Spatial Economics Research Articles

Input-Output Table Regionalization and Multiregional Input-Output Model Development Algorithm

The main problems of constructing multiregional input-output (IO) models used for the development of spatial and sectoral long-term national economy forecasts are caused by the absence of proper statistics. Therefore, it is necessary to make up the input-output tables (IOTs) based on a limited set of direct and indirect indicators that measure spatial patterns of production, consumption, capital formation, etc., sufficiently accurate for filling up multiregional IO models. The paper discusses Russian IOT spatial mapping problems and proposes an approach to partial automation of the procedures necessary for regional IOT construction (by federal districts). The regionalization was carried out using a static IO model with the bounding sum control. As a result, a set of consistent regional tables for 2015 was developed, with the eight IOT sum equalling Russia’s IOT. Based on the estimated regional IOTs, a static multiregional input-output model (OMIOM) across federal districts for 2015 was made up. The model allows us to proceed to the follow-up phase, i. e., developing a semi-dynamic model for long-term national economic projection computations

Social Oriented Non-Profit Organizations in the Regional Economy: Differentiation of Research Methodological Programmes

The level of the regional economy development is determined by various factors, including the performance of the for-profit and non-profit sector, in the structure of which socially oriented non-profit organizations (SONPOs) play an important role. Most of the research methodological programmes used to assess the performance of SONPOs at both the macro and micro levels are focused on determining their effectiveness, while the regional economy requires the development of scientific and methodological approaches to their assessment specifically in a spatial context. The article focuses on the development of an original research methodological programme for analyzing and evaluating the functioning and development of SONPOs in the economic area of the region. The methodological framework of the study includes the ideology of the spatial economy, the socio-economy of the region, the social market economy and the regional governance paradigm. The proposed research methodological programme is based on three groups of indicators that include spatial, socio-economic and financial indicators, which are selected based on the content aspects of the SONPO concept (systemic, spatial, institutional, organizational and managerial, functional), and are the basis for calculating the corresponding indices - private and integral. Spatial indicators relate to the characteristics of the saturation of the economic area of the SONPOs region in various contexts of their operation. Socio-economic indicators characterize the dynamics of the labor and volunteer resources of the functioning and development of SONPOs. Financial indicators make it possible to monitor the development of SONPOs as a tool for implementing socially important functions at the level of regional government and local self-governance. Interpretation of the indices takes additional indicators into account, which take the specifics of a particular region, as well as the results of regional rankings on the level of development of the SONPO sector into consideration, which makes it possible to identify spatial and economic trends and trajectories of SONPOs functioning in the regional economy.

COMBI LANGUAGE - A MEANS OF PRESENTING OPTIMIZATION MODELS IN THE IPC OF ANALYSIS AND FORECASTING OF SPATIAL ECONOMY

One of the effective tools for solving applied problems of analysis and modeling of the spatial economy are optimization interregional intersectoral models. Currently, IEIE SB RAS has developed and implemented several versions of the Model-Program Complex of the Optimization Interregional Interindustry Model "MPK OMMM", which are used to coordinate macroeconomic, sectoral and regional long-term forecasts on a regular basis and for experimental calculations of forecast options for the development of the national economy of the Russian Federation . This paper discusses one of the ways to represent optimization models of the OMMM type, based on the use of the COMBI-2000 language (Complex for processing matrix information blocks, version 2000), which is a tool for describing pre- and post-optimization calculations, a means of communication with the optimization package and reflecting a database and recording mathematical models in a fairly convenient and simplified structure for users.

GEOCOGNITIVE ASPECTS OF SPATIAL DEVELOPMENT OF THE SIBERIAN REGION. STATEMENT OF A QUESTION

The paper considers the application of such a driver of the VI technological order as geocognitive modeling for the implementation of the spatial strategy of the socio-economic development of the Siberian region. The role of this driver for the development of new approaches in assessing the potential of the Siberian Federal District (SFD) is shown. The importance of theoretical approaches and digital tools based on artificial intelligence for the introduction of geocognitive technologies into the practice of state and corporate governance is noted. The prospect of using geocognitive tools in researching the problems of spatial economics is assessed.

