower Rhine Area in North-Rhine-Westphalia, Germany, subject of this study. These regions depend on knowledge and innovation transfer from universities to overcome problems associated with industrial structural changes and market turmoil, and to face problematic trends as the forthcoming demographic development. The research aim of this article is to analyse the migration of graduates in the Central Lower Rhine Area by assessing the regional 'brain flow' originating from the Niederrhine University of Applied Sciences (NR UAS), its only institution of higher education. More detailed objectives concern the assessment of the distribution of migration patterns, migration motives, graduate characteristics influencing the migration decision, and the comparison of actual migration patterns with migration preferences. Our results show that for the Central Lower Rhine Area, the associated regional brain drain resulting from graduate emigration cannot be compensated by extra-regional brain gain. A likely reason for this is a deficit of absorption capacity exhibited by the regional economy: A large proportion of graduates migrate due to difficulties finding an adequate job, or respectively, are attracted by economically better performing regions. Furthermore, econometric analysis identifies certain graduate characteristics influencing the migration decision. Remarkably, the migration decision is only marginally influenced by soft location factors like quality of living, regional image, or recreational amenities. Summarized, the research findings describe, interpret, and explain the regional graduate migration patterns and motives and indicate interesting implications. JEL classification: I 23, O15 Keywords: University Graduates, Migration Patterns, Determinants and Motives, Alumni Network |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p734&r=geo |
| By: | Franz Kronthaler; Katharina Becker; Kerstin Wagner |
| Abstract: | Start-up activities are considered to be important for regional economic development which varies considerably between regions. As new firm formation and growth is strongly influenced by regional conditions, we analyse the role of regional conditions and their impact on start-up activities. In particular, this study assumes that the combination of the determinants, which are considered to have an impact on firm formations rates, influences regional start-up activity. To test this assumption the paper uses a two-step procedure, employing cluster analysis combined with non-parametric testing. Firstly, homogenous types of regions with regard to their structural characteristics conducive for entrepreneurial activities are formed with the help of cluster analysis. Secondly, Kruskal-Wallis test and Mann-Whitney test are used to find out whether the different types of regions with a specific composition of factors perform equally in new firm formation. The analysis is based on the spatial level of Swiss ‘mobilité spatiale’ regions (MS-regions). MS-regions are functional units based on economic interaction and commuting movements. The research strategy makes it possible to discuss whether different regional combinations of factors lead to high or low similar start-up rates within regions. The results show firstly that regions with an overall high potential, due to their factor endowment, have in fact high start-up rates, whereas regions with a low potential have low start-up rates. Furthermore, the results show secondly that the combination of factor endowments seems to be important as well. Completely different regional combinations of factors conducive for entrepreneurial activity can lead to similar high or low start-up rates. Hence, not only single factors shape firm formation rates in regions. It is also the combination and interrelationship of the various parameters which can be important for different types of regions. The findings of this study may have implications for policy makers in that they have not only the opportunity to influence single factors in order to increase the dynamics of entrepreneurial activity in their region. They need to focus on the region specific structure. It also means that other regions cannot easily be used as a benchmark. For regional policy, each region has to incorporate its own specific combination of factors conducive for new venture creation. Keywords: Regional Economics, Entrepreneurship, Business Formation JEL classification: R11, L26, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p90&r=geo |
| By: | Reveiu Adriana |
| Abstract: | Regional clusters and entrepreneurship have become very popular subjects in economics, regional science, and economic geography. In the last decade, a large number of scientific papers investigate the empirical evidence for clusters, their definition, and their implications for economic policy. Also, a series of working tools for regional cluster analyses have been proposed. Entrepreneurial attitudes and activities interact and their characteristics are normally bound to the region. Local entrepreneurial attitudes and entrepreneurial activities can be the starting-point for the evolution of a regional cluster. There are lots of arguments for the hypothesis that existing regional clusters have positive impacts on entrepreneurial attitudes and entrepreneurial activities. But, exist only few analyses refering to the relationship between clusters attributes of a region and the entrepreneurial activities in the same region. From our knoledge, it is not such of analyses about Romania. This paper aims to identify regions with functional or potential industrial clusters, from Romania, and to analyse their impact on the entrepreneurial environment. Data about all the companies acting in Romania in 2011 is used to elaborate the spatial clusters in the most concentrated Romania industries. A second data set, collected as part of the Global Entrepreneurship Monitor (GEM), serves to assess the relationship between regional clusters and entrepreneurial activities and attitudes. GEM intends to measure the level of entrepreneurial activities and to identify the individual factors and the entrepreneurial framework conditions that may explain differences in the levels between the regions of Romania and the entire country.The paper tests the empirically proven hypothesis which stipulates that the existence of one or several industrial clusters in a region has a positive impact on the number of start-ups and attitudes in the same region. The results obtained from descriptive and regression analyses have shown that there is a positive relationship between the number of clusters and the number of employees in clusters in Romanian regions on the one hand and entrepreneurial activities and entrepreneurial attitudes like the assessment of good start-up opportunities on the other. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1075&r=geo |
| By: | Özge Öner; Johan P Larsson |
| Abstract: | The importance of the retail sector for an economy is multifaceted. It is a complex and vital sector both in developed and in emerging economies, where a vast amount of production as well as employment opportunities are present. One of the most notable characteristics of the retail sector is that it is highly location sensitive. Due to the nature of the economic activities carried out in retail establishments, they are likely to be found in regional centers, or in close proximity to such centers. Also, many retail services are likely to be located close to each other. Being dependent on factors like complementarity and substitution between retail services, and time-distances from location to demand, unplanned retail service clusters are likely to emerge in urban cores specifically. We try to utilize the traditional location approaches with the contemporary sector facts to understand how, to what extent, and why retail establishments are co-located. The fundamental idea though, can be summarized through two main lines of arguments. The first one is that the question why there are retail clusters, or co-location of different and similar kind of retailing activities, should be explained (at least partially) by spatial factors, such as economic density and diversity in the surrounding environment, and potential demand . The second is that the existence and the degree of co-location between retail establishments is also dependent on the industry specific factors. In this paper, we exploit geo-coded data to analyze the co-location of retail service establishments in the Stockholm region in Sweden. Grouping the retail services based on their function, we detect co-location patterns between different retail establishments that are located within the same or in the neighboring grids. In particular, the study addresses three main questions in the following order; (1) looking at a high level of disaggregation, which services are co-located?, (2) if there is co-location, what is the degree of it?, (3) what are the spatial and sectoral determinants of different levels of co-location between retail services? Keywords: retail, retail clusters, co-location, location theory, urban agglomeration JEL: R12, L81, R14 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p941&r=geo |
| By: | Florian Schoiswohl; Philipp Piribauer; Michael Gmeinder; Matthias Koch; Manfred Fischer |
| Abstract: | The speed of income convergence in Europe remains one of the hot topics in regional economics. Recently Bayesian Model Averaging (BMA) applied to spatial autoregressive models seems to have gained more popularity. BMA averages over some predetermined number of so called top models, ranked by the model's posterior likelihood. We regard two approaches for especially noteworthy: First Crespo-Cuaresma and Feldkircher (2012) employ BMA to a spatial autoregressive model, where spatial eigenvector filtering is used in order to tackle the econometric problems caused by the spatial lag. However, spatial filtering has its drawbacks. It relies on a model approximation and no partial derivatives of interest associated with the model can be computed. This means, that it is impossible to derive direct and indirect effects. Second LeSage and Fischer (2008) rely on BMA applied to a Spatial Durbin Model (SDM), where the model posterior is calculated without any model approximation. Although it can be computationally burdensome, it allows for a proper model interpretation if the underlying data generating process (DGP) is of SDM form. One virtue of spatial filtering, as shown by Pace et al. (2011), is that it estimates some of the model coefficients efficiently for various spatial autocorrelated DGPs. Hence, the likelihoods associated with spatial filtering are more robust against model misspecification. Since our preliminary results show that the top models' (posterior) likelihoods obtained from a spatial filtering BMA exercise and (non spatial filtering) BMA applied to a Spatial Durbin Model differ, it is most likely that the DGP is not of SDM form, i.e. misspecified. This leads us to the conclusion that, even though the methodology employed by Crespo-Cuaresma and Feldkircher (2012) cannot be used for a proper model interpretation, the results obtained by spatial filtering BMA do not suffer from model misspecification. References: Crespo-Cuaresma, J., Feldkircher, M. (2012), `Spatial Filtering, Model Uncertainty and the Speed of Income Convergence in Europe', Journal of Applied Econometrics, forthcoming. LeSage, J., Fischer, M. (2008), `Spatial Growth Regressions, Model Specification, Estimation, and Interpretation', Spatial Economic Analysis 3, 275-304. Pace, R., LeSage, J., Zhu, S. (2011), `Interpretation and Computation of Estimates from Regression Models using Spatial Filtering', written for Spatial Econometrics Association 2011. Keywords: Model uncertainty, spatial ltering, determinants of economic growth, European regions. JEL Classi cations: C11, C21, O11, R11 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p744&r=geo |
| By: | Franz Tödtling; Michaela Trippl |
| Abstract: | Over the past 20 years, the innovation system approach has significantly enhanced our understanding of the innovation process, stressing its non-linear, systemic, interactive and evolutionary character. The notion of regional innovation systems (RISs) highlights the regional dimension of new knowledge generation and exploitation and constitutes a powerful concept for explaining regional differences in innovation capacity. RISs can be conceptualised as the set of firms, organisations and institutions which influence the innovative behaviour and economic performance at the regional level. They are shaped by existing industry structures and technology paths, the set of knowledge organisations, and the prevailing institutions and networks. As a consequence, they exhibit a high degree of inertia. This may lead to phenomena of path dependency and “lock in†in particular regions and to a certain degree of stability in terms of regional disparities in innovation and economic development. Regions and their innovation systems, however, are not static entities. In fact, one can observe considerable changes of industry structures, innovation activities and patterns of networking in particular regions in the longer run, often reaching beyond the existing development paths. We find phenomena of innovation-driven catching up processes in lagging regions, restructuring processes in industrial regions leading to new industries and technology paths, as well as sometimes an erosion of innovation capacity and competitiveness in leading regions. Most research on RISs, however, has so far not dealt with such changes. The RIS literature suffers from a key weakness, that is, its static view brought about by a focus on existing structures and relations. As a consequence, the reconstruction of RISs and their evolution over time remains poorly understood. The aim of the paper is to enhance our understanding of how processes of RIS transformation take place. We will identify key actors and drivers of path renewal and new path creation and we seek to find out to which extent such changes are related to the existing economic and institutional structures. Based on a discussion of relevant theories and a critical literature review we will develop a conceptual frame for analysing RIS changes. Besides the RIS approach we will use ideas from evolutionary economic geography (EEG) which provides valuable insights into the long-run regional trajectories and sources of change in regional economies. We will also discuss empirical examples of such shifts based on evidence from Austria and other countries. JEL Codes: R10, R11, R58, O30, O38 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p295&r=geo |
