Showing papers in "Papers in Regional Science in 2014"

The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?

Abstract: We estimate the respective importance of spatial sorting and agglomeration economies in explaining the urban wage premium for workers with different sets of skills. Sorting is the main source of the wage premium. Agglomeration economies are in general small, but are larger for workers with skills associated with non-routine job tasks. They also appear to involve human capital accumulation, as evidenced by the change in the wage of workers moving away from denser regions. For workers with routine jobs, agglomeration economies are virtually non-existent. Our results provide further evidence of spatial density bringing about productivity advantages primarily in contexts when problem-solving and interaction with others are important.

Spatial patterns and determinants of skilled internal migration in China, 2000–2005†

Abstract: type="main" xml:lang="es"> Este articulo examina los patrones espaciales y los determinantes de la migracion interprovincial en China de trabajadores cualificados mediante el uso de datos de 2005 de una encuesta por muestreo del uno por ciento de la poblacion. Si bien la region costera se beneficia de la afluencia de mano de obra cualificada, el resto de China sufre un grave exodo intelectual. Las estimaciones a partir de modelos de gravedad binomiales negativos con exceso de valores cero indican que las oportunidades de empleo, sobre todo las diferencias salariales interregionales, juegan un papel preponderante con respecto a la atraccion de mano de obra cualificada, y que el impacto de los servicios en la migracion cualificada resulta ser pequeno y menos claro. Estos hallazgos sugieren que las personas con cualificaciones de China priorizan mas sus perspectivas de carrera que la calidad de vida en el proceso de toma de decisiones acerca de la migracion.

Broadband and knowledge intensive firm clusters: Essential link or auxiliary connection?

Abstract: This study evaluates the relationship between the spatial distribution of broadband providers and the presence of knowledge intensive firm clusters in US counties. Results high- light this relationship is heterogeneous and localized. In some places, broadband appears to be an essential link that enables knowledge firms to strategically locate in lower cost counties and in close proximity to major knowledge centres. In other places, the availability of broadband Internet connections are unable the negative externalities associated with locations in more remote areas of the country. From a policy perspective, this suggests that broadband should be viewed as a key component, but not the only component, of comprehensive local economic development plans.

Human capital in firms and regions: Impact on firm productivity

Abstract: This paper analyses the importance of human capital for firm productivity and makes a clear distinction between the role of human capital inside and outside of the firm. A multilevel model is used ...

Tourism and regional growth in Europe

Abstract: type="main" xml:lang="es"> Este articulo analiza el impacto del turismo nacional e internacional en el proceso de crecimiento economico para 179 regiones europeas. El analisis econometrico se basa en un marco de regresion de crecimiento espacial en el que la tasa del PIB per capita de crecimiento a nivel regional entre 1999 y 2009 depende de flujos turisticos, ademas de las variables de crecimiento tradicionales. Ademas del control de las condiciones iniciales, tambien incluimos un amplio conjunto de covariables con las que tener en cuenta la dotacion de capital humano y tecnologico y las caracteristicas geograficas, sociales e institucionales de las regiones. Los resultados, confirmados por varias pruebas de robustez, demuestran que el crecimiento regional se ve afectado positivamente por el turismo nacional e internacional.

The impact of Hudson‐Bergen Light Rail on residential property appreciation

Abstract: type="main" xml:lang="es"> Este articulo analiza el impacto del sistema de ferrocarril ligero Hudson-Bergen (HBLR por sus siglas en ingles) sobre los precios de inmuebles residenciales. A diferencia de estudios similares que utilizan un modelo hedonico con datos transversales, aqui se utilizan datos de ventas repetidas de inmuebles que se vendieron al menos dos veces entre 1991 y 2009. Se muestra la influencia en el precio de las viviendas de la proximidad a la estacion mas cercana del HBLR, una mejor accesibilidad relativa a diferentes estaciones y la fecha de inauguracion esperada de la estacion de HBLR. Nuestros resultados demuestran que las propiedades cercanas a las dos estaciones mas alejadas del distrito central de negocios, ahora revitalizado, experimentaron un alza en el precio. Tambien muestran que se produjo un aprecio en areas con un mejor acceso gracias a las opciones de transporte publico disponibles. Por medio de un gradiente negativo-exponencial, descubrimos que estas tasas de apreciacion mas elevadas tendian a disiparse aproximadamente a 1/4 de milla (402 m) de las estaciones. Esto apoya la idea de que las propiedades que circundan las estaciones de transporte urbano ligadas al desplazamiento al trabajo disfrutan de mayores beneficios marginales debido a una mejor accesibilidad de transito y una reduccion de los costos de transporte, como predice el modelo de Alonso.

