Industry Characteristics Linked to Establishment Concentrations in Nonmetropolitan Areas

In this paper we investigate industry characteristics associated with the clustering of establishments in three-digit SIC manufacturing industries in nonmetropolitan areas. The dispersion parameter k of the negative binomial distribution is selected as the measure of industry spatial concentration. Associations between industry characteristics and spatial concentration are investigated using OLS regression analysis. Our findings indicate that the spatial clustering of establishments is positively related to industry average establishment size, reliance on natural resource inputs, labor intensity, cost shares of professional and technical employees, and cost shares of low-skilled workers. Agglomeration is negatively related to multiplant structure, employment in precision production, and reliance on local product and input markets.     

DISPERSION FORMS: AN INTERACTION OF MARKET ACCESS,COMPETITION, AND URBAN COSTS*

ABSTRACT This paper analyzes a two‐region model including multiple industries with different transport costs. Two results are derived. First, dispersion occurs for small transport costs, but the specific dispersion patterns depend on the level of urban costs. This results from an interaction of the market‐access effect on consumers, the market‐access effect on firms, the competition effect, and the urban‐cost effect. Second, decreasing transport cost tends to let industries with lower transport costs disperse, although the shares of industries locating in the larger region are not in order of their transport costs. We further provide some empirical data concerning the second result.     

Developments in Russian Gas Production Since 1998: Russia's Evolving Gas Supply Strategy

An American geographer and prominent authority on the oil and natural gas industries and resources of Russia and other former republics of the Soviet Union reports on overall trends in Russia's natural gas production in the years following the country's ruble devaluation and financial crisis. The account—based on systematic in-country observations, discussions/interviews with industry executives, and a review of industry sources—focuses on factors affecting domestic supply and demand as well as export capacity (will Russia have enough gas to meet rising domestic demand while fulfilling its export obligations?), regional patterns of production (and performance of Gazprom regional production enterprises), obstacles to the use of associated gas derived from crude oil extraction, and major pipeline construction projects in West Siberia and the Russian Far East. The paper concludes by outlining CERA's forecast for Russian gas production to 2020, also disaggregated by region. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 7 figures, 8 tables, 51 references.     

Spatial Agglomeration of Manufacturing in Greece: Sectoral Patterns and Determinants

This article aims to demonstrate how the industry characteristics of manufacturing sectors affect the patterns of their spatial agglomeration. It also addresses several intricate issues concerning the measurement of localization economies and estimation of their main determinants in manufacturing industries. The original empirical analysis employs annual industrial data from the Hellenic Statistical Authority (ELSTAT) during the period 1993–2006 in Greece at the prefecture level, i.e. for 51 prefectures. The data processing reveals three important findings. The first is the temporal persistence of localization economies in the Greek manufacturing. The second refers to the high level of agglomeration associated with the high-technology industries as well as the resource- and scale-intensive industries. Lastly, there are significant effects of industry characteristics related to knowledge externalities, labour skills and productivity, scale economies and own-transport expenditure on spatial agglomeration, as resulted from the use of alternative geographic concentration indices and panel data models. Results obtained have implications for policy-makers, who can enhance the regional manufacturing activity by affecting these industry-specific factors. Amongst others, planning measures and policies which aim at promoting the local development and regional convergence should focus on reducing transport costs for firms or sectors, by improving the infrastructure capacity, interconnectivity and quality of services.     

Labour Productivity and Energy Use in a Three‐Sector Model: An Application to Egypt

This article presents a model of a developing economy with three sectors — industry, agriculture and energy. Industry and energy are assumed to be demand‐constrained, but agriculture supply‐constrained. The model highlights: (a) structural transformation, through labour transfer from agriculture to industry; (b) inflation, driven by the interaction of demand and the supply constraint in agriculture; and (c) the link between energy use and labour productivity. Employing a Kaldor‐Verdoorn productivity rule in industry augmented with energy intensity — energy per unit of labour — as an argument, we emphasize that labour productivity growth is driven by energy intensity rather than energy productivity growth. As a consequence, emissions reduction without North–South technology transfer and financial assistance costs growth.     

The Russian Copper Industry and the Noril'sk Joint-Stock Company in the Mid-1990s

An American resource geographer examines current production in one of the world's major copper industries, with special emphasis on the Noril'sk Nickel Joint-Stock Company—the world's most important producer of platinum-group metals, a leader in nickel and cobalt output, and the leading Russian producer of copper as well. The author documents and analyzes changes in operating procedures and raw material supplies in the industry during the 1990s, focusing on adjustments (such as tolling arrangements and imports of concentrate in the raw-material-deficient Urals and efforts to introduce cost economies in resource-rich Noril'sk) prompted by the severing of industry production linkages of the Soviet period and their partial reintegration under new corporate structures. In addition to restructuring, likened to similar adjustments in the American copper industry, the investigation covers exploration and new mine development at various Russian locations as well as the economics of producing copper and other exportable metals at Arctic production centers. 1 figure, 4 tables, 103 references. Journal of Economic Literature, Classification Numbers: L61, L72, Q32.     

