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on Economic Geography |
| By: | S. Chandrasekhar (Indira Gandhi Institute of Development Research); Ajay Sharma (Indira Gandhi Institute of Development Research) |
| Abstract: | This paper seeks to understand what kind of economic activities are concentrated in which regions of India. Spatial concentration of jobs is measured by calculating the location quotient using information on the industry of work of the individuals in a region. The paper uses data from NSSO 2011-12 survey of employment and unemployment. |
| Keywords: | Location Quotient, Spatial Concentration, Jobs |
| JEL: | R10 R12 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2014-002&r=geo |
| By: | Remi Jedwab (Department of Economics/Institute for International Economic Policy, George Washington University); Edward Kerby (London School of Economics and Political Science); Alexander Moradi (University of Sussex) |
| Abstract: | Little is known about the extent and forces of urban path dependence in developing countries. Railroad construction incolonialKenyaprovidesanaturalexperimenttostudytheemer- gence and persistence of this spatial equilibrium. Using new data ataï¬nespatialleveloveronecenturyshowsthatcolonialrailroads causally determined the location of European settlers, which in turn decided the location of the main cities of the country at inde- pendence. Railroads declined and settlers left after independence, yet cities persisted. Their early emergence served as a mechanism to coordinate investments in the post-independence period, yield- ing evidence for how path dependence influences development. |
| Keywords: | Path Dependence; Urbanisation; Transportation; Colonialism |
| JEL: | R11 R12 R40 O18 O33 N97 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2014-02&r=geo |
| By: | Katja Bringmann; Ann Verhetsel; Thomas Vanoutrive; Jo Reynaerts |
| Abstract: | The existing literature on cluster embeddedness largely neglects the impact of finance on the development of firm?s network linkages. This is striking in so far that particularly venture capital is often referred to as ?smart money? providing firms not only with funds but also with network contacts. Thus, in this paper, we intend to quantitatively assess the impact of venture capitalists on start-ups? embeddedness. Embeddedness generally occurs along three dimensions namely the societal, the network and the territorial one. Societal embeddedness refers to the cultural environment economic actions take place in. Network embeddedness representing the structure and nature of relations an organization is maintaining and territorial embeddedness implying the degree of spatial anchoring of a firm in a specific geographical area. It is assumed that for firms and regions there are several advantages arising from deep network and, respectively, territorial embeddedness: Among others, they include local knowledge spillovers which promote innovative thinking and, subsequently, strengthen firms? global competitiveness and thereby fueling regional economic growth. In addition, particularly territorial embeddedness is reckoned as shielding to some extent against firm relocation that is widely regarded as hampering regional development. Due to the riskiness of their business, insufficient hard assets, and an unforeseeable rate of return, innovative startups are generally unable to get capitalized by more conventional sources of money i.e. bank lending and therefore often return to venture capital. Besides providing incumbent innovative firms with funds, venture capitalists, reverting to their vast sectoral knowledge and personal contacts, are frequently facilitating the entry of startups into existing personal and industry networks. Generally, it is anticipated that those network contacts are densest in the immediate neighbourhood of the investor. Summing up, given its ?social? character, it is hypothesized that venture capital is an important driver of start-ups? embeddedness that is nevertheless spatially constraint. In order to answer to what extent venture capital impacts portfolio firms? territorial and network embeddedness and whether the geographical location of the venture capitalist has an effect on start-ups? local anchoring, we conduct an empirical analysis using data on venture capital flows. By reviewing cluster embeddedness from a financial geographic perspective, this analysis complements the literature that hitherto has largely neglected the role of venture capital in this respect. |
| Keywords: | Venture capital; Industrial Cluster; Embeddedness; Social Networks |
| JEL: | R12 G24 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa13p298&r=geo |
| By: | Andersson, Martin (CIRCLE, Lund University); Gråsjö, Urban (University West); Karlsson, Charlie (Jönköping International Business School, and Centre of Excellence for Science and Innovation Studies (CESIS)) |
| Abstract: | Multinational firms (MNFs) have been shown to have a set of defining characteristics. Compared to domestic firms, they have a larger fraction of skilled workers, higher R&D to sales ratios and established networks to knowledge sources in several different countries. As illustrated by the so-called ‘anchor-tenant’ hypothesis, they can be described as “knowledge spillover agents”. MNF affiliates, as defined in this paper, are firms that are part of large domestic and foreign MNFs. In this paper we test whether the local presence of MNF affiliates generate spillover effects on the local industry. The empirical analysis focuses on as¬sessing whether the productivity of the regional manufacturing industry of non-affiliated firms is higher in regions with a large fraction of MNF affiliates. The analysis uses data on Swedish firms and is conducted on regional level as well as on firm level. The regressions show that local presence of MNFs in a region has a positive effect on Gross Regional Product (GRP) from non-MNFs. The paper also shows that regions where the low-productive non-MNFs are located appear to benefit the most from local presence of MNFs. The MNFs have, on the other hand, no effect on non-MNF productivity in regions where the high-productive non-MNFs are located. |