Spatial Capacity Planning

We study the relationship between capacity and performance for a service firm with spatial operations, in the sense that requests arrive with origin-destination pairs. An example of such a system is a ride-hailing platform in which each customer arrives in the system with the need to travel from an origin to a destination. We propose a parsimonious representation of a spatial multiserver system through a state-dependent queueing model that captures spatial frictions as well as spatial economies of scale through the service rate. In a classical [Formula: see text] queueing model, the square root safety (SRS) staffing rule is known to balance server utilization and customer wait times. By contrast, we find that the SRS rule does not lead to such a balance in spatial systems. In a spatial environment, pick-up times increase the load in the system; furthermore, they are an endogenous source of extra workload that leads the system to only operate efficiently if there is sufficient imbalance between supply and demand. In heavy traffic, we derive the mapping from load to operating regimes and establish implications on various metrics of interest. In particular, to obtain a balance of utilization and wait times, the service firm should use a higher safety factor, proportional to the offered load to the power of [Formula: see text]. We also discuss implications of these results for general systems.

Useful City or the truth about systemic context of depopulation and shrinking cities

In recent years, the phenomenon of depopulation and shrinkage of cities has been observed. The depopulation of large cities is undoubtedly a demographic fact. The process of urban depopulation has recently become the theme of numerous reports and alarmist research works. However, it can be concluded that the diagnostic background of this phenomenon has got a narrow methodical foundation. As a measure of depopulation, the number of permanent residents is usually taken (according to the place of residence). Thus, the diversity, complexity and dynamics of processes taking place in contemporary cities are ignored. Postmodern reality appears as a segregated, separated world. Therefore, the diagnostic approaches currently used should be discussed. Going further, one can conclude that the measurement of depopulation and shrinkage of cities by the number of permanent residents is a simplification, because it ignores the essence of urbanity, which is the diversity of values offered by the urban space of exchange (i.e. the utility value). The article presents therefore the new concept of the measurement for shrinking of cities. Ideas discussed in the paper are expected to stimulate critical exchange of views among urban researchers. In the authors’ opinion, the sin of social-economic geography and spatial economics consists in boiling down great human affairs to aspects of correct representativeness.

Role of transportation network on population distribution evolution

Research on the evolution mechanism of population distribution has practical applications in transportation science, spatial economics and many other fields. However, the evolution of population distribution is influenced by numerous factors, among which transportation is a very important one. This paper proposed a dynamic model of population distribution that considers the impact of the transportation network. In the model, the human prefers to move to areas with good transportation. By considering the highway and railway network, we investigate the effects of them on the population spatial distribution. The parameters of the model can govern how many people can immigrate and emigrate in each area. It can be determined by the nonlinear least square method. Furthermore, we use the data of china’s population distribution to demonstrate our model’s ability. Moreover, this model can help us better understand the underlying mechanism of population distribution evolution.

Representing the Under-Represented: Labor Unions as Urbanists

Persistent precarity is a fundamental, yet usually hidden and often overlooked condition of urbanism, particularly for those who represent the human labor that produces and reproduces the capitalist city. The question, then, is how do those who represent this under-represented human labor, unions, engage with and influence the underlying power structure that actually shapes the city? Labor unions simultaneously shape and are shaped by the spatial political economy of the contemporary city. This article examines this phenomenon through analysis of an illuminating case study, the powerful Culinary Union in Las Vegas. Drawing from different primary and secondary sources, this article offers several valuable insights: organized labor is significant in the spatial production of the city, urban precarity can be mitigated by advocating for the public realm, and asserting agency in the power dynamics of the city can be an effective way of influencing its urbanism.

Trends in attracting resources to the budgets of regional centers

The paper explores the transformations in the state of the budgets of regional centers to formulate recommendations concerning the development of their budget potential. Methodologically, the paper relies on the theory of public finance, supply-side economics, and spatial economics. Applying economic-statistical, structural, logical, and comparative methods, the author identifies the role of repayable and non-repayable receipts in the budgets of regional centers. The analysis covers the period of 2011–2018, when the budget crisis in the Russian regions triggered significant changes in the system of the intergovernmental relations at municipal level. Critical analysis of the key trends in the formation and use of attracted budget resources of regional centers is performed using the case of the Northwestern Federal District of the Russian Federation. The findings point to an increase in the debt burden from 33 to 52 % of the own revenues of the budgets of the regional capitals; a steady trend towards domination of the funds attracted as gratuitous financial assistance over budgets’ own revenues since 2014; a significant growth in the authority delegated from higher levels. Public authorities and local governments may benefit from the research findings while making decisions meant to improve intergovernmental relations and manage the municipal debt.

Development of investment and construction sector in economic space from the standpoint of modern theoretical approaches

The article analyzes some aspects of the organization of investment and construction activities from the point of view of spatial economics. Territorial, resource, informational and institutional approaches to the definition of economic space are analyzed, conclusions are drawn about advantages and disadvantages of various approaches in terms of the development of the investment and construction sector. The administrative approach is considered separately, it is not described in the theoretical literature, but used in public administration, strategic planning of the Russian national economy, as well as in the formation of regulatory legal acts. The article proposes to use a systematic approach to the formation of a spatial framework of construction corresponding to the priorities and goals of economic development in the context of spatial development trends, based on the synthesis of available approaches in integrated economic systems within the construction complex.