Innovation and the local workforce

Abstract: type="main" xml:lang="es"> Hemos combinado datos de innovacion a nivel de empresa con datos censuales a nivel de area para examinar la relacion entre las caracteristicas de la mano de obra local, en particular la presencia de inmigrantes y las capacidades locales, y la probabilidad de innovacion por parte de las empresas. Hemos examinado una serie de resultados de innovacion, y puesto a prueba la relacion con subgrupos seleccionados de empresas. Hemos encontrado una relacion positiva entre las caracteristicas de la fuerza laboral local y los resultados promedio de innovacion en areas del mercado laboral, pero esto se explica por la variacion en caracteristicas de las empresas, tales como el tamano de la empresa, el sector y los gastos en investigacion y desarrollo. Una vez controladas estas influencias, no hemos encontrado ninguna prueba sistematica de un vinculo independiente entre las caracteristicas de la fuerza laboral local y la innovacion.

Modelling regional labour market dynamics in space and time

Abstract: This paper extends the seminal Blanchard and Katz (1992) regional labor market model to include interaction effects using a dynamic spatial panel data approach. Three key contributions of this extended model are: (i) the unrealistic assumption that regions are independent of one another no longer has to be made, (ii) the magnitude and significance of so-called spillover effects can be empirically assessed, and (iii) both the temporal and spatial propagation of labor demand shocks can be investigated. Using annual data from 1986-2010 for 112 regions across 8 EU countries, both the non-spatial and spatial models are estimated. It is found that the majority of the spillover effects are highly significant. Consistent with economic theory, the impact of a region-specific demand shock is largest in the region where the shock instigates. The shock also propagates to other regions, especially impacting the first and second-order neighbors.

Urban sprawl and municipal budgets in Spain: A dynamic panel data analysis

Abstract: Urban sprawl has recently become a matter of concern throughout Europe, but it is in southern countries where its environmental and economic impact has been most severe. This low- density, spatially expansive urban development pattern can have a highly marked impact on municipal budgets. Thus, local governments may see sprawl as a potential source of finance, in terms of building- associated revenues and increased transfers from upper tiers of government. At the same time, sprawl leads to increased levels of expenditure, as it may raise the provision costs of certain local public goods and requires greater investment in extending basic infrastructure for new urban development. What, therefore, is the net fiscal impact of urban sprawl? Do local governments consider the long-run net fiscal impact of new urban growth or do they simply focus on its short-term benefits, ignoring future development costs? This paper addresses these questions by analysing the dynamic relationship between urban sprawl and local budget variables. To do so, we estimate a panel vector autoregressive model using data for 4,000 Spanish municipalities for the period 1994-2005. Computed Generalised Impulse Response Functions show: (i) that sprawl considerably increases demand for new infrastructure, (ii) that the capital deficit generated by this new infrastructure is covered in the main by intergovernmental transfers and, to a lesser extent, by revenues linked to the real estate cycle, and (iii) that sprawl leads to a short-term current surplus, as the increase in current revenues offsets the increase in current expenditures due to public service provision for new developments. Overall, these findings point to a moral hazard problem for local governments in which inordinate intergovernmental transfers and development revenues encourage excessive urban sprawl.