| By: | Yiannis Psycharis; Panagiotis Artelaris; Dimitris Kallioras; Panayiotis Pantazis; Maria Tsiapa |
| Abstract: | The fears of a sovereign debt crisis and the consequent lack of confidence, indicated by a widening of bond yield spreads and risk insurance of credit default swaps, have transformed a financial crisis to an economic crisis in Greece, affecting its productive bases and its income level. Up to the present time, there is no clear empirical evidence about the spatial impact of the economic crisis on Greek territory. Because of the austerity measures imposed in Greece from its lenders (i.e. the IMF and the EU counterparts), inevitably, the main focus of attention has been on national rather than regional level, although the crisis has obvious spatial aspects that should not be neglected: (a) the initial, pre-crisis, conditions (i.e. market size, accessibility, geomorphology, natural resources, productive structure) were, already, strongly differentiated among Greek regions; (b) the anti-crisis, austerity, measures taken may have significantly differentiated implications across space; (c) the implementation of spatial policies may be hindered in countries being in stressful fiscal situation. From this perspective, (further) research should be done; critical issues such as how different places are affected by the economic crisis and why, and which regions will continue to be affected, are still open. The paper presents the spatial impact of the ongoing (2009-…) economic crisis in Greece, assessing the resilience and development of the Greek regions. To this end, a Composite Indicator of Regional Resilience (CIRR) and a Composite Indicator of Regional Development (CIRD) are constructed. Both Indicators include statistical data referring to a series of economic, structural, demographic and social variables. The data are derived from Hellenic Statistical Authority (EL.STAT.) and cover the period 2008-2010. The CIRR is calculated, for the whole period under consideration, as the average of the standardized growth values. The CIRD is calculated, for each year included in the period under consideration, as the average of the standardized absolute values. The calculations are conducted at the NUTS III spatial level. Both Indicators are concise, yet comprehensive, policy tools, allowing for the study of the spatial footprint of economic crisis. The findings of the paper verify that the pro-cyclical pattern of regional development in Greece, detected in periods of expansion, still exists in the period of recession. Key-Words: economic crisis, Greece, spatial impact, composite indicators JEL: G01, R11, R12 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p641&r=geo |
| By: | Zlatan Fröhlich; Irena Dokic |
| Abstract: | Croatia is geographically, historically and culturally a part of the European territory. Regions, as specific units within a national territory, are defined differently on EU level than in Croatia, where counties are far too small to be considered as regions in EU terms. The implementation of European regional policy requires “comparability†of territories, which is done on the basis of the Nomenclature of Territorial Units for Statistics (NUTS). After long discussions with the European Commission and Eurostat, Croatia has three “new†NUTS II regions (March, 2007): Adriatic, North-Eastern (Pannonian) and North-Western Croatia including the capital city of Zagreb. These regions are now acceptable for EU regional policy and funds. Institutional structures for managing regional development on this new regional level does not exist, as well as legislative framework necessary to implement policies, strategies, plans or projects prepared at the respective levels, while at the same time very interesting developments from the bottom-up can be observed. Regional development agencies established have recently been nominated as regional coordinators for elaboration of planning documents at the County level initiating development processes, still at the county level and through informal mechanisms at the regional level. Territorial cohesion across Europe stands out as one of the top European priorities. Considerably large number of programmes, measures and priorities, aim at achievement of this goal. Croatia, as an acceding country, strives to harmonise numerous requirements prior to entering European union space in all aspects of entry, including territorial cohesion. Last decade was marked by a certain shift in shaping and implementing Croatian regional policy at programming and regulatory level towards that aim, among others. Many documents were produced – to serve national purpose, European and/or both. New policy, regulatory and programming environment imposed also creating of institutional set up (structure) that will enable successful implementation at all these fronts. However, regional development has to evolve from the bottom, but the initial push or supporting incentives have to come from above. This is a mutually enhancing development process, where efforts from above (EU and national level) and bellow (regions, counties, and local units) merge and contribute to overall development. This paper explores possibilities and obstacles in implementing of Croatian regional development policy at all levels, within a semi-European context and a given national framework. Keywords: Croatian regional policy, regional development, competitiveness JEL Classification: R00, R11, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p763&r=geo |
| By: | Kirsi Mukkala; Hannu Tervo |
| Abstract: | The role of airports has become increasingly important with globalization. To have a regional airport is an especially important asset for retaining companies in the region as well as attracting new economic activity to the region. A well-developed transport infrastructure can be seen as a facilitator that allows the economic potential of a region to be realized. The provision of transportation does not, however, automatically lead to economic growth. It may also be the other way round: economic development leads to the better transport infrastructure and accessibility, stressing demand side elements. This paper aims to shed further light on the relationship between regional airports and economic performance. We ask whether accessibility is a key factor to economic success, or rather a consequence of it. In order to test the relative importance of various effects, the Granger non-causality method in a panel framework is applied. The Granger method exploits the fact that in time series there is temporal ordering, and the belief that effects cannot occur before causes. The empirical analysis is based on European level annual data from 86 regions and 13 countries on air traffic and regional economic performance in the period 1991-2010. The results revealed that for at least some regions (and possible all), there is statistical evidence of Granger causality from air traffic to regional growth but these processes are not uniform in all regions. The categorization of the regions into three groups of equal size according to their peripherality showed significant causality in peripheral regions and indicative causality in intermediate regions, while in core regions no significant causality was found. Hence, peripherality indeed matters: the more remote the region is the more important for it is to have efficient air connections. The evidence of the opposite direction of causality - from regional development to air traffic - was only partial and homogenous. Keywords: air traffic, regional growth, Granger causality |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p642&r=geo |
| By: | Peter Schmidt |
| Abstract: | Comparing the economic development and current situation of the internal markets of the U.S. and the EU, two things are noticeable. On the one hand, the EU is conducting massive regional policy programmes (notably the Structural Funds) to foster economic cohesion among the 27 nations belonging to the Single European Market while in the U.S. with its 50 federal states such policies play a rather subordinate role. At the first glance, this seems to be consistent with the situation in this two markets because in the U.S. only 2\% of the total population lives in regions with less than 75\% of the US-average GDP per capita while in the EU approximately 31\% of the total population lives in such regions eligible for structural funds support. In other words, regional policies in the U.S. would be redundant. But taking a closer look, on the other hand, reveals that the internal mobility of U.S. citizens is significantly higher than that of EU citizens. According to the neoclassical economic theory migration, besides the free flow of goods, services and capital, plays an important role in assuring convergence or economic cohesion, respectively. Following this strand of theory no regional policy is needed to achieve convergence among the regions or nations of a common market. Thus, comparing the two internal markets, the question comes up if the lower degree of economic cohesion in the EU has something to do with the lower internal market mobility of EU citizens and a higher degree of structural intervention of the EU regional policy? To answer this question, the paper consists of three parts. First, the theoretical background concerning migration and the potential need for regional policy is presented, to find out if one of them is a better instrument to achieve a balanced economic development within an internal market. In the second part, we discuss the actual situation of internal migration and examine why migration rates are comparatively low in the EU. In the last part, the interrelation between the EU regional policy and (internal) migration are analysed. Besides other things like language, culture or institutions this paper is going to argue that structural funds are inhibiting internal migration, which is one of the key measures in achieving convergence among the nations in the Single European market. It becomes clear, that the European regional policy aiming at economic cohesion among the 27 member states is inconsistent if the structural funds hamper instead of promoting migration. JEL-Classification: E62, F15, F22 Keywords: Migration, Structural Funds, European Integration Other chosen themes: N. Regional strategies and policies E. Finance and regional development |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p383&r=geo |
| By: | ZEYNEP ELBURZ; FERHAN GEZICI |
| Abstract: | REGIONAL DEVELOPMENT POLICIES AND INDUSTRIAL EMPLOYMENT CHANGE IN TURKEY: A SHIFT SHARE ANALYSIS (1992-2008) It is necessary for policy-makers to assess region’s overall performance and given sector’s efficiency relative to other industry sector’s performance in the region to achieve regional policy objectives. Regional economics has attempted to develop techniques to analyze differences among regional growth patterns. Shift-share analysis is one method to describe growth of sub-national economies. Shift–share analysis is a traditional tool for interregional comparison, measuring and evaluating sectoral performance of a specific region over a period of time. The purpose of shift share analysis is to provide local policymakers with simple and easy to use tools that will assist them in describing and documenting changes in their local economy in a way that enables them to make sound and informed decisions. In shift share analysis, the chance in employment is partitioned into three components measuring the influence of national share, industrial mix, and regional shift. The aim of this study is to measure and evaluate regional economic performance in Turkey, in order to able to achieve regional policy objectives. In this study the shift share analysis was used to measure regional economic performance. Regional industrial employment (15-37 codes - NACE REV 1.1) changes in Turkey estimated in 26 NUTS 2 regions from 1992 to 2008. The results of shift share analysis of manufacturing employment change in Turkey from 1992 to 2008 indicates that national share component has a great effect on total manufacturing employment increment during that time. In addition to that, industrial mix component has an effect on reducing employment by 7.962 and regional shift component has an effect on reducing employment by 9.464. According to the results of shift share analysis there is only one region which has both positive industrial mix and regional shift components. Also four regions which include the most developed regions in Turkey, such as Ãstanbul and Ãzmir sub-regions, have positive industrial mix and negative regional shift components. With the helping of these results, policy makers should reconsider the regional development policies in Turkey. KEY WORDS: Regional Policies, Shift Share Analysis Industrial Employment JEL CODES: L60 O25 R11 R12 R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1012&r=geo |
| By: | Jana Kourilova; Rene Wokoun; Milan Damborsky; Nikola Krejcova |
