Spatial Concentration Of Industry Research Articles

The path of improving the value chain flow of agricultural products industry under the effect of technology agglomeration

ABSTRACT Technology agglomeration effect is the economic effect produced by the spatial concentration of industry and economic activities, and it is one of the key factors to enhance the industrial value chain. In recent years, China’s agricultural market has gradually opened up, speeding up the marketisation and commercialisation of agricultural products. However, due to the increasing competition in the Chinese agricultural market, the value chain of the agricultural product industry is facing many challenges. The challenges faced by the value chain of the agricultural product industry are of two types: upstream and downstream. The upstream is the scope to improve yield and scarcity of resources and the downstream includes food chain loss, consumption moving towards F & V and pulses and lack of transparency and traceability. Thus, on the basis of the connotation of the agricultural product industry’s value chain and value flow, this article compares and analyses the development status of domestic and foreign industrial value chains, and finally proposes an upgrade path to increase the flow of Chinese agricultural industry’s value chain. It is expected to provide a reference for improving the economic benefits of Chinese agricultural product industry’s value chain.

Scalable shift‐share analysis: Novel framework and application to France

AbstractThe shift‐share analysis (SSA) of regional employment growth disparities aims at disentangling the effects of regional differences in industry mix and industrial competitiveness. Yet, the spatial concentration of industry is a blindspot of this approach. We generalize the SSA to encompass this salient feature of the economic geography. Besides, industry emergence and catastrophic growth events—booming or collapsing industries—are integrated in our framework. This novel method is applied to study regional disparities in manufacturing employment growth in France in a dynamic way over a 22‐year period at a fine geographical level.

Agglomeration and Urban Manufacture Labor Productivity in Indonesia

Agglomeration, the spatial concentration of industries in a specific location, has been argued to improve productivity since it could provide positive externalities such as knowledge spillover, input sharing, and labor pooling. This paper examines the effect of large and medium manufacturing industry (LMI) agglomeration on labor productivity. Measuring the output and labor density as agglomeration effect by using 2009-2014 panel data from 44 cities and regions across the metropolitan areas of Indonesia, this study shows that in terms of output share, agglomeration positively contributes to labor productivity. On the other hand, in terms of labor density, agglomeration results in a negative impact on productivity. These findings suggest the government should expand industrial clusters in less densely populated areas, especially outside the island of Java, by providing necessary infrastructures such as electricity, ports, and roads, so that this development creates favorable economic conditions for investment and industrial development in such areas.

Growth and the Geography of Knowledge

We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more innovative firms. Migration costs, however, limit the concentration of economic activities in the most productive region. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more sensitive to wage differentials. The associated change in the spatial concentration of industries has positive welfare effects.

Spatial concentration of industry in Europe: Evidence for Germany

Spatial concentration of industry in Europe: Evidence for Germany

Technological Progress, Spatial Competition and Industrial Location: Estimation and Predictions of Cement Industry in Northwest China

This study estimates a theoretical multi-region industrial location model by adopting real statistics to investigate the intuition of shaping spatial pattern of economic activities in a case of cement industry in Northwest China. Based on the estimation of key parameters, we simulate the impact of technological progress on variation of location. We find that, given trade cost, with technological progress, operating cost decreases, it is profitable for firms to expand sale range. In long term, technological progress would induce server spatial competition and promote further spatial concentration of industry. Original areas with larger market and fine industrial base are still main agglomerations, while original peripheral areas are further to a downward trend, and parts of original areas located next to hot pot areas have become peripheries. Our study on influence of technological progress on industrial location confirms the importance of investigation on intuition of spatial pattern of economic activities. Technological progress is essentially achievement of sustainable development. However, neglecting substantial spatial competition induced by technology improvement turns against spatial allocation of resources. Hence, optimal location of industries is one of important factors to ensure sustainable development.

