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  • Articles  (1,545)
  • Oxford University Press
  • Geography  (1,143)
  • Political Science  (402)
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  • Articles  (1,545)
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  • 1
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    Why did the Portuguese economy stop converging with the OECD? Institutions, politics and innovation (2015)
    Oxford University Press
    Details
    Publication Date: 2015-08-22
    Description: Underlying the crisis affecting peripheral European countries is their structural, long-term loss of competitiveness (Hadjimichalis, 2011, European Urban and Regional Studies , 18: 254–274). This article will focus on the Portuguese case and discuss the institutional constraints that hindered its economy from transitioning towards the production of higher-value added goods and services. It will discuss institutions as the product of a political process laden with power asymmetries and argue that the dominance of a relatively small community at the heart of economic and political life in Portugal has conditioned the development of the economy as a whole. Using this framework, this article will then contribute to the literatures on innovation and technological modernisation and argue that alongside a technical process of catching up there is a political process that can enable or constrain development.
    Keywords: B52 - Institutional ; Evolutionary, O33 - Technological Change: Choices and Consequences ; Diffusion Processes, P16 - Political Economy
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
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  • 2
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    The geography of financial inclusion across Europe during the global crisis (2015)
    Oxford University Press
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    Publication Date: 2015-08-22
    Description: This article identifies the main determinants of financial inclusion, defined as the probability of using both banking and credit services, across 18 Eastern European economies and 5 Western European ‘comparator’ countries. We elicit demographic and socio-economic information on 25,000 European households from the second round of the Life in Transition Survey undertaken during the 2008–2010 global crisis; the survey also includes several questions on households’ financial decisions collecting data at the regional and local level. Our results show that households hit by negative job or income shocks and without any asset to pledge are less likely to be financially included, especially in Eastern Europe. The individual likelihood of financial inclusion is also affected by the average use of financial services at the local level suggesting the presence of a financial multiplier effect. These results provide useful information for mapping financial inclusion across Europe during the crisis, which in turn can inform policy action at the local level.
    Keywords: D14 - Personal Finance, G21 - Banks ; Other Depository Institutions ; Micro Finance Institutions ; Mortgages
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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  • 3
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    The economic effects of owner distance and local property management in US office markets (2016)
    Oxford University Press
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    Publication Date: 2016-07-13
    Description: Using a large dataset of US offices we analyse the relationship between investors’ distance to their assets and the effective rent of these assets, and study the extent to which property managers can influence this relationship. We construct hedonic rent models to control for other known rent determinants. It turns out that proximity matters: holding everything else constant, investors located closely to their office buildings are able to extract significantly higher effective rents from these assets, especially if these buildings are of low quality. This effect is due to significant differences in occupancy levels. Interestingly, property managers can affect this relationship, mitigating the adverse effects of investor distance on effective office rents. Especially if the owner does not reside in the same state as the building, external property management is of importance, most prominently so for class-B office buildings.
    Keywords: G11 - Portfolio Choice ; Investment Decisions, R12 - Size and Spatial Distributions of Regional Economic Activity, R32 - Other Production and Pricing Analysis, R33 - Nonagricultural and Nonresidential Real Estate Markets
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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  • 4
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    Exporting to Russia? Entry barriers for food suppliers in a territory in transition (2016)
    Oxford University Press
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    Publication Date: 2016-07-13
    Description: This article draws on extensive fieldwork conducted in Central Asia to explore food exports to Russia. It takes its theoretical starting point in global value chain theory and pinpoints chain entry barriers relating to financing, transportation and standards. The article also proposes rethinking the aspects of territoriality and institutional context, and suggests their integration into one concept, or rather a process of contextualizing territories. In doing so, the article argues for a methodology that not only examines current events, but also captures change as particularly important in what we term the territory in transition examined here.
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    Topics: Geography , Economics
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  • 5
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    Regions and material flows: investigating the regional branching and industry relatedness of port traffics in a global perspective (2016)
    Oxford University Press
    Details
    Publication Date: 2016-07-13
    Description: This article proposes a quantitative analysis of the interdependencies between port specialization and regional specialization across the world. A global database is elaborated, covering about 360 port regions in both developed and developing countries. One goal is to verify how interdependent port traffic and regional characteristics are, in a context of increasingly flexible commodity and value chains. Despite the aggregated dimension of available data and the heterogeneity of local situations, the main results confirm the affinity between the primary sector and raw materials traffic, and between the tertiary sector and general cargo traffic, whereas the industrial sector offers mixed evidence. This allows us to address fundamental questions raised by both economic geography and regional science about transport and local development. The global typology of port regions points to certain regularities in their spatial distribution, and the article discusses the policy implications of particular cases.
    Keywords: L90 - General, O18 - Regional, Urban, and Rural Analyses, R40 - General
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    Topics: Geography , Economics
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  • 6
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    Towards a typology of repositioning strategies of GVC/GPN suppliers: the case of functional upgrading and downgrading (2016)
    Oxford University Press
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    Publication Date: 2016-07-13
    Description: This article examines various upgrading and downgrading repositioning firm strategies within global value chains (GVCs) or global production networks (GPNs). It builds upon recent evidence that the mode of governance could vary profoundly among firms engaged in the same GVC/GPN. Therefore, the relevance of particular types of upgrading that were originally derived from the ideal types of GVC/GPN governance will be reconsidered. It is argued that the existing dissonance in the literature over possibilities for functional upgrading can be attributed to the different modes of governance that can exist within a particular GVC/GPN and to the diverse nature of functional upgrading. Consequently, a typology of functional upgrading is outlined, and it is argued that these different types vary significantly according to their probability and potential risk-benefit ratios. The article also introduces passive, adaptive and strategic downgrading and outlines their potential negative and positive effects on firms.
    Keywords: F63 - Economic Development, L23 - Organization of Production, L60 - General
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    Topics: Geography , Economics
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  • 7
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    Infrastructure as a traded product: A relational approach to finance in practice (2016)
    Oxford University Press
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    Publication Date: 2016-07-13
    Description: As nations continue to grapple with growing infrastructure demand, financial markets will play an increasingly prominent role in the landscape for urban infrastructure. Yet existing literature tends to depict the ‘financialization’ of urban infrastructure assets as a restless move towards market efficiency aided by the growing transparency of financial information. This article offers a different view, showing how the spatial richness of financial data for infrastructure has progressed towards what we term a more permanent state of ‘informational translucency’. We draw on 53 interviews with participants in the market for infrastructure investment to present this more complicated picture of infrastructure finance, thereby elaborating a more granular understanding of how information flows through and shapes financial market geography. From this we propose a relational model that contributes to theoretical understandings of how financial products are intermediated over time and space.
    Keywords: O18 - Regional, Urban, and Rural Analyses
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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  • 8
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    Islamic charitable infrastructure and giving in East London: Everyday economic-development geographies in practice (2016)
    Oxford University Press
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    Publication Date: 2016-07-13
    Description: This article extends research exploring progressive models of reproducing economic life by reporting on research into some of the infrastructure, practices and motivations for Islamic charitable giving in London. In so doing the article: (i) makes visible sets of values, practices and institutions usually hidden in an otherwise widely researched international financial centre; (ii) identifies multiple, hard-to-research civic actors who are mobilising diverse resources to address economic hardship and development needs; and (iii) considers how these charitable values, practices and agents contribute to contemporary thinking about progressive economic possibilities.
    Keywords: D14 - Personal Finance, O12 - Microeconomic Analyses of Economic Development
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    Topics: Geography , Economics
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  • 9
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    Estimating the impact of Mexican drug cartels and drug-related homicides on crime and perceptions of safety (2016)
    Oxford University Press
    Details
    Publication Date: 2016-07-13
    Description: We estimate the impact of drug cartels and drug-related homicides on crime and perceptions of security in Mexico. Since the location where drug cartels operate might be endogenous, we combine the difference-in-difference estimator with instrumental variables. Using surveys on crime victimization we find that people living in areas that experienced drug-related homicides are more likely to take extra security precautions. Yet, these areas are also more likely to experience certain crimes, particularly thefts and extortions. In contrast, these crimes and perceptions of insecurity do not change in areas where cartels operate without leading to drug-related homicides.
    Keywords: C26 - Instrumental Variables (IV) Estimation, K49 - Other, R59 - Other
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    Topics: Geography , Economics
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  • 10
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    The evolution of municipal structure (2016)
    Oxford University Press
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    Publication Date: 2016-07-13
    Description: In most US states, urban expansions are governed by ‘popular determination’, under which residents make annexation decisions through referendum. Yet little research analyzes how urban spatial structure evolves under this system. We develop a model to examine how urban residents’ collective decisions on annexations and property taxes and their interactions with agricultural landowners affect municipal structure under popular determination. We find that the evolution process of an urban area can be divided into four stages similar to human life stages (infancy, juvenile, adulthood and maturity), characterized by the pace of development. The key parameters that determine urban spatial structure include agricultural rents, construction costs, interest rate, and the rate and uncertainty of income growth. Cities tend to be more spread-out and consist of a large number of smaller municipalities, in regions with lower agricultural land rents, lower construction costs, and lower rate and uncertainty of income growth.
    Keywords: H73 - Interjurisdictional Differentials and Their Effects, Q24 - Land, R14 - Land Use Patterns
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    Topics: Geography , Economics
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  • 11
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    Railroads, factor channelling and increasing returns: Cleveland and the emergence of the American manufacturing belt (2015)
    Oxford University Press
    Details
    Publication Date: 2015-04-14
    Description: American Manufacturing Belt (AMB) emergence has been used by NEG theorists as a prime example of how increasing returns foster industrial concentration. Other studies suggest the AMB was in place before increasing returns became established. This study examines this previously unrecognized contradiction. An analysis of Cleveland, one of the fastest growing of AMB cities, is undertaken using new data sources. This finds the railroad sector crucial in generating direct employment and stimulating related industrial investment through forward and backward linkages. The former are associated with ‘factor channeling’—planned strategies to direct raw material flows to the city. NEG theorists’ under-emphasis on raw material provision and their use of the iceberg model to avoid analysis of the railroad sector is therefore found to be erroneous. The increasing returns hypothesis is evaluated using new data for several industrial sectors and rejected as a valid explanation for early manufacturing growth in Cleveland.