| Abstract: | The competitiveness of EU regions This paper results from the project financed by the Grant Agency of the Czech Republic (GA ÈR). The project was carried out by the research team consisting of both The Centre of Regional and Administrative Studies and The Regional Studies Department´s members in 2009 -2011. The introductory part of the paper is focused on the theoretical background with a special emphasis on the concept definition and determination of factors of the regional competitiveness. The concept of competitiveness is relatively new in the economics and the economic geography. In fact, there are no general definitions, the concept is mostly related to a specific issue. Micro-oriented definitions consider the competitiveness as a success in selling products or services on open markets. The macro-economic view is much more variable. It is often associated with an economic development of a sustainable character. The social and environmental aspect is also closely observed as well as the impact of the regional economic growth on other regions, in the sense of whether or not the economic growth is realized at the expense of other regions. The following part of the paper, based on the methodology and index defined for this purpose, assesses the competitiveness of EU regions on the NUTS II level. The regional competitiveness index was compiled on the basis of available Eurostat data. Next part of the paper presents the key factors of the regional competitiveness. Factors are classified as universal and specific. Concerning universal factors, regions with a high level of competitiveness mostly have an important economic centre; these are often metropolitan regions of member states (London, Stockholm, Paris, Prague) with a significant share of services and existence of both public and private decision-making headquarters. In non-metropolitan regions with a high level of competitiveness, there is an economic centre- city with a share of services, R&D and innovation sector. Competitive regions (or their centres) are mostly well connected with the transport infrastructure, especially TEN-T, national highways and international airports. Such regions are important air, rail, road or water transport junctions. One of the key aspects of the regional competitiveness is the concentration of scientific, R&D and innovative institutions often linked to tertiary educational institutions. In general, the educational structure with a high proportion of tertiary or higher secondary educated population (corresponding to the Czech system of secondary education with the school-leaving examination-maturita) is another aspect of a competitive region. The institutional conditions also determine the regional competitiveness and development. Specific factors of the regional competitiveness are the tourism potential, natural sources and the technical infrastructure. Keywords: region, competitiveness, factors, European Union, NUTS II JEL code: R11 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p788&r=geo |
| By: | Stefan Rehak; Martin Chovanec |
| Abstract: | The paper focuses on the analysis of spatial clusters of creative industries in Slovakia using micro-geographic data. The notion of spatial clustering of creative industries is deeply embedded in the literature, showing that firms in creative industries tend to cluster mostly in large cities or directly in city centres. Recent improvements in geo-coded firm datasets resulted in re-discovery of sets of analytic techniques for identification of clusters based on distance metric. These techniques overcome the problems related with borders and scales. The paper starts with the theoretical background of creative industries, which are usually defined as a range of economic activities have their origin in individual creativity, skill and talent which have a potential for job and wealth creation through the generation and exploitation of intellectual property (DCMS 2001). Later we present main arguments of spatial concentration of firms in creative industries and methodology for identifying clusters. In our analysis we analyse 46 434 firms from the INFOSTAT registry (2010), which were geo-coded by their address. We use Nearest Neighbour Analysis and Ripley K to test the spatial concentration of firms and Nearest Neighbour Hierarchical Spatial Clustering to find clusters of creative firms. Clusters of creative industries are rather small in size and very dense. The Ripley L index was between 6.64 and 12.55 km, which indicate the urban type clusters. Our analysis showed that 44.4 % of firms are clustered in totally 86 clusters. Most of the firms in creative industries are concentrated in Bratislava and Ko¹ice, which are two largest cities in Slovakia. Even that the micro-geographic locational analysis has still some limitation, this paper explores new promising ways of testing the spatial concentration of firms. Keywords: clusters, creative industries, micro-geographic data, Slovakia JEL Classification: R00, R12 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p562&r=geo |
| By: | Evgeniya Kolomak |
| Abstract: | The paper studies trends in the urbanization in Russia and compares them with the global ones. Russia has high level of urbanization, urban population reached 73% in 1990, and the rate of urbanization fluctuates around this level past 20 years. The change of the urban population in Russia is influenced by three factors: natality, migration and the administrative reforms. The latter includes the establishing of new urban settlements and transformation of rural settlements into urban or vice versa. Starting in 1992, the low birth rate has become a major factor in reducing the number of urban residents. Immigration from cities was observed in 1991-1992 and it exacerbated the decline of the urban population of Russia. The administrative reorganizations had significant impact on the official statistical data on the urban population in Russia, especially in 1991, 1992, 1999, and 2004. The paper discusses advantages and disadvantages of the urbanization to the economic development and provides empirical analysis of the relationship between the economic growth and the urbanization in Russian regions. Russian regions differ significantly in urbanization, both at the macroeconomic level and the subnational one. Tested hypotheses are the following: 1) urbanization stimulates growth of regional productivity in Russia; 2) the positive effect of urbanization on the regional productivity in Russia is decreasing and at some level becomes an impeding factor; 3) large cities demonstrate higher performance and create positive externalities for the overall regional development. The idea of econometric estimates is to expand an aggregate regional production function including urbanization level and agglomeration capacity of the cities. We use panel annual data for 79 Russian regions and covered period is 2000 – 2008. Estimation tool is fixed effects least squares. The estimates show that increase of share of urban population in the country by 1% gives rise of the average regional productivity by 8%. However, the effect of urbanization is reducing. The growth of a city size per 1 thousand residents would increase economic productivity by 0.1% only. The conclusion is that despite the high level of urbanization in Russia and a number of negative effects of the concentration of economic activity in the cities, the resources of urbanization are not exhausted. Cities develop effectively creating positive externalities and growth impulses on surrounding areas in Russian regions. The potential of changes in the structure of urban settlements in favor of large cities exists, but it is very small. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p82&r=geo |
| By: | Dariusz WoŸniak; Justyna Soko³owska-WoŸniak |
| Abstract: | The aim of this paper is twofold. The first is to examine the level of development of knowledge economy in Polish regions (Voivodships). In order to assess the advances in building the knowledge economy in region, the composite indicator for years 2003-2008 is constructed. The second purpose is to analyse the regional authorities' policies directed towards supporting the pillars underlying the knowledge economy. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1129&r=geo |
| By: | Vincent Linderhof; Stijn Reinhard |
| Abstract: | This paper analyses the impact of Rural Development Program (RDP) measures focusing on tourism have on the growth of tourism and on the economy in rural areas. We first explored tourism in NUT2 regions in the EU with a spatial data analyses and then we applied spatial econometric analyses on tourism where we take into account the RDP spending on the measures that encourage tourism. For the spatial regression analyses, we use the indicators of the CMEF framework. The data were collected from Eurostat. The spending on the RDP measure 313 encouragement of tourism is not uniformly distributed over the NUTS 2 regions in the EU. The spatial analyses of tourism measured by the number of nights spent by non-residents showed the presence of spatial dependencies in tourism. Based on the spatial dependency tests of the classical regression model, a spatial error model is estimated. The number of bed places positively affected the total number of night spent by non-residents. RDP spending on encouraging tourism did not have a significant impact on tourism. JEL codes: C21, L83, O18 Keywords: Rural Development Program, spatial data analyses, spatial econometrics, tourism |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p932&r=geo |
| By: | Prodromos Prodromidis |
| Abstract: | The paper studies the income mosaic of Greece at the local community level, from the time the country joined the EMU to time the international crisis reached its shores. It econometrically isolates the impact of past average income and the size of income-filing population, as well as the annual effects; and tries to explain in terms of demographic, educational, and other attributes of the population, as well as geographic features, the number of times (years) that local income exceed the level predicted. To the extent the residuals are produced by unknown (missing) variables, their sub-regional and cross-regional patterns offer clues in the direction of formulating better, spatially targeted interventions. There is a real need for policy suggestions that stretch the funds permitted by the fiscal straitjacket to go further in pulling the country out of the recession. Overall, the paper provides a better understanding of the internal heterogeneity of Greece, the sub-national operation of the economy, and the generation and distribution of personal income. Keywords: personal income, disaggregated data, extracting information from the residuals, delineation of micro-regional policy areas, urban and rural development JEL Codes: C23, D31, R12. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1058&r=geo |
| By: | David Castells; Vicente Royuela |
| Abstract: | The effects of inequality on economic growth depend on several factors. On one hand, they depend on the time horizon considered, on the initial level of income and on its initial distribution. But, on the other hand, as growth and inequality are also uneven across space, it also seems relevant to wonder about the effects of the geographic agglomeration of economic activity. Moreover, it seems relevant to consider not only the levels of inequality and agglomeration, but also their change -their evolution within countries- and the interaction between both processes. By considering different econometric specifications and introducing different measures for agglomeration at country level, especially urbanization and urban concentration rates, this work analyzes how increasing inequality and increasing agglomeration influence economic growth depending on the level of development and on the initial distribution of income. Our results suggest that while high inequality levels are a limiting factor for long-run growth -consistent with previous literature-, increasing inequality and increasing agglomeration have the potential to enhance growth in low-income countries where income distribution remains relatively equal, but can degenerate in congestion diseconomies in high-income ones, especially if income distribution becomes too unequal. The policy implications differ according to the level of development. For low-income countries, on one hand it has been argued that these countries should pursue growth first and then, just when growth is secured, attend distributional aspects; the recurrently argued trade-off between efficiency and equity in economics. This acknowledges the empirical fact that growth is by nature, and at least in the short-run, uneven. This unevenness is crucially spatial too; associated to the geographic concentration of economic activity (WDR 2009). On the other hand, however, it seems also quite clear that inequality becomes, sooner or later, a handicap for growth; developing countries that face high income inequalities are indeed also facing greater obstacles to achieve sustained long-run economic growth. Both facts together mean that while achieving higher economic growth may imply higher inequality due to higher geographic concentration of economic activity in the short-run, it also implies efforts for better income distribution in the long-run as a reinforcing, instead of confronting, objective to economic growth. For high-income countries congestion diseconomies seem to be a relevant issue to be addressed. A more balanced urban system, where small to medium size cities play a fundamental role, seem to be a better strategy than intense urban concentration (OCDE 2009). Finally, the fact that the benefits from agglomeration seem to depend on income distribution is likely to be signaling the relevance of good institutions in the process of development, in particular in what relates to economic geography. Surely the topic deserves more analysis and further research. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p492&r=geo |
| By: | Timo Mitze; Selin Özyurt |