Russia's Oil Industry: Risk Aversion in a Risk-Prone Environment

A Russian economist and a Norwegian political scientist, both long-term observers of the Russian energy industries, discuss the outlook for the Russian oil industry. The focus is on the relationship between reserves and industry strategies, and is presented from the perspective of an oil-producing enterprise. The authors analyze trends in reserve exploration and development and compare them with oil-industry investment patterns. They discuss differences and similarities among companies, as well as implications for future output. Also examined in the paper are factors inhibiting long-term private investment in the oil industry (including factors specific to particular companies) as well as the relevant policies of the government. Journal of Economic Literature, Classification Numbers: D21, H25, L71, Q48. 8 figures, 1 table, 40 references.     

Multilevel (mis)governance of palm oil production

The palm oil industry exemplifies the ‘regionalisation without regionalism’ pattern seen in other industries in Asia: extensive, regionally concentrated transnational economic integration accompanied by a low level of formal regional institution-building. Production is concentrated in Malaysia and Indonesia, and Asian countries account for a major share of the market for intermediate products. The ownership structure of palm oil production reflects the dominance of transnational Malaysian and Singaporean firms. There is no authoritative regional institution governing production, investment standards or labour in the industry. A patchwork of both enabling and regulatory governance institutions supports the industry. These are formal and informal, public and private, and are situated at multiple levels: within, below and across the nation state. Although the governance structure surrounding the palm oil industry has supported it well in terms of production volumes and profits, large externalities—environmental and social costs—persist. This article argues that the governance failures associated with the industry stem from different stakeholders' competing interests in contexts of highly unequal wealth and power distribution. Misgovernance is not an unintended consequence of institutions failing to keep up with markets in scale and scope, but is embedded in the multilevel governance regime that supports, and partially regulates, the industry.     

Global Value Chain Participation and the Labour Share: Industry-level Evidence from Emerging Economies

Participation in global value chains (GVCs) has been proposed as a central means for emerging economies to develop and technologically upgrade. However, the effects of GVCs on income distribution in the global South remain underexplored. This article presents an econometric analysis of the determinants of the labour share in seven emerging economies for the period 1995–2014. Drawing on industry-level data from global input-output tables, the authors focus on how GVC participation — in particular offshoring of production from advanced to emerging economies — affects the labour share of different skill groups within manufacturing and service industries. They also estimate the effects of GVCs on productivity, real wages and the capital–value added ratio, to shed further light on the channels through which GVCs affect the labour share. In both industry groups, findings show that integration into GVCs with advanced economies has a negative effect on the labour share in emerging economies, particularly for medium-skilled workers. In contrast, higher union density and government consumption spending have positive effects on the labour share. Thus, labour in emerging economies loses out relative to capital as production becomes more integrated across borders.     

News Notes

The paper surveys the Russian aluminum industry during the turbulent transition years of the 1990s, and updates developments to the current period. The focus is on primary aluminum production, with emphasis on the key topics of ownership and governance, output and performance, costs of production (dominated by energy and transportation), investments, technology, and alumina and bauxite inputs. Considerable attention is devoted to elucidating the corporate strategies of the two dominant Russian aluminum companies emerging by the end of the period—Rusal and SUAL. Journal of Economic Literature, Classification Numbers: F21, L61, L72. 1 figure, 4 tables, 79 references.     

全球化背景下的广东省制造业地理集中研究

本文利用2004年经济普查的数据,分析了广东省制造业的地理分布特征。广东省大多数的制造业地理集中程度都较高,并且主要集中在珠三角地区,很多地理集中程度较高的制造业分布都存在较高的空间自相关性。对广东省制造业集中的实证研究表明,资源和能源投入强度较高的产业较为集聚,并且出口显著提高了产业集聚程度。尽管外资是广东省制造业发展的重要力量,但是并没有促进产业的集聚,说明制造业外资已经进入扩散阶段。本文的结果和全国尺度的研究结果存在差异,这说明地理尺度对于研究产业集聚非常重要。     

苏北沿运河地区绿色产业发展战略研究

本文在绿色产业成为全球产业发展热点的背景下,提出在江苏省北部沿运河地区适宜重点发展绿色产业。首先分析了苏北沿运河地区发展绿色产业的支撑条件,进而提出了苏北沿运河地区绿色产业发展战略,确定了绿色产业发展方向、发展模式和发展重点。发展战略中重点分析绿色产业选择方法和提出绿色产业发展的空间组织模式、产业循环模式和经营管理模式,并指出沿运河地区绿色产业发展的重点,这对明确绿色产业发展方向,形成苏北沿运河地区特色的绿色产业品牌,培育区域发展优势,打造苏北沿运河地区绿色产业发展新形象有着重要的意义。     

Problems of Optimal Location of an Industrial Complex

Reverting to the problem of location of the next major iron and steel plant, based on ore from the Kursk Magnetic Anomaly, the authors present the pro-Siberian view. They contend that advocates of a Central Russian location of such a steel plant ignore both the water and land costs in the construction of such a complex, which would tend to argue against a western location, and the effect of such a complex in promoting regional development, which would have a positive impact in the underdeveloped eastern regions. Cost calculations are presented to show that even if the Siberian plant is supplied by long-haul ore from the Kursk Magnetic Anomaly, a Siberian location would be of greater benefit to the Soviet economy as a whole than a Central Russian location. The benefit would be even more marked if the design calculations involved not just the choice of site for one iron and steel plant, but the comparative costs of an iron and steel plant (an energy-intensive industry) in Siberia and a labor-intensive industry in Central Russia. For the pro-European view in the choice of a steel-plant site, see the Gladkevich article in Soviet Geography, November 1971.     

