The spatial scope of agglomeration economies in Brazil

This paper provides evidence about location and colocation patterns of manufacturing entrepreneurship and spatial scope of agglomeration economies in the context of a developing country. Using microgeographic data for all Brazilian manufacturing activities and distance-based measures, we find clear patterns of colocalization between entrants and existing establishments, and that these patterns occur mainly at short distances. For activities presenting colocalization between entrants and existing establishments, our results also indicate that a greater number of incumbent establishments in a given location positively affects the number of entrant establishments that decide to locate there, an effect that attenuates rapidly with distance (generally disappearing after 5 km). This pattern of attenuation is robust to both the inclusion of a comprehensive set of controls for observable and unobservable local characteristics and the use of instrumental variables to address remaining endogeneity concerns.     

Locational Equilibria in Weberian Agglomeration

A simple Weberian agglomeration is developed and then extended as an innovative fixed‐charged, colocation model over a large set of locational possibilities. The model is applied to cases in which external economies (EE) arise due to colocation alone and also cases in which EE arise due to city size. Solutions to the model are interpreted in the context of contemporary equilibrium analysis, which allows Weberian agglomeration to be interpreted in a more general way than in previous analyses. Within that context, the Nash points and Pareto efficient points in the location patterns derived in the model are shown to rarely coincide. The applications consider agglomeration from two perspectives: one is the colocation behavior of producers as the agents of agglomeration and the other is the interaction between government and those agents in the interest of agglomeration policy. Extending the analysis to games, potential Pareto efficiency and Hicks optimality are considered with respect to side payments between producers and with respect to appropriate government incentives toward agglomeration.     

The Colocation Quotient: A New Measure of Spatial Association Between Categorical Subsets of Points. 协同区位商：点集分类子集间空间关联性的新度量标准

This article presents a new metric we label the colocation quotient (CLQ), a measurement designed to quantify (potentially asymmetrical) spatial association between categories of a population that may itself exhibit spatial autocorrelation. We begin by explaining why most metrics of categorical spatial association are inadequate for many common situations. Our focus is on where a single categorical data variable is measured at point locations that constitute a population of interest. We then develop our new metric, the CLQ, as a point‐based association metric most similar to the cross‐k‐function and join count statistic. However, it differs from the former in that it is based on distance ranks rather than on raw distances and differs from the latter in that it is asymmetric. After introducing the statistical calculation and underlying rationale, a random labeling technique is described to test for significance. The new metric is applied to economic and ecological point data to demonstrate its broad utility. The method expands upon explanatory powers present in current point‐based colocation statistics.     

SPACE–TIME MEASURES OF DEMAND FOR SERVICE: BRIDGING LOCATION MODELLING AND ACCESSIBILITY STUDIES THROUGH A TIME‐GEOGRAPHIC FRAMEWORK

Demand for service in location modelling is often evaluated based on the spatial proximity of fixed and static reference locations of demand (e.g. home) to a facility, which ignores person‐specific activity–travel patterns and the temporal changes in demand for service throughout the day. To address these limitations, this study draws upon recent developments in space–time measures of individual accessibility to explore the spatial and temporal structures of demand by considering individuals' space–time constraints and impact of existing urban structures. Based on a time‐geographic framework, eight space–time demand measures were developed and compared with three conventional location‐based demand measures for 12 hospitals through an empirical study conducted in Columbus, Ohio. The results show that geographic proximity between clients' home and facilities may not be an effective indicator for service demand, and conventional demand measures tend to underestimate potential demand for service in most situations. The study concludes that space–time demand measures that take into account people's activity‐travel patterns in space–time would lead to better estimation of demand for service in most cases.     

ADDITIVE-RATIO MEASURES OF INTERACTMTY IN INPUT-OUTPUT SYSTEMS

ABSTRACT. A general axiomatic framework is developed for analyzing alternative measures of interactivity between the sectors of a given activity system (such as the industrial sectors of an economy). Within this overall framework, we analyze an ordinal class of additive-ratio measures which has been applied to a wide variety of systems, including both economic and ecological systems of activities. Our main result is to show that such measures can be characterized by four interactivity axioms. In addition, a wide variety of alternative measures are compared to additive-ratio measures in terms of this axiom system.     