Path dependence, institutions and the density of economic activities: Evidence from Italian cities

Abstract: type="main" xml:lang="es"> En los ultimos anos, un creciente cuerpo de literatura ha comenzado a considerar la posible presencia de una dependencia de la trayectoria en los procesos de desarrollo de los paises Este fenomeno siempre ha sido reconocido en los estudios regionales y urbanos, porque la trayectoria del desarrollo sigue casi de manera natural una difusion espacial dependiente de la historia e influida por la geografia fisica y la calidad de las instituciones En este articulo, considero el caso de la concentracion de empresas y empleo en Italia, y su impacto en el desarrollo local Una literatura copiosa, y en aumento, ha argumentado a favor de los efectos persistentes de las instituciones del pasado sobre los resultados actuales Por lo tanto, con el fin de identificar el impacto de la densidad de empresas y empleo en los ingresos, he empleado instrumentos de la historia de un conjunto de ciudades italianas: a saber, la presencia de una universidad y su estatus como ciudades-estado independientes durante la Alta Edad Media En primer lugar demuestro que esas dos variables tuvieron un efecto importante en el proceso de desarrollo urbano entre 1300 y 1861, junto con una serie de condiciones geograficas favorables A continuacion, cuando empleo estos instrumentos para predecir la densidad de empresas y empleo, encuentro que la elasticidad de los ingresos de las empresas y el empleo se halla en un intervalo de 0,08 a 0,13 Este resultado se interpreta como un aporte de pruebas de la existencia de raices historicas de las economias de aglomeracion en Italia

The productivity puzzle of Chinese exporters: Perspectives of local protection and spillover effects

Abstract: Contradictory to the theoretical proposition, Chinese exporters are overall less productive than non-exporters. This study explores the productivity puzzle of Chinese exporters using a plant level dataset which includes the large industrial firms during the period of 1998–2007. Based on total factor productivity (TFP) estimated by the semi-parametric method proposed in Olley and Pakes, this study confirms productivity puzzle of Chinese exporters. The productivity puzzle however does not remain after controlling for firm locations. This result is robust for different model specifications and productivity measurements. Further analysis indicates that productive firms would favour the domestic market particularly when they can enjoy local protection. Export spillover effects would help less productive firms to enter the international market. Ownership and scale economies however condition the impacts of local protection and spillover effects. This paper suggests that local protection and spillover effects can influence the export decision of Chinese firms, providing a complementary contribution to the related literature.

A Bayesian approach to hedonic price analysis

Abstract: type="main" xml:lang="es"> Dos objetivos importantes en el analisis de precios hedonicos son la prediccion de los precios de venta y la delimitacion de submercados basada en consideraciones geograficas y funcionales. Para hacer frente a estos objetivos, en este articulo se han aplicado modelos bayesianos con coeficientes espacialmente variables para realizar un analisis de los precios de venta de la vivienda en la ciudad de Toronto (Ontario). Se evaluo el desempeno del modelo y se determinaron los patrones de los submercados indicados por los procesos de coeficiente espacial. Los resultados muestran que los modelos de proceso espacial bayesiano predicen bien los precios de venta de viviendas, proporcionan inferencias utiles con respecto a la heterogeneidad de precios dentro de un mercado, y pueden especificarse de modo que incluyan las opiniones de los expertos del mercado.

Spatial complexity and interactions in the FDI attractiveness of regions

Abstract: type="main" xml:lang="es"> En este estudio sostenemos que la capacidad de las regiones para atraer a la IED se ve afectada por el efecto del propio pais, que puede manifestarse de dos formas diferentes: la primera se relaciona con el desempeno relativo del pais del que forma parte la region (el efecto entre paises); la segunda se refiere al desempeno relativo de las regiones dentro de sus propios paises (el efecto dentro de cada pais). Aqui demostramos por medio de tecnicas de econometria espacial que existe el efecto del propio pais. Sin embargo, mientras que el efecto dentro de cada pais es siempre positivo, el efecto entre paises puede ser positivo o negativo. Esto significa que las regiones prosperas en paises sin exito disfrutan, en general, una prima extra de IED, mientras que no sucede lo mismo en las regiones de paises con exito.

Zipf, Gibrat and geography: Evidence from China, India and Brazil†

Abstract: We investigate Zipf's Law on the size distribution and Gibrat's Law on the growth of sub-national populations in China, India and Brazil. We reject Zipf's Law for India, but not for China and Brazil; a log normal distribution also fits Brazil well, but not China and India. Gibrat's Law holds for Brazil; that is, lagged population is the best predictor of current population in Brazil. In China, market potential is an important predictor of population growth, while in India both crop area and market potential are important. Our results show that there is a diversity of experiences across countries, and we speculate that this diversity maybe caused by differences in the characteristics of the three countries.