Hotelling Games with Three,Four, and More Players*

Abstract. This paper extends the interval Hotelling model with quadratic transport costs to the n‐player case. For a large set of locations including potential equilibrium configurations, we show for n > 2 that firms neither maximize differentiation—as in the duopoly model—nor minimize differentiation—as in the multi‐firm game with linear transport cost. Subgame perfect equilibria for games with up to nine players are characterized by a U‐shaped price structure and interior corner firm locations. Results are driven by an asymmetry between firms. Interior firms are weaker competitors than their rivals at the corners. Increasing the number of firms shifts even more power to the corner firms. As a result, there is too much differentiation from the social perspective if n ≤ 3, while adding firms leads to a level of differentiation in equilibrium below the social optimum.     

港口经济及其地域空间作用:对鹿特丹港的案例研究

港口经济在国民经济中起着越来越重要的作用,面临全球化竞争的挑战,借鉴国外港口经济的经验对我国三角洲地区和海港城市的发展具有重要意义。本文将分析荷兰鹿特丹港的港口经济发展,研究港口产业对于港口地区的社会经济带动作用,港口产业的时间演替规律和在港口产业带动下的港口地区地域空间扩展规律。     

Environmental Regulations and Multinational Corporations' Foreign Market Entry Investments

In this study, we examine how differences in environmental regulation characteristics are linked to multinational corporations' (MNCs) foreign market entry (FME) investments decisions around the world. We rely on a data set with 29,303 observations from 94 European Fortune Global 500 companies operating across 77 countries during the period 2001–2007. We found that MNCs are more likely to enter countries with more certain—i.e., clearer and more stable—environmental regulations than those of their home countries. Results also suggest that there is a higher level of MNC entry into foreign countries with environmental regulations that are more stringent than those of their home countries. This finding challenges the controversial but commonly held view that more stringent environmental regulations deter MNCs' FME investments. Notably, the magnitude of the regulatory certainty relationship with MNCs' FME investments is larger than that of regulatory stringency. Findings also indicate that the increased tendency of MNCs to enter countries with more stringent environmental regulations is higher in more democratic countries and for cleaner industry firms.     

Transport Costs and Rural Development

Innovations that reduce costs of transport from rural locations may also reduce transport costs to rural areas. As transport costs fall, producers can afford to concentrate and achieve economies of scale. This paper explains an initially negative, but ultimately positive, relationship between reductions in transport costs and rural development. A two-region general equilibrium model with firm and worker spatial mobility highlights the firm and household location implications of costly transport-service use by both industry and agriculture in the context of scale economies and product differentiation. The computable general equilibrium model is initialized and verified with a bi-regional social accounting matrix and then used for simulations. Changes in relative transport costs are shown to affect relative regional wage rates, thus also determining the location of "production-cost-oriented" firms.     

基于产业群视角的河南省产业配套能力分析

产业配套能力是企业在选择投资区域时最关注的外部条件。吸引投资是促进河南省经济发展的重要途径,利用产业配套能力来评估投资环境显得尤为重要。本文利用《2007年河南省投入产出表》,采用主成分分析法,识别出河南省目前存在18个具有内在经济联系的产业群。通过对各产业群的经济关联和空间分布的分析,发现林木产业群、耐火材料产业群是河南省配套能力最完善的产业群类型,煤电产业群和烟酒制品产业群的配套能力也相对完善,其余各产业群由于存在较低的产业关联度或空间分布过于分散,导致配套水平偏低。     

The Creative Economy: Vision or Illusion in the Structural Change?

This contribution discusses the hopes associated with the rise of the creative industries and gives explanations for the debates in politics, science and the media. In doing so, our underlying thesis is that the culture and creative economy is a virtual sector and that a uniform promotion—also by means of staged events that attract a lot of media attention—needs to be challenged. In a further step, the scientific implications will also be outlined on the basis of the term's “career” in the public debate. A brief analysis of the empiricism of the creative economy will provide further insight into its real significance and demonstrate possible definitional weaknesses of the term. The creative industries are an essential element of modern economic infrastructure. They will play an important role in the future, especially for cluster strategies. However, the scientific research so far is not able to reach more accurate conclusions regarding the effects of governance on the culture and creative industry. Therefore, this contribution shows future research fields. We will conclude by venturing an outlook on the further development of the sector and demonstrate its social and economic effects using the example of the Ruhr Area in North Rhine-Westphalia.