Economic Geography Approach Research Articles

Prospects of Pakistan-Afghanistan Trade: A New Economic Geography Approach

This research examines the prospects of Pakistan- Afghanistan trade through the lens of new economic geography theory. The study focuses on bilateral trade between the two countries and Central Asian Republics, transit trade. Pakistan`s geographic location makes it an important country in the region for facilitating global connectivity and fostering trade with neighboring nations, providing access to world markets through its seaports and land routes. Pakistan is an important country for Afghanistan. Afghanistan, being a landlocked country, relies on Pakistan for access to international markets. On the other hand, Afghanistan provides access to Pakistan to energy-rich Central Asian Republics(CARs). The study finds that despite the significant geographical locations of Afghanistan and Pakistan bilateral trade between the two countries is behind its true potential while the transit trade facilities are being misused. The study also examines the factors hindering the full potential of Pak-Afghan bilateral and transit trade and provides policy recommendations.

An economic geography approach to the implementation of circular economy – comparing three examples of industry-specific networks in West Sweden

Purpose The circular economy (CE) has been endorsed as representing a model that is able to achieve environmental protection through decreased use of raw materials, together with changing economic values and social inclusion thanks to its demand for a wide variety of skill profiles. This has motivated many policy initiatives to support the implementation of the CE. The purpose of this study is to follow such policy initiatives in three geographically anchored industry-specific networks. Design/methodology/approach The study contributes to the research debate on the CE through a spatial approach with a focus on how the implementation of the CE is conditioned by spatial and regional contexts. The authors investigate three different networks in Sweden for CE with different locations and industrial profiles. Findings The findings reveal the difficulty that exist in relation to the implementation of the CE. The network and support functions in combination with private industry are vital. The risk of sustaining an uneven regional economic development is evident. Originality/value Although research on the development of the CE has proliferated, geographical approaches to this development are comparably rare to date. The authors seek to contextualise the strategy development and policy implementation of a CE policy.

Related Variety and Regional Development: A Critique

Evolutionary approaches in economic geography have contributed substantially to the growing body of knowledge of regional development processes and their underlying mechanisms. One key concept in the literature on evolutionary economic geography is that of related variety. Herein, regional industry structure is represented through the level of related variety of technologies, skills, or outputs. The related variety concept proposes that regional economic development is favored when an economy diversifies into products or technologies that are closely related to the stock of existing activities. In this article, we raise substantive questions regarding the internal logic of the concept of related variety, its spatial expressions, measurement specifics, empirical regularities and biases, and its possible short- and long-term effects on regional development. Based on this investigation, we make suggestions for improvements to future research.

Regional diversification and labour market upgrading: local access to skill-related high-income jobs helps workers escaping low-wage employment

Abstract This article investigates how the evolution of local labour market structure enables or constrains workers as regards escaping low-wage jobs. Drawing on the network-based approach of evolutionary economic geography, we employ a detailed individual-level panel dataset to construct skill-relatedness networks for 72 functional labour market regions in Sweden. Subsequent fixed-effect panel regressions indicate that increasing density of skill-related high-income jobs within a region is conducive to low-wage workers moving to better-paid jobs, hence facilitating labour market upgrading through diversification. While metropolitan regions offer a premium for this relationship, it also holds for smaller regions, and across various worker characteristics.

A measure of port-level resilience to shocks in commercial fisheries

Marine and aquatic environments provide a range of tangible and intangible benefits to human communities. Ecosystem-based approaches to fisheries management, particularly those that characterize ecosystems as socio-ecological in nature, are often intended to capture and incorporate these benefits into integrated monitoring and management. A central conceptual concern of both the biophysical and socioeconomic elements of these integrated ecosystem approaches is the notion of resilience. Although system resilience to perturbation has been discussed and applied in ecological contexts, its use in social and economic contexts is less well developed within integrated ecosystem research and retains distinctive differences from its use in ecological contexts. Conceptions of community resilience in terms of commercial fishing and marine ecosystems benefit from empirical analyses. Accordingly, the research here develops a metric of port-level commercial fishing resilience, adapted from approaches in regional science and economic geography, to analyze US West Coast fishing ports in terms of their sensitivities to ecological and management shocks during a thirty year period. In doing so, resultant analyses suggest both the limitations of these approaches and the ways in which they can be applied within the context of ecosystem-based fishery management.