On quantitative spatial economic models

We show that spatial equilibrium conditions in workhorse models of quantitative spatial economics (QSE) can be generated by the McFadden (1974) model together with the condition that the individual choice probability of a region equals the population share of that region. Thus, recent models of QSE and one of the oldest location choice models can rationalize the same change in equilibrium following shocks to economic fundamentals. However, their welfare implications—even conditional on the same change in equilibrium—may differ, depending on the specification of preferences and on the type of shocks we consider.

Effective economic growth under conditions of regional water management dependence

Purpose. The purpose of the article is an identifying the impact of regional water management dependence on economic growth in the region.
 Methodology / approach. The subject of the study is theoretical and methodological basics of a new scientific paradigm for regulation the development of the regional socio-economic systems under the conditions of limited water resources. The study used traditional and special research methods, including: historical and logical – to analyze the evolution of regional socio-economic systems under conditions of limited water resources; abstractions and analogies – to reveal the essence of water-efficient regional socio-economic systems in the modern processes of regionalization and globalization; theoretical generalization, analysis and synthesis – to specify the categorical apparatus; statistical analysis to assess the level of needs of regional socio-economic systems in water resources and create an index of regional water management dependence; method of correlation analysis (biserial correlation, using a point biserial Pearson’s correlation coefficient).
 Results. The main idea of the paper is to study the issues of development of regional socio-economic systems under the conditions of limited water resources. Considering this, the paper is aimed at studying the impact of regional water management dependence on economic growth in the region. The tasks for development of regional socio-economic systems on the basis of water efficiency are defined, as well as the concept “water-efficient regional socio-economic system” is defined. The study presents a hypothesis about the need to change the paradigm of regulation of regional development on the basis of water use efficiency and regional water management dependence. In order to trade effectively with the main crops, it is necessary to determine whether there are sufficient water supplies in a given country and its regions. For this purpose, the authors proposes to use own indicator, such as the index of regional water management dependence. Thе characteristic of water management dependence is given, from regions where only up to half of the water supply of the territory is used, and to regions where more than 100 % of the water supply of the territory is used. The research has updated that the expansion of knowledge and understanding of the specifics of the water sector can solve significant problems. It is proved that the economic growth of the Ukrainian economy due to the agricultural sector has its limits and is limited by the water management dependence of the territories, ie the limitation of certain territories of the regions of Ukraine in terms of water resources. The next effective economic growth is possible only through the implementation of water-efficient technologies and intensification of water-efficient activities in the region.
 Originality / scientific novelty. The study for the first time defines the concept of water-efficient regional socio-economic system, so it is a socio-economic system that provides for the restoration of water resources in the region, reducing the water intensity of gross regional product (GRP) and approaching European norms and proposes the classification of regions according to the index of regional water management dependence on the basis of its threshold values. A scientific and methodological approach to assessing the level of needs of regional socio-economic systems in water resources has been improved, based on the application of the index of regional water management dependence, which is proposed to calculate the ratio of total fresh water use in the region to the volume of available river runoff in the region (parts of the water potential). The classification of regional socio-economic systems according to the level of water supply has been improved, which is based on the definition of threshold values of the index of regional water management dependence. The methodological bases for assessing the impact of the spatial economy on regional development under conditions of limited water resources have been improved, which differ in substantiating the dependence of the level of development of regions on the available water potential of the territory.
 Practical value / implications. The results of the study allow a more comprehensive approach to the study of the problem of using water resources in Ukraine in the context of their limitation. The results of the study showed that the economic complex in most regions is water-intensive and unbalanced, as well as does not provide restoration of water resources by environmental parameters and requires the implementation of infrastructure schemes for redistribution of water resources between regions for economic activity. The results are recommended for consideration by local governments and regional administration for the development and implementation of “Regional programs for the development of water management in the region” and for the development of “Strategies for regional development until 2025–2027”.

Transboundary pollution externalities: Think globally, act locally?