    Keywords: N61 - U.S. ; Canada: Pre-1913, N71 - U.S. ; Canada: Pre-1913, R15 - Econometric and Input-Output Models ; Other Models
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    Topics: Geography , Economics
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  • 12
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    Global pipelines for innovation: insights from the case of Norway (2015)
    Oxford University Press
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    Publication Date: 2015-04-14
    Description: Using data on 418 Norwegian firms, the results confirm the hypotheses that innovative/radically innovative firms tend to be more involved in international personal and formal networks than non-innovative/incrementally innovative ones. While regional and national networks are much more widespread than international ones, they are not significantly positively associated with innovation. International personal networks and international links with suppliers and customers and with universities and research institutions, as well as global buzz with strangers, are positively related to innovation. This suggests that innovation management and policy, in particular in countries with a limited national innovation base, could benefit from facilitating certain international networks.
    Keywords: O31 - Innovation and Invention: Processes and Incentives, R00 - General
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    Topics: Geography , Economics
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  • 13
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    Culture, spatial diffusion of ideas and their long-lasting imprints--evidence from Froebel's kindergarten movement (2015)
    Oxford University Press
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    Publication Date: 2015-04-14
    Description: We document the spatial diffusion of Friedrich Froebel’s radical invention of kindergartens in 19th-century Germany. The first kindergarten was founded at Froebel’s birthplace. Early spatial diffusion can be explained by cultural proximity, measured by historical dialect similarity, to Froebel’s birthplace. This result is robust to the inclusion of higher order polynomials in geographic distance and similarity measures with respect to industry, geography or religion. Our findings suggest that a common cultural basis facilitates the spill-over of ideas. We further show that the contemporaneous spatial pattern of child care coverage is still correlated with cultural similarity to Froebel’s place of birth.
    Keywords: J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth, N33 - Europe: Pre-1913, Z13 - Economic Sociology ; Economic Anthropology
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    Topics: Geography , Economics
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  • 14
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    Local warming and violent conflict in North and South Sudan (2015)
    Oxford University Press
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    Publication Date: 2015-04-14
    Description: Our article contributes to the emerging micro-level strand of the literature on the link between local variations in weather shocks and conflicts by focusing on a pixel-level analysis for North and South Sudan between 1997 and 2009. Temperature anomalies are found to strongly affect the risk of conflict, whereas the risk is expected to magnify in a range of 24–31% in the future under a median scenario. Our analysis also sheds light on the competition over natural resources, in particular water, as the main driver of such relationship in a region where pastoralism constitutes the dominant livelihood.
    Keywords: D74 - Conflict ; Conflict Resolution ; Alliances, O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products, Q54 - Climate ; Natural Disasters ; Global Warming, R11 - Regional Economic Activity: Growth, Development, and Changes
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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  • 15
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    Accuracy and efficiency in simulating equilibrium land-use patterns for self-organizing cities (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
    Description: Lucas and Rossi-Hansberg (L&RH) (2002, Econometrica , 70: 1445–1476) and Fujita and Ogawa (F&O) (1982, Regional Science and Urban Economics , 12: 161–196, 1989, Environment and Planning A , 21: 363–374) develop urban models in which economic activity self-organizes due to spillovers in production. However, F&O (1982, Regional Science and Urban Economics , 12: 161–196, 1989, Environment and Planning A , 21: 363–374) show that rents and employment density are flat or falling as the city center is approached, while in the simulations of L&RH (2002, Econometrica , 70: 1445–1476), rents rise at an increasing rate toward the center suggesting a concentration of employment near the center. For the Lucas and Rossi-Hansberg model, we prove that land rents and density must be flat or falling near the center. We explain how using a polar coordinate system when approximating a two-dimensional integral can create systematic imprecision in their simulations, and then present revised simulations. The proofs and simulations suggest that in urban models where economic activity self-organizes firms do not unduly cluster at the center of a central business district even in monocentric equilibria.
    Keywords: R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies, R14 - Land Use Patterns, R30 - General
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    Topics: Geography , Economics
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  • 16
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    Subscription (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 17
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    A Word from the Editor (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 18
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    The Social Value of Job Loss and Its Effect on the Costs of U.S. Environmental Regulations (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: Job loss is typically not valued in benefit–cost analyses of environmental regulations. But empirical evidence suggests that involuntary job loss results in large social costs, particularly when local unemployment is high. This article presents estimates of the social costs of job loss in the United States, based on estimates of how local labor markets respond to job changes. These estimated social costs have a present value per job lost in the hundreds of thousands of dollars. However, these social costs are far less than the earnings associated with the lost jobs, because of labor market adjustments as well as some offsets from the value of increased non-work time. An examination of major U.S. environmental regulations suggests that job losses will usually add only modestly to overall regulatory costs. However, if the magnitude of a regulation’s benefits and costs are close in monetary terms, then accounting for job loss could tip the regulatory decision. It is also important for regulatory analyses to examine the potential magnitude of gross job loss, particularly in high unemployment areas.
    Keywords: Q51 - Valuation of Environmental Effects, Q58 - Government Policy, H43 - Project Evaluation ; Social Discount Rate, J68 - Public Policy
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 19
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    Should Benefit-Cost Methods Take Account of High Unemployment? Symposium Introduction (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: Conventional methods in benefit–cost analysis maintain that the effects of new environmental regulations should focus on long run equilibria with and without the policies being evaluated. This article introduces a symposium that considers how the employment effects of environmental regulations might be included in benefit–cost analyses. Three lessons emerge from the symposium. First, the empirical evidence to date indicates that it is difficult to measure the net employment effects of environmental regulations. The record is mixed, with support for effects at the plant level. The record is less clear for the reduced form estimates using more aggregate data. Second, it is possible to construct an ex post "analysis chain" that allows for estimation of the adjustment costs associated with a job loss. These estimates depend importantly on the assumptions made in the construction of the counterfactual baseline employment history and the outcomes after job losses. The ways in which households might adapt to a job loss are especially important for measuring adjustment costs. Finally, economy-wide evaluations of the impact of environmental regulations require a new framework to characterize the role of regulations and the associated changes in environmental quality for steady state responses to policy.
    Keywords: H40 - General, Q58 - Government Policy, E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 20
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    Environmental Regulations and the Welfare Effects of Job Layoffs in the United States: A Spatial Approach (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: This article develops welfare-consistent measures of the employment effects of environmental regulation. Our analysis is based on a microeconomic model of how households with heterogeneous preferences and skills decide where to live and work. We use the model to examine how job loss and unemployment would affect workers in Northern California. Our stylized simulations produce earnings losses that are consistent with empirical evidence. They also produce two new insights. First, we find that earnings losses are sensitive to business cycle conditions. Second, we find that earnings losses may substantially understate welfare losses once we account for the fact that workers may have to commute further or live in a less desirable community after losing a job.
    Keywords: D61 - Allocative Efficiency ; Cost-Benefit Analysis, Q52 - Pollution Control Costs ; Distributional Effects ; Employment Effects
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 21
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    An Introduction to the Green Paradox: The Unintended Consequences of Climate Policies (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: How important is the Green Paradox? We address this question in three ways. First, we present a simple model explaining how announcing a future climate policy may increase carbon emissions today – the Green Paradox effect. This effect is a result of fossil fuel producers increasing their extraction today as a response to a reduction in future resource rents. Second, we examine the theoretical and empirical literature to assess whether green paradoxes are likely to occur, and if they are, whether they are big enough to be of concern for policy makers. We consider several factors that affect the existence of the green paradox, including long-term extraction costs, short-term extraction capacities, the mix of policy instruments, and potential spatial carbon leakage to countries that have no climate policy. We find that these and other factors can sometimes strengthen, but mostly weaken, the case for concern about the green paradox. Third, we identify the lessons the literature offers for policy makers. We argue that in designing climate policy, policy makers need to consider the supply side of the fossil fuel market.
    Keywords: H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies, Q31 - Demand and Supply, Q38 - Government Policy, Q54 - Climate ; Natural Disasters ; Global Warming
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 22
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    Cover (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 23
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    Global Warming and the Green Paradox: A Review of Adverse Effects of Climate Policies (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: This article examines the possible adverse effects of well-intended climate policies, an outcome known as the Green Paradox. A weak Green Paradox arises if the announcement of a future carbon tax or a sufficiently fast rising carbon tax encourages fossil fuel owners to extract reserves more aggressively, thus exacerbating global warming. We argue that such policies may also encourage more fossil fuel to be locked in the crust of the earth, which can offset the adverse effects of the weak Green Paradox. We show that a subsidy on clean renewables may have similar weak Green Paradox effects. Green welfare (the converse of environmental damages) declines (i.e., the strong Green Paradox) if the beneficial climate effects of locking up more fossil fuel do not outweigh the short-run weak Green Paradox effects. Neither the weak nor the strong Green Paradox occurs for the first-best Pigouvian carbon tax. We also discuss dirty backstops, spatial carbon leakage, and green innovation.
    Keywords: D81 - Criteria for Decision-Making under Risk and Uncertainty, H20 - General, Q31 - Demand and Supply, Q38 - Government Policy
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 24
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    A Macroeconomic Perspective on Evaluating Environmental Regulations (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: This article examines how dynamic general equilibrium models and methods that are commonly used to evaluate macroeconomic policies can also be useful for evaluating the aggregate consequences of environmental regulations. I describe two macroeconomic models of interest that differ in the extent to which they incorporate heterogeneity and microeconomic detail. I illustrate how standard methods from macroeconomics can be applied in both models by considering calculations for a hypothetical environmental regulation.