What motivates Chinese multinational firms to invest in Asia? Poor institutions versus rich infrastructures of a host country

What explains the phenomenal rise in China's outward foreign direct investment to the regional economies of Southeast and East Asia? In order to answer the question, we examine the relative efficacy of two contrasting approaches for explaining the upsurge in outward foreign direct investment – namely, the place-based approach of economic geography vis-à-vis the pollution haven hypothesis. We use China's outward foreign direct investment in a sample of 12 Southeast and East Asian countries, over the period 2003–2018, to arrive at the following results. First, as suggested by economic geography, regional infrastructures - such as mobile phone telecommunication, fixed broadband, and electricity infrastructure - played a crucial role in encouraging Chinese multinational firms to invest in Asian countries, while telephone telecommunication had a quadratic effect. Secondly, institutions' effects are complex. For instance, political stability in host countries promoted China's outward foreign direct investment in the Asian region before 2009 became a deterrent in the post-2009 era, while other indicators of quality of institutions (e.g., voice and accountability and regulatory quality) acted as barriers for the Chinese overseas foreign direct investment (OFDI) throughout the whole period. Thirdly, we find that the pollution haven hypothesis is untenable for the chosen countries. Fourthly, a significant pull factor for the Chinese OFDI is environmental quality of host countries.

Spatio-Temporal Differences in Economic Security of the Prefecture-Level Cities in Qinghai-Tibet Plateau Region of China: Based on a Triple-Dimension Analytical Framework of Economic Geography.

The assessment of regional economic security (RES) is mainly based on the theoretical ideas of political economy and marginalism, and the research areas are mainly concentrated in European and American countries/regions, especially Eastern Europe. Taking the Qinghai–Tibet Plateau in China as an example, this paper constructs a triple-dimensional analytical framework, resources, and environmental–economic foundation-driving forces, based on the institutional approach of economic geography, with the purpose of making up for the deficiency of the extant literature, which pays little attention to regional characteristics and the dynamic mechanism concerning RES, and to provide a tool to identify key factors affecting RES. This paper obtained the main conclusions as follows. (1) The index of the economic security in the Qinghai–Tibet Plateau is on the rise, and the difference at the level of RES among cities is significant but tends to decrease. (2) There is a significant spatial autocorrelation among cities in the Qinghai–Tibet Plateau in terms of RES. The high-value areas are concentrated along the southeast edge, and the low-value areas are concentrated in the central areas of the west. (3) Despite lower weight values, the weakness of the economic foundation and the fragility of the ecological environment has increasingly hampered the improvement of the economic security in the Qinghai–Tibet Plateau. In terms of driving forces, it is the support of the central government and aid programs of other provinces that contributes to its economic development.

The role of legitimation and delegitimation in new path development in tourism

The development of the tourism industry in regional contexts has attracted significant interest from tourism geographers, in which the evolutionary economic geography (EEG) approach has been of interest over the last decade. Recent research on EEG has emphasised the role of institutions and particularly legitimacy in new path development, claiming that legitimacy is crucial for the development of emerging industries. Against this backdrop, this paper explores the role of legitimation and delegitimation in the development of the sharing economy in Innlandet, a tourism region in Norway. The article poses two research questions. How is the legitimacy of Airbnb expressed by key tourism stakeholders in a tourism region in Norway? Moreover, how can the shifting roles of legitimation and delegitimation among key stakeholders in the tourism industry inform the literature on new path development? These issues are explored in qualitative interviews with respondents from four key tourism stakeholder groups: consumers, Airbnb hosts, incumbent firms, and regional industry and policy actors. The findings reveal legitimacy issues mainly related to regulatory and normative ambiguities, described by biased regulations that result in economic leakages to other regions and countries and concerns about decreasing local value creation in the region. These findings indicate that the sharing economy lacks legitimacy among the stakeholders. The article concerns the role of legitimation and delegitimation in new path development processes, arguing that delegitimation prevents transformative changes and path development processes.

Theoretical study of the effect of ports in the formation of city systems

This paper explores theoretically the formation of a system of cities in which ports affect the spatial location and the size of cities. We use a complex systems and economic geography approach to generate 2D cellular automata to simulate the formation of the landscape of urban agglomerations based on different configurations of port locations. The dynamics of the model shows the emergence of the classical city-size distributions in which the number of ports and their layout affects the growth rate and location of the city-size values. Our findings showed that the two port-city configuration give rise to cities at a long distance from a small number of ports. The size of the cities shows a positive correlations with their distance to ports. A four port-city configuration showed that if the number of ports increases, lower city-sizes are attained and their population displays a negative correlations with their distance to ports. For a lateral configuration with a significantly increase in the number of ports, mainly homogeneous city-size distributions are favored with a slight long-distance size correlation. Therefore, our theoretical model shows a high internal consistency between the theory and assumptions used for describing reliable scenarios in the relationship of ports and urban systems.