| Abstract: | Since the introduction of its “open door†policy in the late 1970s, China has been attracting a growing share of FDI inflows and its international trade integration has advanced considerably. In this study, we take a closer look at the regional growth impact of the Chinese internationalization activity on labour productivity over the period 1979-2006. Our empirical analysis thereby extends the existing empirical literature by considering the likely spatial effects associated with Trade- and FDI-led growth in a dynamic error correction modelling framework. Our results indicate that, in the long-run relationship, regional labour productivity is indeed driven by direct and indirect spatial effects if FDI and trade activity next to further supply side factors such as the regional infrastructure equipment and human capital endowment. Similarly, in the short-run, changes in FDI activity and especially human capital variables are found to matter for the regional growth dynamics. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p512&r=geo |
| By: | Manfred M. Fischer; James P. LeSage |
| Abstract: | This study suggests a two-step approach to identifying and interpreting regional convergence clubs in Europe. The first step involves identifying the number and composition of clubs using a space-time panel data model for annual income growth rates in conjunction with Bayesian model comparison methods. A second step uses a Bayesian space-time panel data model to assess how changes in the initial endowments of variables (that explain growth) impact regional income levels over time. These dynamic trajectories of changes in regional income levels over time allow us to draw inferences regarding the timing and magnitude of regional income responses to changes in the initial conditions for the clubs that have been identified in the first step. This is in contrast to conventional practice that involves setting the number of clubs ex ante, selecting the composition of the potential convergence clubs according to some a priori criterion (such as initial per capita income thresholds for example), and using cross-sectional growth regressions for estimation and interpretation purposes. KEYWORDS: Dynamic space-time panel data model, Bayesian model comparison, European regions JEL Classification: C11, C23, O47, O52 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p217&r=geo |
| By: | Timo Mitze; Alfredo R. Paloyo; Björn Alecke |
| Abstract: | Applied econometrics has recently emphasized the identification of causal parameters for policy analysis. This revolution has yet to fully propagate to the field of regional science. We examine the scope for application of the matching approach – part of the modern applied econometrics toolkit – in regional science and highlight special features of regional data that make such an application difficult. In particular, our analysis of the effect of regional subsidies on labor-productivity growth in Germany indicates that such policies are effective, but only up to a certain maximum treatment intensity. Although the matching approach is very appealing due to its methodological rigor and didactical clarity, we faced difficulties in balancing the set of covariates for our regional data given that the regions differ strongly with respect to the underlying structural characteristics. Thus, results have to be interpreted with some caution. The matching approach nevertheless can be of great value for regional policy analysis and should be the subject of future research efforts in the field of empirical regional science. |
| Keywords: | Generalized propensity score; nearest neighbor matching; labor productivity growth; regional policy |
| JEL: | C21 R11 R58 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0367&r=geo |
| By: | Akos Jakobi |
| Abstract: | Since ICT factors got growing importance in shaping social and economic differences, the determination of competitiveness in the information economy and society became needful in understanding modern regional disparities of Hungary. To evaluate recent inequalities caused by the factors of information and communication technologies (ICT) complex indices of competitiveness were created, which can reveal the reasons of major inequalities in the level of information society development. By the application of the widely known Bennett methodology estimations on the level of Hungarian small regions (NUTS4 or LAU1) were carried out based on regional statistical data. Additionally calculations were made on the three major segments of ICT competitiveness reflecting also the advantages and disadvantages of structural circumstances. The structural factors of competitiveness in the examinations were the level of information infrastructure, the level of social adaptivity of ICT innovations and the level of the information economy, each of them measured by a complex index created from each structural factor’s multivariable dataset. According to the results the majority of small regions have no kind of advantage in competitiveness, while only 10% percent of the small regions in Hungary have all components of advantage: good infrastructure, high level of social adaptivity and developed information economy. By the recognition of ICT-based inequalities the strategic policy also tried to formulate suitable answers on how to develop regional information society. ICT-based regional strategies were created, which formulated several development directions and suggestions, however, they did not fully reach their aims. The efficiency of the strategies is below expected. Due to lack of allocated financial sources the strategic plans seem to be only bookshelf documents with no influences on regional inequalities. On the other hand there are also examples on successful development tools, but those have only indirect connections with regional information strategies. All in all the aim of this research paper is to describe what inequalities are present in Hungary and how they are introduced in regional plans, as well as to reveal the real possibilities of the application of this development tool by the evaluation of changes observable in statistical reports. Keywords: information and communication technologies, information society, information economy, Hungary, regional disparities, regional information strategies JEL: L86, L96, O18, R00, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p940&r=geo |
| By: | Antti Simola; Juha Honkatukia; Jouko Kinnunen; Jussi Ahokas |
| Abstract: | Regional, structural change is currently among the greatest challenges facing the public sector in many EU countries at the moment. In countries like Finland, where the public sectors have a large role in providing educational, health and social services, structural change rapidly becomes a fiscal problem. Demography is directly linked to the demand for public services and to the potential growth of regional economies. On the one hand, ageing increases the demand for age-related services; on the other, it decreases labour supply, limiting the growth potential of many regions. The state’s main tools for regional policies consist of both direct subsidies to the regions, as well as a mechanism reallocating tax revenues between poor and rich municipalities. However, the welfare costs of funding subsidies to poorer regions may be considerable. Thus, instruments not involving changes in spending have been preferred. Here, we consider the relocation of certain functions of the central government to the periphery – decentralization – as an instrument for coping with regional structural change. An improvement in regional municipal finances should also reduce the transfers received from the central government. This study aims at evaluating the effects of decentralization on regional development in recent years and in the near future. The study is related to an on-going evaluation of the financial relations between the central government and local authorities. Decentralization has in practice meant the relocation of central government jobs. We can cover the relocation of jobs quite accurately, and we also have the data of the number of employees that actually relocated with the jobs. Moreover, we are able to calculate state transfers to municipalities at the level of individual municipalities within each region. However, to capture all the implications of relocation to regional economies, we extend the model to take into account the average size and age profile of the families of those relocating. In this way, we obtain an estimate on the effects of decentralization on demand for public services locally, as well as on the overall effect on local population, labour supply and state, municipal and social security funds’ budget balances. We analyse decentralization at the level of the twenty regions of Finland, using a dynamic, regional, AGE model. We find that while decentralisation has been beneficial for many regions by creating new jobs and increasing municipal tax revenues, it has also entailed double efforts since there is only limited obligation for the employees to relocate with the jobs. Interestingly, however, this effect is partly off-set by a reduction of transfers to municipalities. Keywords: regional policies, structural change JEL codes: R13, R53 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p342&r=geo |
| By: | Natalia Zigern-Korn |
| Abstract: | Regional development potential: the evolution of methodological approaches in the domestic regional studies The problems of methodology and method tools in the regional development potentials study are under consideration. Definition of the category “potential†is considered on the number of domestic (Russian) works and research example. The evolution of researchers methodological positions from the Soviet period to the present time are subjected to analysis. A step change in the content of the natural-resource potential while geosystem approach to natural resource research is gradually enriched with economic content is shown. We prove the incorrectness of identifying the category 'potential' with the category of 'resources', and estimate it in the context of underutilized resources to be used in the modern region development forecasts. The main areas of regional potentials investigation in recent studies are distinguished and discussed by author. They are: the study of individual potentials as factors of regional development and as a set of some functional significance resources; the search of regional development potential integral index as a set of resources and opportunities for regional development. It is noted that in the last few years, the notion of potential appears and develops in the context of regional development tasks and out of forecast and analysis of regional development, this category makes no sense. But, according to the author, the previous domestic attempts to create a logical system of views on the issue of socio-economic forecasting by regional development potential assessing both from a solely geosystem approach, and with the help of new research concepts for domestic regional economy (reproduction approach and new concepts of the region) have been failed. The article shows geosystem constructive approach to analyze the spatial dynamics of regional factors for development. Further to this the author concept of 'functional capacity of the territory' is introduced. To analyze the temporal (time) dynamics of economic systems the relevance of an evolutionary approach, studying the cyclical patterns of development of complex systems is proved. Due to the cyclical patterns of complex systems development this approach emphasis on the evolution of the regional policy goals and objectives according different stages of social development and in different technological structures. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p771&r=geo |
| By: | Eduardo Haddad |
| Abstract: | This paper introduces the ARZ model – a fully operational spatial computable general equilibrium model for Lebanon – and its use for the analysis of place-based policies in Lebanon, in an attempt to bring additional insights to some of the proposals presented in the National Physical Master Plan of the Lebanese Territory. The ARZ model uses a similar approach to Haddad and Hewings (2005) to incorporate recent theoretical developments in the new economic geography. We apply the model to look at the ex ante potential spatial implications of an increase in domestic and international integration of Lebanese regions through reductions in trade costs. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p857&r=geo |
| By: | Luca Salvadori; José MarÃa Durán-Cabré; Alejandro Esteller-Moré |
| Abstract: | The tax auditing parameters have scarcely been analyzed by the literature as relevant policy-making instruments; however the enforcement strategies are crucial elements of the tax burden. In this paper we show that in a federal framework the tax auditing policies could represent additional tools on which regional institutions can interact between them. We investigate the presence of this interaction by means of a spatial econometric approach. We employ a time-space recursive model that accounts for sluggish adjustment in the auditing policies obtaining results congruent with standard theory and corroborating the presence of horizontal competition between regions on tax auditing policies. Moreover we find that once regional governments have legal power, the opaque competition on enforcement policies disappears and supposedly it switches to a more transparent competition on statutory tax parameters. Keywords: tax administration and auditing, fiscal competition, fiscal federalism JEL Classification: H71, H77, H83 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p184&r=geo |
| By: | Stephen Billings; Erik Johnson |