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 25
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    Introductory Comment-The Green Paradox: A Supply-Side View of the Climate Problem (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: Why have policies aimed at reducing the demand for carbon not succeeded in slowing down global carbon extraction and CO 2 emissions, and why have carbon prices failed to increase over the last three decades? This comment argues that this is because of the Green Paradox, that is, the anticipation of sales by resource owners who try to preempt the destruction of their markets by green policies. Reviewing some of the conditions under which strong and weak versions of the Green Paradox may emerge, it is argued that there is little hope that green replacement technologies will impose hard price constraints that would keep long-run extraction within a fixed carbon budget and that, therefore, even strong versions of the paradox cannot easily be avoided.
    Keywords: O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products, Q32 - Exhaustible Resources and Economic Development, Q54 - Climate ; Natural Disasters ; Global Warming, H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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  • 26
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    The Green Paradox in Open Economies: Lessons from Static and Dynamic Models (2015)
    Oxford University Press
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    Publication Date: 2015-07-18
    Description: This article examines how, in a world with incomplete coordination among countries, well-intentioned unilateral environmental policies may actually harm the global environment. This outcome is known as the "Green Paradox." The incentives for free-riding and the challenge of achieving an effective international environmental agreement are reviewed. I examine the various channels that lead to carbon leakage in static models of open economies, and report some simulation results. This is complemented by a review of the potential for Green Paradox outcomes in dynamic open-economy models in which forward-looking firms exploit an exhaustible resource. I show that border tax adjustments can lead to Green Paradox outcomes. I also discuss priorities for future research on environmental policies in a trading world that lacks a central enforcement agency.
    Keywords: Q54 - Climate ; Natural Disasters ; Global Warming, Q42 - Alternative Energy Sources
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Reflections-Managing Uncertain Climates: Some Guidance for Policy Makers and Researchers (2015)
    Oxford University Press
    Details
    Publication Date: 2015-07-18
    Description: Climate change—and, by extension, climate policy—is beset with unknowns and unknowables. This "Reflections" article presents an overview of approaches to managing climate uncertainties, in the hopes of providing guidance for current policy decisions as well as future research. We propose the following guidance for policy makers: Treat climate change as a risk management problem; recognize that benefit-cost analysis is only the first of many steps in deciding on optimal climate policy; in assessing abatement choices, use a discount rate that declines over time; recognize the importance of framing, evidence, and connecting the dots; reward modesty. We suggest the following questions for consideration by researchers: Can we improve forecasting? Can we improve the way we address nonlinearities and possible irreversibilities? What other (sub)disciplines merit a closer look? How can we create the right incentives for updating and expanding economic damage functions and climate-economy models? What alternative decision criteria merit further exploration? What does ‘not knowing’ tell us?
    Keywords: Q54 - Climate ; Natural Disasters ; Global Warming, D81 - Criteria for Decision-Making under Risk and Uncertainty
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Chicken or egg? The PVAR econometrics of transportation (2015)
    Oxford University Press
    Details
    Publication Date: 2015-10-14
    Description: To analyse the mutually dependent relationship between local economic performance, demand for and supply of transport services, we employ the structural panel VAR method that is popular in the macroeconomic literature, but has not previously been applied to the modelling of the within-city dynamics of transportation. We focus on a within-city panel of Berlin, Germany during the heyday of the construction of its dense public transit network (1890–1914). Our results suggest that economic outcomes and a supply of transport infrastructure mutually determine each other. We find a short-run (long-run) elasticity of property prices with respect to transport supply of 2% (8.5%). Both transport demand and supply seem to be driven more by firms than by residents.
    Keywords: N73 - Europe: Pre-1913, N74 - Europe: 1913-, R12 - Size and Spatial Distributions of Regional Economic Activity, R14 - Land Use Patterns, R41 - Transportation: Demand, Supply, and Congestion ; Safety and Accidents ; Transportation Noise
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    Topics: Geography , Economics
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    Transnational corporations shaping institutional change: the case of English law firms in Germany (2015)
    Oxford University Press
    Details
    Publication Date: 2015-10-14
    Description: Questions remain about the factors that influence the ability of transnational corporations (TNCs) to shape processes of institutional change. In particular, questions about power relations need more attention. To address such questions, this article develops a neo-institutional theory-inspired analysis of the case of English law firms and their impacts on institutional change in Germany. The article shows that the shaping of the direction of institutional change by English legal TNCs was a product of conjunctural moments in which local institutional instability combined with the presence, resources and strategies of the TNCs to redirect the path of institutional evolution. This draws attention to the need to go beyond the TNC and its resources and to consider the way a diverse array of local actors and their generating of instability in existing institutional structures influence the ability of TNCs to become involved in processes of institutional change in particular, conjunctural moments in time.
    Keywords: General, L84 - Personal, Professional, and Business Services, M16 - International Business Administration
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    Topics: Geography , Economics
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    Airport cities and metropolitan labor markets: an extension and response to Cidell (2015)
    Oxford University Press
    Details
    Publication Date: 2015-10-14
    Description: Using Census 2000 CTPP tract-level data for the 51 largest U.S. metropolitan areas, airport cities—agglomerations of employment anchored by airports—are placed in the context of metropolitan spatial form in order to understand their emergence and function. Major airports anchor significant concentrations of employment which average one-third to one-half the size of the respective CBDs, depending upon the operationalization, while 80% of the airports anchor employment agglomerations. Airport cities are anchored by airports but not driven by aviation. The relationship between spatial form and economic function suggests that need for airport access determines the location of transportation-providing employment while spatial employment filtering, based on urban land costs and agglomeration benefits, are responsible for the presence of transportation-supporting and transportation-using employment, such as producer services.
    Keywords: L93 - Air Transportation, O18 - Regional, Urban, and Rural Analyses, R12 - Size and Spatial Distributions of Regional Economic Activity
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    Topics: Geography , Economics
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    The role of major infrastructure in subregional economic development: an empirical study of airports and cities (2015)
    Oxford University Press
    Details
    Publication Date: 2015-10-14
    Description: The link between airports, air service and regional economic development has been well-established and used to justify airport expansion at the expense of local communities because of subsequent region-wide benefits. However, local-level spatial analyses based on US Economic Census data indicate that economic benefits in terms of professional and administrative employment do not necessarily offset local economic and quality of life costs. Furthermore, arguments for an airport city or aerotropolis phenomenon in the US context ignore the individual histories and morphologies of metropolitan areas and overstate the influence an airport has on the economic development of its region.
    Keywords: L93 - Air Transportation, O18 - Regional, Urban, and Rural Analyses, R41 - Transportation: Demand, Supply, and Congestion ; Safety and Accidents ; Transportation Noise, R53 - Public Facility Location Analysis ; Public Investment and Capital Stock
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    Topics: Geography , Economics
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    Cities and product variety: evidence from restaurants (2015)
    Oxford University Press
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    Publication Date: 2015-10-14
    Description: This article measures restaurant variety in US cities and argues that city structure directly increases product variety by spatially aggregating demand. I discuss a model of entry thresholds in which market size is a function of both population and geographic space and evaluate implications of this model with a new data set of 127,000 restaurants across 726 cities. I find that geographic concentration of a population leads to a greater number of cuisines and the likelihood of having a specific cuisine is increasing in population and population density, with the rarest cuisines found only in the biggest, densest cities. Further, there is a strong hierarchical pattern to the distribution of variety across cities in which the specific cuisines available can be predicted by the total count. These findings parallel empirical work on Central Place Theory and provide evidence that demand aggregation has a significant impact on consumer product variety.
    Keywords: L10 - General, R12 - Size and Spatial Distributions of Regional Economic Activity
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    Topics: Geography , Economics
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    The New Geography of Capitalism: Firms, Finance, and Society (2015)
    Oxford University Press
    Details
    Publication Date: 2015-10-14
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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    Econometric modelling of the regional knowledge production function in Europe (2015)
    Oxford University Press
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    Publication Date: 2015-10-14
    Description: By adopting a semiparametric approach, the ‘traditional’ regional knowledge production function is developed in three complementary directions. First, the model is augmented with region-specific time trends to account for endogeneity due to selection on unobservables . Second, the nonparametric part of the model relaxes the standard assumptions of linearity and additivity regarding the effect of R&D and human capital. Finally, the assumption of homogeneity in the effects of R&D and human capital is also relaxed by explicitly accounting for the differences between developed and lagging regions. The analysis of the genesis of innovation in the regions of the European Union unveils nonlinearities, threshold effects, complex interactions and shadow effects that cannot be uncovered by standard parametric formulations.
    Keywords: C14 - Semiparametric and Nonparametric Methods, C23 - Models with Panel Data, O32 - Management of Technological Innovation and R&D, R11 - Regional Economic Activity: Growth, Development, and Changes
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    Topics: Geography , Economics
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    The Use of Field Experiments in Environmental and Resource Economics (2016)
    Oxford University Press
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    Publication Date: 2016-09-17
    Description: Field experiments provide a useful way to address a number of important issues in environmental and resource economics. This article provides a review of studies that have used field experiments to inform (1) benefit–cost analysis and (2) efforts to promote resource conservation. In these areas, scholars have used field experiments to test existing theories, inform the development of new theories, and guide policymakers. After summarizing these contributions, we discuss new directions for the use of field experiments in environmental and resource economics.
    Keywords: C93 - Field Experiments, D03 - Behavioral Economics ; Underlying Principles, D04 - Microeconomic Policy: Formulation ; Implementation ; Evaluation, D61 - Allocative Efficiency ; Cost-Benefit Analysis, Q25 - Water, Q28 - Government Policy, Q41 - Demand and Supply, Q48 - Government Policy, Q51 - Valuation of Environmental Effects, Q58 - Government Policy
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Local variety and firm diversification: an evolutionary economic geography perspective (2016)
    Oxford University Press
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    Publication Date: 2016-09-20
    Description: The aim of this article is to investigate whether and how local agglomeration forces—related and unrelated variety—influence firm diversification. Using a large dataset of 5112 Italian manufacturing business groups for the year 2001, and estimating Tobit models, we show the ‘consistency’ between the patterns of firm diversification and that of the local system in which the firm is located. Specifically, firms located in local systems dominated by unrelated variety are more likely to show unrelated diversification patterns, while firms located in local systems dominated by related variety are more likely to show related diversification patterns. This supports the Evolutionary Economic Geography prediction of firm similarity ‘within’ the same local system, and firm heterogeneity ‘between’ different local systems.
