Co-worker networks, labour mobility, and productivity growth in regions

This paper provides a new empirical perspective for analysing the role of social networks for an economic geography approach on regional economic growth by constructing large-scale networks from employee-employee co-occurrences in plants in the entire Swedish economy 1990-2008. We calculate the probability of employee-employee ties at plant level based on homophily-biased random network assumptions and trace the most probable relations of every employee over the full period. Then, we look at the inter-plant ties for the 1995-2008 period because the network is already well developed after five years of edge construction. We argue that these personal acquaintances are important for local learning opportunities and consequently for regional growth. Indeed, the estimated panel Vector Autoregressive models provide the first systematic evidence for a central claim in economic geography: social network density has positive effect on regional productivity growth. The results are robust against removing the old and therefore weak ties from the network. Interestingly, the positive effect of density on growth was found in a segment of the co-worker network as well, in which plants have never been linked by labour mobility previously

Government institutions and the dynamics of urban growth in China

Economic growth in China in recent decades has largely rested on the dynamism of its cities. High economic growth has coincided with measures aimed at improving the efficiency of local governments and with a mounting political drive to curb corruption. Yet the connection between government institutions and urban growth in China remains poorly understood. This paper is the first to look into the link between government efficiency and corruption, on the one hand, and urban growth in China, on the other hand and to assess what is the role of institutions relative to more traditional factors for economic growth in Chinese cities. Using panel data for 283 cities over the period between 2003 and 2014, the results show that the urban growth in China is a consequence of a combination of favorable human capital, innovation, density, local conditions, foreign direct investment, and city-level government institutions. Both government quality—especially for those cities with the best governments—and the fight against corruption at the city level have a direct effect on urban growth. Measures to tackle corruption at the provincial level matter in a more indirect way, by raising or lowering the returns of other growth-inducing factors

Cultural and creative industries and regional diversification:Does size matter?

This paper aims at analysing how the presence of workers employed in cultural and creative industries (CCIs) is related to regional specialized diversification. From a theoretical perspective, CCIs drive economic development and local innovative capacity by facilitating processes of cross-fertilization of ideas. This study estimates an entry model analysing the ability of Italian provinces to successfully create new sectoral specializations. The results indicate that the relationship between the share of employees in CCIs and the probability of creating new sectoral specializations is non-linear, highlighting the need for CCIs-led policies to achieve a certain level of critical mass to be successful

Developing intermediate cities

Intermediate cities have experienced economic dynamism in recent years, but, with the focus firmly on large metropoles and sprawling megacities, the development potential of intermediate cities has stayed out of the limelight. This paper upholds the relevance and potential of intermediate cities, arguing that they can play as important a role – if not a more important one – than the large metropoles that, until now, have been the focus of attention. Intermediate cities hold considerable advantages, in particular for poverty reduction and as more efficient ecosystems to live and work. Untapping the potential of intermediate cities requires, however, more territorially balanced, place-sensitive strategies

Shared Knowledge and the Coagglomeration of Occupations

This paper provides an empirical analysis of the extent to which people in different occupations locate near one another, or coagglomerate. We construct pairwise Ellison-Glaeser coagglomeration indices for U.S. occupations and use these measures to investigate the factors influencing the geographic concentration of occupations. The analysis is conducted separately at the metropolitan area and state levels of geography. Empirical results reveal that occupations with similar knowledge requirements tend to coagglomerate and that the importance of this shared knowledge is larger in metropolitan areas than in states. These findings are robust to instrumental variables estimation that relies on an instrument set characterizing the means by which people typically acquire knowledge. An extension to the main analysis finds that, when we focus on metropolitan areas, the largest effects on coagglomeration are due to shared knowledge about the subjects of engineering and technology, arts and humanities, manufacturing and production, and mathematics and science

Current debates in urban theory: a critical assessment

Urban studies today is marked by many active debates. In an earlier paper, we addressed some of these debates by proposing a foundational concept of urbanization and urban form as a way of identifying a common language for urban research. In the present paper we provide a brief recapitulation of that framework. We then use this preliminary material as background to a critique of three currently influential versions of urban analysis, namely, postcolonial urban theory, assemblage theoretic approaches, and planetary urbanism. We evaluate each of these versions in turn and find them seriously wanting as statements about urban realities. We criticize (a) postcolonial urban theory for its particularism and its insistence on the provincialization of knowledge, (b) assemblage theoretic approaches for their indeterminacy and eclecticism, and (c) planetary urbanism for its radical devaluation of the forces of agglomeration and nodality in urban-economic geography

How Differences in Property Taxes within Cities Affect Urban Sprawl?

This article attempts a formal analysis of the connection between the differentiated property tax rates within urban areas and urban spatial pattern in U.S. cities. We first develop a duocentric-city model where the Central Business District (CBD) is located at the origin while the Suburban Business District (SBD) is at the other end of the city. We show that the ratio between the property tax in the suburbs and in the center has an ambiguous impact on the size of the city. We then test this model empirically to determine this sign by using a dataset of effective property tax rates we developed using GIS techniques for central cities and suburbs in 445 urbanized areas. The empirical analysis estimates the link between these two variables by controlling for variables such as population, income, agricultural rent, commuting cost, climate, crime, and employment structure. Results from the empirical analyses suggest that a lower property tax rate in the suburbs in comparison to the central city is associated with more expansive urban growth and greater level of decentralization of population and employment

A Philosophically Plausible Formal Interpretation of Intuitionistic Logic

This study addresses the mediating role of settlement patterns in the relationship between urbanization and start-up activity. Places do not operate in a vacuum and to understand the effect of 'own' density on start-up patterns, we need to account for the urban spillovers or borrowed size that they may experience from other places nearby. The results can explain the empirical ambiguity in the relationship between urbanization and start-up patterns: the relationship between urbanization and start-up rates becomes more similar between countries when controlling for country-specific settlement patterns by including a spatially lagged urbanization variable and variables measuring the distance to urban centers. Accounting for the relative location of places and relevant sorting effects, we find that 'own' density has a consistently negative effect on start-up activity. Yet, access to other places has a generally positive effect. This implies that nearby regions profit from the advantages offered by urban environments without having to deal with the costs involved

Production Externalities in the Wood Furniture Industry in Central Java

This paper exploits micro firm level data to examine the impact of spatial clustering and links to foreign buyer networks on firm performance in the wood furniture industry in Central Java, Indonesia. The analysis is based on an annual manufacturing survey. We identify the impact of specialization of the cluster, diversification, and links to foreign buyer networks. For this purpose, a production function framework is developed. The results lend support to the view that clustering of large and medium scale specialized firms improves firm performance, while clustering of small scale specialized firms and clustering of diverse firms are not conducive to firm performance. We also find a clear positive association between involvement in exporting activities and firm performance