Spatial externalities between Brazilian municipios and their neighbours

Clustering of economic performance and growth in space has generated considerable research on the spillovers and linkages among geographical neighbours. In this paper, we study the growth process of a large sample of Brazilian municipalities for the period 1970-1996 and attempt to evaluate the spatial externalities at work among them. We estimate the convergence speed of per capita income among municipios and test whether spatial externalities are linked to local income growth. Conditionally on structural characteristics, we find evidence of convergence between municipios and of positive spatial dependence in growth. These two facts could help explain the persistent inequalities between municipios and the increasing clustering of poor localities in the Northeast region.Local growth, convergence, spatial externalities, spatial econometrics, Brazil

Beliefs, media exposure and policy preferences on immigration: Evidence from Europe

International audienceThis article studies the joint determination of beliefs about the economic impact of immigration and immigration policy preferences, using data from the five rounds of the European Social Survey (2002-2010). In addition to standard socio-economic characteristics, this analysis takes individual media consumption into account, as a determinant of opinion about immigration. Our results stress the important role of the endogenous determination of beliefs, which appears as a major determinant of policy preferences. Moreover, media exposure appears as a key determinant of beliefs: individuals who spend more time to get informed on social and political matters through newspapers and radio have a better opinion on the economic impact of immigration compared with individuals who devote time to other types of content

Spatial externalities between Brazilian municipios and their neighbours

Economic growth certainly is not a uniform process over space, especially in a country as vast and diverse as Brazil. Among the determinants of local growth, the role of externalities has been much discussed in the recent literature (Glaeser et al., 1992). These externalities not only matter for growth within a given city or region but also for growth in neighbouring localities (Lopez-Baso et al., 2004). Our paper aims at providing a causal decomposition of spatial externalities occurring in the growth process of Brazilian municipios. Local growth may impact neighbours through a variety of externalities, and understanding how these externalities operate is crucial for the elaboration of public policies. Previous works on related topics include a recent paper by Lall and Shalizi (2003). Focusing on the Brazilian Northeast, the authors find that growth in municipios is negatively influenced by growth in their neighbourhood. Clearly, it seems worthwhile to extend this kind of analysis to the whole country to try and find if this phenomenon is a Northeastern specificity or a nationally valid result. Moreover, providing a more detailed account of the role of various sources of spatial externalities, and of their potential heterogeneities between regions, would be valuable. Spatial externalities Why may growth at a location affect growth at a neighbouring location? Several causes can be invoked. First, through technological externalities, a locality may benefit from improved economic conditions in another. For instance, if some firms in a locality have developed innovative processes, knowledge spillovers may favour the diffusion of new technologies to firms at neighbouring locations. Linkages between input suppliers and final producers may also be critical: if a final consumption good produced at a particular location benefits from a booming demand, upstream firms in the same region will thrive. Finally, proximity of an important economic centre may improve matching on the labour market, thus reducing costs and increasing labour productivity. Pecuniary externalities may also matter in spatial growth differentials: growth at a location may attract new firms and workers, thus increasing land rents. Transmission of this land market tension to nearby localities can reduce incentives for firms to locate there, and therefore attenuate growth prospects. Finally, local economic growth may foster immigration from less dynamic places. The impact of this migration on both the departure and arrival locations depends on various factors, notably the differences in education levels between the two localities, the substitutability between skilled and unskilled workers in production and the state of local labour markets. Empirical strategy: In order to disentangle which channels matter the most among the various kind of externalities, and to evaluate their spatial scope, we focus on the most rapidly growing Brazilian municipios. From a qualitative point of view, selecting a sample of fast growing localities permits to have a better understanding of the local growth process, since part of these localities are “polar cases” owing their rapid growth to a restricted combination of factors. Moreover, the strength of spatial externalities is likely to be greater in these locations.We evaluate the effects of these externalities on the performance of neighbouring municipios using spatial econometrics methods (Anselin, 2003), and controlling for various local characteristics of the neighbourhood (economic specializations, education, density, public infrastructures, etc.). Using different neighbours’ sets permits to measure the geographical scope of these externalities: some types of externalities only operate at short distance, while others may impact more distant locations. (Neighbours’ sets can be geographically defined, but also sets designed following other similarity or complementarity criterions.) Policy implications: poverty traps and land market issues Understanding how local growth may spread to neighbours or may hinder their economic performance is critical for policy design. Many Brazilian regions are characterized by important spatial inequalities between municipios, which seem to be very persistent over time. These poverty traps result from disparities in growth among neighbours and reducing them requires a better understanding of their formation. Moreover, local policies aiming at fostering growth may have adverse effects on nearby localities, certainly not a desirable outcome. Knowing which are the “bad” channels may help designing more efficient policies. Land and transportation policies are also a closely related issue: some spatial externalities are driven by the functioning of the land market. When rising rents in a growing locality are transmitted to adjacent locations, for instance, public policies may be needed to reduce market tensions through the development of new land plots or the improvement of transportation networks. In this case again, evaluating the strength and spatial scope of pecuniary externalities can help improving these policies.