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    Topics: Geography , Economics
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    Globalization and local profiles of economic growth and industrial change (2016)
    Oxford University Press
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    Publication Date: 2016-09-20
    Description: The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend of structural change is not uniform across space, however. Some regions exhibit it at an accelerated pace, while other regions reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with ‘pro-trend’, ‘anti-trend’ or ‘featureless’ growth and provide a detailed comparison of these groups. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the profiles of regional growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors.
    Keywords: F16 - Trade and Labor Market Interactions, O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology, R11 - Regional Economic Activity: Growth, Development, and Changes
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    Topics: Geography , Economics
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    Cover (2016)
    Oxford University Press
    Details
    Publication Date: 2016-09-17
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Benefit-Cost Analysis and Distributional Weights: An Overview (2016)
    Oxford University Press
    Details
    Publication Date: 2016-09-17
    Description: Benefit–cost analysis (BCA) evaluates policy choices by summing unweighted monetary equivalents, and is insensitive to distributional considerations. An established scholarly tradition proposes to use distributional weights in BCA—multiplying monetary equivalents by weighting factors that are inversely proportional to individuals’ incomes. This article provides an accessible overview of the topic of distributional weights, with a special focus on environmental policy. The intellectual foundation for weights is the concept of a social welfare function (SWF). Two are considered: a utilitarian SWF and an isoelastic/Atkinson SWF, which incorporates an extra degree of inequality aversion. The article explains the concept of an SWF, discusses in detail how to specify utilitarian and isoelastic/Atkinson weights so as to mimic the corresponding SWFs, and uses the value of statistical life (VSL) to provide an example of weighting. The article then considers two important objections to distributional weighting: that interpersonal well-being comparisons (and thus weights) are undermined by preference heterogeneity, and that distributional considerations are best handled through the tax system.
    Keywords: D61 - Allocative Efficiency ; Cost-Benefit Analysis, D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement, I31 - General Welfare, Q51 - Valuation of Environmental Effects, Q58 - Government Policy
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    On firms product space evolution: the role of firm and local product relatedness (2016)
    Oxford University Press
    Details
    Publication Date: 2016-09-20
    Description: We explore the role of firm- and local product-specific capabilities in fostering the introduction of new products in the Turkish manufacturing. Firms’ product space evolution is characterised by strong cognitive path dependence that, however, is relaxed by firm heterogeneity in terms of size, efficiency and international exposure. The introduction of new products in laggard Eastern regions, which is importantly linked to the evolution of their industrial output, is mainly affected by firm’s internal product- specific resources. On the contrary, product innovations in Western advanced regions hinge relatively more on the availability of local technological- related competencies.
    Keywords: D22 - Firm Behavior: Empirical Analysis, O12 - Microeconomic Analyses of Economic Development, O53 - Asia including Middle East
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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    Measuring industry coagglomeration and identifying the driving forces (2016)
    Oxford University Press
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    Publication Date: 2016-09-20
    Description: Understanding industry agglomeration and its driving forces is critical for the formulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration. We construct a new coagglomeration index based purely on the location of firms. We examine what this index reveals about the importance of transport costs, labour market pooling and technology transfer for agglomeration processes, controlling for overall industry agglomeration. We compare the results based on our new measure to existing measures in the literature and find very different underlying stories at work. We conclude that in conducting analyses of this kind giving consideration to the source of agglomeration economies, employees or entrepreneurs, and finding an appropriate measure for agglomeration, are both crucial to the process of identifying agglomerative forces.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L60 - General, O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology, O33 - Technological Change: Choices and Consequences ; Diffusion Processes
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    Topics: Geography , Economics
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    Geography and intra-national home bias: U.S. domestic trade in 1949 and 2007 (2015)
    Oxford University Press
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    Publication Date: 2015-04-14
    Description: This article examines home bias in U.S. domestic trade in 1949 and 2007. We use a unique data set of 1949 carload waybill statistics produced by the Interstate Commerce Commission, and 2007 Commodity Flow Survey data. The results show that home bias was considerably smaller in 1949 than in 2007 and that home bias in 1949 was even negative for several commodities. We argue that the difference between the geographical distribution of the manufacturing activities in 1949 and that of 2007 is an important factor explaining the differences in the magnitudes of home-bias estimates in those years.
    Keywords: F14 - Country and Industry Studies of Trade, F18 - Trade and Environment
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    Topics: Geography , Economics
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    Financial networks and the globalization of transnational corporations: the case of educational services (2015)
    Oxford University Press
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    Publication Date: 2015-04-14
    Description: In this article, I advance understandings of the intersection between financial and educational services from an economic geographical perspective by examining the importance of financial networks in shaping the internationalization activities of for-profit business education service firms. By combining relational approaches to the globalization of transnational corporations (TNCs) with work on monetary networks I argue that extra-firm networks with financial services are an important element in understanding how, where and why business education service firms internationalize. Theoretically, this argument responds to calls for firm finances to be more fully incorporated into understandings of wider economic geographies and, in particular, addresses the neglect of finance in extant understandings of the internationalization of TNCs. Empirically, I position educational services as an overlooked business services sector that deserves greater attention within economic geography.
    Keywords: G20 - General, I22 - Educational Finance, L80 - General
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    Topics: Geography , Economics
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    Industrial development in thin regions: trapped in path extension? (2015)
    Oxford University Press
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    Publication Date: 2015-04-14
    Description: Recent theorizing of path dependence supplements the traditional view of regional path-dependent industrial development characterized by lock-in effects with paths dealing with change, that is, path renewal and path creation. Few studies, however, examine why different types of regions experience diverse path-dependent development. This article examines why organizationally thin regions are much less likely to achieve path renewal and path creation than core regions. By use of a case study of industrial development in an organizationally thin and rather peripheral region in Norway the article contends that thin regions often need external investments to avoid being trapped in path extension.
    Keywords: R11 - Regional Economic Activity: Growth, Development, and Changes
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    Topics: Geography , Economics
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    Single-firm case studies in economic geography: some methodological reflections on the case of Zara (2015)
    Oxford University Press
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    Publication Date: 2015-04-14
    Description: In this article, I reassess the undeserved reputation of Inditex’s Zara as a ‘home-sewn exception to globalization’ for supposedly keeping manufacturing at home despite larger trends; and I use the occasion to make a case for rigorous, evidentially strong single-firm case studies. In the process, I draw attention to the manner in which the value-adding qualities of scholarly work are being judged in economic geography; and argue that the prioritization of novelty over unenhanced readings of realities may encourage case studies to be presented as more unique and exceptional than they actually are.
    Keywords: D21 - Firm Behavior, F23 - Multinational Firms ; International Business, L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L25 - Firm Performance: Size, Diversification, and Scope, L67 - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather
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    Topics: Geography , Economics
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    The resilience of regional labour markets to economic shocks: Exploring the role of interactions among firms and workers (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
    Description: To date, theoretical and empirical insights in the determinants of regional resilience are still limited. Using a model, we explore how three regional factors jointly contribute to the resilience of regional labour markets to economic shocks. The localization of the supply network (1) is used to model the propagation of the shock, while possibilities for intersectoral (2) and interregional labour mobility (3) to analyse the recovery. An application of the model to Dutch data suggests that labour markets in centrally located and service-oriented regions have, on average, a higher recovery speed, irrespective of the type of shock hitting the economy.
    Keywords: J61 - Geographic Labor Mobility ; Immigrant Workers, O18 - Regional, Urban, and Rural Analyses, R11 - Regional Economic Activity: Growth, Development, and Changes
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    Topics: Geography , Economics
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    Migrant and ethnic diversity, cities and innovation: Firm effects or city effects? (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
    Description: The growing cultural diversity caused by immigration is seen as important for innovation. Research has focused on two potential mechanisms: a firm effect, with diversity at the firm level improving knowledge sourcing or ideas generation, and a city effect, where diverse cities help firms innovate. This article uses a dataset of over 2000 UK small- and medium-sized enterprises to test between these two. Controlling for firm characteristics, city characteristics and firm and city diversity, there is strong evidence for the firm effect. Firms with a greater share of migrant owners or partners are more likely to introduce new products and processes. This effect has diminishing returns, suggesting that it is a ‘diversity’ effect rather than simply the benefits of migrant run firms. However, there is no relationship between the share of foreign workers in a local labour market or fractionalization by country of birth and firm level innovation, nor do migrant-run firms in diverse cities appear particularly innovative. But urban context does matter and firms in London with more migrant owners and partners are more innovative than others. Firms in cities with high levels of human capital are also more innovative.
    Keywords: J61 - Geographic Labor Mobility ; Immigrant Workers, L21 - Business Objectives of the Firm, M13 - New Firms ; Startups, R23 - Regional Migration ; Regional Labor Markets ; Population
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    Topics: Geography , Economics
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    Spatial patterns of solar photovoltaic system adoption: The influence of neighbors and the built environment (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
    Description: The diffusion of new technologies is often mediated by spatial and socioeconomic factors. This article empirically examines the diffusion of an important renewable energy technology: residential solar photovoltaic (PV) systems. Using detailed data on PV installations in Connecticut, we identify the spatial patterns of diffusion, which indicate considerable clustering of adoptions. This clustering does not simply follow the spatial distribution of income or population. We find that smaller centers contribute to adoption more than larger urban areas, in a wave-like centrifugal pattern. Our empirical estimation demonstrates a strong relationship between adoption and the number of nearby previously installed systems as well as built environment and policy variables. The effect of nearby systems diminishes with distance and time, suggesting a spatial neighbor effect conveyed through social interaction and visibility. These results disentangle the process of diffusion of PV systems and provide guidance to stakeholders in the solar market.