Optimizing distance-based methods for large data sets

Distance-based methods for measuring spatial concentration of industries have received an increasing popularity in the spatial econometrics community. However, a limiting factor for using these methods is their computational complexity since both their memory requirements and running times are in \({\mathcal {O}}(n^2)\). In this paper, we present an algorithm with constant memory requirements and shorter running time, enabling distance-based methods to deal with large data sets. We discuss three recent distance-based methods in spatial econometrics: the D&O-Index by Duranton and Overman (Rev Econ Stud 72(4):1077–1106, 2005), the M-function by Marcon and Puech (J Econ Geogr 10(5):745–762, 2010) and the Cluster-Index by Scholl and Brenner (Reg Stud (ahead-of-print):1–15, 2014). Finally, we present an alternative calculation for the latter index that allows the use of data sets with millions of firms.

Regional economic growth in Hungary 1998–2005: What does really matter in clusters?

Although industry clusters are major targets of regional economic development in less developed regions as well, we still need a deeper understanding of how the spatial clustering of firms generates dynamics in lagging regions. These latter environments may differ from the typical cluster policy examples that are usually specialised global centres of dynamically growing industries. Using census-type data of Hungarian firms, we test the effect of major cluster indicators — regional specialisation and spatial concentration of industries — and the impact of FDI on regional productivity and employment growth in Hungary. Our results suggest that regional specialisation does not affect regional growth, while the spatial concentration of industries is found to influence productivity and employment growth with an overwhelmingly negative effect. Furthermore, regional employment growth is associated negatively with the initial level of regional specialisation. Results suggest that Hungary has evolved into a dual economy in which previously specialised regions and geographically concentrated industries have lost their pace, while the main factor that favoured regional economic growth was the presence of large foreign companies. Therefore, economic policies fostering regional specialisation and the spatial concentration of industries — such as cluster policy — may have minor effects unless the interaction of foreign-owned and domestic companies is encouraged.

A Simple Location Index Plus Some Maps and no Apologies: Back to Basics on the Development of Links Between Economic Integration and Spatial Concentration of Industries

AbstractThe analysis of the location patterns of economic activities in both Europe and the US has been addressed in an extensive literature dependent on increasingly more sophisticated techniques that arguably reframe debate away from the policy questions in focus and towards debate on the complex empirical techniques that seem to be in vogue at any given time. In part this has been a response to some clear shortcomings in the use of simple locational Gini coefficients. It is argued herein that simple index approaches can still retain value if augmented with intuitive reading of some relevant maps. An example of the utility of this approach is provided in relation to the location patterns of four exemplar manufacturing industries in the EU and USA.

Regional Economic Growth in Hungary 1998-2005: What Does Really Matter in Clusters?

Although industry clusters are major targets of regional economic development in less developed regions as well, we still need a deeper understanding on how spatial clustering of firms generates dynamics in lagging regions. These latter environments may differ too much from those typical cluster policy examples that are usually very specialized global centres of dynamically growing industries. Using census-type data of Hungarian firms, we test the effect of major cluster indicators – regional specialization and spatial concentration of industries – and the effect of FDI on regional productivity and employment growth in Hungary. Our results suggest that regional specialization does not affect regional growth but spatial concentration of industries is found to influence productivity and employment growth with an overwhelmingly negative effect. Furthermore, regional employment growth is associated negatively with the initial level of regional specialization. We argue that Hungary has evolved into a dual economy; in which previously specialized regions and geographically concentrated industries have lost their pace. The main factor that favoured regional economic growth was the presence of large foreign companies. Therefore, economic policies fostering regional specialization and spatial concentration of industries – such as cluster policy – may have minor effects only if the interaction of foreign-owned and domestic companies is not fostered.

Spatial Concentration of Industries and New Firm Exits: Does this Relationship Differ between Exits by Closure and by M&A?

Weterings A. and Marsili O. Spatial concentration of industries and new firm exits: does this relationship differ between exits by closure and by M&A?, Regional Studies. This study shows that the effect of the spatial concentration of industries on the post-entry hazards of new firms differs by type of exit, and by industry. New firms located in regions with a higher relative concentration of firms in the same industry are less likely to exit by closing activities and more likely to exit by mergers and acquisitions (M&As). While localization economies that favour new firms' survival or a potentially successful exit through M&As are dominant in manufacturing, new firms in business services also experience increasing competition from new entrants that lowers the likelihood of survival and exit through M&As.

