Geographical Fragmentation Research Articles

Uncertainty and Risk in Global Supply Chains

This chapter explores the uncertainties associated with today’s highly interdependent supply chains and the risks inherent their geographic dispersion and organizational fragmentation. It first lays out the sources of risk and their potential consequences to the corporations who are supply chain owners, orchestrators, or customers; workers engaged in the global production system; entrepreneurs and larger firms who comprise the supply chains; and the regions and nations whose workers and firms make up the supply chain. It then considers how these risks can be mitigated and/or assigned to various parties in line with their comparative advantage. It concludes with a discussion of which risks are likely to be relatively well managed through the self-interest of the affected parties and which require concerted action across classes of actors.

Market structure in the Chinese steel industry

Trade in intermediate goods has become a significant feature of the international economy. Nevertheless, questions regarding price negotiation and the determinants of importing firms’ profitability remain unanswered. Using firm-level data, we attempt to address these issues in the context of the Chinese steel industry. Despite being the largest producer of steel in the world, the Chinese steel industry has maintained a very low level of profitability. This paper suggests that the low profitability of Chinese steel producers results from the abnormally high degree of market segmentation in China. Using a recently developed econometric method in panel data spatial analysis, we explain the level of geographic fragmentation in the Chinese steel industry. Our results reveal that local steel production depends only on local demand rather than on cross-regional demand. Production is responsive, as a 10% increase in local GDP induces more than 8% increase in local steel production, while the cross-province spill-over demand is insignificant under several reasonable model specifications. Less efficient firms survive because of the segmented market. As a result, Chinese steel producers realize lower profit in the face of high input prices.

Diversity of Rich Fen Vegetation and Related Plant Specialists in Mountain Refugia of the Iberian Peninsula

In temperate mountains, fens have been reported as relict habitats subject to geographical fragmentation and broad climatic gradients, but few studies have analyzed the influence of these factors on plant diversity. Here we investigate the effect of isolation on the vegetation diversity of rich fens (Caricion davallianae) in the mountains of the Iberian Peninsula, the distribution limit of these habitats in south-western Europe. We used plot-based vegetation data from the Pyrenees and the Cantabrian mountain range to evaluate their regional species-pool, occurrence of specialists, beta-diversity and the effect of geo-climatic variables on their species-richness and species-composition. We found a lower ratio of rare specialists in the Pyrenees than in the Cantabrian range, but similar estimates in the species pools, total species-richness per plot and beta-diversity. The isolation of the two mountain regions resulted in different species assemblages best predicted by summer precipitation and bedrock types, showing region-based differences in the response of vegetation and plant specialists to the environment. The tighter correlation between local climate and diversity estimates in the Cantabrian range suggests relict character of rich fens in that region, where climatic conditions have restricted local distribution of formerly more widely distributed specialists. Although there is no relevant evidence of vegetation impoverishment in that region, historical isolation has probably resulted in the existence of fragmentary plant communities. We conclude that fen vegetation may experience long-time persistence in climatically sub-optimal mountain refugia, but related plant specialists may be sensitive to climatic changes and subject to the extinction of local populations.

Why the World Suddenly Cares About Global Supply Chains

The global value chain (GVC) concept has gained popularity as a way to analyze the international expansion and geographical fragmentation of contemporary supply chains and value creation and capture therein. It has been used broadly in academic publications that examine a wide range of global industries, and by many of the international organizations concerned with economic development. This note highlights some of the main features of GVC analysis and discusses the relationship between the core concepts of governance and upgrading. The key dynamics of contemporary global supply chains and their implications for global production and trade are illustrated by: (1) the consolidation of global value chains and the new geography of value creation and capture, with an emphasis on China; (2) the key roles of global supermarkets and private standards in agri‐food supply chains; and (3) how the recent economic crisis contributes to shifting end markets and the regionalization of value chains. It concludes with a discussion of the future direction of GVC analysis and a potential collaboration with supply chain researchers.