Finite sample properties of Moran's I test for spatial autocorrelation in tobit models†

Abstract: In this note, we investigate the finite-sample properties of Moran's I test statistic for spatial autocorrelation in tobit models suggested by Kelejian and Prucha. We fill a void in the theoretical literature by investigating the finite sample properties of this test statistic in a series of Monte Carlo simulations, using data sets ranging from 49 to 15,625 observations. We find that the test is unbiased, has considerable power and approximates the asymptotic normal distribution even for medium-sized sample sizes, empirically confirming the theoretical results of Kelejian and Prucha. However, some caution is needed, since the statistic turns out to be sensitive to misspecification in the form of heteroscedasticity. In such instances the test over-rejects the null hypothesis, mistaking heteroscedasticity for spatial autocorrelation.

Collaboration objectives and the location of the university partner: Evidence from the Piedmont region in Italy *

Abstract: This study examines firms' decisions to collaborate with universities in their region as opposed to non-regional universities, focusing on the role of collaboration objectives. Through a survey of a representative sample of manufacturing firms in the Piedmont region (Italy), we find that firms seeking business advice are more likely to collaborate with regional universities while firms seeking RD and the collaboration objectives provide good instruments. Some implications for regional policy are discussed.

The impacts of management reform on irrigation water use efficiency in the Guanzhong plain, China

Abstract: This paper examines the efficiency of the 1998 irrigation management reform in the Guanzhong Plain, Shaanxi, China, at farm and canal level. Stochastic frontier analysis is applied to estimate irrigation water use efficiency, based on panel data for 800 farmers, spread over 80 irrigation canals, for the period 1999–2005. Analysis of determinants of water use efficiency shows that at farm level, water price and disclosure are important factors. Compared to the base case of unreformed, management reform has a positive impact with water user association having the largest effect, followed by joint‐stock co‐operative and private company. The canal model is in line with the farm level model, although estimates are less significant.

Regional disparities and productivity in China: Evidence from manufacturing micro data

Abstract: In this paper we first estimate firm-specific total factor productivities within 2-digit manufacturing industries using a semi-parametric algorithm and micro data for the period 2000–2007. Next, to characterize regional disparities in China we compute aggregate productivity by the categories of three regional typologies, based on population density, coastal-inland, and rural-urban criteria. We analyse the productivity differentials across the categories of the typologies by decomposing regional productivity level and growth into productivity effect and industry composition effect. We find clear evidence of regional convergence. Besides density of economic activity, recent policy and structural factors seem to affect regional productivity level and growth differentials.

The relationship between start-ups, market mobility and employment growth: An empirical analysis for Dutch regions

Abstract: Recent literature suggests that two types of competition may contribute to macro-economic performance: the extent of new-firm entry and the extent of competition among incumbent firms. In the present paper we explain employment growth at the region-sector level using direct indicators for both these types of competition -the start-up rate and the market mobility rate- as main independent variables. While previous studies in this field measured competition among incumbent firms in an indirect way, we use a direct measure called market mobility. The empirical analysis reiterates existing results in that we find the long-term economic effect of start-ups to be bigger than the short-term effect. We also find empirical indications that this long-term effect consist of two significant parts. First, the most successful start-ups grow out to become high-growth firms, and second, the entry of new firms stimulates incumbent firms to perform better.

Testing for labour pooling as a source of agglomeration economies: Evidence for labour markets in England and Wales

Abstract: This paper generates new evidence for England and Wales on the importance of labour pooling as a source of agglomeration economies. Estimates of worker and firm productivity are obtained from longitudinal worker and firm micro-data and used to test the hypothesis that denser labour markets increase the quality of the matching between employees and employers across labour markets. Our findings provide evidence supportive of a positive relationship between the quality of the employee-employer matching and the economic size of labour markets.