Development at the border : policies and national integration in Côte d'Ivoire and its neighbors

En appliquant plusieurs méthodes de régressions par discontinuité à un ensemble d'enquêtes auprès des ménages pour les années 1980 et 1990, nous examinons si la richesse macroéconomique de la Côte d'Ivoire se constatait aux frontières avec les pays voisins. A la frontière du Ghana et à la fin des années 1980, de larges discontinuités sont détectées en matière de consommation, de retard de croissance infantile, et d'accès à l'électricité ou à l'eau. Les discontinuités frontalières de consommation peuvent être expliquées par les différences de politiques concernant les cultures d'exportation (café et cacao). Quand ces politiques ont convergé dans les années 1990, seules les différences d'infrastructures rurales ont persisté. Dans le Nord, le revenu des cultures d'exportation (coton) engendrait aussi une différence en matière de consommation et de nutrition (cas du Mali). D'un côté, de larges différences de bien-être peuvent s'observer aux frontières divisant des pays africains, malgré leur supposée porosité. D'un autre côté, les discontinuités frontalières semblent refléter l'impact de politiques publiques réversibles, plutôt que des caractéristiques institutionnelles intangibles

Surplus agricole, division du travail et émergence des villes

International audienceIn this paper, we expose the economic conditions of cities emergence in a spatial general equilibrium framework. The presence of increasing returns based on the division of labour, transport costs and the possible existence of an agricultural surplus generate different possible urban equilibriums : economy without a city, stable monocentric economy and unstable monocentric economy.Dans ce papier, nous mettons en évidence les conditions économiques de l’émergence des villes dans un modèle d’équilibre général spatial. La présence de rendements croissants basés sur une division du travail, de coûts de transport et la possibilité de constitution d’un surplus agricole suffisent à rendre possibles différentes configurations d’équilibre urbain : économie sans ville, économie monocentrique stable et économie monocentrique instable

Agricultural surplus, division of labour and the emergence of cities. A spatial general equilibrium model

Dans ce papier, nous exposons les conditions économiques d’émergence des villes dans le cadre d’un modèle d’équilibre général spatial. L’existence de rendements croissants basés sur la division du travail, de coûts de transport et la présence éventuelle d’un surplus agricole conduisent à différentes possibilités d’équilibre urbain. En raison de la contrainte de subsistance, il est possible qu’aucune ville ne soit soutenable si les coûts de transport internes sont trop élevés. D’un autre côté, la contrainte d’emploi urbain débouche sur la saturation de tout ou partie du marché du travail urbain et à la persistance d’une pression migratoire entre campagne et ville. Par ailleurs, nous étudions les conditions de stabilité du système urbain monocentrique dans les différents cas d’équilibre.In this paper, we expose the economic conditions of cities emergence in a spatial general equilibrium framework. The presence of increasing returns based on the division of labour, transport costs and the possible existence of an agricultural surplus are enough to generate different possible urban equilibrium. A city may not be sustainable if internal transport costs are too high. On the other hand, a persistent migratory pressure may exist between the city and the surrounding rural hinterland if the urban labour market is saturated. In addition, we study the conditions of stability of the monocentric equilibrium in the different cases.ou