We analyze the implications of transboundary pollution externalities on environmental policymaking in a spatial setting, in which pollution diffuses across the global spatial economy independently of the specific location in which it is originally generated. This framework gives rise to a simple regional optimal pollution control problem allowing us to compare the global and local solutions in which, respectively, the transboundary externality is and is not taken into account in the determination of the optimal policy by individual local policymakers. We show that it is not obvious that transboundary externalities are a source of inefficiency per se since this is strictly related to the spatial features of the initial distribution of pollution. If the initial pollution distribution is spatially homogeneous then the local and global solutions will coincide and thus no efficiency loss will arise from transboundary externalities, but if it is spatially heterogeneous the local solution will be suboptimal and thus a global approach to environmental problems will be needed to achieve efficiency. From a normative perspective, in this latter (and most realistic) case we also quantify the amount of policy intervention needed at local level in order to achieve the globally desirable goal of pollution eradication in the long run. Our conclusions hold true in a number of different settings, including situations in which the spatial domain is either bounded or unbounded, and situations in which macroeconomic–environmental feedback effects are taken into account.

The Economic Thought of William Petty: Exploring the Colonialist Roots of Economics

The Economic Thought of William Petty: Exploring the Colonialist Roots of Economics

Spationomy Simulation Game—Playful Learning in Spatial Economy Higher Education

Simulation games, as a method of playful learning, have been used for more than 70 years in various disciplines with the economy as a leading application field. Their development has been tied with advances in computer science, and nowadays, hundreds of simulation games exist. However, simulation games are not just useful for encouraging disciplinary knowledge production; they also promise to be effective tools for interdisciplinary collaboration. To further explore these promises, we report on the design and playing of a simulation game on the boundary of geoinformatics and business and economics; an interdisciplinary field we have termed Spationomy. Within this game, students from different disciplinary (and cultural) backgrounds applied their knowledge and skills to tackle interdisciplinary problems. In this paper, we also analyze students’ feedback on the game to complement this aspect. The main goal is to discuss the design process that went into creating the game as well as experiences from play sessions in relation to this increase of interdisciplinary knowledge among students. In the end, we present a new gaming concept based on real-world data that can be played in other interdisciplinary situations. Here, students´ feedback on individual features of the game helped to identify future directions in the development of our simulation game.

Externalities in the Light of Selected Spatial Economy Issues - Contribution to the Discussion

Purpose: The aim of research is to identify major differences between externality effects and spillover effects. It discusses selected spillover effects in spatial planning and it attempts to identify interdependencies between implemented spatial management and the resulting spillover effects. Design/Methodology/Approach: The identification and assessment of endogenous relationships in implemented spatial policies as part of a specific spatial economy and spatial management is not an easy task. The assessment was made based on a review and an analysis of available literature. In issuing own opinions, scientific research in which the author of the text actively participated, was also important. Findings: Who causes negative externalities is obliged to compensate for the losses suffered by those injured. It may be financial satisfaction, investment in infrastructure, investment into the investment fund, etc. Those who generate effects should strive to eliminate them, e.g., by changing the form of land use or organizing production - which may also be subject to government compensation. Practical Implications: The paper presents major differences between externalities and spatial spillover in the context of space management and spatial economy. The distinction may be required to determine the prices and benefits of spatial economy. Originality/Value: The proposed spatial spillover effects are the core of external effects generated by spatial planning. The author answers the question about the sources of external effects in spatial planning. What or who causes external effects? In addition, it is worth asking a research question to what extent it is possible to scientifically analyse the spatial spillover effect and whether it is possible to indicate all external effects generated by spatial planning at all.

The role of asylum in processes of urban gentrification

This article analyses the relationship between the accommodation of Dispersed asylum seekers and urban gentrification in the UK. We argue that alongside other racialised and classed minorities, asylum seekers are vulnerable to spatial strategies associated with gentrification such as neighbourhood ‘dumping’, containment and ‘territorial stigmatisation’, the highly coercive quality of the UK government’s Dispersal Scheme means that any relationship between asylum and gentrification must be treated as deliberate, the result of the multiscalar interests which have a stake both in Dispersal and urban ‘development’. Drawing on empirical research conducted in Glasgow, the recipient of the largest asylum seeking population annually in the UK, we find that asylum accommodation processes and gentrification have developed a symbiotic dynamic, whereby the ‘failure’ of mid twentieth-century urban ‘regeneration’ provided means and motive for Dispersal, and Dispersal provided sufficient resources to fuel further rounds of urban ‘regeneration’. We also find that recent changes to the Dispersal contract, from a dynamic in which resources were associated with housing availability, to one in which they are associated with maximum housing capacity, have created conditions for alternative forms of gentrification, in which strategies such as rent gap suppression are seen as having potential to yield more capital than infrastructural development. Finally, we argue that the respective spatial politics of both Dispersal and gentrification must be understood as mutually-interested, coercive technologies, which work together to contain and exploit racialised and bordered urban minorities. We call for urgent further research into how the asylum border is embedded in contemporary urban spatial economies.

