SPATIAL ECONOMIC INTERDEPENDENCE IN AN URBAN HIERARCHY SYSTEM

ABSTRACT. This paper develops a model to examine the economic interaction between central places and their hinterlands. The model allows interindustry linkages and upward trade flows in an urban hierarchy system. Trade balance equilibrium between hierarchical levels is established by direct mutual interlevel trade, rather than by indirect trade via the rural sector. The economic base multipliers generally increase with city size but occasionally they could be smaller than those of lower places. A continuous urban hierarchy is formed due to their relative location within the system, not to unspecified randomness.     

Feedback loops analysis of Japanese interregional trade, 1980-85-90

This paper examines the hierarchy of intra- and inter-regionaltrade flows within the Japanese economy over the period 1980–85–90.The methodology provides an opportunity to explore links betweenfeedback loops analysis and the extraction of a hierarchy offlows using ideas from superposition principles. The resultinganalysis of trade feedbacks may be seen to reflect the economicphenomena of horizontal and vertical trade specifications. Whilethe process is explored analytically, the results are presentedusing visualization to help identity the different permutationmatrices presenting the hierarchy of trade feedback loops.     

Zones of Influence of Middle-Size Cities,Their Boundaries and Passenger Flows

A modified gravity model is used to describe the flows of commuters between a central city and concentric zones around it. A multiplier-type model of a central-place system (after Christaller) is then used to calculate the number of residents for service centers at each level of the hierarchy within the system. The rank-size rule (Zipf's formula) is also considered as a criterion of a true system of urban places. Results are presented for the urban network of the Ukraine.     

How Does Economic Development in Eastern Europe Affect Austria's Regions? A Multiregional General Equilibrium Framework

The paper quantifies regional welfare effects arising from the increasing trade flows between Austria and its Eastern neighbors after the opening up of Eastern Europe. We calibrate a static multiregional Computable General Equilibrium (CGE) model with benchmark data from 1994 for Austria, subdivided into nine Federal Provinces. The regions are linked by trade flows with the four Eastern neighboring countries and with the rest of the world. We simulate the effects of the increase of trade interpenetration as observed between 1989 and 1999 in a comparative static analysis. Regional welfare effects under fixed and flexible wages are presented. We also compare national CGE results with estimates obtained in a simple partial equilibrium approach.     

NETWORK LOADING VERSUS EQUILIBRIUM ESTIMATION OF THE STOCHASTIC ROUTE CHOICE MODEL MAXIMUM LIKELIHOOD AND LEAST SQUARES REVISITED*

Daganzo (1977, 1979), Daganzo and Sheffi (1977), Sheffi (1985), and Sheffi and Daganzo (1980) have used one assumption about traveler behavior in developing estimation techniques for the stochastic route-choice problem and another assumption in predicting flows on networks by using the same model. In estimation, they calculate the congested travel costs of the network links from observed flows on the network, and the network is loaded based on these costs. In prediction, they follow their stochastic user-equilibrium assumption by which travelers evaluate costs using the mean of the observed flows (or equilibrium flows). The travel-cost coefficient obtained from the loading method systematically overestimates the true travel-cost coefficient from which the observed flow data (which must be used in loading) is generated. The estimates of the same coefficient, obtained in this paper, by constraining the estimation results to conform to the equilibrium conditions are unbiased, and only marginally less efficient (have larger standard deviations). The average percentage error and inefficiency of the link flow predictions based on the loading method increases as the level of congestion on the network rises. In contrast, the average percentage error of link flow predictions based on the equilibrium estimation method declines and their efficiency remains very high as the level of congestion on the network rises.     

From 'industrial districts' to 'knowledge clusters': a model of knowledge dissemination and competitive advantage in industrial agglomerations

This paper integrates knowledge-based theories of the firm withgeograph-ical studies of industrial agglomeration to producea model that helps explain the competitive advantages enjoyedby proximate firms located in geographical clusters. We proposea hierarchy of specialized knowledge stocks at both firm andcluster levels and suggest that the comparative advantage conferredby knowledge resources at each level is protected, in part,by asymmetries in knowledge flows from level to level. The paperargues that codified component knowledge is more easily spreadthan firm-specific architectural knowledge. Nevertheless, overtime, agglomerations may develop a cluster-specific form ofarchitectural knowledge that facilitates the rapid disseminationof knowledge throughout the cluster by increasing the learningcapacity of proximate firms and thereby conferring cluster-specificcompetitive advantages.     

TRANSPORTATION COSTS IN REGIONAI,MODELS OF FOREIGN TRADE: AN APPLICATION TO CANADA-U.S. TRADE*

ABSTRACT. This paper outlines some arguments about the role of transportation costs in determining the welfare consequences of trade restrictions. The analysis uses a computable general equilibrium (CGE) model and presents the relevant features for trade analysis. The model has two alternative spatial formulations. In the first, all production and trade occur at one point, while in the second the regions are separated by distance. The calculated effects of a unilateral tariff increase are compared using the CGE model with the “point” and “distance” formulation. While the presence of transportation costs is crucial to some sectoral trade and production results, most welfare results are relatively insensitive to the spatial structure of the model.     

