Agglomeration externalities, innovation and regional growth: Theoretical perspectives and meta-analysis

Technological change and innovation and are central to the quest for regional development. In the globally-connected knowledge-driven economy, the relevance of agglomeration forces that rely on proximity continues to increase, paradoxically despite declining real costs of information, communication and transportation. Globally, the proportion of the population living in cities continues to grow and sprawling cities remain the engines of regional economic transformation. The growth of cities results from a complex chain that starts with scale, density and geography, which then combine with industrial structure characterised by its extent of specialisation, competition and diversity, to yield innovation and productivity growth that encourages employment expansion, and further urban growth through inward migration. This paper revisits the central part of this virtuous circle, namely the Marshall-Arrow-Romer externalities (specialisation), Jacobs externalities (diversity) and Porter externalities (competition) that have provided alternative explanations for innovation and urban growth. The paper evaluates the statistical robustness of evidence for such externalities presented in 31 scientific articles, all building on the seminal work of Glaeser et al. (1992). We aim to explain variation in estimation results using study characteristics by means of ordered probit analysis. Among the results, we find that the impact of diversity depends on how it is measured and that diversity is important for the high-tech sector. High population density increases the chance of finding positive effects of specialisation on growth. More recent data find more positive results for both specialization and diversity, suggesting that agglomeration externalities become more important over time. Finally, primary study results depend on whether or not the externalities are considered jointly and on other features of the regression model specification

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The crisis sensitivity of European countries and regions: stylized facts and spatial heterogeneity

We investigate the impact of the recent global recession on European countries and regions. We first identify the heterogeneous impact of the global recession on individual European countries and regions. We then discuss three classes of explanations for spatial heterogeneity in the severity of the crisis: (i) the extent to which countries are integrated in the global economy via financial and trade linkages, (ii) differences in the institutional framework of countries and (iii) differences in their sectoral composition. We show that especially variation in the sectoral composition contributes to the variation in the effects of the current crisis, both at the country level and at the detailed regional level across Europe. © The Author 2011. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved

Willingness to pay for multifunctional megaprojects: A stated preference analysis among firms in the Amsterdam Zuidas area

http://hdl.handle.net/1871/1621

The Impact of Perceived Expectations and Uncertainty on Firm Investment

This paper analyses the (differential) impact of perceived expectations and uncertainty on investment spending in small and large firms. We analyse two types of investment, viz. aggregate investment and investment in energy-saving technologies, using Dutch firm level data. The results show that expectations and uncertainty about input- and output prices and domestic demand have substantial but different effects on investment spending in firms of different sizes. Furthermore, we find evidence, at least for small firms, that there are important differences between the effects of uncertainty about input and output variable

Values of natural and human-made wetlands: A meta-analysis

The values of goods and services provided by wetland ecosystems are examined through a meta-analysis of an expanded database of wetland value estimates and with a focus on human-made wetlands. This study extends and improves upon previous meta-analyses of the wetland valuation literature in terms of the number of observations, geographical coverage, wetland class and integrity, and the measurement of the effects of scarcity and anthropogenic pressure. We find that water quality improvement, nonconsumptive recreation, and provision of natural habitat and biodiversity are highly valued services. Substitution effects are observed through the negative correlation between values and abundance of other wetlands. Wetland values are found to increase with anthropogenic pressure. An extended metaregression model with cross effects shows that the valuation of specific services varies with the type of wetland producing them. Human-made wetlands are highly valued for biodiversity enhancement, water quality improvement, and flood control