    Keywords: O33 - Technological Change: Choices and Consequences ; Diffusion Processes, Q42 - Alternative Energy Sources, R11 - Regional Economic Activity: Growth, Development, and Changes, R12 - Size and Spatial Distributions of Regional Economic Activity
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    Topics: Geography , Economics
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    Trade Shows in the Globalizing Knowledge Economy (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
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    Topics: Geography , Economics
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    Quality of government and innovative performance in the regions of Europe (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
    Description: This article aims to shed light on how institutions shape innovative capacity, by focusing on how regional government quality affects innovative performance in the regions of Europe. By exploiting new data on quality of government, we assess how government quality and its components (control of corruption, rule of law, government effectiveness and government accountability) shape patenting across the regions of the European Union (EU). The results of the analysis—which are robust to controlling for the endogeneity of institutions—provide strong evidence of a link between the quality of government and the capacity of regions to innovate. In particular, ineffective and corrupt governments represent a fundamental barrier for the innovative capacity of the periphery of the EU, strongly undermining any potential effect of any other measures aimed at promoting greater innovation. The results have important implications for the definition of innovation strategies in EU regions.
    Keywords: O52 - Europe, R11 - Regional Economic Activity: Growth, Development, and Changes
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    Topics: Geography , Economics
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    Strategic nodes in investment fund global production networks: The example of the financial centre Luxembourg (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
    Description: The patterns and dynamics of contemporary financial capitalism are mirrored in micro-production structures of finance in international financial centres (IFCs). Applying the global production network framework allows for analyses of these structures in greater detail, better illuminating the industry’s organization, its locally anchored professional practices, and the far-reaching power relationships between IFCs. The example of the IFC Luxembourg, the world’s largest cross-border investment fund centre, shows that, in particular, advanced business services firms facilitate the global reach of investment funds (i) in their close collaboration with both local and global financial corporations, and (ii) in their exploitation of localized arbitrage assets.
    Keywords: G23 - Pension Funds ; Other Private Financial Institutions, L22 - Firm Organization and Market Structure, L80 - General
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    Topics: Geography , Economics
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    Spreading big ideas? The effect of top inventing companies on local inventors (2015)
    Oxford University Press
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    Publication Date: 2015-06-20
    Description: The article investigates whether the patenting activity of the most inventive companies has any causal effect on the number of patents granted to other local inventors in the same metropolitan area in USA. Economic theory predicts that positive agglomeration economies may be counterbalanced by upward pressure on wages, which are stronger within technological classes in the short term. The empirical analysis exploits the panel structure of the dataset to account for various fixed effects, and adopts an instrumental variable approach to prove causality. The results show that the effect is overall positive and stronger with a time lag. In addition, the effect is not bounded within narrow technological categories, suggesting that Jacob-type knowledge spillovers across sectors tend to prevail over other source of agglomeration economies within sectors, including sharing and matching mechanisms. The implications for local development policy are discussed.
    Keywords: O31 - Innovation and Invention: Processes and Incentives, R10 - General
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    Topics: Geography , Economics
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    The Way of the Gun: Estimating Firearms Trafficking across the US-Mexico Border (2015)
    Oxford University Press
    Details
    Publication Date: 2015-02-18
    Description: The volume of firearms sold in USA and trafficked across the US–Mexico border is notoriously difficult to estimate. We consider a unique approach using GIS-generated county-level panel data (1993–1999 and 2010–2012) of Federal Firearms Licenses to sell small arms (FFLs) to estimate the realized demand for firearms based on the distance by road from the nearest point on the US–Mexico border. We use a time-series negative binomial model paired with a post-estimation population attributable fraction (PAF) estimator. We do so to control determinants of domestic demand. We are able to estimate a total demand for trafficking, both in terms of firearms and dollar sales for the firearms industry. We find that nearly 2.2% (between 0.9% and 3.7%) of US domestic arms sales are attributable to the US–Mexico traffic in the period 2010–2012, representing 212,887 firearms (between 89,816 and 359,205) purchased annually to be trafficked.
    Keywords: D74 - Conflict ; Conflict Resolution ; Alliances, F14 - Country and Industry Studies of Trade, F52 - National Security ; Economic Nationalism, K14 - Criminal Law, K42 - Illegal Behavior and the Enforcement of Law
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    Topics: Geography , Economics
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    Screening for collusion: a spatial statistics approach (2015)
    Oxford University Press
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    Publication Date: 2015-02-18
    Description: We develop a method to screen for local cartels. We first test whether there is statistical evidence of clustering of outlets that score high on some characteristic that is consistent with collusive behavior. If so, we determine in a second step the most suspicious regions where further antitrust investigation would be warranted. We apply our method to build a variance screen for the Dutch gasoline market.
    Keywords: C11 - Bayesian Analysis, D40 - General, L12 - Monopoly ; Monopolization Strategies, L41 - Monopolization ; Horizontal Anticompetitive Practices
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    Topics: Geography , Economics
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    Corporate social responsibility and labour agency: the case of Nike in Pakistan (2015)
    Oxford University Press
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    Publication Date: 2015-02-18
    Description: This article examines the circumstances under which corporate social responsibility (CSR) initiatives facilitate and/or constrain labour agency in global production networks (GPNs). Using a case study of Nike’s CSR approach in the football manufacturing industry of Pakistan, we explore the extent to which the measures advocated in a new, emerging policy paradigm on CSR in GPNs enabled labour agency at Nike’s main football supplier factory in Pakistan. We argue that while such CSR policies can create enhanced space for labour agency, that potential agency is also shaped (i) by wider economic forces within the global economy and (ii) relationships with local/national actors and regulatory frameworks. Understanding the intersection of these dimensions becomes vital to interpreting the potential for, and activation of, labour agency within CSR-influenced GPNs.
    Keywords: F23 - Multinational Firms ; International Business, J31 - Wage Level and Structure ; Wage Differentials, J52 - Dispute Resolution: Strikes, Arbitration, and Mediation ; Collective Bargaining, J80 - General, L67 - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather
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    Topics: Geography , Economics
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    Reformatted: Code, Networks, and the Transformation of the Music Industry Andrew Leyshon (2015)
    Oxford University Press
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    Publication Date: 2015-02-18
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    Topics: Geography , Economics
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    Commodity chains, creative destruction and global inequality: a class analysis (2015)
    Oxford University Press
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    Publication Date: 2015-02-18
    Description: The majority of global commodity chain analysis is concerned with producer firm upgrading, because it is held to engender local-level development. This represents a myopic comprehension of the interaction of firms under capitalism. This article argues, in contrast, that lead firm chain governance and supplier firm upgrading attempts constitute strategies and practices that reproduce global poverty and inequality. Schumpeter’s concept of creative destruction represents a starting point in undertaking this endeavour. However, his formulation of capitalist competition ignores class and global economic relations. A Marxian conception of creative destruction, in contrast, rests upon an understanding of globally constituted class relations, which provides a novel perspective in comprehending and investigating processes that re-produce global poverty and inequality. The article substantiates these claims by examining cases of buyer-driven global commodity chains, and lead firm strategies of increasing labour exploitation throughout these chains.
    Keywords: B14 - Socialist ; Marxist, F50 - General, J01 - Labor Economics: General, J51 - Trade Unions: Objectives, Structure, and Effects
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    Topics: Geography , Economics
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    The determinants of regional specialisation in business services: agglomeration economies, vertical linkages and innovation (2015)
    Oxford University Press
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    Publication Date: 2015-02-18
    Description: The article accounts for the determinants of sectoral specialisation in business services (BS) across the EU-27 regions as determined by: (i) agglomeration economies (ii) the region-specific structure of intermediate linkages (iii) technological innovation and knowledge intensity and (iv) the presence of these factors in neighbouring regions. The empirical analysis draws upon the REGIO panel database over the period 1999–2003. By estimating a Spatial Durbin Model, we find significant spatial effects in explaining regional specialisation in BS. Our findings show that, besides urbanisation economies, the spatial structure of intermediate sectoral linkages and innovation, in particular Information and Communication Technologies (ICTs), are important determinants of specialisation in BS. The article contributes to the debate on the global versus local determinants of regional specialisation in BS by restating the importance of the regional sectoral structure besides that of urbanisation. We draw policy implications by rejecting the ‘footloose hypothesis’ for BS.
    Keywords: L80 - General, R12 - Size and Spatial Distributions of Regional Economic Activity
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    Topics: Geography , Economics
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    Migration and inter-industry mobility of UK graduates (2015)
    Oxford University Press
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    Publication Date: 2015-02-18
    Description: New university graduates are highly geographically mobile, but, as the literature has shown, often struggle in the labour market, working in non-graduate level jobs or in a field different from the one for which they are qualified. In this context, inter-industry moves can act as complements or substitutes for geographical moves, with graduates reacting to job mismatches by either changing location, industry, or both. Self-selection is also likely; industry movers may differ from non-movers in ways that also affect their career outcomes. We analyse the relationship between migration and inter-industry moves using longitudinal microdata for 7060 recent UK graduates.