Decomposing regional business change at plant level in Italy: A novel spatial shift-share approach

Abstract: type="main" xml:lang="es"> En este articulo se analiza la descomposicion espacial de cambios (shift-share) aplicada a datos italianos sobre cambios en los negocios regionales a nivel de planta, durante el periodo 2004–2009. Aqui se introduce un nuevo tipo de descomposicion espacial, que gestiona mas eficazmente la influencia del vecindario. De la investigacion empirica aparecen resultados notables. En primer lugar, se observo que el nivel de agregacion espacial afecta grandemente los resultados. En segundo lugar, se encontraron pruebas de una ventaja de vecindario en las regiones meridionales NUTS 3, a la vez que resultados opuestos para las regiones centro-norte NUTS 3. Finalmente, solo se encuentra constancia de efectos positivos de la mezcla industrial en el centro-norte de Italia.

Economic shocks and growth: spatio-temporal perspectives on Europe's economies in a time of crisis

Abstract: The response by regional and national economies to exogenous impulses has a well-established literature in both spatial econometrics and in mainstream econometrics and is of considerable importance given the current economic crisis. This paper focuses on dynamic counterfactual predictions and impulse-response functions to provide insight regarding the question of whether responses to economic shocks are transitory or permanent. Analysis shows that output shocks have permanent effects on productivity with economies adjusting to new levels following a shock. This suggests that the current recession will be embodied permanently within the memory of some of Europe's leading economies as a hysteretic effect.

The spillover effect of FDI and its impact on productivity in high economic output regions: A comparative analysis of the Yangtze River Delta and the Pearl River Delta, China

Abstract: type="main" xml:lang="es"> Por medio de un modelo espacial de Durbin de panel de datos dinamico, el objeto de este articulo es analizar los spillovers de IED y los impactos sobre la productividad urbana en el Delta del Rio Yangtse (YRD) y el Delta del Rio de las Perlas (PRD). Encontramos que la IED tiene efectos positivos en la productividad local de las ciudades, pero que sus spillovers espaciales se comportan de manera diferente en el YRD y el PRD. Las interacciones espaciales no pueden ser pasadas por alto en el crecimiento urbano; sin embargo, YRD y PRD muestran efectos de crecimiento espacial significativos pero opuestos. La IED acelera la convergencia del crecimiento economico en el YRD mientras que ralentiza la convergencia en el PRD. En el YRD tiene lugar un spillover espacial positivo de la productividad mientras que en el PRD sucede un spillover espacial negativo. Los resultados apuntan hacia importantes implicaciones politicas para las dos regiones en cuanto a atraer IED y fomentar el desarrollo urbano.

All in the Family : Self Selection and Migration by Couples

Abstract: This paper examines determinants of couple migration in a model that accounts for self-selection of migrant couples. The study is based on a sample of married couples from the Swedish population. T ...

Agglomeration and relocation: Manufacturing plant relocation in Korea†

Abstract: type="main" xml:lang="es"> Este estudio investiga la magnitud de las economias de localizacion mediante el analisis del patron de reubicacion de los establecimientos coreanos en el sector manufacturero. La reubicacion de los establecimientos se identifica por su movimiento a traves de los limites municipales, entre condados o entre ciudades, y distingue entre mas alla y dentro de una distancia razonable de desplazamiento al puesto de trabajo por parte de sus empleados. Parece que la reubicacion mas alla de una distancia razonable al lugar de trabajo cuesta mas que a una distancia dentro de lo razonable ya que la primera incluye los gastos adicionales relacionados con la busqueda, contratacion y capacitacion de nuevos trabajadores. Los principales hallazgos de este trabajo muestran que los beneficios externos de aglomeracion son lo suficientemente grandes como para ser reconocidos por el sector manufacturero, lo que se manifiesta en una reubicacion mas alla de la distancia de los desplazamientos razonables al lugar de trabajo de sus empleados. Cuando la proporcion del empleo del sector industrial propio respecto al total de todas las industrias manufactureras se duplica debido a la reubicacion, la probabilidad de reubicacion de los establecimientos a una distancia mas alla del limite de los desplazamientos razonables de sus trabajadores al lugar de trabajo aumenta en un 17 por ciento. Los resultados de las submuestras separadas por la edad de los establecimientos muestran que los establecimientos de mayor antiguedad son mas propensos a reubicarse a gran distancia a una zona con una presencia desproporcionada de establecimientos de la misma industria. Estos resultados parecen ajustarse a la teoria del ciclo de vida del producto de Duranton y Puga. A medida que el proceso de produccion del producto se estandariza, las empresas que lo manufacturan tienden a reubicarse en un area especializada donde pueden reducir los costos de produccion mediante el aumento de la dependencia de los proveedores existentes de insumos intermedios, quienes es mas probable que aparezcan en un area mas especializada.