Inshoring: The geographic fragmentation of production and inequality

The advent of information technology facilitates the geographic separation of production tasks, which is referred to as offshoring in international contexts and inshoring in domestic contexts. Although the literature on offshoring has flourished, the research regarding inshoring is limited. This paper examines inshoring on both empirical and theoretical fronts. Empirically, it shows that business support services have been increasingly sent to small localities for cost savings while being separated from their downstream industries, which have been consistently concentrated in large cities. Guided by empirical findings, a system of cities model is formulated to analyze inshoring and its welfare impact. The analysis shows that support workers are made better off, primarily because inshoring allows support workers to benefit from higher urban productivity without bearing urban costs.

Matching genetics with oceanography: directional gene flow in a Mediterranean fish species

Genetic connectivity and geographic fragmentation are two opposing mechanisms determining the population structure of species. While the first homogenizes the genetic background across populations the second one allows their differentiation. Therefore, knowledge of processes affecting dispersal of marine organisms is crucial to understand their genetic distribution patterns and for the effective management of their populations. In this study, we use genetic analyses of eleven microsatellites in combination with oceanographic satellite and dispersal simulation data to determine distribution patterns for Serranus cabrilla, a ubiquitous demersal broadcast spawner, in the Mediterranean Sea. Pairwise population F(ST) values ranged between -0.003 and 0.135. Two genetically distinct clusters were identified, with a clear division located between the oceanographic discontinuities at the Ibiza Channel (IC) and the Almeria-Oran Front (AOF), revealing an admixed population in between. The Balearic Front (BF) also appeared to dictate population structure. Directional gene flow on the Spanish coast was observed as S.cabrilla dispersed from west to east over the AOF, from north to south on the IC and from south of the IC towards the Balearic Islands. Correlations between genetic and oceanographic data were highly significant. Seasonal changes in current patterns and the relationship between ocean circulation patterns and spawning season may also play an important role in population structure around oceanographic fronts.

Inshoring: The Geographic Fragmentation of Production and Inequality

The advent of information technology facilitates geographic separation of production tasks, which is referred to as offshoring in international contexts and inshoring in domestic contexts. Although the literature on offshoring has flourished, the research on inshoring is limited. This paper examines inshoring on both empirical and theoretical fronts. Empirically, it shows that business support services have been increasingly sent to small localities for cost savings while being separated from their downstream industries, which have been consistently concentrated in big cities. Theoretically, it analyzes the welfare impact of inshoring. Contrary to a prediction in the offshoring literature, (domestic) support workers can be better off. This is primarily because inshoring allows support workers to benefit from higher urban productivity without bearing urban costs.

Are multinationals exporting jobs? The case of Taiwan

Does offshore production always result in jobexpor tation? Using firmlevel data for Taiwanese multinationals that allow us to avoid reverse causality issues, this research finds that while increasing offshore production has a negative impact on the demand for domestic manufacturing workers, this is not the case for domestic R&D workers, who are often moreskilled. The empirical study also suggests that for Taiwan, there is a geographical fragmentation of distinct production activities in a way that more skilled jobs are kept domestically, and less skilled jobs are exporting to other developing countries. These findings confirm the prediction of the knowledge capital model presented by Markusen et al. (1996) and Markusen (1997).

Geography, topography, and history affect realized‐to‐potential tree species richness patterns in Europe