    Keywords: I23 - Higher Education Research Institutions, J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity, J28 - Safety ; Job Satisfaction ; Related Public Policy, R23 - Regional Migration ; Regional Labor Markets ; Population
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    Topics: Geography , Economics
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    Cover (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Subscription (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Conservation Planning: A Review of Return on Investment Analysis (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: Land and natural resource conservation programs are increasingly being evaluated on the basis of their return on investment (ROI). Conservation ROI analysis quantitatively measures the costs, benefits, and risks of investments, which allows conservation organizations to rank or prioritize them. This article surveys the literature in this area. We organize our discussion around the way studies treat the core elements of ROI, which include the definition and measurement of the conservation objective, identification of relevant baselines, the types of conservation investments considered, and investment costs. We discuss the state of the art of ROI analysis, highlight some unresolved issues, and make suggestions for improvements. We also describe options for extending ROI analysis beyond biodiversity conservation, which is the typical objective. The literature indicates that conservation planning that uses ROI analysis can considerably alter the location and targets of conservation, lead to more protection and higher quality conservation outcomes, and result in significant savings. The measurement and prediction of baseline ecological conditions and threats remains a central challenge for conservation ROI analysis, as does accounting for landowner and developer responses to conservation investments. Another key priority for future research is the identification of ways to more comprehensively incorporate ecosystem services and multiple environmental objectives into the assessment framework. ( JEL : Q20, Q30, Q51, Q57)
    Keywords: Q20 - General, Q30 - General, Q51 - Valuation of Environmental Effects, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
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    Regulation of Natural Gas in the United States, Canada, and Europe: Prospects for a Low Carbon Fuel (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: The United States and Canada have seen a competitive and technological revolution in unconventional natural gas production in the 21 st Century—dramatically lowering the price of gas and displacing high-carbon coal with low-carbon gas for power generation. This gas revolution came from an earlier revolution in the regulation of gas pipelines, which ended the obstruction of gas markets by pipeline interests. Neither revolution has spread to Europe, where increasingly protectionist EU legislation has effectively blocked competitive pipeline entry and related gas markets. As a result, unconventional gas is untapped, coal displaces gas for power generation, and oil-linked gas prices have cost EU consumers a staggering $425 billion more than their US counterparts have paid since 2009 for about the same quantity of gas. Europe faces a serious institutional challenge to adopting the kind of pipeline regulation that facilitates the competitive flow of natural gas supplies and the accompanying lower carbon emissions. ( JEL : D23, K23, L14, L51, L95, N70, Q54)
    Keywords: D23 - Organizational Behavior ; Transaction Costs ; Property Rights, K23 - Regulated Industries and Administrative Law, L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L51 - Economics of Regulation, L95 - Gas Utilities ; Pipelines ; Water Utilities, N70 - General, International, or Comparative, Q54 - Climate ; Natural Disasters ; Global Warming
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Policy Monitor--Bonding Requirements for U.S. Natural Gas Producers (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: Natural gas producers are constantly making tradeoffs between money, time, and environmental risk. The private costs and benefits of drilling are realized immediately, but the external costs are not. This means that by the time external costs are well understood, producers may no longer exist or may not have sufficient resources to finance necessary cleanups or to compensate those who have been adversely affected. Because producers do not face the total cost of potential external damages, they may take too many risks. This article discusses alternative regulatory approaches for mitigating moral hazard in U.S. natural gas production. Particular emphasis is given to bonding requirements, which have tended to receive less attention from policy makers than other approaches but have a long history. Although the use of bonding has important limitations, this approach is quite well suited to addressing many of the environmental risks in this market. ( JEL : K32, L71, Q48, Q58)
    Keywords: K32 - Environmental, Health, and Safety Law, L71 - Mining, Extraction, and Refining: Hydrocarbon Fuels, Q48 - Government Policy, Q58 - Government Policy
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    Book Review--A Review of William Nordhaus' The Climate Casino: Risk, Uncertainty, and Economics for a Warming World (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    A Word From the Editor (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Offshore Oil and Gas Drilling: A Review of Regulatory Regimes in the United States, United Kingdom, and Norway (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: This article investigates the regulatory regimes for offshore oil and gas in the United States (U.S.), United Kingdom (U.K.), and Norway from both a positive and normative perspective. The positive analysis reveals that all three countries are converging on a similar regulatory system that combines strict liability, command-and-control, and management-based regulations for controlling site-specific risks. The timing of the adoption of each element in this regulatory system varies across the three countries and has been driven largely by accidents along the individual country’s continental shelf. In particular, the adoption of the management-based approach occurred after a significant accident revealed the weaknesses of a one-size-fits–all set of prescriptive rules. Although the normative analysis reveals theoretical support for the use of both liability and management-based approaches, the empirical data are limited, and the data that do exist call into question the superiority of the management-based approach over command-and-control. More research is needed that develops and systematically evaluates incentive-compatible regulatory regimes. ( JEL : Q38, Q40, Q48, K32)
    Keywords: Q38 - Government Policy, Q40 - General, Q48 - Government Policy, K32 - Environmental, Health, and Safety Law
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    Natural Gas: An Overview of a Lower-Carbon Transformation Fuel (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: This article provides an overview of the natural gas industry, which we view as a bridge fuel toward a lower-carbon energy system in many countries and regions around the world. Based on a review of the literature, an econometric analysis of natural gas prices and contracts, and the authors’ experience with the natural gas industry, this introductory article to the symposium on the Prospects for Natural Gas in a Lower-Carbon Context provides an overview of research on natural gas markets over the last decade and examines various features of the natural gas industry, including its technical structure, activities in the value-added chain, trade and market trends, short- and long-term price developments, and the geopolitical landscape. More specifically, we describe the natural gas sector and provide an overview of production, reserves, and consumption. We also examine the evolution of long-term contracts between producers and large-scale buyers of natural gas and present some recent empirical evidence. Finally, we discuss the changing geopolitics of natural gas, focusing in particular on the future roles of the United States as a potential natural gas exporter and Asia as the major importing region. ( JEL : L11, L95, Q49)
    Keywords: L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms, L95 - Gas Utilities ; Pipelines ; Water Utilities, Q49 - Other
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    The Early History of Environmental Economics (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: This article traces the history of economists’ treatment of environmental problems prior to the establishment of environmental economics as a separate field in the 1960s. I examine the economics literature from the late eighteenth century onward, searching for an awareness among early economists of both the effects of economic activity on the natural and social environment and the feedback from the environment to the economy. I argue that the way in which economic theory developed made it increasingly relevant for the study of environmental issues and the design of appropriate economic policies. ( JEL : B00, Q30, Q50)
    Keywords: B00 - General, Q30 - General, Q50 - General
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    A Global Perspective on the Future of Natural Gas: Resources, Trade, and Climate Constraints (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: Natural gas plays an important role in the global energy system as an input to power generation, heating, and industry. This article identifies key drivers and uncertainties for natural gas markets in the coming decades. These include the availability of natural gas from conventional and unconventional sources, the role of international trade, and the impact of climate policies. We build on model-based research as well as an up-to-date survey of natural gas resource availability. We find that natural gas is an abundant fossil fuel and that the Asia-Pacific region will be most important in future global natural gas markets, especially under stringent international climate change mitigation. This means that an increasingly large share of future natural gas trade flows and infrastructure expansions will be directed to the Asia-Pacific region and that the role of liquefied natural gas will continue to increase globally. ( JEL : C61, L71, Q33, Q37, Q54)
    Keywords: C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis, L71 - Mining, Extraction, and Refining: Hydrocarbon Fuels, Q33 - Resource Booms, Q54 - Climate ; Natural Disasters ; Global Warming
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    Subscription (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
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    Alternative Metrics for Comparing Domestic Climate Change Mitigation Efforts and the Emerging International Climate Policy Architecture (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
    Description: The availability of practical mechanisms for comparing domestic efforts aimed at mitigating global climate change is important for the stability, equity, and efficiency of international climate agreements. We examine a variety of metrics that could be used to compare countries’ climate change mitigation efforts and illustrate their potential application to large developed and developing countries. Because there is no single, comprehensive, measurable metric that could be applied to all countries, we suggest using a set of indicators to characterize and compare mitigation effort, akin to using a set of economic statistics to indicate the health of the macroeconomy. Given the iterative pledge-and-review approach that is emerging in the current climate change negotiations, participation, commitment, and compliance could be enhanced if this set of indicators is able to show that all parties are doing their "fair share," both prospectively and retrospectively. The latter, in particular, highlights the need for a well-functioning policy surveillance regime. ( JEL : Q54, Q58, F55)
    Keywords: Q54 - Climate ; Natural Disasters ; Global Warming, Q58 - Government Policy, F55 - International Institutional Arrangements
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    The Economics of Wine, Weather, and Climate Change (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
    Description: In this article, we provide an overview of the extensive literature on the impact of weather and climate on grapes and wine, with the goal of identifying how climate change is likely to affect their production. We first discuss the physical impact of weather on vine phenology (i.e., the timing of biological events such as bud break or flowering), berry composition, and yields. Then we examine the economic literature that measures the effects of temperature on wine quality, prices, costs, and profits and, based on this review, infer how climate change will affect these variables. We also describe what has been learned thus far about possible adaptation strategies for grape growers that would allow them to mitigate the economic effects of climate change. We conclude that climate change is likely to produce both winners and losers, with the winners being those located closer to the North and South Poles. There are also likely to be some substantial short-run costs as growers adapt to climate change. Nevertheless, wine making has survived through thousands of years of recorded history, a history that has included significant climate changes. ( JEL : Q13, Q18, Q54)
    Keywords: Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness, Q18 - Agricultural Policy ; Food Policy, Q54 - Climate ; Natural Disasters ; Global Warming
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Cover (2016)
    Oxford University Press
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    The Rebound Effect and Energy Efficiency Policy (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
    Description: What do we know about the size of the rebound effect, the well-known phenomenon that improving energy efficiency may save less energy than expected due to a rebound of energy use? Is there any validity to the claims that energy efficiency improvements can actually lead to an increase in energy use (known as backfire)? This article clarifies what the rebound effect is and provides a guide for economists and policymakers interested in its existence and magnitude. We discuss how some studies in the literature consider a rebound effect that results from a costless exogenous increase in energy efficiency, whereas others examine the effects of a specific energy efficiency policy—a distinction that leads to very different welfare and policy implications. We present the most reliable evidence available about the size of the energy efficiency rebound effect and discuss situations where such estimation is extraordinarily difficult. With this in mind, we present a new way of thinking about the macroeconomic rebound effect. We conclude that overall, the existing research provides little support for the so-called backfire hypothesis. However, our understanding of the macroeconomic rebound effect remains limited, particularly as it relates to induced innovation and productivity growth. ( JEL : H23, Q38, Q41)
    Keywords: H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies, Q38 - Government Policy, Q41 - Demand and Supply
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    A Word from the Editor (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Price and Market Behavior in Phase II of the EU ETS: A Review of the Literature (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
    Description: Since 2005, the EU ETS has provided a market-based price signal for European carbon emissions. This article reviews the literature on the formation of carbon allowance prices during phase II of the EU ETS. A consensus has emerged in the literature that allowance prices are driven by fuel prices and other variables that affect the expected amount of abatement required to meet the EU ETS emissions cap. However, this relationship is not robust, most likely because the relevant abatement technologies change with the economic conditions in which they operate. There is evidence that models that explicitly account for uncertainty about the future demand and supply of allowances are better at explaining allowance price variation during certain periods. However, our understanding of the level of the allowance price remains poor. We cannot say with any degree of confidence whether the allowance price is "right," in the sense that it reflects marginal abatement costs, or whether there is a price wedge caused by uncertainty, transaction costs, or price manipulation. Nevertheless, we find that the EU ETS market has matured in phase II compared with phase I and that banking of allowances has induced the market to incorporate the future scarcity of allowances and, as intended, to smooth the effect of temporary shocks. We argue that further research is needed in several key areas to increase our understanding of the emissions allowance market provided by the EU ETS. ( JEL : Q56, Q58)
    Keywords: Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounting ; , Q58 - Government Policy
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Measuring the Stringency of Environmental Regulations (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
    Description: Do environmental regulations discourage investment, reduce labor demand, or alter patterns of international trade? To answer these important policy questions, we need ways to measure the stringency of environmental regulations empirically. While creating measures of stringency is often characterized as a data collection challenge, we identify four fundamental conceptual obstacles to evaluating these measures: multidimensionality, simultaneity, industrial composition, and capital vintage. We then describe recent approaches used by researchers to measure the stringency of environmental regulations, primarily in the United States, and evaluate their success in light of these obstacles. We find that few approaches come close to being the ideal—a theoretically motivated, tractable, single measure that captures environmental regulatory stringency empirically.
