Regional Economic Specialization Research Articles

Regional Economic Specialization and Diversification in the State of Hidalgo

Regional Economic Specialization and Diversification in the State of Hidalgo

Regional economic specialization and diversification in the State of Hidalgo

The level of specialization and economic diversification of the 84 municipalities of the state of Hidalgo is presented. Results obtained by the level of Participation of the Sector in the State, the Participation of the Municipality in the sector and the Relative Specialization Coefficient (QR) using for this the Total Employed Population by municipalities (POT) obtained from the 2019 Economic Census. It stands out that the state specializes in three activities: retail trade with 29.6%, manufacturing 26.3%, and temporary accommodation and food and beverage preparation services with 10.6%. It should be noted that the municipality of Cardonal has the highest specialization coefficient of 0.78 derived from its significant participation of 82% (the highest) in terms of its participation in terms of economic activity municipalities.

Exploring Regional Industrial Growth: Does Specialization Explain It?

Being a form of territorial division of labor, economic specialization should be considered as a strategic management priority, contributing to a competitive territorial production structure and, consequently, regional economic growth. The article is devoted, firstly, to the development of a method for assessing the level of territorial division of labor based on a new coefficient of regional economic specialization; and secondly, to the investigation of regional specialization effects on economic growth. The purpose of the to substantiate the influence of the territory specialization factor on industrial economic growth, along with other conventional factors of regional development, using econometric methods based on an extended exogenous growth model. Premised on the data from Russian manufacturing industries and using a new coefficient of regional specialization, the authors have developed and verified an original approach to substantiate the effectiveness of regional clustering for ensuring the growth of industrial output based on an extended exogenous growth model. Approbation of the proposed assessment method and verification of research hypothesis formulated by the authors have been carried out using regional statistical data of the Russian Federation for the period from 2005 to 2019. The empirical analysis results have contributed to a place-based theoretical approach, involving both the cluster concept and the concept of “smart specialization”. The practical significance of the research is to validate clustering feasibility as a form of territorial division of labor and provide a number of principles for the regional industrial policy based thereon to accelerate territorial economic growth.

Resilience and specialization – How German regions weathered the Great Recession

Abstract This paper takes an explorative approach for analyzing the economic development of German Spatial Planning Regions during and after the Great Recession covering the period from 2007 to 2017. Specifically, we are interested in the relation between the short- and the mid-term resilience of regions and in the role of the underlying economic structure in this regard. For this purpose, we categorize regions by their GDP per capita growth in the resistance and recovery phase and then characterize the resulting region types by their average structural characteristics and track their performance through the renewal and reorientation phase. Our analysis reveals that, in general, larger shares of manufacturing, higher degrees of export orientation and specialization, and lower shares of public sector services are associated with weaker resilience and stronger recovery capacity. In addition, we observe a catch-up effect of regions with at least either an above-average resistance or recovery compared to regions with both weak resistance and slow recovery. However, we do not find a substantial reorientation effect because, in the case of Germany, the advantages of regional economic specialization still outweigh its potential disadvantages.

Management of the Russian Interregional Investment Distribution Using the Autonomous Expenditure Multiplier Model

An effective and competitive investment policy requires improvements to the existing tools. The ongoing COVID-19 crisis requires understanding as to how the recovery processes should be implemented. This study aims to develop a model for determining the autonomous expenditure multiplier (AEM) values, considering the investment accelerator action. The scientific novelty consists of proving that the AEM is not only an effects enhancer of the government and private investment, but also a tool to specify on the regional industrial map of Russia where investment projects will allow significant economic growth. The work’s practical significance consists of determining the possibility of applying the AEM as a tool to improve investment efficiency. The key research method was paired linear regression analysis. Based on the developed model, the AEM values for the economies of the five Central Federal District regions are calculated. Additionally, authors provide an explanation on how AEM values correlate to regional economic specialization. For example, atypically low AEM values for Moscow can be explained by high daily workforce movement among Moscow and the Moscow region. The information support difficulties of the proposed model are defined, and the directions to overcome them are proposed. Empirical results show significant differences in the AEM values of the researched regions, and that the AEM as a management tool for interregional investment distribution will help to invest the limited resources of both the state and private businesses more effectively. Additionally, authors establish that the achieved results fall in line with real macroeconomic situations within the regions, which proves that the proposed model reflects real world processes. Primary beneficiaries and end users of the study are government agencies, state-owned corporations, and members of broader scientific community.

Rental tenure and rent burden: progress in interdisciplinary scholarship and pathways for geographical research.