| Abstract: | Urban economists hypothesize that industrial diversity matters for urban growth and development, but metrics for empirically testing this relationship are limited to simple concentration metrics (e.g. location quotient) or summary diversity indices (e.g. Gini, Herfindahl). As shown by recent advances in how we measure localization and specialization, these measures of industrial diversity may be subject to bias under small samples or the Modifiable Areal Unit Problem. Furthermore, empirically examining industrial diversity requires statistically testing for patterns of industry mix that deviate from random firm location. Extending recent work by [S. Billings & E. Johnson. 2012. A Nonparametric Test for Industrial Specialization. Journal of Urban Economics. 71(3):312-331.], we develop a nonparametric microdata based test for industrial co-specialization. Our test employs establishment densities for specific pairs of industries, a population counterfactual, and a new correction for multiple hypothesis testing to determine the statistical significance of co-specialization across both places and industries. The results of these pairwise tests are then mapped out as networks of proximate industries unique to each place within our study area. We use pairs and triads of industries to highlight specific four digit industries that may drive co-specialization and a larger network of industrial diversification. Results give us new understanding of the relationship between industrial co-specialization and urbanization, with manufacturing industries tending to be more co-specialized in less dense areas than business services, while business services show more connected and transitive spatial networks. Finally, we discuss the role that intransitivities in industry triads may play in the econometric identification of co-specialization and underlying place specific agglomerative forces. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p569&r=geo |
| By: | Fernando Perobelli; Eduardo Haddad; Vinicius Almeida |
| Abstract: | The use of an interregional input-output model enables us to better understand the regional economic structure of production. It provides a rich and detailed static picture of a specific economy. We can implement a comparison overtime and across space. The second one will be implemented in this paper and enables an assessment of the differences in economic structure across regions. (Jackson and Dzikowski, 2002). The main aim of this paper is assessing structural change and interregional structural differences among Brazilian regions. The method applied in this paper uses the interregional input-output matrix for Brazil. This matrix considers 27 regions and 56 sectors in each region. Using this data set it will be possible to decompose differences in gross output into two distinct categories. The variation in gross output can be a function of the technical structure of production and of the final demand characteristics. The method provides a measure of the differences in interindustry structure among regions and also provides a measure of the way in which differences in interindustry structure and final demand distributions differentiate production across. The decomposition implemented in this paper is a variation of the method implemented by Feldman et al (1987). The spatial output decomposition (SOD) will be used to explore output differences between each region in Brazilian economy and an “average†Brazilian region. For each Brazilian state we will use SODL method that compares a state to an average Brazilian interindustry coefficient table and an average vector of final demand levels. The SODL method, emphasizes differences in the sizes of the state economies. Key-words: spatial output decomposition, Brazilian economy; regional economic structure JEL CODE: R15 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p896&r=geo |
| By: | Tomoki Ishikura; Atsushi Koike; Keisuke Sato |
| Abstract: | Spatial Computable General Equilibrium (SCGE) models are convenient methods of the analysis of the change of inter-regional economic interaction or regional benefit by policy shocks. Recent SCGE models have two main streams in terms of the assumption of market structure; perfect competition models and monopolistic competition models. Benefit measured by perfect competition based models is usually independent of economy of scale and therefore the policy assessment result is consistent with normal cost-benefit analysis. It is an important factor for practical welfare analysis when validity of policy implementation is discussed from a point of view of efficiency. On the other hand, monopolistic competition based models is suitable to theoretical framework of new economic geography field which highlights the economic agglomeration. Agglomeration effect is also an important factor from a point of view of regional economic development effects. Thus the both of two types of models have theoretical and practical merits respectively. However, the results of the model analyses of course depend on the model formulations and can be different in not only detail but also feature of benefit distribution. Understanding the difference of the model outputs by theoretical assumption is crucial theme of practical policy assessment. This paper attempts to compare the economic effects of a road transport development project estimated by a perfect competition based SCGE model and a monopolistic competition based SCGE model quantitatively. Our analysis emphasizes especially the differences in the magnitude of benefit and the regional distribution pattern of benefit because they are usually the largest interests of actual policy assessments. The results show that elasticity of substitution, which is a dominant parameter of monopolistic competition models as a key factor of markup, sensitively affects to benefit and its distribution. It mainly causes the difference of the outputs of the perfect competition based SCGE model and the monopolistic competition model, which implies that the elasticity parameter should be chosen carefully. We furthermore analyze the relationship between size of analysis target region and benefit as well as sensitivity analysis of model parameters. The analysis shows that the regional scale also influences to the benefit estimation in particular by monopolistic competition model. Finally, we summarize the tendency of model outputs of the two types of the models and points to keep in mind for the practical policy analysis by SCGE models. Key words: Spatial Computable General Equilibrium model, Perfect Competition, Monopolistic Competition JEL Classification: C68, R13, O18 Other Choice of Theme: H. Infrastructure, Transport and Communications |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p333&r=geo |
| By: | Marcus Berliant; Hiroki Watanabe |
| Abstract: | Zipf's law is one of the best-known empirical regularities of the city-size distribution. There is extensive research on the subject, where each city is treated symmetrically in terms of the cost of transactions with other cities. Recent developments in network theory facilitate the examination of an asymmetric transport network. Under the scale-free transport network framework, the chance of observing extremes becomes higher than the Gaussian distribution predicts and therefore it explains the emergence of large clusters. City-size distributions share the same pattern. This paper proposes a way to incorporate network structure into urban economic models and explains the city-size distribution as a result of transport cost between cities. Keywords: Zipf's law, city-size distribution, scale-free network JEL classification: R12, R40 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p601&r=geo |
| By: | Jordi Jofre-Monseny; Raquel MarÃn-López; Elisabet Viladecans-Marsal |
| Abstract: | The objective of this paper is to analyze the influence of industry characteristics on the localization and urbanization agglomeration patterns of new firm location. To this end, we analyze the location decisions of new manufacturing firms in Spain. First, for a 3-digit level, we identify for each industry which type of agglomeration economies –localization or urbanization- explain new firm’s location. And second, using the coefficients obtained in these estimations for both agglomeration economies, we analyse which industry characteristics are the sources that explain differences in the strength of these economies. We focus on industry characteristics related to the three microfoundations of agglomeration that have been most prominent in the theoretical literature: labor market pooling, input sharing and knowledge spillovers. Our results point out that for industries with high influence of localization economies on their location patterns what matters is the labour market pooling mechanism. For the industries with higher effect of urbanization economies on their location patterns, knowledge spillovers and output sharing are the sources of agglomeration. The dependence of natural resources affects negatively the incidence of urbanization agglomeration economies on firm location. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p820&r=geo |
| By: | Wibke Strahl; Ingrid Machold; Thomas Dax |
| Abstract: | In spite of an unbroken interest of migrants for metropolitan areas and cities, the immigration of foreign people into rural, and as well peripheral, regions of Austria increasingly receives attention over recent years. Actually, 21% of the population of foreign origin live in municipalities with less than 5,000 inhabitants. In more and more peripheral regions population losses caused by a low birth rate and a negative internal migration can be significantly reduced by a positive external (i.e. international) migration balance. These demographic changes lead also to an increase in the diversity of society of rural regions. Many analysts underpin the additional potential provided through a multi-cultural society resulting in new ideas and innovative activities for regional policy, in addition to the more popular concerns for adaptation and integration challenges. This paper draws from a national project on international migration processes and their impact on rural regions of Austria, providing an analysis of statistical data of internal and external migration flows, changes in the demographic structure, and differentiation of migrants according to their countries of origin for the period 2002-2010. The analysis is carried out at the regional level of NUTS 3 and uses the up-dated EU-Commission’s classification based on the OECD typology (Dijkstra and Poelman 2008). Furthermore, the paper will offer initial insights into empirical data about the motivation of immigrants to settle in rural regions and their functions within local communities. Thus, the paper focuses on the assessment of development opportunities for rural regions which are characterized by shrinking processes and the related challenges in terms of maintaining services of general interests, which could benefit from migration processes. The regional manifestations of these migration processes are systematically analysed so as to filter out so-called migration “hot spots†in Austrian rural regions. On this basis two case study regions were selected for empirical investigations about motives, challenges and socio-economic impacts of immigrants on remote rural areas. Information, gained primarily by face-to-face interviews and focus groups conversations both among migrants and the host society itself, and case studies from the current implementation of the key activity “diversity and space†of the new Austrian Spatial Development Concept (ÖREK 2011) will be presented. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p297&r=geo |
| By: | Eveline Van Leeuwen; Mark Lijesen |
| Abstract: | Equilibrium in the Hotelling model of spatial competition is guaranteed if the distribution of consumers is log concave. In the real world, nothing guarantees such a log concave distribution however, rendering the analytical model unable to provide a primer as to what one might expect from empirical applications. We develop an agent-based model of spatial competition that is capable of reproducing the results of the analytical model and also provides meaningful results for some cases where the distribution of consumers is not log concave. Using numerous simulations, on randomly drawn distributions, we derive equilibrium locations and prices and test for uniqueness. Moreover, we check whether the relationships between characteristics of the distribution (e.g. concentration, skewness) and outcomes are consistent with the analytical model. Key-words: Hotelling, agent-based modelling, spatial competition |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p156&r=geo |
| By: | William F. Maloney; Felipe Valencia Caicedo |
| Abstract: | Using subnational historical data, this paper establishes the within country persistence of economic activity in the New World over the last half millennium. We construct a data set incorporating measures of pre-colonial population density, new measures of present regional per capita income and population, and a comprehensive set of locational fundamentals. These fundamentals are shown to have explanatory power: native populations throughout the hemisphere were found in more livable and productive places. We then show that high pre-colonial density areas tend to be dense today: population agglomerations persist. The data and historical evidence suggest this is due partly to locational fundamentals, but also to classic agglomeration effects: colonialists established settlements near existing native populations for reasons of labor, trade, knowledge and defense. We then show that high density (historically prosperous) areas also tend to have higher incomes today, and largely due to agglomeration effects: fortune persists for the United States and most of Latin America. Further, we show that extractive institutions, in our case, slavery, reduce persistence even if they do not overwhelm other forces in its favor. |