    Keywords: F18 - Trade and Environment, L51 - Economics of Regulation, Q52 - Pollution Control Costs ; Distributional Effects ; Employment Effects, Q58 - Government Policy
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    The Impact of the European Union Emissions Trading Scheme on Regulated Firms: What Is the Evidence after Ten Years? (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
    Description: This article reviews the recent literature on ex post evaluation of the impacts of the European Union (EU) Emissions Trading Scheme (ETS) on regulated firms in the industrial and power sectors. We summarize the findings from original research papers concerning three broadly defined impacts: carbon dioxide emissions, economic performance and competitiveness, and innovation. We conclude by highlighting gaps in the current literature and suggesting priorities for future research on this landmark policy. ( JEL : Q52, Q54, Q58)
    Keywords: Q52 - Pollution Control Costs ; Distributional Effects ; Employment Effects, Q54 - Climate ; Natural Disasters ; Global Warming, Q58 - Government Policy
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    The European Union Emissions Trading System: Ten Years and Counting (2016)
    Oxford University Press
    Details
    Publication Date: 2016-02-03
    Description: This article provides an introduction to the European Union (EU) Emissions Trading System (ETS). First we describe the legislative development of the EU ETS, its evolution from free allocation to auctioning and centralized allocation rules, its relationship to the Kyoto Protocol and other trading systems, and its relationship to other EU climate and energy policies. This is followed by an assessment of the performance of the EU ETS, which focuses in particular on emissions, allowance prices, and the use of offsets. We conclude with a discussion of the current debate about the future of the EU ETS and proposals for changes to both the EU ETS and the climate policy environment in which it operates. ( JEL : Q54, Q58)
    Keywords: Q54 - Climate ; Natural Disasters ; Global Warming, Q58 - Government Policy
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    The Climate Change Adaptation Literature (2016)
    Oxford University Press
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    Publication Date: 2016-02-03
    Description: The December 2015 Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change meetings in Paris are likely to yield a global agreement that will slow the world’s growth of greenhouse gas emissions, but this agreement is unlikely to guarantee a decline in global emissions in the near future. Given this reality, climate change adaptation is an increasingly important topic for discussion and study. Although much research has focused on the macroeconomic relationship between economic growth and temperature at the national and/or annual level, microeconomic analysis also offers valuable insights. This Reflections discusses recent work on household and firm responses to three climate change challenges: increased summer heat, higher food prices, and increased natural disaster risk. ( JEL : Q54)
    Keywords: Q54 - Climate ; Natural Disasters ; Global Warming
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Improving Incentives for Clean Vehicle Purchases in the United States: Challenges and Opportunities (2016)
    Oxford University Press
    Details
    Publication Date: 2016-02-03
    Description: In recent decades, federal and state policymakers in the United States have adopted a variety of policy incentives to induce drivers to purchase advanced clean vehicles aimed at reducing externalities within the transportation sector. Focusing on plug-in electric vehicles, I examine the challenges to and opportunities for improving these policies. Recent research raises concerns about whether the incentives actually reach the intended consumers because of eligibility restrictions, salience of instruments in consumer decision making, and the impact of incentives across consumers and producers. The targeting of different externalities complicates policy design choices, which are further limited because purchase incentives do not affect driving behavior. Finally, an emerging literature suggests that the efficiency and cost effectiveness of these incentives may be improved by strategically targeting specific types of vehicles and consumers, as well as by combining them with vehicle retirement incentives. ( JEL : Q53, Q55, R40)
    Keywords: Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling, Q55 - Technological Innovation, R40 - General
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Local entrepreneurship clusters in cities (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: We show that entrepreneurs are co-located within cities. One plausible source of such spatial clustering is local social interactions, where individuals’ decisions to become entrepreneurs are influenced by entrepreneurial neighbors. Using geo-coded matched employer–employee data for Sweden, we find that sharing residential neighborhood with established entrepreneurs has a statistically significant and robust influence on the probability that an individual leaves employment for entrepreneurship. An otherwise average neighborhood with a 5% point higher entrepreneurial intensity, all else equal, produces between six and seven additional entrepreneurs per square kilometer, each year. Our estimates suggest a local feedback-effect in which the presence of established entrepreneurs in a neighborhood influences the emergence of new local entrepreneurs. Our analysis supports the conjecture that social interaction effects constitute a mechanism by which local entrepreneurship clusters in cities develop and persist over time.
    Keywords: J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity, L26 - Entrepreneurship, R12 - Size and Spatial Distributions of Regional Economic Activity, R23 - Regional Migration ; Regional Labor Markets ; Population
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
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    A gravity equation for commuting with an application to estimating regional border effects in Belgium (2016)
    Oxford University Press
    Details
    Publication Date: 2016-02-04
    Description: This article derives a gravity equation for commuting and uses it to identify the effect of regional borders on commuting. We build on the seminal trade paper by Anderson and Van Wincoop (2003, Gravity with gravitas: a solution to the border puzzle. The American Economic Review , 93: 170–192) and highlight some interesting similarities between our model and Wilson’s doubly constrained gravity equation [Wilson, A. (2010) Entropy in urban and regional modelling: retrospect and prospect. Geographical analysis , 42: 364–394], a workhorse model from spatial interaction theory. The model is estimated by applying a negative binomial regression method on Belgian inter-municipal commuting data. We show that regional borders exert a sizeable residual deterrent effect on commuting, a finding with obvious implications for regional labour market integration. This border effect differs significantly between regions and depends on the direction in which the border is crossed.
    Keywords: F10 - General, J61 - Geographic Labor Mobility ; Immigrant Workers, R12 - Size and Spatial Distributions of Regional Economic Activity
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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    Upgrading to lead firm position via international acquisition: learning from the global biomass power plant industry (2016)
    Oxford University Press
    Details
    Publication Date: 2016-02-04
    Description: This article examines the case of a Chinese firm that has upgraded to lead firm position in the global biomass power plant industry mainly through acquisitions of technological frontier firms in Denmark. Sustaining the lead firm position was, however, challenged by difficulties in developing innovative capability. Drawing on the literature on (i) firm-level technological capability and (ii) knowledge transfer in international acquisitions, we explain the reasons for insufficient innovative capability building. Based on these empirical findings, we suggest maintaining the existing upgrading framework but applying it analytically in a more flexible manner that avoids linearity, hierarchy and segmentation while stressing the co-existence of and inter-relationships between the different types of upgrading.
    Keywords: F23 - Multinational Firms ; International Business, L60 - General, O31 - Innovation and Invention: Processes and Incentives, R58 - Regional Development Policy
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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    International trade and firm-level markups when location and quality matter (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: In this article, we estimate firm-level markups and test some micro-level predictions of a model of international trade with heterogeneous firms and endogenous markups. Our theoretical framework is an extended version of the Melitz and Ottaviano ( 2008 , Review of Economic Studies 75, 295–316) (MO) model that features both quality and spatial differentiation across firms. In line with our model, we find that firm markups are positively related to firm productivity and negatively related to the toughness of local competition. Considering the relationship between firm markups and exports, we find evidence that markups are higher for exporters, what appears to indicate that the quality-enhancing channel overbalances the price-depressing channel of global competition.
    Keywords: F12 - Models of Trade with Imperfect Competition and Scale Economies
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    Topics: Geography , Economics
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    Inertia and change in multinational enterprise subsidiary capabilities: an evolutionary economic geography framework (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: In this article we argue for a process-centred use of the dynamic capabilities-based view of evolution in multinational enterprise (MNE) subsidiary capabilities. In particular, we consider changes in the scale, scope and specialisation of resources and capabilities at subsidiaries over time by drawing on Dodgshon’s (1998) study of change in empires and societal systems. Following Dodgshon, we classify changes at MNE subsidiaries into processes of (i) expansion or contraction, (ii) reduction, (iii) involution, (iv) aggregation upwards and outwards, (v) accretion and (vi) replacement/substitution, illustrating this framework with reference to the extant literature. We suggest that the potential of this framework lies, in part, in its embrace of both change and inertia within MNEs and at their subsidiaries. It is important to consider both change and inertia if we are to understand the implications of MNE subsidiary evolution national and subnational economic development policy.