Environmental conditions and biotic interactions are generally thought to influence local species richness. However, immigration and the evolutionary and historical factors that shape regional species pools should also contribute to determining local species richness because local communities arise by assembly from regional species pools. Using the European tree flora as our study system, we implemented a novel approach to assess the relative importance of local and regional mechanisms that control local species richness. We first identified species pools that tolerate particular local environments and quantified the proportion of the pool that is present locally, i.e. the realized/potential (R/P) richness ratio. Because no consensus exists on how to estimate potential richness, we estimated it using three different approaches. Using these three estimates separately and in a combined ensemble estimate, we then analyzed the effects of potential drivers on R/P richness ratios. We predicted that the R/P richness ratio would 1) increase with decreasing distance from glacial refugia (accessibility), 2) and be generally low in geographically fragmented southern Europe because of dispersal limitation; 3) increase with actual evapotranspiration because greater availability of water and energy promotes local population persistence; and 4) increase with topographic heterogeneity because it promotes local species coexistence and facilitates long‐term species survival. There was considerable variation among the three R/P richness ratio estimates, but we found consistent support for a negative effect of regional geographic fragmentation and a positive topographic effect. We also identified fairly broad support for the predicted effect of accessibility. We conclude that local tree assemblages in Europe often fail to realize a large proportion of the potential richness held in the regional species pool, partially reflecting their geographical, historical, and environmental circumstances. The dispersal‐related effects of geographic fragmentation and accessibility exemplify regional controls that combine with local ecological sorting to determine local species richness.

Late Pleistocene environmental changes lead to unstable demography and population divergence of Anopheles albimanus in the northern Neotropics

We investigated the historical demography of Anopheles albimanus using mosquitoes from five countries and three different DNA regions, the mitochondrial cytochrome oxidase subunit I gene ( COI), the single copy nuclear white gene and the ribosomal internal transcribed spacer two (ITS2). All the molecular markers supported the taxonomic status of a single species of An. albimanus. Furthermore, agreement between the COI and the white genes suggested a scenario of Pleistocene geographic fragmentation (i.e., population contraction) and subsequent range expansion across southern Central America.

Ancient DNA sequences point to a large loss of mitochondrial genetic diversity in the saiga antelope (Saiga tatarica) since the Pleistocene

Prior to the Holocene, the range of the saiga antelope (Saiga tatarica) spanned from France to the Northwest Territories of Canada. Although its distribution subsequently contracted to the steppes of Central Asia, historical records indicate that it remained extremely abundant until the end of the Soviet Union, after which its populations were reduced by over 95%. We have analysed the mitochondrial control region sequence variation of 27 ancient and 38 modern specimens, to assay how the species' genetic diversity has changed since the Pleistocene. Phylogenetic analyses reveal the existence of two well-supported, and clearly distinct, clades of saiga. The first, spanning a time range from >49,500 (14) C ybp to the present, comprises all the modern specimens and ancient samples from the Northern Urals, Middle Urals and Northeast Yakutia. The second clade is exclusive to the Northern Urals and includes samples dating from between 40,400 to 10,250 (14) C ybp. Current genetic diversity is much lower than that present during the Pleistocene, an observation that data modelling using serial coalescent indicates cannot be explained by genetic drift in a population of constant size. Approximate Bayesian Computation analyses show the observed data is more compatible with a drastic population size reduction (c. 66-77%) following either a demographic bottleneck in the course of the Holocene or late Pleistocene, or a geographic fragmentation (followed by local extinction of one subpopulation) at the Holocene/Pleistocene transition.

Loss of planktotrophy and speciation: geographical fragmentation in the deep-water gastropod genus Bathytoma (Gastropoda, Conoidea) in the western Pacific