| Keywords: | Multinational firms; affiliates; productivity; R&D; knowledge; spillovers; skilled workers; region |
| JEL: | F23 J24 O33 R11 |
| Date: | 2014–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0343&r=geo |
| By: | Liang, Lin; Lin, Shanglang; Li, Yong |
| Abstract: | This paper empirically tests the effect of financial knowledge spillovers on agglomeration in China's financial services industry and examines the external effects on cities' economies. The authors apply hierarchical linear modeling to examine a data set that comprises 276 Chinese cities and draw the following conclusions. Firstly, they find that agglomeration in the financial services industry and the Jacobs spillovers of industry diversification both promote financial knowledge spillovers in terms of industry specialization. Secondly, agglomeration in this studied industry has a significant positive influence on a city's economic growth, while financial knowledge spillovers have a significant but negative effect on a city's economic growth. Thirdly, the tendency towards agglomeration in the financial services industry in a few major cities is clear and the clustering significantly influences cities' boundaries. Finally, China's financial services industry is limited by a serious degree of regulation and is dominated by the main banking institutions. -- |
| Keywords: | financial services industry agglomeration,industry specialization,knowledge spillovers,city economies,hierarchical linear modeling |
| JEL: | G20 O4 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:20146&r=geo |
| By: | James Cust; Torfinn Harding |
| Abstract: | The spatial distribution of oil is determined by natural geography alone. However, we show that the distribution of oil exploration is affected by the quality of countries’ institutions.A global data set on the precise location of oil wells and national borders allows for a regression discontinuity design and causal inference. Crossing a national border, moving from the average worse to average better institutional quality, generates a positive jump in the predicted number of wells by 150% in the sample of developing countries. Correspondingly, a one standard deviation increase in institutional quality increases the likelihood of drilling by about 250%. The findings underscore that proved oil reserves are an endogenous economic outcome and lend support to the hypothesis that institutions are a fundamental determinant of economic performance. |
| Keywords: | institutions, investment, oil exploration, regression discontinuity design |
| JEL: | F21 O13 O43 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:127&r=geo |
| By: | Hiroshi Goto (Graduate School of Economics, Kobe University); Keiya Minamimura (Graduate School of Economics, Kobe University) |
| Abstract: | To explain the links between population distribution and economic integration, we construct a spatial economics model with endogenous fertility. A higher population concentration increases real wages and child-raising costs, thus lowering the fertility rate. However, people migrate to more populated regions to obtain higher real wages. We show that mobility across regions results in more people flowing into highly populated regions, but lowers fertility rates there. The population growth path resembles a logistic curve in the early phase, but population decreases in the last phase. Additionally, economic integration leads to population concentration and decreases population size in the whole economy. |
| Keywords: | Population Change, Migration, Agglomeration, Trade freeness |
| JEL: | F15 J13 R12 R23 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1405&r=geo |
| By: | Votsis, Athanasios |
| Abstract: | This paper provides evidence for the spatial effects of ecosystems on value formation and differentiation in the urban residential property market. An amenity-based location theory is used in conjunction with hedonic function estimations from the Finnish cities of Helsinki, Espoo and Pori to distinguish between two different ways that ecosystems influence market value: a citywide spatial equilibrium and an additional layer of micro-scale fragmentation. The effect across spatial scales is complemented by two forms of distance decay: a logarithmic decay and a linear dependence on distance to the city centre. Lastly, the estimated marginal values exhibit noticeable temporal variation, even after using de-trended prices. The results highlight the structural role of the ecosystem in the housing market and suggest that the effect of ecosystem services is clearly conditional on the spatiotemporal context, with a visible degree of selectivity to specific services. It is also evident that a realistic understanding of the role of the ecosystem on property value must assess its effects as spatial bundles of services rather than singular flows of one service at a time. |
| Keywords: | urban ecosystems; spatial effects; residential property value |