Agricultural surplus, division of labour and the emergence of cities, a spatial general equilibrium model

(english) In this paper, we expose the economic conditions of cities emergence in a spatial general equilibrium framework. The presence of increasing returns based on the division of labour, transport costs and the possible existence of an agricultural surplus are enough to generate different possible urban equilibrium. A city may not be sustainable if internal transport costs are too high. On the other hand, a persistent migratory pressure may exist between the city and the surrounding rural hinterland if the urban labour market is saturated. In addition, we study the conditions of stability of the monocentric equilibrium in the different cases. _________________________________ (français) Dans ce papier, nous exposons les conditions économiques d’émergence des villes dans le cadre d’un modèle d’équilibre général spatial. L’existence de rendements croissants basés sur la division du travail, de coûts de transport et la présence éventuelle d’un surplus agricole conduisent à différentes possibilités d’équilibre urbain. En raison de la contrainte de subsistance, il est possible qu’aucune ville ne soit soutenable si les coûts de transport internes sont trop élevés. D’un autre côté, la contrainte d’emploi urbain débouche sur la saturation de tout ou partie du marché du travail urbain et à la persistance d’une pression migratoire entre campagne et ville. Par ailleurs, nous étudions les conditions de stabilité du système urbain monocentrique dans les différents cas d’équilibre.Urbanisation, division du travail, surplus agricole, système urbain monocentrique, Urbanization, division of labour, agricultural surplus, monocentric urban system.

Residential segregation of immigrants: Patterns, drivers, effects and policy responses,

International audienceIn all OECD countries, immigrants are concentrated in certain areas, especially in the poorer neighbourhoods and outskirts of the large metropolitan cities. However, not all immigrant groups tend to concentrate to the same extent, and concentration is shaped by both geography and historical settlement patterns. The effects of this concentration on integration are complex. On the one hand, arrival in an area with high concentration is often associated with better initial employment prospects for immigrants. On the other hand, in the longer run, immigrant concentration tends to hamper host-country language acquisition and, in many cases, educational advancement for children of immigrants. Policies should thus not primarily focus on preventing migrant residential segregation, but rather on enhancing mobility out of those areas. More attention should be given notably to the quality and accessibility of housing for immigrants

How beliefs about the impact of immigration shape policy preferences: Evidence from Europe. Applied Economics 46(2

Abstract This paper studies the joint determination of beliefs about the economic impact of immigration and immigration policy preferences, using data from the five waves of the European Social Survey (2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010). In addition to standard socioeconomic characteristics, this analysis takes into account individual media consumption as a determinant of opinion about immigration. Our results stress the important role of the endogenous determination of beliefs, which appear as a major determinant of policy preferences. Besides, media exposure appear as a key determinant of beliefs: individuals spending more time to get informed on social and political matters through newspapers and radio have a better opinion on the economic impact of immigration relatively to individuals which devote time to other types of contents. JEL codes: D72, F22, J15

Spatial externalities between Brazilian municipios and their neighbours

International audienceClustering of economic performance and growth in space has generated considerable research on the spillovers and linkages among geographical neighbours. In this paper, we study the growth process of a large sample of Brazilian municipalities for the period 1970-1996 and attempt to evaluate the spatial externalities at work among them. We estimate the convergence speed of per capita income among municipios and test whether spatial externalities are linked to local income growth. Conditionally on structural characteristics, we find evidence of convergence between municipios and of positive spatial dependence in growth. These two facts could help explain the persistent inequalities between municipios and the increasing clustering of poor localities in the Northeast region