| Date: | 2012–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:010017&r=geo |
| By: | Roger Bivand; Gianfranco Piras |
| Abstract: | Investments in infrastructure are often seen as preferred policies for promoting regional growth. It is clear that good infrastructure projects, based on cost-benefit analysis, should show a countercyclical pattern. Being long-term investments, the benefits should be independent of the business cycle. However, the social costs of each project would be lower in cyclical troughs, when there is surplus capacity. The paper hopes to explore whether these relationships can be demonstrated. JEL: C21, R11, R23, R42 Keywords: Regional growth, transport investments, spatial econometrics |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p366&r=geo |
| By: | Argentino Pessoa |
| Abstract: | Nowadays, policy makers in charge of designing innovation policies, especially at the regional level, are more and more adopting the cluster approach either with a view to accelerate the existing clusters or for providing the basis for the emergence of new ones. In fact, not only as a consequence of their appeal as an interactive and territorially embedded vision of innovation but also owing to a lot of other reasons, clusters are usually considered as key instruments for promoting competitiveness, industrial development, innovation and growth. But, although cluster policies have a potential for generating benefits, they also entail costs and risks. Additionally, as clustering is something that has been happening spontaneously during time, the presence of potential benefits from cluster initiatives is not per se a sufficient foundation or a validation for policymakers to get involved. The key question is whether and how policymakers can add value through appropriate measures, beyond the outcomes that markets and market players produce on their own. Furthermore, if clusters are so valuable for regional productivity, and surge of particular historic, cultural and societal circumstances, why are policies needed? Which policies? Undertaken by whom, and how? In this paper we’ll search answers to these questions. However, this is not an easy task as there is a lot of confusion around the cluster concept. First, as some authors have highlighted, there is a vulgarisation and a tendency to oversimplify the definition of “cluster†and, so, part of the popularity of clusters lies in its vagueness and definitional elusiveness. Second, in today’s policy world, clusters are acquiring “the discreet charm of obscure objects of desireâ€. Third, these particularities prevent an accurate policy evaluation. Furthermore, while there is an extensive literature that focuses on the cluster analysis, the connection between clusters and policy has been mainly ignored. Finally, if cluster policies differ from related and partly overlapping approaches, such as Industrial Districts, Innovation Systems and Triple Helix there may be, in practice, a conflict in the application of these different perspectives. Given the above problems, this paper aims at contributing for identifying the key features of the innovative clusters and addresses the most critical issues in the cluster policy, contributing in this way for filling the existent gap between cluster analysis and policy. Keywords: agglomeration, clusters, cluster policy, innovation, competitiveness, externalities, regional economic development. JEL classifications: L25; L26; R11; R58. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p250&r=geo |
| By: | Francisco Yépez Muñoz |
| Abstract: | European Cohesion Policy has traditionally been considered as a useful tool to advance in the economic integration of the European Union by helping less developed regions in their convergence process with more developed ones. Nowadays European Cohesion Policy and Structural Funds are one of the main instruments of intervention of EU authorities, so it is being used more and more in relation with other european policies and not only for its original purpose of balancing economic differences among regions. The aim of this paper is to analyze, through the particular case of Andalusia, the impact of the strategy Europe 2020 and its translation to the new Regulations of Cohesion Policy proposed by the European Commission on October 6, 2011, in regions traditionally beneficiaries of European Cohesion Policy. This analysis should be understood in the context of one of the most serious economic crisis in recent years, which has particularly affected some of priority regions for Cohesion Policy, as it is the case of Andalusia. JEL-Classication: H54, R58 Keywords: Cohesion Policy, Regional Economics, Regional Policy, Europe 2020 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p750&r=geo |
| By: | Enrico Orrù |
| Abstract: | This research claims that investing European Union (EU) Structural Funds in Learning Mobility (LM) might lead to further regional polarization. LM is a type of labour mobility finalized to acquire new knowledge (human capital) and social networks (social capital). Historically, LM has been supported by space neutral policies, like the ERASMUS programme. However, after the mid-tem review of the Lisbon strategy (2005), also Cohesion Policy started to invest in LM and today it is considered an important priority by 1/3 of European Social Fund national programming documents (EU, 2010i). This, even though there is no evidence of LM being consistent with the historical objective of Cohesion Policy: real convergence (Molle, 2007). Human capital theory predicts investment in education to improve labour market outputs. However, when it comes to lagging regions this might not be the case both because of brain drain (Becker, 1964) and because of their inefficient labour markets (RodrÃguez-Pose and Vilalta-BufÃ, 2005) . In order to shed light on these issues, this paper relies on a case study: the programme Master and Back (M&B). M&B is an early example of Structural Funds devoted to learning mobility and has been carried out since 2005 by the Italian region Sardinia. It consists of financing young Sardinian residents endowed with excellent CVs to take masters and PhDs in the best world universities and then of facilitating their return by means of economic incentives. In order to evaluate the impact of the programme, the labour market outputs of the recipients have been compared to those of a suitable control group by means of Propensity Score Matching (Rosenbaum and Rubin, 1983). In particular, the following outputs have been considered: odds of employment, earnings and odds of emigration. Both administrative data and web survey data have been collected. Overall 207 treated units and 1,201 control units have participated to the survey, corresponding respectively to 50% and 20% of response rate. The results show that M&B has had no significant effect neither on odds of employment nor on earnings, while it seems to have increased the odds of emigration. These findings imply that lagging regions should be very careful when investing in learning mobility and that EU Cohesion Policy should pay more attention to the risks of further regional polarization. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p402&r=geo |
| By: | Michael Barber; Thomas Scherngell |
| Abstract: | An overarching concern in regional science is the characterization of interactions—such as commuter flows, transport, migration, or knowledge flows—within and between subnational spatial units. In this work, we use techniques from social network analysis to address the quality, rather than the quantity, of such interactions. Given the great current interest in European R&D networks, in which organizations from the science and the industry sector distributed across European regions perform joint R&D, we focus on interactions constituting knowledge flows in the European R&D network, as inferred from Framework Programme (FP) data. To assess a specific quality of these region-to-region interactions, we make use of the concept of edge betweenness centrality, which assesses the power of a relation based on the load placed on the corresponding network edge. Betweenness centrality is calculated using the geodesic paths between all distinct pairs of network vertices. Those vertices and edges required by relatively many of the paths thus often lie between other vertices; the fraction of the shortest paths on which an edge occurs is defined as the edge betweenness centrality. Edges with high betweenness centrality have the greatest load, are strategically positioned, and potentially can act as bottlenecks for the flows. We use this idea to evaluate knowledge flows between organizations in the European R&D network, considering several ways to relate the betweenness centrality at the level of FP project participants to knowledge flows at the NUTS2 regional level. We do so by aggregating betweenness centrality values calculated using bipartite graphs linking organizations to the FP projects in which they participate, considering annual FP data between the years 1999 and 2006. We determine the most central inter-regional knowledge flows, describe how this changes over time, and consider the implications for knowledge flows in European R&D networks. We model the centrality of the flows by means of spatial interaction models, estimating how geographical, technological, and social factors influence which region pairs become bottlenecks in the flow of knowledge. The results have meaningful implications to European R&D policy, in particular concerning which region pairs constitute the core in European R&D networks and which mechanisms drive the formation of this regional core. Keywords: European R&D networks, social network analysis, betweenness centrality, Framework Programmes JEL codes: L14, O31, R12 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p460&r=geo |
| By: | László Szerb; Raquel Ortega-Argilés; Zoltán Ãcs; Alicia Coduras |
| Abstract: | The purpose of this paper is to contribute to our understanding of regional economic development by constructing a regional entrepreneurship index that captures the essence of the contextual features of entrepreneurship and fills a gap in the measurement of economic and social development in the cases where high heterogeneity is found in the entrepreneurial climate between countries and regions. This paper builds on Acs and Szerb (2011) and aims to provide a regional application of the Global Entrepreneurship and Development Index (GEDI). Originally the GEDI has been developed to measure national level of entrepreneurship. The GEDI refers to the contextual feature of entrepreneurship by focusing on the twelve pillars of entrepreneurial attitudes, entrepreneurial action and entrepreneurial aspirations. The country level index construction integrates 31 variables, 16 from the GEM (Global Entrepreneurship Monitor data) adult population survey, and 15 from other data sources, into 14 pillars, three sub indexes and a ‘super index’. One of the most important finding of Acs and Szerb (2011) is that the relationship between entrepreneurship and economic development appears to be mildly S-shaped. The model has important implications for development policy. The regional application of the GEDI is relatively straightforward, since the GEM related individual variables are available in regional levels for a few countries, including Spain. The key element of the regional entrepreneurship index construction is to find regional level institutional data that are available also in the country level. Out of the 15 institutional variables we apply for the entrepreneurship index construction 10 are available in the NUTS-2 regional levels that is the same or very similar to the country level variables. Because of the lack of the remaining four pillars we used the Spanish country level variables. While the overall regional level entrepreneurship and development index for the Spanish regions are calculated as benchmarking the country level pillars the analysis focuses on comparing 17 Spanish autonomous regions. This paper provides tailor-made entrepreneurship policy suggestions for the different autonomous Spanish regions by showing the relatively weak and strong points of their entrepreneurial climate. For an optimum configuration of a public policy to improve entrepreneurship we suggest different levels of public policy as national, multi- and single levels depending on the deviation of a particular pillar from the best benchmarking value and on how many regions are affected by the weakness of a particular pillar. Key Words: Entrepreneurship, Regional Development, Regional Policy JEL: L26, R11, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p781&r=geo |
| By: | Marijana Sumpor; Irena Dokic |