Spatial Allocation of Capital: The Role of Risk Preferences

This paper considers a model of spatial allocation of investment capital under uncertainty. We demonstrate that the spatial concentration of economic activity depends upon properties of risk preferences deeper than risk aversion. The degree of so-called relative prudence unambiguously decides whether or not the diversification of income risk favours the geographic dispersion of economic activity. In our framework we relate risk diversification with economic integration. Then there exists risk preferences so that spatial concentration of industry and capital is not affected by the degree of economic integration or segmentation of the regions. We also study the impact of net return regressibility upon spatial allocation. Affectation spatiale du capital: le rôle des préférences de risques RÉSUMÉ La présente communication se penche sur un modèle d'application spatiale du capital-investissement en présence d'incertitudes. Nous démontrons que la concentration spatiale de l'activité économique est tributaire de propriétés de préférences de risque plus profondes que l'aversion au risque. Le degré de la soi-disant prudence relative décide sans ambiguïté si la diversification des risques de revenus favorise la dispersion géographique de l'activité économique. Dans le cadre de notre étude, nous examinons la diversification du risque en fonction de l'intégration économique. Il existe également des préférences de risque, qui font en sorte que la concentration spatiale de l'industrie et du capital n'est pas affectée par le degré d'intégration économique de la segmentation des régions. Asignación espacial de capital: la función de las preferencias de riesgo EXTRACTO Este trabajo considera un modelo de asignación espacial de capital de inversión en situación incierta. Demostramos que la concentración espacial de actividad económica depende más profundamente de las propiedades de las preferencias de riesgo que de la aversión al riesgo. El grado de la llamada prudencia relativa decide sin ambigüedad si la diversificación del riesgo de ingresos favorece, o no, la dispersión geográfica de la actividad económica. En nuestro marco, relacionamos la diversificación del riesgo con la integración económica. Asimismo, existen preferencias de riesgos para que la concentración espacial de la industria y el capital no sean afectados por el grado de integración o segmentación económica de las regiones.

Spatial Allocation of Capital: The Role of Risk Preferences

This paper considers a model of spatial allocation of investment capital under uncertainty. We demonstrate that the spatial concentration of economic activity depends upon properties of risk preferences deeper than risk aversion. The degree of so-called relative prudence unambiguously decides whether or not the diversi cation of income risk favours the geographic dispersion of economic activity. In our framework we relate risk diversi cation with economic integration. Then there exists risk preferences so that spatial concentration of industry and capital is not affected by the degree of economic integration or segmentation of the regions. We also study the impact of net return regressibility upon spatial allocation.

Using entropy measures to disentangle regional from national localization patterns

Localization of economic activities is a manifestation of two closely-related economic phenomena: the specialization of geographical units and the spatial concentration of industries. Nonetheless, the direction of changes in concentration and specialization, across national boundaries, may differ from those occurring within countries. Combining a regional approach with an international perspective, the paper introduces an entropy index of overall localization that allows specialization to be conceptualized as the mirror image of concentration, and also focuses attention on the possible divergence in agglomeration patterns at the different spatial scales.

A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process

We propose a framework that specifies the process of economic development as an evolutionary branching process of product innovations. Each product innovation provides a growth opportunity for an existing firm or a new firm, and for an existing city or a new city. One can then obtain both firm size and city size distributions as two aggregates resulting from a single evolutionary process. Gains from variety at the firm level (economies of scope) and the urban level (Jacobs externalities) provide the central feedback mechanism in economic development generating strong path dependencies in the spatial concentration of industries and the specialization of cities. Gains from size are also expected, yet these are ultimately bounded by increasing wages. The contribution of our framework lies in providing a microfoundation of economic geography in terms of the interplay between industrial dynamics and urban growth. The framework is sufficiently general to investigate systematically a number of stylized facts in economic geography, while at the same time it is sufficiently flexible to be extended such as to become applicable in more specific micro-contexts. A number of extensions related to the concepts of knowledge spillover and lock-in, are also discussed.