Dispersal capabilities are crucial in how speciation patterns are determined in marine invertebrates. Species possessing a long-living planktonic larva apparently have a dispersal advantage over those with non-planktotrophic development, and their distant populations may exchange genetic material, maintaining a broad geographical range for the species. Recent species of the gastropod genus Bathytoma (Conoidea) are all characterized by non-planktotrophic development, having most probably lost a free-swimming larva in the pre-Pliocene, as Miocene fossils have protoconchs indicating planktotrophic larval development. All have a bathyal distribution (100–1500 m), which implies that their capability for direct expansion on the bottom is restricted by both deep-sea basins and shallow-water areas, especially in insular West and South-West Indo-Pacific. Therefore, it can be hypothesized that Bathytoma populations should represent numerous, mostly allopatric taxa restricted to a single or contiguous island groups. We tested this hypothesis using molecular and morphological characters independently. One hundred and thirty-eight specimens from the Philippines, Solomons, Vanuatu, and the Coral Sea were sequenced for one mitochondrial (COI) and one nuclear (ITS2) gene, and 14 operational molecular units were recognized. When these molecular units are overlaid over shell characters, 13 species (11 unnamed) and one form of uncertain status are recognized: three occur in the Philippines, six in the Solomons and one in New Caledonia. Broad distributions (inter-archipelagic) are uncommon (three species). On the whole, the phylogeographic pattern of the diversity in the genus is rather complex and probably also reflects processes of sympatric and fine-scale allopatric speciation, and local extinctions. The eleven new species are described and named.

Europe, the Mediterranean, the Middle East and the Need for Triangulation

European Union policy towards the Middle East and North Africa suffers from geographic fragmentation and an increasing functional imbalance which reflects a growing trend towards securitisation. While policy towards the Mediterranean is highly institutionalised, the Gulf Cooperation Council states receive much less attention and policies towards Iran, Iraq and the occupied Palestinian territories exist in isolation. A narrow focus on an exclusionist approach to security has taken over to the detriment of political and economic concerns. The shortcomings in European foreign policy towards the broader Middle East in terms of lack of breadth and coherence need to be addressed in order to forge a more cohesive and effective policy.

The Effect of Electoral Geography on Pork Barreling in Bicameral Legislatures

How does the electoral geography of legislative districts affect pork barreling? This article presents a formal model extending Mayhew's classic credit‐claiming theory to account for the electoral geography of bicameralism. Under bicameralism, upper chamber (Senate) and lower chamber (Assembly) legislators who share overlapping constituencies must collaborate to bring home pork projects. Collaboration is easier between a Senator and an Assembly Member who share a large fraction of their constituents and thus have relatively aligned electoral incentives. But dividing a Senate district into a larger number of Assembly district fragments misaligns these electoral incentives for collaboration, thus reducing equilibrium pork spending. Hence, increased Senate district fragmentation causes a decrease in equilibrium spending. I exploit the 2002 New York Senate expansion as a natural experiment, examining how sudden changes in the geographic fragmentation of Senate districts account for differences in the distribution of pork earmarks immediately before and after the redrawing of district boundaries.

New Research Agendas on Regional Party Competition

Stateless nationalist and regionalist parties are no longer niche players but part of the mainstream of west European party politics. Yet their significance has yet to penetrate the mainstream of scholarship in political science on parties and elections. This contribution explores why this is so, focusing on a pattern of methodological and geographical fragmentation of research on sub-state party competition which has limited the resonance of that research. But it also sets out areas where this is changing—most notably in the growing combination of sociological and institutional approaches, but also in the study of stateless nationalist and regionalist parties as parties of government, often challenging, at times partnering state-wide parties. The resulting intersection of state-wide and sub-state logics of party competition suggests an opportunity for rethinking what ‘mainstream’ means in understanding party competition in multi-level states.

Firm Heterogeneity, Contract Enforcement, and the Industry Dynamics of Offshoring*

AbstractWe develop an endogenous growth model with R&D spillovers to study the long‐run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm's production chain between a home upstream division and a foreign downstream division. While there is always a positive correlation between upstream bargaining weight and offshoring activities, there is an inverted U‐shaped relationship between these and growth. Whether offshoring with incomplete contracts also increases consumption depends on firm heterogeneity. As for welfare, whereas with complete contracts an R&D subsidy is enough to solve the inefficiency due to R&D spillovers, with incomplete contracts a production subsidy is also needed.