| Abstract: | European cohesion policy has been inspiring Croatian national policy makers for a decade in the attempt to organize and prepare the institutional structures for new ways of designing and implementing a modern regional development policy. Emphasis has been put to a large extent on the design of strategic development documents, while implementation remains problematic. As Croatia is becoming an EU member in July 2013, the future EU Cohesion policy becomes also important for national development policy. Through EU pre-accession funded projects, the first regional operational programmes have been drafted in the period 2001-2003. At that time, no NUTS classification of regions existed and focus was on counties, which today have NUTS III level status. Croatia’s regional policy was rather fragmented and oriented towards areas of special concern such as war torn areas, island, hilly and mountainous areas. The process of creating an integrated regional policy framework including a law, by-laws and a national strategy started in 2003 and ended in May 2010. Since then, all counties were obliged to formulate 3 year integrated strategic programmes involving local stakeholders into partnerships. The process is designed according to a legally prescribed methodology that is based on EU programming and partnership principles. On NUTS II level, functioning as statistical regions, three coordination partnerships of county representatives meet and discuss joint project proposals to be submitted to the national level institutions. These in turn try to establish project pipelines on national level to be ready for EU structural funding. The entire process is promising, but is full of complex and intertwined problems on all governance levels, which significantly influences policy implementation. While policymakers and public administrations are thinking more of the efficiency of the system and its institutions, the regional and local stakeholders’ and the research community’s attention is more on effectiveness of the policy. In order to establish regional governance system that works, cooperation and coordinated actions of all sides is required. The main aim of this paper is to present the evolution of the partnership based regional development approach in Croatia across governance levels and to critically reflect on the outcomes of this process. It is about the creation of new governance structures and new ways of how institutions work. Many problems appear along the way, but some positive experiences can be presented and analysed. Results from a recent survey and research study on experiences in regional development planning in all Croatian counties will be presented. Key words: regional development policy, cohesion policy, governance, institutions, strategic planning JEL: R58 (Regional Development Planning and Policy), H83 (Public Administration), P11 (Capitalist Planning, Coordination and Reform) |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p770&r=geo |
| By: | Juan Alcacer; Mercedes Delgado |
| Abstract: | We explore the impact of geographically bounded intra-firm spillovers (internal agglomeration economies) and geographically bounded inter-firm spillovers (external agglomeration economies) on firms’ location strategies. Using data from the Census Bureau’s Longitudinal Business Database and the U.S. Cluster Mapping Project, we analyze organic expansions of biopharmaceutical firms (by both new establishments and employment increase in existing establishments) in the U.S. in 1993-2005. We consider all activities in the value chain and allow location choices to vary by R&D, manufacturing, and sales. Our findings suggest that (1) internal and external agglomeration economies have separate, positive impacts on location, with relevant differences by activity; (2) internal economies of agglomeration arise within an activity (e.g., among plants) and across activities (e.g., between manufacturing and sales); (3) the effects of internal economies across and within activities vary by activity and type of organic expansion; and (4) across-activity internal economies are asymmetric. |
| Keywords: | Location choices, agglomeration economies, value chain, organization theory |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:12-33&r=geo |
| By: | Johan P Larsson |
| Abstract: | This paper exploits a geocoded, publicly audited, full population dataset on employment and wages in Sweden’s city areas, to analyze the relationship between density of economic activity and individual wages. The analysis is based on 250-by-250 meter (about 0.15 miles), 1 km2, 9 km2 and 100 km2 squares. Fixed effects individual-level wage regressions confirm that workers are positively affected by proximity to economic activity, but that the results are dependent on spatial resolution. A doubling of density in a 250 meter square is associated with a 3.7 percent increase in wages, holding individual characteristics and industry structure constant. Basing the analysis on any of the larger squares decreases the elasticity by about one third, confirming the modifiable areal unit problem, and lending support to arguments in favor of the attenuation of human capital spillover effects. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p930&r=geo |
| By: | Yiannis Saratsis; Angelos Kotios; George Galanos |
| Abstract: | Greek economic crisis and its impact on regional development and policy In the past 3 decades the main financial support mechanism for the development of Greek Regions was the European Cohesion Policy and less national instruments as the Regional Investment Framework and public investments. Under the provisions of Cohesion Policy, a significant amount of money was given to all countries, including Greece of course, in order to accelerate the development dynamics in Europe. Moreover, this money was spent in specific interventions that were estimated to have positive influence in regional competitiveness and promote regional development. The current economic crisis that has emerged in the Greek economy has already an enormous effect on several national and regional development indicators like GDP growth, unemployment, social exclusion, industrial production, bank credits etc., and also has shrunk the available financial resources for public and private investment through the Community Structural Funds and the national regional policy funds. This is a negative perspective regarding the Greek Regions that still face many structural problems, that have been deteriorated during the current crisis. This article discusses some of the above problems, and focuses on the changes that need to be implemented in Greek Regional Policy under the current situation. Having a fiscal problem that urgently needs to be addressed, the reductions in all public spending can result in the deduction of available resources for regional policy. This will result not only in smaller effectiveness of the interventions, but also Greek Regions will not be able to comply with the requirements and the goals of the Europe 2020 Strategy. Furthermore, not all the Greek Regions have the same economic structure. So, the changes that must be applied must have a diversified character for each region. Also, the provisions for the 2014-2020 Programming Period do not take into account the crisis in the Greek Economy and estimate Greek Regions as having moved from the “Cohesion” goal (with the exemption of 3 Regions) and this implies that the allocated funds will be lesser in the next years. With all that in mind the paper concludes with some proposals for the review of the Greek Regional policy for the remaining of the 2007-2013 period and also some suggestions for the 2014-2020 period, assuming that there cannot be significant changes in the European context of the overall Cohesion Policy. Key Words: Economic Crisis, Greece, Regional Policy, European Cohesion Policy JEL Codes: R58, O21 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p505&r=geo |
| By: | VICTOR RAUL LOPEZ RUIZ; DOMINGO NEVADO PEÑA; JOSE LUIS ALFARO NAVARRO |
| Abstract: | New Decisional Support Systems (DSS) are necessary at regional (local) level. DSS have to be able to estimate and control intangible capitals as the main source of wealth creation. Traditional analysis of internal accounting based on economic and financial models for companies, or supported by the economic analysis of income and employment, provides a short-term picture. In other words, the long term is not at the forefront and the value of the entity being studied is not conveniently quantified. Therefore, tools and approaches that provide a full future vision of any organization or institution should be a strategic priority for economic development. In this line, both the Lisbon Strategy and Leipzig Charter (2007) on Sustainable European Cities recognize that cities are 'centers of knowledge and sources of growth and innovation'. The exploitation of this knowledge depends on factors such as: training, existence of social and cultural networks, cultural excellence in research centers and the networks of exchange between science and industry. For this reason, integrated urban development policies are necessary. These policies support communication networks and optimize location structures as strategies that provide opportunities for social and democratic participation for the citizens. In order to achieve the above objectives, it is necessary to have tools to measure a territory's knowledge, that is, to design models to identify measure and monitor the different elements of this knowledge. This work proposes a approach to measure and evaluate this knowledge using the concept of intellectual capital for territories, but applied to cities. The measure of this intellectual capital enables us to determine what we must take into account to make cities a source of wealth, prosperity, welfare and future growth. Furthermore, local intellectual capital provides a measure of hidden wealth of the city and a new indicator with a long run vision. This capital is essential for the economic growth of cities, but estimation in cities depends on the level of information available. Thus, in this paper we develop and explain how to implement a model to estimate intellectual capital in cities. In this sense, our proposal is to provide a model for measuring and managing intellectual capital using socio-economic indicators for cities. These indicators offer a long term picture supported by a comprehensive strategy for those who occupy the local space, infrastructure for implementation and management of the environment for its development. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p315&r=geo |
| By: | Ageliki Anagnostou; Ioannis Panteladis; Maria Tsiapa |
| Abstract: | The present paper discourses on how European integration and gradual enlargement has affected the synchronicity in business cycles in EU regions. The analysis, which is conducted on annual data at the NUTSII level, is based on the following grounds: First, it examines the degree of synchronicity in business cycles in EU regions associated with specific spatial and economic characteristics that explain, to a large extent, synchronisation dynamics. Secondly, the study investigates the existence of a time-varying national ‘border effect’, with eventually differentiated dynamism among the old and the new EU member states. For this purpose a dynamic Panel VAR model is employed in order to investigate the impact of spatial variables and productions structures on business cycles taking into consideration the variation in time and cross regions specific characteristics attributed to the integration process of these regions. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p924&r=geo |
| By: | VASILIS ANGELIS; Eleni Gaki; Katerina Dimaki; Nikolaos-Iason Koufodontis |
| Abstract: | Europe as we know it, the European Union of 27 countries, has evolved from the European Coal and Steel Union of a few developed countries in a comprehensive economic and political union, which now embraces and unites most of the European continent (EU 2011). Each successive transformation and enlargement of the Union has brought in new people and countries with large differences and particularities. Countries of southern Europe and later the former eastern socialist republics joined the initial core of the developed Western economies. Today, between countries of the European Union, different zones are distinguished in relation to levels of economic and social development. One group consists of the prosperous western and northern economies and includes countries such as Germany, Finland, the Netherlands, or Denmark. The second group includes regional and Mediterranean countries with less developed economies such as Spain, Portugal, Italy, Greece or Ireland. Finally, the third group includes countries of former Eastern economies, relatively weak, completing the transition from socialism to capitalism. In this group are countries such as Bulgaria, Poland, Romania, Latvia. The existence of many different countries in a broad geographic area designates the regional problem at three levels. The first level concerns the groups of countries mentioned above. At a second level variation exists within countries. Finally, at a third level, in the unified Europe, differences are between regions across national borders. Many studies argue that while disparities between member countries are decreasing gradually, the disparities within countries are increasing. As a result, the overall gap between the rich and developed regions on one hand and the less developed regions on the other hand is expanding. The current economic crisis has affected almost all European countries but the countries of the European south and the former eastern socialist republics have suffered the most. Our objective in this paper is to quantify regional disparities as expressed by several growth indicators, such as GDP per capita, employment/unemployment rates, household savings and use them to compare the regional disparities at the three levels described above before and after the crisis. Keywords: Economic Crisis, Regional Disparities, GDP, Unemployment. JEL Classification: R10, R11, R15 Other possible choices for the theme: E or special session ZJ |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1158&r=geo |
| By: | Henry Overman; Elias Einio |
| Abstract: | We investigate the impacts of a significant area-based policy intervention (LEGI) that aimed to increase employment and productivity in 30 disadvantaged areas across England. In order to identify the causal effects of the programme, we use panel data at a fine spatial scale covering years before and after the launch of the program, and exploit several institutional features that determined whether or not an area becomes supported. Using spatial differencing, we find evidence of significant displacement from non-treated to treated areas close to the treatment area boundary. Aside from this displacement, we find little evidence of significant impact on treated areas nor of a net impact of treatment once we take account of this displacement. Spatial differencing combined with a regression discontinuity approach based on eligibility criteria confirm these findings. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p164&r=geo |