Information without frontiers: Financial services,EC regulation and European cities

Using Castells' notion of the informational mode of development, this briefing investigates the changing hierarchy and function of European cities in the light of EC policies. The EC regulatory regime is identified as an integral part of the informational mode of development, setting the parameters within which the corporate sector operates. It is argued that the purpose of information flows is mainly control. A new constellation of European cities is anticipated which depends to a large extent upon the degree to which cities, competing against one another, are able to establish central urban complexes. These are based on the agglomeration economies between corporate headquarters, financial institutions and producer services at the urban level, and information flows at a global level of communications. Among the vast array of EC policies the paper identifies those in support of innovation and telecommunications, the deregulation of financial services, and regional policy as crucial for urban development. Given the requirements of infrastructure, institutions, professional skills and regulatory competence, existing metropolitan centres will capitalize on their comparative advantage and attempt to build on these in the future. These developments are likely to foster further concentration of capital and investment in a few major centres, thus counteracting other EC policies of regional equalization and harmonization. It is argued that these and other contradictions are an amplification of those already afflicting the capitalist state at both national and local levels. The paper also offers an opportunity to reassess aspects of traditional location theory, in particular central place models, in the light of these developments and finds them wanting. The same conclusion is reached regarding the cost‐benefit calculus of the Cecchini Report.     

A Flexible Mathematical Programming Model to Estimate Interregional Input–Output Accounts*

Abstract. This study implements and tests a mathematical programming model to estimate interregional, interindustry transaction flows in a national system of economic regions based on an interregional accounting framework and initial information of interregional shipments. A national input–output (IO) table, regional data on gross output, value‐added, exports, imports, and final demand at sector level are used as inputs to generate an interregional IO account that reconciles regional economic statistics and interregional transaction data. The model is tested using data from a multiregional global IO database and shows remarkable capacity to discover true interregional trade patterns from highly distorted initial estimates.     

MEASURING THE DEVELOPMENT IMPACT OF A TRANSPORTATION SYSTEM: A SIMPLIFIED APPROACH*

The Multiregional Variable Input-Output (MRVIO) model is introduced to measure the development impact of a transportation system. The MRVIO model is a theoretically flexible, computationally simple, and cost-responsive model. Under the MRVIO model, regional input-output coefficients, trade coefficients, and trade flows become cost responsive and easy to compute. The MRVIO model is employed to measure the development impact of the Arkansas waterway during the period of 1974 to 1978. In the study, the U.S. economy is disaggregated into 3 regions and 35 industrial sectors. The MRVIO model estimates the economic conditions of these 3 regions with and without the waterway in terms of industrial output, income, employment, and trade flows.     

A Hierarchical Migration Model of Population Redistribution within a Central Place Hierarchy

A simple hierarchical migration model is proposed as a mechanism for the redistribution of population within a Christaller central place hierarchy. Given a predefined functional hierarchy, the migration process causes any initial population distribution to converge to an equilibrium distribution. Under certain special conditions, the equilibrium is identical to a central place population distribution derived from economic base concepts.     

A Hierarchical Market Model of International Trade

The characteristics of hierarchical trade flows, when placed in the context of differentiated markets, can provide some insight into the underlying bases of contemporary international trade. A model that relies on differentiated market theory and hierarchical market theory is developed. Trade characteristics derived in the model, concerning the frequency and value of trade, are empirically tested. Empirical results indicate that the model provides a useful framework for the analysis of contemporary international trade.     

Belgian labour in World War II: Strategies of survival,organisations and labour relations

A system of collective bargaining at sector level emerged in Belgium after the First World War. The commissions paritaires, in which unions and employers were equally represented, became the centres of power of the pillarised Belgian trade union movement. This system of industrial relations was challenged during the general strike of 1936. Some employers tried to compete with the unions by creating factory councils, yellow unions and 'mutual societies' at company level. The strategic aim was to remove the centre of labour relations from sector to factory level. This tendency was reinforced during the Second World War. Pre-war trade unions were abolished, employers tried to take over the role of the unions by creating all kinds of social provisions at company level. The factory became a basic element of the survival strategy of the workers. Moreover, from 1941 a clandestine and more radical trade union movement, which opposed the pre-war pillarised trade unionism, emerged. These clandestine unions were organised at factory level. In their view, the factory and not the sector had to become the locus of industrial relations after the war. The organisational framework that was established between 1944 and 1952 was a synthesis of the pre-war model of industrial relations and newly established councils at company level.     

OLIGOPOLISTIC COMPETITION AND ECONOMIC GEOGRAPHY*

ABSTRACT This paper studies a general equilibrium model of economic geography in which firms engage in oligopolistic competition. This framework is conducive to analytic results. With increasing returns, oligopolistic competition leads to interindustry trade between regions rather than intraindustry trade. The choice of appropriate technology is a channel of concentration of industries.     