Rental housing accommodates more than a billion tenants worldwide, and in recent years, rentership has been increasing in some countries. Given reduced access to homeownership in various locations due to several causes, it is critical to focus on rentership which has received relatively less attention compared to homeownership, especially within the geography scholarship. In this review article, we identify four key themes that have naturally emerged from the close examination of recent interdisciplinary literature on rentership and rental affordability. These include: (1) rental housing financialization; (2) the proliferation of single-family rentals resulting from the U.S. foreclosure crisis; (3) the determinants and consequences of rent burden; and (4) the relationship between rent burden and regional economic specialization. We discuss these themes and propose potential opportunities for the geographic analysis of rent burden, its determinants, and their relationships with regional economic specialization. We posit that the four identified themes have been developing in apparent isolation, thus making scholarship less consistent. Moreover, research on rent burden is disjointed in itself, which makes it difficult to establish a unified narrative and interlinked subthemes within the rent burden literature. Nonetheless, we contextualize the four themes in their application to geography and frame our discussion around the central notion of this article—rent burden.

From Smart Cities to Smart Regions: Regional Economic Specialization as a Tool for Development and Inclusion

Keeping in mind that the fundamental task of local and regional governments is improving lives of their citizens, this paper considers the phenomenon of smart specialization as a tool that can be used to reach economic development and inclusion. Particular attention is paid to the impacts of smart cities on regional life through establishing smart city networks and mutual cooperation of various stakeholders. The issues associated with smart specialization are determined. At the same time, it is attempted to suggest the possible steps that could be taken by local and regional authorities to foster smartification. The multidimensional methodology approach is used for this study to increase its comprehensiveness and wider applicability of the concluding recommendations. The research is directly linked to the UN Sustainable Development Goals that are actively promoted by the Congress of Local and Regional Authorities of the Council of Europe, so it is related to high practical and theoretical value.

Aspects of the Development of Lithuanian Economic Specialisation in the Context of Globalization

Aspects of the Development of Lithuanian Economic Specialisation in the Context of Globalization

Specialisation Vs Diversification. Which One Better Upholds Regional Resilience to Economic Crises?

Abstract As economic crises periodically disrupt the economic activity, a large and continuously growing literature was dedicated to understanding the reasons behind the crises, their mechanism, effects and, most of all, the determinants of resilience capacity, and the ability to overcome hardships by adapting and changing. By preparing in advance for economic shocks through resilience building during good times, the impact of economic crises can be attenuated. Starting from these considerations, the paper focuses on regional economic specialization and its opposite – economic diversification, two business strategies already acknowledged in the literature as relevant factors for the capacity to mitigate economic crises. We tested the hypothesis of vulnerability-inducing economic specialization in the Romanian economy, using NUTS3 level data and found that more diversified regional economies were better at coping with the hardships triggered by the recent recession.

Regional Specialization and Urban Development in England during the Industrial Revolution

The Industrial Revolution led to the formation of a clear regional specialization in terms of production in England. Northwestern England developed into a modern industrial area, where the secondary industry sector was the main sector. London and its periphery in southeastern England developed mainly domestic and foreign trade, the financial industry and high-level service industry, all of which belong to the tertiary industry sector. The vast intermediate area between the northwest and the southeast mainly developed the first industry sector, namely commercial corn-animal husbandry. This regional economic specialization had a profound impact on urban development, under which the development of the three major regions showed different characteristics in terms of urban functions, city size and regional urban system. Specially, in the intermediate zone, there left traces of rural towns in the pre-industrial period.

The role of regional economic specialization in the production of university-owned patents

Several studies have revealed that R&D funds, university-level characteristics and the internal university environment determine the number of patents applied for by universities. However, only a few papers have analysed the effect of the demand side on the production of patents. This study looks into the extent to which patents generated by European universities are related to the regional specialization of host regions. Drawing on a sample of 3330 university-owned patents from the European Patent Office, covering the period 2001–2004, and several count models, our results suggest that the regional economic specialization significantly affects the production of university patents in high-technology sectors. We did not find any significant relationship between the regional specialization and the production of medium and low university-patented technologies.

Spatial Distribution of Knowledge-Intensive Business Services in a Small Post-Communist Economy

The authors examine the patterns and determinants of spatial distribution of selected knowledge-intensive business services in Czechia, a small post-communist country whose capital city holds a strong position and where a significant share of manufacturing and business R&D employment is located in non-metropolitan regions. The central research question asks to what extent the localization of knowledge-intensive business services can be explained by the position of cities in urban hierarchy. Correspondingly, the authors analyse the role of local factors such as regional economic specialization, regional firm size distribution or concentration of (high-tech) manufacturing or business R&D centres. The authors specifically concentrate on the role of large industrial centres in non-metropolitan regions and on the hypothesis of a spatial mismatch between knowledge-intensive business services and manufacturing, dispersed and overrepresented in smaller cities. Empirical results clearly confirmed the former hypothesis. Although the evidence on the latter hypothesis is more complex, it does not hold for the most of knowledge-intensive business services in Czechia.