| JEL: | C31 Q51 Q57 R31 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53742&r=geo |
| By: | Elena Vakulenko (National Research University Higher School of Economics) |
| Abstract: | We analyze the impact of migration on wages, income and the unemployment rate. Using the official Russian statistical database from 1995 to 2010, we calculate a dynamic panel data model with spatial effects. There is a positive spatial effect for wages and unemployment. There is no significant impact of migration on the unemployment rate. We find a negative relationship between net internal migration and both wages and income, which is explained by the positive effect of emigration. However, the migration benefits are not big enough to make a difference on the Gini index across regions. We conclude that migration does not affect the regional convergence of economic indicators. |
| Keywords: | convergence, migration, wage, income, unemployment rate, spatial dynamic panel data models. |
| JEL: | R23 C23 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:53/ec/2014&r=geo |
| By: | Remi Jedwab (Department of Economics/Institute for International Economic Policy, George Washington University); Alexander Moradi (University of Sussex) |
| Abstract: | What is the impact of modern transportation technology on economic change in poor countries? Rail construction in colonial Africa provides a natu-ral experiment. Using new data on railroads and cities over one century within one country, Ghana, and Africa as a whole, we ï¬nd large permanent effects of transportation technology on economic development. First, railroads had strong effects on agriculture and urbanization before independence. Second, using the fact that railroads collapsed post-independence, we show they had a persistent impact. Evidence suggests that railroad cities persisted because their emergence served as a mechanism to coordinate investments for each subsequent period. Historical shocks can thus trigger an equilibrium in which cities will emerge to facilitate the accumulation of factors, which promotes long-term development. |
| Keywords: | Transportation Technology; Development; Path Dependence; Africa |
| JEL: | O1 O3 O18 R4 R1 N97 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2014-03&r=geo |
| By: | Olga A. Demidova (National Research University Higher School of Economics) |
| Abstract: | The purpose of this study is to identify the spatial effects of the main macroeconomic indicators of the eastern and western regions of Russia. These regions differ significantly in population density and the distances between cities. The main research question we are interested in is the following: how are events occurring in one of the western regions, such as economic growth or a decrease in the unemployment rate, effecting similar indicators in other western and eastern regions. The spatial effects of the western and eastern regions, when considered separately, may differ both qualitatively and with of the ‘flow on effect’. The determinants of the same macro-economic indicators in the eastern and western regions may also differ. In order to test the hypothesis of a possible difference in the spatial effects and determinants for these regions, we have developed a special class of model with four spatial matrices (west-west, east-east, west-east, and east-west) and a double set of control variables (one for each type of region). As the macroeconomic indicators monitor the rate of unemployment in the region, the real regional wage and GRP growth for the year were chosen for our models. We controlled the variables describing the socio-demographic situation in the region, migration processes, economic development, and export-import activity in the region. The models were estimated by the Arellano-Bond method on panel data for Russian regions over 2000-2010. Our analysis revealed, 1) a positive spatial correlation of the main macroeconomic indicators for the western regions, 2) both positive and negative externalities for the eastern regions and 3) the asymmetric influence of eastern and western regions on each other. Usually “impulses” from the western regions have a positive effect on the eastern regions, but the “impulses” from the eastern regions usually do not affect the western regions. |
| Keywords: | Russian regions, spatial effects, spatial econometric models |
| JEL: | R1 C21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:50/ec/2014&r=geo |
| By: | Daniel Nepelski (European Commission – JRC - IPTS); Giuditta de Prato (European Commission – JRC - IPTS) |
| Abstract: | The EIPE project aims to identify ICT R&D&I-related activities which are geographically concentrated and which demonstrate high performance in ICT innovative activities: the European ICT Poles of Excellence. It also aims to help map the dynamics of ICT-related innovation and economic geography in Europe, pointing to the presence and possibly the emergence of agglomerated and globally performing ICT activities. An additional challenge of the EIPE project is that this identification process had to be based only on the analysis of quantitative data, and built on a set of relevant criteria leading to measurable indicators. The present report documents the methodologies and data sources used for this purpose. |
| Keywords: | ICT; information and communication technologies; innovation, R&D, ICT industry; region; Europe; Poles of Excellence; clusters; indicators; methods |
| JEL: | O32 O52 R12 R28 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc85356&r=geo |