Kernel-based formulation of intervening opportunities for spatial interaction modelling

Understanding spatial interactions such as human mobility has been one of the main analytical themes in geography, spatial economics, and traffic engineering for a long time. The intervening opportunities models, including the radiation model, provide a framework to elucidate spatial interactions generated by an individual’s distance-ordered decision-making process. However, such classical definitions of intervening opportunities have often failed to predict realistic flow volumes, particularly for short-distance flows. To overcome this problem, we have proposed a new formulation of intervening opportunities with a kernel function to introduce a fuzziness in spatial search behaviours of destinations, to develop a new variant of the radiation model. The mobility patterns resulting from the modified radiation model that included kernel-based intervening opportunities outperformed the original radiation model when fitted to four datasets of inter-regional flows.

Strategic priorities for managing spatial inequalities in the socio-economic development of the Russian regions

With the growing need to ensure the security and sustainability of the national economy’s long-term development under unstable macroeconomic conditions, it is of special relevance to comprehend the inequalities being formed in the socioeconomic space of Russia and its regions. The paper aims to explore the trajectories of the socio-economic space’s inequality at the macro- and meso-levels in the Russian Federation, as well as to determine the strategic priorities for managing interregional differentiation. The study presents an integrated approach based on the primacy of the interconnection and interdependence typical of spatial imbalances. The approach implies the assessment of the dynamics of three groups of indicators that characterize the differences in economic and social development of the Russian regions. Scientific ideas about regional and spatial economics, as well as location theory and strategic management constitute the methodological framework of the research. In the study, dialectical, cause-effect and statistical methods are used. We prove that economic and social spaces in Russia often have opposite development priorities, which hampers the effectiveness of government policy. This requires adjusting the strategic management of spatial imbalances aimed at increasing the efficiency of public administration mechanisms and methods, and improving the consistency of development indicators of the country and its regions with long-term socio-economic goals. Having assessed the problems of regulation of the socio-economic development inequalities and performed a discourse analysis of relevant documents, the article develops the key thrusts for improving the system of strategic planning in Russia. The findings add to the development of a scientifically based approach to implementing strategic management of spatial inequalities in the socio-economic development of Russia and its regions.

Spatial-territorial factors of economic growth in the Russian Federation

Relevance. In contemporary economic research, the study of the diversity of factors of national economic growth is gaining more and more significance, particularly with regard to the so-called 'spatial-territorial factors'. In contrast to the existing concepts of regional and spatial economy, the approach described in this paper is based on the hypothesis that it is possible to accelerate national economic growth. It can be done by stimulating extended economic reproduction on the subnational level, that is, on the level of relatively independent and self-contained spatial and administrative units such as regions of the Russian Federation, municipalities, agglomerations, etc. Research objective. The study aims to propose a decomposition of the economic growth rates in Russia by territorial units and to describe the spatial-territorial factors of national economic growth. Data and methods. To characterize the spatial-territorial factors, we used indices of the physical volume of gross regional product (GRP) and gross value added (GVA) in types of economic activities in Russian regions in percentage to the previous year for the period of 2013-2018. The types of economic activities were specified according to the Russian Classifier of Economic Activities of 2007 (OKVED) (Statistical Classification of Economic Activities in the European Community - NACE Rev. 1.1 (2013-2016)) and OKVED-2 (NACE Rev.2 (2017-2018)). Results. We estimated the contributions of Russian regions to national economic growth by analyzing the data on the key types of economic activities in a 6-year period (2013-2018). We also identified the regions which accounted for the largest losses in economic growth, on the one hand, and those which, on the other hand, acted as drivers of the country's economic development. Conclusion. There is a small number of regions lagging in terms of GRP and their influence on the national rates of economic growth is also insignificant. The general rates of GRP decline in a region are determined, first and foremost, by the sluggish growth in those types of economic activities that have the largest share in GRP. The number and share of the regions which demonstrate extended economic reproduction, that is, deliver at least 2% growth a year, are also quite small. These regions make up slightly more than 19% of the country's GRP. The largest group of regions comprises those regions that do not go beyond the simple reproduction (their growth rates are less than 2% a year), while their share in the country's GRP exceeds 74%. The so-called ‘heavyweights’ - regions accounting for the largest share in the country's total GRP - have the strongest effect on the national rates of economic growth, hindering it. It is the economic structure of these regions that has the biggest influence on the country's performance in such types of economic activities as wholesale and retail trade and maintenance and repair of motor vehicles. Sadly, it is in these sectors that the 'heavyweights' demonstrate the largest losses in GVA. As a result, these sectors suffer the most, which is bound to be reflected in the country's overall economic growth.