Air Services at Australian Cities: Change and Inertia 2005–2010

This research analyses international and domestic air services in Australia during a six year period, 2005–2010. We place air services into their urban context by relating them to city‐based measures such as population, tourism, and producer services employment among other measures. The research takes a supply‐side approach in an assessment of international and domestic capacity at major Australian airports from the perspective of the number of seats, the nature of links, and competition. Multiple linkage analysis and the concept of effective competitors allow us to explore this perspective at greater depth. Our findings show substantial changes in international patterns, specifically favouring Melbourne, Perth, and Gold Coast. In contrast, the domestic scene is characterised by little change, an outcome we link to the underlying stability in the settlement system and the location of some major economic activities. While the results are related to our measures of urban characteristics, some special region‐specific aspects are also at work. Finally, in both the international and domestic cases we find evidence of greater airline diversity which may benefit consumers.     

Place-based innovation policy for industrial diversification in regions

New industrial innovation policies like smart specialization aim at boosting economic growth by diversification towards more complex and higher value economic activities. This paper proposes a conceptual and analytical framework to support the design and implementation of such policies considering place-specific preconditions, particularly the differentiation of the regional system of innovation and entrepreneurship and the degree of current industrial diversification. The paper expands on the links between these preconditions and the barriers and opportunities for industrial diversification. Consequently, it proposes an archetypical place-based policy framework covering overall policy objectives as well as measures at the level of actors, networks, and the institutional and organizational support structures.     

空港经济产业布局模式及规划引导研究——以广州白云国际机场为例

从产业布局的角度探讨了国内近年比较热门的空港经济现象。首先从与机场最直接相关的人、物、资金和信息四大要素入手,剖析了空港经济主要产业类型及其特征,并分析了空港经济总体区位及其演变过程。在此基础上总结分析空港经济产业具有与发展阶段相吻合的增长极、点轴和网络三种布局模式,指出国内备受推崇的圈层布局是发展阶段不明确的理想模式,并尝试采用地理信息系统空间分析方法对产业布局的区位进行叠加分析。最后以广州新白云机场为例,探讨了周围花都区和白云区空港经济产业布局规划方案和措施。     

Digital gravity? Firm birth and relocation patterns of young digital firms in Germany

This paper analyses the spatial patterns of young (<10 years) digital firms in Germany between 2008 and 2017 on county level. Determinants of firm birth locations as well as relocations are considered jointly to understand differences in location choices within firms' life cycles. I match commercial register data of 107,321 firms with county-level administrative data to capture local characteristics. Using an OLS model with fixed effects, I find that the local knowledge base—that is, universities, research institutes, and colocated incumbents—are significant key determinants of digital firm birth when controlling for a host of local characteristics. My results indicate that for five firms per 1000 inhabitants, there is around one firm birth. Second, using a fixed effects gravity model for the analysis of relocations, I find that the most dominant explanatory factor for firm relocation across specifications is distance, that is, relocation costs. Relocation flows are more than twice as high to neighboring counties relative to other locations which shows that digital firms are not as footloose as their business model may suggest. Jointly, my results reflect economic activity's regional persistence, particularly for new firms. My paper provides evidence for policies targeting homogenous digital clusters based on strong colocation and that digital economic activity is not shifted over long distances, but the regional entrepreneurship capital is crucial for local growth.     

Clusters versus Cluster Initiatives,with Focus on the ICT Sector in Poland

The article focuses on the topic of clustering, which has become a popular concept, both from the academic and political perspective, and as an efficient business model. The distinction between clusters, understood as geographical concentrations of specific industries, and cluster initiatives, understood as more formalized actions undertaken by regional actors, is proposed. The primary objective of this study is to verify if these two types of structures are overlapping each other. This problem arises because the motivation for forming some cluster initiatives may be different economic policy instruments rather than existing market potential of a specific regional economy. The study finds that not all of Information and Communication Technologies (ICT) cluster initiatives in Poland represent real concentration of ICT-related divisions included in statistical classification of economic activities in the European community Rev. 2 classification, as measured by location quotients (LQs) for indicators on employment, firms' incomes and number of enterprises. However, there is a visible pattern that the LQs are higher in smaller geographic areas (NUTS 4 (Nomenclature of units for territorial statistics)), which usually represent big cities, being the cores of cluster initiatives. The study also discusses the phenomenon of the internationalization of clusters and the value added to that process from forming formalized cluster initiatives, which create favourable institutional framework for transborder cooperation.     