‘What is industrial culture anyway?’ Theoretical framing of the concept in economic geography

AbstractIn geography, industrial culture is a surprisingly understudied concept. Even when it is considered to play a role in the transformation processes of industrial cities or regions, it is not only terminologically diverse, but also lacks a firm theoretical and conceptual basis. This study conceptualises industrial culture and relates it to ongoing debates in various fields of geography by examining a range of literature from geography and related disciplines. This review structures the existing knowledge into four theoretical approaches: social class (Bourdieusian view), anthropological, institutional and evolutionary. Industrial culture is defined as a dynamic phenomenon in which past and present industrial production is embedded in the human physical environment, social structures, cognitive abilities, and institutions that may influence the future development choices of (post)industrial communities. This concept brings a more nuanced view of the less tangible aspects of culture to economic geography to strengthen its theoretical and empirical basis. This study explores how this concept can be integrated into current geographical research, focussing on the interaction between industrial culture and regional development through different approaches in economic geography (e.g., studies of regional assets, evolution of development paths, agency, deindustrialisation, innovation, entrepreneurship).

Assessment of Overseas Subsidiary Survival in Chinese Provinces: A Longitudinal Study of Indian Multinationals

AbstractThis study provides a longitudinal survival assessment of Indian subsidiaries in Chinese provinces. We construct a panel dataset of Indian subsidiaries operating in Chinese provinces during 2004–2017 and examine survival using a panel probit model and Cox regression. The results support the real options perspective, the economic geography approach and the institution‐based view. Subsidiary exits were associated with smaller size, albeit higher in the manufacturing sector. There is a positive impact of sub‐national economic geography factors on subsidiary survival. The finding contributes to the South–South investment literature as it highlights the role of sub‐national factors in shaping subsidiary survival.

The development of spatial differentiation of unemployment in Czechia through evolutionary and institutional approaches: the example of the Karvinsko and Jablunkovsko regions

The aim of this paper is to gain insight into the dynamics of spatial differentiation of unemployment on the municipal and microregional levels in Czechia. The spatial patterns of unemployment are quantitatively evaluated; and, based on these results, two microregions are chosen as case studies (Karvinsko and Jablunkovsko). These microregions are spatially close but underwent a totally different evolution in regional unemployment. Factors that affect different dynamics of unemployment are identified based on the analysis of their historical development and interviews with local agents. Thus, potential causes of dissimilar trajectories are revealed. The theoretical framework of the research is based on a combination of evolutionary and institutional approaches in economic geography that emphasize the role of history, continuity, local specifics and informal norms and practices in local and regional development.

The economic impact of aviation: A review on the role of market access

In recent decades, advancements in telecommunications and (air) transportation have driven globalisation processes. Consequently, policymakers and scholars view access to transportation as an essential prerequisite for economic development. For aviation, existing empirical studies have attempted to estimate the wider economic impacts from regional, country-level and global perspectives. However, no theoretical framework has yet been presented that comprehensively captures the full set of mechanisms by which aviation can contribute to economic development. Such a framework would cover both positive and negative regional impacts, as well as the mechanisms and spatial distribution behind them. In this paper, we use a New Economic Geography approach to comprehensively describe the impact mechanisms. We then apply this theoretical framework to an empirical study of metrics of air transport supply, which policymakers and researchers can use to assess how well airports and their surrounding regions are connected by means of the air transport network. The results of our analysis can inform scholars and policymakers on how air transport can shape economic geography and the productivity of economic systems. The results might also provide guidance for future empirical work on the wider economic impacts of air transportation.

Geoinformation Analysis of the Potential of Human Resources of Agricultural Territories of Volgograd Region

The purpose of this research is to assess the degree of auspiciousness of the human resources potential of the agricultural territories of Volgograd region, its territorial structure. The authors use the classical methodological approach of economic geography in conjunction with modern geographic information systems. The study includes three stages. The first is the collection and processing of statistical data on the main indicators of human resources of rural settlements such as number, density, age composition. The second stage includes the compilation of thematic maps for the selected indicators, the allocation of classes for the ranges of values of indicators and their spatial analysis. The third stage is the creation of an integrated map for a set of indicators with the allocation of territories according to the degree of auspiciousness of the potential of human resources. As a result, the main characteristics of the rural population of Volgograd region are identified. It has been established that most of the rural settlements belong to large rural settlements. Zones of increased and decreased density of the rural population are identified. According to the estimation of the age composition made by calculating the aging index, the rural population is in the stage of deep and very deep aging. Geoinformation mapping methods allow not only statistical processing of data, but also spatial analysis of the distribution of mapped indicators. The geoinformation analysis of the human potential of agricultural territories allows us to talk about the mosaic nature of its territorial structure, the alternation of territories with varying degrees of its development.

Regional Specialization in the Colombian Manufacturing Industry: A New Economic Geography Approach

The New Trade Theory(NTT) and New Economic Geography (NEG) explain production specialization of countries or regions by benefits stemming from economies of scale, which are available even when trade partners are in similar economic conditions and with even resource endowments. Conversely, the traditional trade theory relies on comparative advantages that emerge from differences in technology and costs. Recently, some authors propose to combine both theories. After discussing the theoretical background, the paper presents an empirical analysis based on panel data which tries to explain the branch and regional structure of manufacturing industry in Colombia. The results confirm the importance of natural advantage, resource endowments, transport costs and the access to national and international industrial circuits in shaping the spatial structure of manufacturing and its development trends.