Foreign Direct Investment, Technology Sourcing and Reverse Spillovers

Recent theoretical work points to the possibility of foreign direct investment motivated not by ‘ownership’ advantages which may be exploited by a multinational enterprise but by the desire to access the superior technology of a host nation through direct investment. To be successful, technology sourcing foreign direct investment hinges crucially on the existence of domestic‐to‐foreign technological externalities within the host country. We test empirically for the existence of such ‘reverse spillover’ effects for a panel of UK manufacturing industries. The results demonstrate that technology generated by the domestic sector spills over to foreign multinational enterprises, but that this effect is restricted to relatively research and development intensive sectors. There is also evidence that these spillover effects are affected by the spatial concentration of industry, and that learning‐by‐doing effects are restricted to sectors in which technology sourcing is unlikely to be a motivating influence.

Commerce extérieur et spécialisations régionales en Chine

Résumé La forte ouverture de l’économie chinoise incite à s’interroger sur les effets qui en découlent en matière d’organisation spatiale. D’assez nombreux travaux, à la suite des recherches de KRUGMAN et VENABLES, ont été consacrés à l’analyse empirique des effets du commerce international sur la localisation des activités. Ils ont, le plus souvent, été appliqués aux économies européennes et surtout nord-américaine. L’objectif de cet article est d’évaluer l’impact de l’ouverture au commerce de la Chine sur l’évolution des spécialisations régionales en matière de production industrielle. Dans un premier temps, nous mesurons l’importance des disparités régionales à l’aide d’un indicateur d’Isard. Dans un second temps, nous réalisons un test économétrique sur données de panel établissant une détermination de la plus ou moins forte spécialisation des régions par l’ouverture au commerce international.

Public policies, regional inequalities and growth

This paper constructs a two-region endogenous growth model where industrial location and public infrastructures play a key role. The model analyzes the contribution of different types of public policies on growth, economic geography and spatial income distribution. It implies that an improvement in infrastructures that reduces transaction costs inside the poorest region decreases both the spatial concentration of industries, and the growth rate, and increases the income gap between the two regions. Conversely, an improvement in infrastructure facilitating transactions between regions has the reverse effect. In this sense, the paper highlights a trade-off between growth and the spatial distribution of economic activities. Contrary to transfers and traditional regional policies, it is shown that public policies that reduce the cost of innovation can attain the objectives of higher growth and more even spatial distribution of both income and economic activities. From that point of view, these policies seem preferable to the regional policies now implemented in Europe.

A TYPOLOGY OF RSFSR ADMINISTRATIVE REGIONS

The Soviet system of economic regions consists of three levels: (a) macroregions, or major economic regions; (b) mesoregions, or oblast (kray, ASSR) type regions; (c) microregions, corresponding to minor civil divisions known as rayons. A typology of mesoregions of the RSFSR is proposed, based on a combination of indices reflecting both the level of economic development (output per capita) and the level of spatial development (spatial concentration of industry and population density). The regions with spatial development indices below the RSFSR mean are found to have large areas with rich resource endowment. The author urges continued application of the old Soviet locational principle of giving priority to the development of the eastern regions and outlying ethnic territories.

PROBLEMS IN THE SPATIAL CONCENTRATION OF INDUSTRY (with particular reference to the RSFSR)

The author examines the use of the Lorenz curve and the Florence method for measuring the degree of spatial concentration of industry in a given area, and then develops an index of his own, based on ratio of the industrial output, value of plant, and industrial employment per unit area in a region to the industrial output, value of plant, and industrial employment per unit area in the country (or larger regional entity) as a whole. Findings for the major economic regions and middle-level regions (oblasts, krays, ASSRs) of the RSFSR are shown in the form of tables, graphs and map. A pronounced spread in levels of concentration is found between the European and Asian portions of the RSFSR, with concentration levels in the Central Russian region (at one extreme) and the Soviet Far East (at the other extreme) differing by a factor of 56.