    Keywords: B52 - Institutional ; Evolutionary, F23 - Multinational Firms ; International Business
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    Topics: Geography , Economics
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    Historic amenities, income and sorting of households (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: We aim to estimate the impact of historic amenities on house prices and sorting of households. Historic district boundaries enable us to measure the external view effect of historic amenities, defined as the effect of a historic amenity on the price of other buildings through an improved view from the other buildings. We use a semiparametric regression-discontinuity approach to control for unobserved location characteristics and focus on houses constructed after 1970. It is shown that the (external) view effect of historic amenities is 3.5% of the house price. Rich households have a higher willingness to pay for a view on historic amenities and therefore sort themselves in historic districts, which contributes to an explanation for the substantial spatial income differences within cities.
    Keywords: R14 - Land Use Patterns, R21 - Housing Demand, R31 - Housing Supply and Markets, R38 - Government Policies ; Regulatory Policies
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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    Intervening in globalization: the spatial possibilities and institutional barriers to labours collective agency (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: Trade unions are facing a series of challenges around place-based forms of work in industries such as construction, transport and public services. New spatial strategies by employers involving corporate reorganization, increased outsourcing and the use of migrant labour, allied to a deepening of neoliberal governance processes are accelerating a race to the bottom in wages and conditions. Drawing upon the experience of two recent labour disputes in the UK—at Heathrow Airport and Lindsey Oil Refinery—we explore the potential for workers to intervene in such globalizing processes. We highlight both the ability of grassroots workers to mobilize their own spatial networks but also their limitations in an increasingly hostile neoliberal landscape.
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    Topics: Geography , Economics
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    Defining clusters of related industries (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: Clusters are geographic concentrations of industries related by knowledge, skills, inputs, demand and/or other linkages. There is an increasing need for cluster-based data to support research, facilitate comparisons of clusters across regions and support policymakers in defining regional strategies. This article develops a novel clustering algorithm that systematically generates and assesses sets of cluster definitions (i.e., groups of closely related industries). We implement the algorithm using 2009 data for U.S. industries (six-digit NAICS), and propose a new set of benchmark cluster definitions that incorporates measures of inter-industry linkages based on co-location patterns, input–output links, and similarities in labor occupations. We also illustrate the algorithm’s ability to compare alternative sets of cluster definitions by evaluating our new set against existing sets in the literature. We find that our proposed set outperforms other methods in capturing a wide range of inter-industry linkages, including the grouping of industries within the same three-digit NAICS.
    Keywords: C38-Classification Methods ; Cluster Analysis ; Factor Models
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    Topics: Geography , Economics
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    Location of International Business Activities: Integrating Ideas from Research in International Business, Strategic Management and Economic Geography (2016)
    Oxford University Press
    Details
    Publication Date: 2016-02-04
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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    Global energy dilemmas: energy security and climate change (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
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    Topics: Geography , Economics
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    Public housing magnets: public housing supply and immigrants location choices (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: This article investigates how a reform allowing immigrants with children in France access to public housing during the 1970s influenced their initial location choices across local labour markets. We find that cities with higher public housing supplies have a large ‘magnetic effect’ on the location choice of new immigrants with children. The estimated effect is substantial and quantitatively similar to the effect of the size of the ethnic group in the urban area. In cities with higher public housing supply, these immigrants tend to benefit from better housing conditions, but non-European immigrants are also more likely to be unemployed.
    Keywords: J15 - Economics of Minorities and Races ; Non-labor Discrimination, R23 - Regional Migration ; Regional Labor Markets ; Population, R53 - Public Facility Location Analysis ; Public Investment and Capital Stock
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    Topics: Geography , Economics
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    Do rich households live farther away from their workplaces? (2016)
    Oxford University Press
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    Publication Date: 2016-02-04
    Description: One of the classic predictions of urban economic theory is that high-income and low-income households choose different residential locations and therefore, conditional on workplace location, have different commuting patterns. The effect of household income on commuting distance may be positive, because of an increased demand for housing as house prices are lower further from workplace locations, or negative, because of an increase in the value of travel time. In addition, the sign of this effect may depend on the location of residential amenities relative to workplaces. Empirical tests of this effect are not standard, due to reverse causation and lack of good control variables. To address reverse causation, this effect is derived using changes in household income and distance through residential moves keeping workplace location constant. Our results contradict previous results in the literature. We show that for Denmark, conditional on the workplace location, the income elasticity of distance is negative and in the order of –0.18. This elasticity is larger for single-earner than for dual-earner households. Conditional on that the household moves residence between municipalities, the elasticity is suggested to be around –0.60.
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    Topics: Geography , Economics
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    Cover (2014)
    Oxford University Press
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    Publication Date: 2014-01-28
    Print ISSN: 1750-6816
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    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
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    Geography, trade and regional development: the role of wage costs, exchange rates and currency/capital movements (2014)
    Oxford University Press
    Details
    Publication Date: 2014-10-09
    Description: Existing theories of geographical specialization and trade can be classified into four groups: supply-side; demand-side; endogenous growth and institutional models. In the recent past, economic geographers have paid little attention to earlier regional economic analysis and concentrated for the most part on detailed examination of production structures, the chains linking upstream and downstream activities into production and value networks, clusters, institutions and more recently, economic evolution. As a result, existing economic geography is ill-equipped to deal with the impact of some aspects of the evolution of costs, exchange rates, trade and capital flows on regional development and pays relatively little attention to economic calculation. Geographical economics includes an underlying theory of trade and micro-foundations, yet its supply-side approach neglects the role of monetary and demand-side (except in gravity models of trade) factors. The aim of this article is to argue for an extension of existing theoretical frameworks to embrace these issues in the light of recent trends in global economic geography and successive financial and debt crises that have stricken the developed world.
    Keywords: F10 - General, F11 - Neoclassical Models of Trade, F13 - Trade Policy ; International Trade Organizations, F21 - International Investment ; Long-Term Capital Movements, F31 - Foreign Exchange, F32 - Current Account Adjustment ; Short-Term Capital Movements, O10 - General, R10 - General, R11 - Regional Economic Activity: Growth, Development, and Changes
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    Topics: Geography , Economics
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    The political economy of global production networks: regional industrial change and differential upgrading in the East European clothing industry (2014)
    Oxford University Press
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    Publication Date: 2014-10-09
    Description: Recent years have been testing times for the Eastern European clothing sector. Following two decades of deepening integration into European production networks, the sector has been struggling with the removal of trade quotas, increasing competitive pressures and the global economic crisis. This article takes a long-term view of the trajectories of change in the East European clothing industry drawing on the experience of the Slovak Republic. It examines the regional economic transformations that have resulted, how regional concentrations of clothing production sustained employment during the 1990s, and how tightening competitive pressures have unravelled these regional production systems leading to a differentiated landscape of firm-level upgrading strategies. The article argues that understandings of firm and regional upgrading and downgrading need to be attentive to the role of labour in the tightening landscape of ‘relative competitiveness’ and the political economy of regional integration policies, foreign ownership and the global economic crisis.
    Keywords: L16 - Industrial Organization and Macroeconomics ; Macroeconomic Industrial Structure ; Industrial Pri, L67 - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather, P25 - Urban, Rural, and Regional Economics
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    Topics: Geography , Economics
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    Strategic decoupling, recoupling and global production networks: India's pharmaceutical industry (2014)
    Oxford University Press
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    Publication Date: 2014-10-09
    Description: Contemporary debates on economic globalization have emphasized the development opportunities for the Global South through local firms becoming integrated into the global commodity chains (GCCs), value chains (GVCs) and production networks (GPNs) governed by leading multinational corporations. With increasing attention to the negative sides of integration, an emergent issue is the role of disengagement from, and operation outside of, the GPNs of lead firms. Through the case of the Indian pharmaceutical industry, where a selective and short-term strategic decoupling and subsequent recoupling has played a crucial role in the development of what is now the largest such industry in the Global South, this article explores how decoupling from GPNs may lead to positive development outcomes. The experience of India and the pharmaceutical industry shows that a sequence of decoupling and recoupling can be an alternative to strategic coupling as a route to economic development.
    Keywords: O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology, O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements, O20 - General
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    Topics: Geography , Economics
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    Innovation drivers, value chains and the geography of multinational corporations in Europe (2014)
    Oxford University Press
    Details
    Publication Date: 2014-10-09
    Description: This paper investigates the geography of multinational corporations’ investments in the EU regions. The ‘traditional’ sources of location advantages (i.e. agglomeration economies, market access and labour market conditions) are considered together with innovation and socio-institutional drivers of investments, captured by means of regional ‘social filter’ conditions. This makes it possible to empirically assess the different role played by such advantages in the location decision of investments at different stages of the value chain and disentangle the differential role of national vs. regional factors. The empirical analysis covers the EU-25 regions and suggests that regional socio-economic conditions are crucially important for the location decisions of investments in the most sophisticated knowledge-intensive stages of the value chain.
    Keywords: F21 - International Investment ; Long-Term Capital Movements, F23 - Multinational Firms ; International Business, O33 - Technological Change: Choices and Consequences ; Diffusion Processes, R12 - Size and Spatial Distributions of Regional Economic Activity, R58 - Regional Development Policy
    Print ISSN: 1468-2702
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    Topics: Geography , Economics
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    Trade boom and wage inequality: evidence from Ugandan districts (2014)
    Oxford University Press
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    Publication Date: 2014-10-09
    Description: The process of economic integration over the past two decades has been accompanied by expanding skilled wage premia—a key measure of wage inequality—in most countries. This was also the case for Ugandan wage employees during the 1990s, a period of abrupt trade opening, market reforms and improved relations with neighbouring Kenya. As in other unskilled labour abundant countries, this is a surprising result in light of the standard Heckscher–Ohlin (H–O) framework. By using a novel district-level analysis, I find that in fact increased trade reduced wage inequality in line with the H–O predictions. During the 1990s districts more exposed to the trade boom experienced a rise in wage premia 2.8 percentage points lower relative to less-exposed districts. On the other hand, the intensification of domestic trade across districts and the increase in average education were associated with increased wage premia during the period of analysis.
    Keywords: F10 - General, F14 - Country and Industry Studies of Trade, F16 - Trade and Labor Market Interactions, O12 - Microeconomic Analyses of Economic Development, O15 - Human Resources ; Human Development ; Income Distribution ; Migration
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    Topics: Geography , Economics
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