Digital transformation of regional industries through asset modification

Purpose This paper aims to develop a conceptual framework for analysing wide-ranging digital transformation processes of industries in regional contexts. Design/methodology/approach The paper includes theoretical work to create a conceptual framework. The paper illustrates and advances the framework by analysing examples from two clusters, one focused on the production of digital products and services and one centred on applying digital tools to make firms’ existing activities more efficient. Findings The paper distinguishes between three main and interlinked categories of digitalisation; development of scientific principles that form the basis for developing digital technologies; making of digital products and services; and application of these in production and work processes. Digital transformation of industries located in particular regions relate to changes of (regional) innovation systems. The authors interpret this as processes of asset modification, distinguishing between re-use of existing assets, creation of new assets and (strategic) destruction of outdated assets. Digital transformation may lead to various forms of innovation and path development activities in regional economies. Practical implications The paper highlights the importance of modification of assets in organisations and at the level of regional innovation systems to support digitalisation. Organisations need to build absorptive capacity for digitalisation. Regional innovation systems face the challenge to build relevant common assets. Originality/value The paper advocates a comprehensive framework to better understand how digital transformation unfolds. It challenges established economic geography approaches, which propagate firm-based views and centre stage skill and technological relatedness. An alternative conceptual framework for scrutinising digital transformation processes in industries in regional contexts is presented.

The Impact of Participatory Governance on Regional Development Pathways: Citizen-driven Smart, Green and Inclusive Urbanism in the Brainport Metropolitan Region

Urban innovation policies reintroduce the role of social entrepreneurs and civil society into innovation studies with regard to the governance of regional innovation and the emergence of new innovation pathways. The research approach integrates the concepts of urban and regional transformation, participatory governance and works with an actor-centered approach that employs the enactment of innovation models by actor constellations such as the smart city concept and the Triple Helix model. We illustrate the pathway of a citizen-driven approach in innovation for the case of Brainport smart district in the city of Helmond, in the metropolitan high-tech region Eindhoven in The Netherlands. The empirical data is obtained in a real-world laboratory (rwl) in a multi-stakeholder co-creation process. The case contributes to the categorization of citizen-driven innovation pathways within an extended approach of Economic Evolutionary Geography (eeg) and thus to the frame of reference for structural dynamics in social theory.

우리나라 임금의 공간구조 분석 : 신경제지리학적 접근

우리나라 임금의 공간구조 분석 : 신경제지리학적 접근

El suelo industrial como factor de oportunidad y resiliencia en espacios mineros y rurales de León (España)

Se plantea analizar con un enfoque de geografía económica y método hipotético-deductivo el alcance de la estrategia pública de promoción de áreas empresariales en tres ámbitos comarcales de la provincia de León de dominancia rural y/o minera: Órbigo, Montaña y El Bierzo, considerando los desafíos de la crisis desencadenada en 2008 y la importancia del suelo industrial en la resiliencia de estos espacios. La hipótesis es que la oferta de suelo empresarial es un factor de resiliencia capaz de mejorar la capacidad de respuesta de espacios en declive y zonas rurales, ya que sería inductor de tres efectos positivos: reforzar la ventaja competitiva del territorio en coyunturas post-crisis, impulsar la innovación mediante proyectos empresariales de nuevo cuño, y mejorar las expectativas de progreso local. Los resultados obtenidos mediante técnicas cualitativas, uso de estadísticas y cartografía confirman la premisa de partida, pero también desvelan que los efectos positivos de los polígonos industriales y parques empresariales pueden ser de baja intensidad y producirse a ritmo desigual.

Geography … is it your destiny? Culturally sustainable development and creative industries nexus in the case of Turkey

ABSTRACT This article reconsiders the creative industry's role in Turkey's sustainable development using the cultural economic geography approach. Although this is a well-established approach with ongoing popularity in the existing creative industries literature, few studies directly address the role of distinct cultural factors in the sustainable development of emerging countries. Turkey's unique geographical location and relatively younger population has been a primary source of its cultural, historical, social, and economic diversity as well as creativity. Yet, the country faces profound problems in this ecosystem. Arguably, a critical issue is the culture's implicit role in Turkish sustainable development. Moreover, Turkey has been moved away from the realization of ‘cultural policies' under the hegemony of neoliberalism. The present study argues that the ‘sustainable development’ discourse in the dominant political parlance has been failed to be recognized as of cultural policy importance. This is especially true in the inclusion of culture into the development paradigm, and how it can be rediscovered and linked to contemporary socio-economic debates within the creativity and development nexus.