Genetic variation and its evolutionary implications in a Mediterranean island endemic lizard

The peculiar bioclimatic and geographic features of Corso–Sardinian islands may provide an ideal scenario for investigating microevolutionary processes, given their large heterogeneity of environments, which could affect dispersal and gene flow among populations, as well as processes of local adaptation. The genetic variation and differentiation among populations of the endemic lizard Archaeolacerta bedriagae were studied by allozyme electrophoresis at 20 presumptive loci. The genetic structure of this species is characterized by relatively high levels of polymorphism and low differentiation among populations. The pattern of genetic differentiation cannot be explained by genetic drift as a function of geographic distance. Genetic distance data show that genetic variation is distributed into three geographically coherent population groups and suggest a recent (Late Pleistocene) origin for the observed geographic fragmentation. The analysis of environmental correlates of allozymic variation indicates a strong correlation of the Idh-1 locus with climatic variables. The frequency of the Idh-1 106 allele is negatively correlated with annual temperature, and positively correlated with annual precipitation. In addition, the observed heterozygosity at this locus decreases towards more arid climatic regimes. The results obtained support the assumption of differential selection acting on Idh-1 allozymes under diverse climates. An association between Idh-1 allozymes and local bioclimatic regimes was also observed for the sympatric lizard Podarcis tiliguerta, suggesting a key role for such selective agents on Idh-1 polymorphism in these two Corso–Sardinian lacertids. © 2009 The Linnean Society of London, Biological Journal of the Linnean Society, 2009, 98, 661–676. ADDITIONAL KEYWORDS: allozyme electrophoresis – Archaeolacerta bedriagae – Corsica – environmental correlates – Lacertidae – population differentiation – Sardinia.

Isolation and characterisation of polymorphic microsatellite markers in the western ringtail possum, Pseudocheirus occidentalis

We report on the development of 14 novel polymorphic microsatellite markers from the western ringtail possum (Pseudocheirus occidentalis), a “threatened” (Vulnerable) arboreal marsupial, endemic to the biodiversity hotspot region of south-west of Western Australia. The markers were developed to obtain population genetic data to quantify any changes which may be associated with increasing geographical fragmentation. We describe the diversity among 66 unrelated (adult) P. occidentalis individuals. Overall, the markers produced between three to eight alleles per locus and observed and expected heterozygosities of 59% and 69%, respectively. Due to predation by introduced foxes, urban encroachment changes in fire regime and the resultant levels of fragmentation in its range, these microsatellite markers are an important tool for evaluating population genetic information and for prioritising populations for conservation management.

Firms Heterogeneity, Contract Enforcement and the Industry Dynamics of Offshoring

We develop an endogenous growth model to study the long run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm’s production chain between a home upstream division and a foreign downstream one. On the positive side, we show that, when contracts are incomplete, the possibility of offshoring has favorable implications for economic growth. Yet, offshoring induced by a higher bargaining power of the upstream division can hamper growth: while there is always a positive correlation between upstream bargaining weight and offshoring activities, there is a non-monotonic relationship between these and growth. Whether offshoring with incomplete contracts also increases consumption depends on firm heterogeneity. On the normative side, we show that, whereas with complete contract efficiency is restored through a subsidy to R&D only, with incomplete contracts a production subsidy to offshored upstream divisions is needed too.

Firm Heterogeneity, Contract Enforcement, and the Industry Dynamics of Offshoring

We develop an endogenous growth model to study the long run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm’s production chain between a home upstream division and a foreign downstream one. On the positive side, we show that, when contracts are incomplete, the possibility of offshoring has favorable implications for economic growth. Yet, offshoring induced by a higher bargaining power of the upstream division can hamper growth: while there is always a positive correlation between upstream bargaining weight and offshoring activities, there is a non-monotonic relationship between these and growth. Whether offshoring with incomplete contracts also increases consumption depends on firm heterogeneity. On the normative side, we show that, whereas with complete contract efficiency is restored through a subsidy to R&D only, with incomplete contracts a production subsidy to offshored upstream divisions is needed too.