A NODAL STRUCTURE FOR A SET OF CANADIAN CITIES USING GRAPH THEORY AND NEWSPAPER DATELINES*

The relative importance and the spheres of influence of the urban centres within some specified region, such as a country, are intriguing topics of investigation. Webber (1964) indicated that the ordering of centres within a country is not possible, since “the spatial extent of each [urban] realm is ambiguous, shifting instantaneously as participants in the realm's many interest-communities make new contacts, trade with different friends, or read different publications.’ We suspect, however, that there is considerable order in the communication links among the larger centres within a country. For example, Canada's leaders in business, governments, and the arts tend to move through a hierarchy of centres to end up in Toronto, Ottawa, Montreal, Vancouver, or some other large city, depending upon the particular field in which they work. All urban centres are linked to Ottawa, which is at the apex of political power, and to large urban centres, such as Toronto and Montreal, which predominate in the economic realm. The major purpose of this paper is to derive a nodal structure for seventeen major Canadian cities, based on newspaper datelines. By utilizing these particular information flows, the analyses also shed light on possible differences between the anglophone and francophone communications networks.     

The assumption of equilibrium in models of migration

In recent articles Evans (1990) and Harrigan and McGregor (1993) (hereafter HM) scrutinized the equilibrium model of migration presented in a 1989 paper by Schachter and Althaus. This model used standard microeconomics to analyze gross interregional migration flows based on the assumption that gross flows are in approximate equilibrium. HM criticized the model as theoretically untenable, while Evans summoned empirical as well as theoretical objections. HM claimed that equilibrium of gross migration flows could be ruled out on theoretical grounds. They argued that the absence of net migration requires that either all regions have equal populations or that unsustainable regional migration propensities must obtain. In fact some moves are inter- and other are intraregional. It does not follow, however, that the number of interregional migrants will be larger for the more populous region. Alternatively, a country could be divided into a large number of small regions that have equal populations. With uniform propensities to move, each of these analytical regions would experience in equilibrium zero net migration. Hence, the condition that net migration equal zero is entirely consistent with unequal distributions of population across regions. The criticisms of Evans were based both on flawed reasoning and on misinterpretation of the results of a number of econometric studies. His reasoning assumed that the existence of demand shifts as found by Goldfarb and Yezer (1987) and Topel (1986) invalidated the equilibrium model. The equilibrium never really obtains exactly, but economic modeling of migration properly begins with a simple equilibrium model of the system. A careful reading of the papers Evans cited in support of his position showed that in fact they affirmed rather than denied the appropriateness of equilibrium modeling. Zero net migration together with nonzero gross migration are not theoretically incompatible with regional heterogeneity of population, wages, or amenities.     

Employment Opportunities,Wages and International Migration in Sweden 1970–1989

In this study I focus on the impact of aggregate labor turnover and regional labor market conditions on gross in- and out-migration within the framework of a neoclassical flexible-wage (equilibrium) model and a fixed-wage (labor-market disequilibrium) model. Using annual panel data on internal gross migration flows in Sweden from 1970 to 1989, I find that regional differences in employment opportunities have the expected effects on migration. The empirical relationship between real wages and gross migration flows is found to be less congruent with theory implications, indicating that compensated regional income prospects are equalized primarily via the interaction between employment opportunities and gross migration flows. Cyclical changes in hirings are shown to have a robust and strongly significant positive scale effect on migration.     

Integration by Migration?

"In terms of trade and capital flows, the Middle East is one of the least economically integrated regions of the world. The major exception is labor mobility, where intraregional migration flows are extensive. The explanation for this pattern lies in the extreme differences in factor endowments across the region and development policies adopted by both labor-importing and exporting countries. Because the obstacles to trade in goods have been greater than the obstacles to migration, labor mobility and its associated capital flows have been the most important mechanism through which the benefits of the oil windfall have been spread to the poorer states of the region. There is evidence that incomes across the Middle East have become more equal."     

Firm networks,borders, and regional economic integration

Borders reduce interprovincial trade relative to intraprovincial trade. Using trade and firm ownership microdata over a 9-year period (2004–2012), we show firm ownership networks, like trade flows, diminish with distance and borders and that the estimated effect of provincial borders on trade may fall by almost 75% after accounting for firm networks. This suggests the weaker presence of firm networks across borders has a significant, although statistically imprecise, effect on interprovincial trade. These findings reinforce the view that understanding border effects require not only the identification of barriers to trade but also barriers to investment across borders.     

武汉都市圈经济社会要素流的空间分析

都市圈城际经济联系与相互作用空间表现形式为城市间、城市-区域间的人流、物流、信息流、资金流、技术流等经济社会要素流。基于城际功能集散效应影响量建立城市流模型:F=NE,揭示出:武汉都市圈各中心城市经济社会要素流强度空间差异明显,对外经济联系呈现显著规模等级分布,空间结构上已经形成以武汉为中心的"鞍形"圈层结构。通过统计数据,利用SPSS统计软件,从实证角度分析得出:武汉成为圈域经济社会要素流集散中心,城际经济社会要素流不同程度表现出以武汉为中心的"等级放射状"空间格局。