Mapping average equivalized income using robust small area methods

Abstract: type="main" xml:lang="es"> A menudo son necesarias medidas de bienestar economico para areas geograficas pequenas, ya que los indicadores economicos pueden distribuirse de manera desigual entre subconjuntos de regiones relativamente pequenas. Se considera una estimacion de areas pequenas de ingresos equivalentes promedio. A menudo, los datos de ingresos familiares disponibles solo se logran encontrar para una muestra de hogares por lo general demasiado pequena como para ofrecer estimaciones confiables para regiones pequenas. Se considera una tecnica de estimacion de area pequena que es robusta frente a valores atipicos, produce resultados consistentes con estimaciones ponderadas del diseno obtenidas para areas mas grandes y capaz de generar mapas sin apenas contraccion. La metodologia propuesta se aplica a los Sistemas Laborales Locales en la Toscana (Italia).

Digital urban network connectivity: Global and Chinese internet patterns

Abstract: Cities are not only connected through conventional infrastructure, but also through digital infrastructure. This paper tests whether digital connectivity patterns follow traditional ones. Using a generalized spatial interaction model, this paper shows that geography (and distance) still matters for an extensive set of world cities. With a view to the rapidly rising urbanization, the attention is next focused on the emerging large cities in China to test the relevance of distance frictions - next to a broad set of other important explanatory variables - for digital connectivity. Various interesting results are found regarding digital connectivity within the Chinese urban system, while also here geography appears to play an important role. © 2014 The Author(s). Papers in Regional Science © 2014 RSAI.

The great asymmetric divide: An empirical investigation of the link between indigenous and non‐indigenous economic systems in Northern Australia

Abstract: This empirical study explores financial links between indigenous and nonindigenous economic systems in a remote river catchment in Northern Australia (the Mitchell). It finds evidence of a profound and asymmetric 'disconnect' between these economies: an exogenous increase in indigenous incomes raises the incomes of non-indigenous people, but the reverse is not true. Evidently, those seeking to improve the incomes of indigenous people in Northern Australia cannot simply seek to (i) increase payments to indigenous people, or (ii) expand the non-indigenous sector hoping that some benefits will 'trickle down'. Instead, structural change is required.

Location choice of multinational enterprises in China: Comparison between Japan and Taiwan

Abstract: type="main" xml:lang="es"> Este trabajo explora la eleccion de localizacion de empresas multinacionales (EMN) en China, para esclarecer en especial el papel de la aglomeracion de empresas con la misma nacionalidad. Se examina como varia este papel en funcion de la productividad de las empresas. Ademas, se compara la eleccion de localizacion de las EMN japonesas y taiwanesas en China, teniendo en cuenta que las EMN taiwanesas gozan de menor incertidumbre al invertir en China debido a las ventajas linguisticas y culturales de Taiwan. Respecto a la productividad, las empresas japonesas menos productivas prefieren ubicarse cerca de grandes aglomeraciones de la misma nacionalidad, mientras que no hay diferencias en las decisiones de localizacion en el caso de las empresas taiwanesas.

Serving regional demand in facility location

Abstract: Location modelling is employed in urban and regional planning to site facilities that provide services of some sort. Issues to be considered usually include the number of facilities to locate, where to site those facilities and how demand is to be served. Given the geographic nature of location problems, a key issue is how to represent facilities and demand in geographic space. Traditionally, spatial abstraction as discrete demand is assumed as it simplifies model formulation and reduces computational complexity. However, errors in derived solutions are likely not negligible, especially when demand varies continuously across a region. This paper discusses a single facility location problem that considers demand to be continuously distributed and allows a facility to be located anywhere in space, the continuous Weber problem. An approach for dealing with continuous demand is proposed that is integrated through geographical information system (GIS) functionality. Empirical results highlight the advantages of the developed approach and the importance of solution integration with GIS.