| By: | Baltzopoulos, Apostolos (The Nordic Centre for Spatial Development); Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Tikoudis, Ioannis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | The extent and importance of spin-offs for industrial dynamics have been analysed in a number of previous studies, yet knowledge is surprisingly scarce about the determinants that trigger such entrepreneurial ventures. In the current analysis we use unique and detailed Swedish data to comprehensively explore how individual, firm, regional, and industry variables influence spin-offs during 1999-2005. In addition to the expected general positive impact of regional size and entrepreneurial culture, we find specific features for knowledge intensive manufacturing and service production on the propensity of employees to spin off a new venture. Moreover, we use an entropy measure to disentangle unrelated and related variety, and find that the former has a significantly negative impact while the latter a significantly positive effect on the propensity of the individual to start a spin-off. |
| Keywords: | Spin-offs; entrepreneurship; industries; regions |
| JEL: | D01 O12 O18 R10 |
| Date: | 2012–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0265&r=geo |
| By: | Cristina Brasili; Annachiara Saguatti; Federica Benni; Aldo Marchese; Diego Gandolfo |
| Abstract: | The recent worldwide economic crisis requires a new focus on the theoretical framework of analysis of local development. Particular attention has been devoted to the study of the role of territories, no longer conceived as pure geographic spaces, but rather an important resource that can generate externalities that favor local territorial competitiveness. Key concepts such as the “industrial district†by the Italian scholars (Becattini, 1990; Sforzi, 1991; Signorini, 2004), the Marshallian “production cluster†(Marshall, 1920) and the French districts industriels (Guégan e Rousier, 1989) highlighted the centrality of the intangible factors, peculiar to some territories, adding to the traditional production factors. The concept of “territorial capitalâ€, that has become popular both among policy makers (European Commission, 2005) and scholars (Camagni, 2008; Capello et al., 2010), embodies these theories and suggests an innovative framework of analysis and measure of the assets that make a region attractive and competitive. In the Italian social and economic context, characterized by its regional specificities and excellences, it is particularly important to leverage these assets to boost the economy both at local and national level. In this paper, the authors provide a measure of the main components of territorial capital in the Italian regions, so as to provide a useful means for designing effective public development policies, which are now required to take territorial differences into major account. The possible structural effects of the last economic crisis on the regional endowment of territorial capital are also investigated. Taking the main dimensions of territorial capital (productive, cognitive, social, relational, environmental, settlement and infrastructural assets) identified by Camagni and Dotti (2010) as a starting point, several synthetic indexes are built, that measure those assets for all Italian regions. The impact of economic crisis on these dimensions is evaluated thanks to a dynamic analysis of the synthetic indexes, covering the period between 1995 and 2009. The main elements of discontinuity are also highlighted. This analysis has two main goals: on the one hand, to show a coincident and clear picture of the potential of Italian regions in terms of territorial capital in a comparative framework; on the other hand, the recent developments of Italian regions are described with respect to the structural effects of economic crisis on their territorial capital. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p644&r=geo |
| By: | Laura Resmini; Laura Casi |
| Abstract: | In the last years, and particularly since the publication of the famous Barca Report (Barca, 2009), the European Union (EU) is starting to acknowledge the importance of spatially targeted regional policies and to understand how crucial a territorial approach can be in order to achieve desirable social, economic and environmental outcomes. Indeed the increasing complexity in the path to regional growth and development is fostered by globalization and the creation of large integrated areas such as the European Union, where regions need to leverage their territorial capital to compete effectively. In this context we analyse the impact of FDI on growth and development of European regions, discussing the role of different components of territorial capital in determining the intensity and the direction of such an impact. In doing so we start from the assessment of the impact that various types of FDI can have according to the characteristics of the country they come from (Industrialized vs. emerging countries; European vs. non-European countries) and their sector’s affiliation (i.e. low and high tech manufacturing sectors; business services vs. financial services, etc.). Then we inspect the possibility that such an impact may vary with the endowments of different type of territorial capital. In particular, the paper aims at answering to the following research questions: do different levels of agglomeration economies determine different additional FDI induced growth rates? How social capital influences the impact of FDI on the growth of a region? Does relational capital matter in the FDI-growth relationship? In order to answer these research questions, we analyse empirically the impact of different measures of FDI density on regional economic performance, measured as real GVA growth rate, exploiting FDIRegio database and Eurostat data. In order to mitigate possible endogeneity problems and non linearities in the relationship, we use different matching techniques and include various regional controls, such as human capital endowments, past growth rates and agglomeration trajectories, as well as demand and cost factors. Furthermore, in order to identify the territorial capital role in fostering the FDI-growth relationship, we allow such relationship to vary across different types of regions, grouped according to their economic specialization and social capital endowment. The latter is identified through a PCA analysis based on the results of the European Values Study, from the ZACAT - GESIS database |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p485&r=geo |
| By: | Janusz Zaleski; Zbigniew Mogi³a; Marta Zaleska |
| Abstract: | Poland as the main beneficiary of EU Cohesion Policy is an interesting target of analyses regarding the impact of financial interventions on regional economies. Obviously, of special importance for regional communities are effects of EU funds on the labour market. Greater employment- besides counteracting social exclusion- is expected to increase disposable incomes of households and consumption expenditures. This – in turn- is likely to improve well-being of regional inhabitants. Hence, impacts of EU Cohesion Policy on regional labour markets are considered to be the most tangible contribution of the EU financial assistance to higher standards of living for ordinary citizens. The main aim of this paper is to compare and confront the effects of Cohesion Policy on employment and unemployment rates with the costs of the EU financial support in the Polish NUTS-2 regions over the period 2004-2020. Making use of available counterfactual analyses, attempt is made to evaluate the cost-effectiveness of the job creation due to the EU funds. The gathered evidence will be a significant contribution to the debate on the shape of the Cohesion Policy in the new EU financial perspective. Keywords: EU Cohesion Policy, regional labour market, counter-factual macroeconomic simulations. JEL codes: R11 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p615&r=geo |
| By: | Dimitris Ballas |
| Abstract: | This paper presents a spatial microsimimulation modelling approach to the analysis of subjective well-being and happiness. The modelling approach builds on relevant research on the measurement and analysis of mental health, subjective well-being and happiness measures as well as on past and on-going spatial microsimulation work by developing and using a spatial microsimulation methodology to define personal happiness and quantify and estimate its degree for different types of individuals, living in different areas. It is argued that since the degrees of well-being vary significantly between different individuals (different people are made happy by different things, life-courses etc.), microsimulation may be an ideal methodology to study and quantify happiness at the individual level. First, a review of pertinent literature on the measurement and analysis of subjective measures of well-being and happiness is presented and a case for a spatial microsimulation approach is made. The paper then shows how a spatial microsimulation method was used to link the British Household Panel Study (BHPS) to Census small area outputs (building on on-going work on how this link can be satisfactorily achieved), adding a geographical dimension to the existing happiness research based on this dataset. In particular, in the context of the research presented here, a spatial microsimulation model is developed and used to estimate the geographical distribution of individual contentment and well-being at different spatial scales. The BHPS data is combined with UK Census Small Area Statistics data on the basis of socio-economic variables that are deemed to be important in determining subjective well-being and happiness. The next step is to demonstrate the potential of spatial microsimulation for the analysis of geographical patterns of subjective happiness and well-being for various population sub-groups living in different localities, using spatial microsimulation. The paper then discusses the potential implications of the model outputs for public policy. It also revisits the assumptions that underpin the spatial microsimulation and discusses further the strengths as well as limitations of spatial microsimulation models for happiness research. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p799&r=geo |
| By: | Andreas Kappeler; Albert Solé-Ollé; Andreas Stephan; Timo Välilä |
| Abstract: | Spending on productive infrastructure is seen as an important contributor to long term economic growth. Several authors have documented a downward trend in public investment during the last three decades and warned about its possible detrimental effects on the economy. A not well-realized fact is that productive infrastructure investment is mostly provided by sub-national governments. The aim of this paper is to analyze the effect of revenue decentralization on the provision of infrastructure at the sub-national level. We estimate the effects of revenue decentralization and earmarked grant financing on the level of sub-national infrastructure investment in 20 European countries over the period 1990-2009. The findings are compared to those obtained when using sub-national investment in redistribution, for which the theory predictions are different. To account for the high auto-correlation in the dependent variable, we apply a dynamic panel data approach. In particular, we use a Corrected Least Squares Dummy Variable (LSDVC) estimator with the lagged dependent variable included to account for the dynamic character of the dependent variable. The empirical analysis shows that decentralisation in terms of tax shares increases public investment in infrastructure; public investment in redistribution is not significantly affected by decentralisation. The positive link between total regional investment and decentralisation suggests that decentralisation on regional infrastructure investment is additional and does not go hand in hand with a considerable reduction in other types of regional investment, such as health, education or safety. As to investment grants, they have a positive impact on both types of regional investment. The negative interaction between investment grants and decentralisation for regional infrastructure investment suggest that the impact of tax decentralisation on regional infrastructure investment declines with increasing receipts of investment grants by regional governments. This result is intuitive. As the significance of the tax-decentralisation parameter suggests, higher regional decision autonomy leads to more investment in infrastructure. Attempts to undermine the power of regions through the backdoor - e.g. by introducing conditional transfers - will at least partly offset the positive effect of decentralisation. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p60&r=geo |
| By: | Ageliki Anagnostou; Stephanos Papadamou |
| Abstract: | In this paper, we examine the impact of monetary policy shocks to the real economy by investigating the effects on different regions. Annual data for GDP, employment and investment from 12 regions in Greece are used for the period 1980 to 2009. By using an unrestricted VAR model and the impulse response analysis our results show that an interest rate shock affects the economic activity across regions differently. Furthermore in our investigation, we use a dynamic PANEL VAR model so as to investigate the dynamic variation of the impact of interest rates controlling also for time and cross regions fixed effects associated with specific time invariant regions’ characteristics as well as with time variant characteristics attributed to the integration process of these regions. Therefore, these findings are very important to policy makers. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p507&r=geo |