Probabilistic Regionalization via Evidence Accumulation with Random Spanning Trees as Weak Spatial Representations

Spatial clusters contain biases and artifacts, whether they are defined via statistical algorithms or via expert judgment. Graph-based partitioning of spatial data and associated heuristics gained popularity due to their scalability but can define suboptimal regions due to algorithmic biases such as chaining. Despite the broad literature on deterministic regionalization methods, approaches that quantify regionalization probability are sparse. In this article, we propose a local method to quantify regionalization probabilities for regions defined via graph-based cuts and expert-defined regions. We conceptualize spatial regions as consisting of two types of spatial elements: core and swing. We define three distinct types of regionalization biases that occur in graph-based methods and showcase the use of the proposed method to capture these types of biases. Additionally, we propose an efficient solution to the probabilistic graph-based regionalization problem via performing optimal tree cuts along random spanning trees within an evidence accumulation framework. We perform statistical tests on synthetic data to assess resulting probability maps for varying distinctness of underlying regions and regionalization parameters. Lastly, we showcase the application of our method to define probabilistic ecoregions using climatic and remotely sensed vegetation indicators and apply our method to assign probabilities to the expert-defined Bailey's ecoregions.     

SHIPPING COSTS,INFORMATION COSTS,AND THE SOURCES OF INDUSTRIAL COAGGLOMERATION*

ABSTRACT Direct trade between establishments, coupled with costs of trading goods and information across space, has long been considered a primary determinant of industrial colocation. However, researchers have had difficulty decomposing the effects of interindustry trade into these two cost components. Using new techniques for separately estimating shipping and information costs, this paper provides an empirical framework for identifying the various sources of industrial coagglomeration among U.S. manufacturing industries. My findings suggest that both interindustry shipping costs and information costs influence metropolitan‐level coagglomeration. Additional evidence points to the significant role of direct information costs in determining intraindustry agglomerations.     

WELCOME TO THE NEIGHBORHOOD: HOW CAN REGIONAL SCIENCE CONTRIBUTE TO THE STUDY OF NEIGHBORHOODS?*

ABSTRACT We argue in this paper that neighborhoods are highly relevant for the types of issues at the heart of regional science. First, residential and economic activity takes place in particular locations, and particular neighborhoods. Many attributes of those neighborhood environments matter for this activity, from the physical amenities, to the quality of the public and private services received. Second, those neighborhoods vary in their placement in the larger region and this broader arrangement of neighborhoods is particularly important for location choices, commuting behavior and travel patterns. Third, sorting across these neighborhoods by race and income may well matter for educational and labor market outcomes, important components of a region's overall economic activity. For each of these areas we suggest a series of unanswered questions that would benefit from more attention. Focused on neighborhood characteristics themselves, there are important gaps in our understanding of how neighborhoods change – the causes and the consequences. In terms of the overall pattern of neighborhoods and resulting commuting patterns, this connects directly to current concerns about environmental sustainability and there is much need for research relevant to policy makers. And in terms of segregation and sorting across neighborhoods, work is needed on better spatial measures. In addition, housing market causes and consequences for local economic activity are under researched. We expand on each of these, finishing with some suggestions on how newly available data, with improved spatial identifiers, may enable regional scientists to answer some of these research questions.     

Land Use Patterns in Central Asia. Step 1: The Musical Chairs Model

Herding and farming coexisted in Central Asia for several thousand years as main options of preindustrial economic production. The relationship between people practicing different variants of these modes of subsistence is known to have been dynamic. Among the many possible explanations, we explore this dynamic by modeling mechanisms that connect aggregate decisions to land use patterns. Within the framework of the SimulPast project, we show here the results from step 1 of our modeling program: the Musical Chairs Model. This abstract agent-based model describes a mechanism of competition for land use between farming and herding. The aim is the exploration of how mobility, intensity, and interdependence of activities can influence land use pattern. After performing a set of experiments within the framework of this model, we compare the implications of each condition for the corroboration of specific land use patterns. Some historical and archaeological implications are also discussed. We suggest that the overall extension of farming in oases can be explained by the competition for land use between farming and herding, assuming that it develops with little or no interference of climatic, geographical, and historical contingencies.     