Roepke Lecture in Economic Geography—Regional Context and Global Trade

abstractHow should we think of the role of regions in relation to the global economy? Theory has surprising gaps when it comes to building a unified vision of these two scales of development. Two contributions to such a vision are proposed in this article. First, the relationship between geographic concentration and the regional economic specialization it underpins and globalization should be theorized as a dynamic process. Standard location and trade theory is not adequate for this task; instead, the dynamic relationship can be captured through growth theory. But capturing this dynamic relationship requires correcting growth theory to separate its local and its global components, which are, respectively, Marshall-Arrow and Romer externalities. Second, the missing element in all theories of geographic concentration and locally specialized development is an element labeled “context” here. A theory of context, in turn, raises important new questions about the dynamic welfare and developmental effects of contemporary processes of fragmenting and relocating production at a global scale.

Žinių ekonomika: kūrimo perspektyvos Europos Sąjungos plėtros sąlygomis

Straipsnyje nagrinėjama žinių ekonomikos samprata, analizuojamos žinių ekonomikos kūrimo problemos ir perspektyvos Europos Sąjungos plėtros sąlygomis. Daugiausia dėmesio skiriama bendros kultūrinės, socialinės, ekonominės ir informacinės erdvės Europos Sąjungoje plėtrai, parodant, jog tik bendroje erdvėje yra sudaromos realios prielaidos pasireikšti įvairaus pobūdžio sinergetiniams efektams, leidžiantiems inovacijų bei naujų technologinių proveržių priemonėmis užtikrinti dabartinės ekonominės sistemos transformavimą į kokybiškai naujo lygio ekonomiką, kuriai būtų būdingi žinių ekonomikos požymiai. Pabrėžiama nacionalinių ir regioninių ekonominių sistemų specializacijos ir išskirtinumo svarba.

CREATION OF KNOWLEDGE - BASED ECONOMY IN THE EUROPEAN UNION: THE MAIN TYPICALITIES AND NEW IDEAS OF CLUSTERIZATION

Possibilities for the development of new forms of economic, social and technological headway designed to create and further improve economies based on knowledge are analyzed here. The main emphasis is put on national and regional economic specialization and creation of new networks of clusters in the situation of the development of the European Union. We have found that clusterization oriented towards the increase of efficiency of various national and regional economies is a critical precondition for successful creation of modern economy based on knowledge, both in the whole space of the European Union and particular countries. Another idea - a concept of creation of regional and cross-regional clusters and their networks also known as ,,economic oazes"‐ is suggested here. It is explained in the paper that in the economies based on knowledge development of clusters and their networks will soon become one of the core forms of economic and technological advancement.

Creation of knowledge ‐ based economy in the European Union: The main typicalities and new ideas of clusterization

Abstract Possibilities for the development of new forms of economic, social and technological headway designed to create and further improve economies based on knowledge are analyzed here. The main emphasis is put on national and regional economic specialization and creation of new networks of clusters in the situation of the development of the European Union. We have found that clusterization oriented towards the increase of efficiency of various national and regional economies is a critical precondition for successful creation of modern economy based on knowledge, both in the whole space of the European Union and particular countries. Another idea ‐ a concept of creation of regional and cross‐regional clusters and their networks also known as ,,economic oazes‐ is suggested here. It is explained in the paper that in the economies based on knowledge development of clusters and their networks will soon become one of the core forms of economic and technological advancement.

Regional Variation and Economic Drivers: An Application of the Hill and Brennan Methodology

The methodology developed by Hill and Brennan (2000) to analyze economic drivers in the Cleveland-Akron metropolitan area offers a powerful tool to researchers who seek to develop an objective, data-driven assessment of one or more regions. This article presents results of a replication of the Hill and Brennan methodology for seven Metropolitan Statistical Areas (MSAs) of New York State. Cross-MSA analyses are used to provide technical insights into the methodology that may be less obvious from a single-MSA analysis. These cross-MSA analyses are also used to demonstrate how the results can speak to key regional economic policy issues, including the role and importance of manufacturing, the extent to which a region is “high-tech,” and an overall assessment of regional economic specialization and performance.

Russia's Environment and Natural Resources in Light of Economic Regionalization

A specialist on environmental policy and problems in Russia and the states of the former Soviet Union assesses the current state of the environment, emerging environmental problems, and possible future developments in Russia's regions as a result of increasing regional differentiation brought about by the varied impacts of economic reform and restructuring in Russia. Particular attention is devoted to the environmental ramifications of regional economic specialization (e.g., raw materials vs. finished goods production), privatization, reduction in state subsidies and investment, incipient domestic mass consumption, character of future urban/suburban development, and the role of exports to world markets. 3 tables, 36 references.

Problems in the Economic Regionalization of India

AbstractThe authors propose a framework of a system of economic regions based on economic production principles. This principle is designed, on the one hand, to promote a regional economic specialization, and, on the other hand, to ensure integrated development of the regional economy. The Soviet geographers find that some major economic regions are already evident, for example, Western India (including West Bengal, Bihar and possibly Orissa), but that large parts of the country, especially in the north, lack sufficiently clear characteristics to make possible an economic regionalization without further detailed study.