STABLE ECONOMIC AGGLOMERATION PATTERNS IN TWO DIMENSIONS: BEYOND THE SCOPE OF CENTRAL PLACE THEORY

This paper elucidates which agglomeration patterns exist in two‐dimensional economic space and how such patterns appear stably. Hexagonal lattices, that with and that without a boundary, are advanced, respectively, as practical and theoretical spatial platforms of economic activities. Agglomeration patterns on these lattices include hexagons in central place theory, but also encompass megalopolis and racetrack‐shaped decentralization. As the transport cost decreases, stable economic agglomeration undergoes the formation of the smallest hexagon and transition to patterns with larger market areas, often undergoing downtown decay but finally leading to a megalopolis. Formulas for break points are provided in an economic geography model.     

Re-investing in the Built Environment: A Spatial Network Approach

Before launching ambitious and expensive development programmes to induce new regional technology corridors and clusters, it is critical to appreciate existing spatial economic patterns in a region. Initial economic conditions drive location decisions of firms and a labour force such that any changes must intercede onto an existing landscape built for current economic conditions. This work adopts a simple regional economic model to integrate and review traditional and modern urban location theories in order to illustrate the power of initial conditions to determine a final result. A simple spatial dynamic simulation model captures many of the pertinent effects of real estate pricing patterns to frame both opportunities and constraints to re-shape an urban landscape. Attention to 'ground up' spatially correlated location patterns revealed in price data that suggests close attention to strategic zoning can have profound impacts on the success or failure of economic development. Relatively modest policy interventions that carefully utilize existing preferences for urban amenities and concurrent real property investments involve fewer policy risks with potentially more powerful stimulative economic consequences than promised in more ambitious programmes.     

Regional inequality in China during its rise as a giant exporter: A value chain analysis

China's exports success has implications for regional income inequality, because most of its export products are manufactured in the coastal zone. We propose a value chain-based accounting framework to quantify the contributions of exports to regional income inequality. We employ newly developed interregional input–output tables for China, which distinguish between processing export activities and ordinary export activities. We analyze the period 2002–2012, the decade during which China became the “Factory of the World.” We find that an RMB of processing exports contributed much more to regional inequality than an RMB of ordinary exports or domestic final demand. Still, changes in regional inequality (increasing in 2002–2007 and decreasing between 2007 and 2012) are much more due to rising ordinary exports in the first subperiod and the growth of domestic final demand coupled with changes in the configuration of value chains in the second.     

On the Specification of Indirect Utility and Willingness to Pay for Discrete Residential Location Models

In this paper we develop a framework to describe the individual choice of residential location using the microeconomics of discrete choices. The individual is seen as deciding frequency, duration, and location of a set of activities for each potential residential zone, knowing the distribution of goods and activities in space as well as transport costs and travel times. The conditional indirect utility function and its associated willingness to pay function for each zone are obtained, where the roles of accessibility, income, and neighborhood attributes emerge clearly. Zonal utility in discrete location choice models can be specified and interpreted using these functions.     

Micro-level assessment of regional and local disaster impacts in tourist destinations

ABSTRACT

The tourism sector faces severe challenges due to the economic impacts from changing natural environments as seen with the increased frequency of natural disasters. Therefore, analyses of disaster impacts models are necessary for managing successful tourism recovery. Typically, disaster assessments are conducted on a countrywide level, which can lead to imbalanced recovery processes, and a distorted distribution of recovery financing or subsidies. We address the challenges of recovery using the tourism disaster management framework by Faulkner. To calculate precise damage assessments, we develop a micro-level assessment model to analyze and understand disaster impacts at the micro-level supporting tourism recovery in an affected destination. We examine economic consequences of a disaster at a small regional scale arguing recovery from a natural disaster is more difficult in individual areas because of differences in geographic location or infrastructure development. The island of Dominica is chosen as an example for the model using statistical data from the tourism sector to outline and detail the consequences of a disaster specifically for communities. The results highlight the importance of damage assessments on a small-scale level, such as communities in order to distinguish between individual regions facing severe changes for resident livelihoods and the local tourism sector. We argue that only after identifying regional impacts it is possible to apply adequate governmental subsidies and development strategies for a country's tourism sector and residents in a continuously changing environment in the hopes of mitigating future financial losses and future climate change impacts.