Asia-Pacific Journal of Regional Science最新文献

How resilient are Small and Micro Businesses (SMBs) facing the COVID-19 pandemic? We aim to answer this question using sales data from 35,000 brick-and-mortar SMBs in 353 Chinese cities before, during, and after the lockdown period of COVID-19, and examine the economic resilience of SMBs under the impact of governmental stimulus policies. We found that unlike large business entities, SMBs’ post-shock resilience is weak, as sales of SMBs do not recover to pre-shock levels. Resilience of SMBs in towns with unitary or small-scale economic structure is stronger than in larger cities, indicating that stickiness of consumption behaviour significantly influences recovery. In the midterm, resilience of SMBs was stronger where local governments implemented offline consumption stimulus policies and this effect was more salient in larger cities. In the long run, SMBs have not shown resilience, indicating pandemic-driven digital transformation of retailing has lasting effects on offline SMBs. Our empirical findings are helpful for policymakers worldwide 1) to understand economic resilience and recovery paths for SMBs facing external shock, 2) to design targeted stimulus policies to help SMBs survive during crises, and 3) to pay more attention to providing digital transformation infrastructures so SMBs can truly strengthen their sustainability in this new era of digital economy.

In this paper, we examine macroeconomic stability and instability of a dynamic Keynesian Model with a theoretical foundation of Modern Monetary Theory (MMT), often considered as unconventional within mainstream economics. MMT fundamentally emphasizes proactive fiscal policies and passive monetary policies, always striving to maximize employment. A common critique of MMT is the assertion that governments find it challenging to control output and inflation through a fiscal policy. It is also argued that governments should always demonstrate responsibility for the fiscal balance, and without such responsibility, the “credibility” of government bonds is damaged. Opposingly, this study finds that establishing credibility in inflation targets and consistently pursuing proactive fiscal policies in response to deficient output gaps are effective in managing inflation from escalating uncontrollably, which may help stabilize the economy. Although the fundamental tenets of MMT may not heavily emphasize inflation target, which belong to monetary policies, the importance of fiscal policies is reaffirmed by the conclusions drawn from this paper, likely ensuring that crucial aspects of MMT are not disregarded.

This is the second paper on creating shared value (CSV) management in Japanese rice flour-related businesses conducted by the same authors. In the first study, the relationships among business philosophies, business strategies and business outcomes of rice flour-related corporates in Japan were clarified using structural equation modeling (SEM) and cognitive mapping of questionnaire survey results. The management philosophy, effective altruism, influences business strategies (potential head market, tail market, organizational learning, and proposals from stakeholders) of rice flour-related corporates, inducing innovation and determining current business performance and future prospects for shared value creation. The business performance reflects their expectations for the rice flour market, and influences the direction of market development. In addition, we showed a need for policy innovations that strengthen effective altruism and create shared value through organizational learning of the stakeholders in rice flour-related businesses. Therefore, the purpose of this study was to clarify conditions for approaching CSV management in domestic rice flour-related businesses by applying mixed methods research (MMR). Specifically, a latent class analysis (LCA) was introduced to classify the management characteristics of rice flour-related businesses with survey results, and a qualitative comparative analysis (QCA) conducted on the CSV management entities extracted from the LCA to clarify the necessary and sufficient conditions for achieving CSV management. The results revealed that there are very few rice flour-related businesses in Japan that have approached CSV management, and sufficient conditions for approaching CSV management in rice flour-related businesses are a combination of effective altruism and various management strategies (long tail/organizational learning/innovation/stakeholder proposals). Therefore, we conclude that to achieve a sustainable regional development of rice flour-related businesses, policy innovations that integrate pull-type and push-type strategies are important.

This study examined the impacts of Foreign Direct Investment (FDI) on economic growth across top the five G-15 countries over a period of 33 years, while considering the influence of key host country traits, namely macroeconomic stability, financial development, human capital, and trade openness. The selection of these variables was firmly supported by both theoretical foundations and empirical studies that highlight their significant role in shaping the FDI–growth interconnection. Panel data derived from World Bank Indicators, spanning the period from 1989 to 2021, were analyzed using a feasible generalized least squares method (FGLS), a rigorous approach, including descriptive statistics, correlation analysis, cross-sectional dependence tests, unit root tests, and multiple regression models. By exploring the interconnection between FDI and the characteristics of the host country, this study sheds light on how these factors collectively contributed to economic growth in the G-15 economies. Descriptive statistics indicated a favorable trend in economic growth, with an average of 3.470 and a standard deviation of 4.289. Correlation analysis revealed significant positive relationships between Economic Growth and Gross Capital Formation, Human Capital, and Liquid Liabilities. Conversely, FDI, Inflation, and Trade Openness displayed insignificant positive correlations with Economic Growth. The findings also demonstrated that favorable host country traits magnified the impact of FDI on economic growth. Specifically, increased Financial Development, Human Capital, and Trade Openness enhanced the positive effects of FDI on economic growth. However, Inflation had a dampening effect on the growth factor. Policymakers in G-15 countries should give precedence to developing strong financial markets, promoting trade liberalization, and investing in human capital to optimize the advantages of FDI. This research addresses a critical gap in the literature as limited empirical work has been conducted on the FDI–growth relationships specific to the G-15 economies, which hold substantial influence in the global investment landscape and showcase remarkable economic growth. By employing rigorous panel data methodology and a long-term dataset, we provides original insights into the interaction between FDI and host country characteristics, contributing to the existing body of knowledge.

Madhya Pradesh, the central state of India, has a larger share of the population depending on the agricultural sector, mainly belonging to tribal groups and are largely marginal and small landholders. Though the sector performed a double-digit growth rate in recent years, this is skewed towards very few districts, whereas others remain neglected. These increasing disparities may lead to increased vulnerability to climate change in the backward districts of this sector. This study assessed the spatial and temporal vulnerability of the sector to climate change with the agricultural vulnerability index prepared using the IPCC approach at the district level for 5 decades (1970s–2010s). Hotspots of agricultural vulnerability where targeted policy interventions are required were located. Through spatial autocorrelation techniques, we identified whether the clustering of agricultural vulnerability exists and detected changes over the decades. This study has wide applications for the agricultural sector in Madhya Pradesh and other Indian states, which possess similar agricultural characteristics.

Rural electrification, serving as a proxy for energy access, is pivotal for economic growth in Bangladesh. This paper investigates the long-run and short-run effects of rural electrification (RELEC) on economic growth, while also considering the influence of the informal economy, and income inequality. Using an autoregressive distributed lag (ARDL) approach and analyzing data of Bangladesh economy over the period 1976–2020, the study finds that RELEC has a significant positive impact on economic growth in the long run. However, in the short run, RELEC exhibits negative effects on economic growth. FMOLS method is utilized to check the sensitivity that confirms the long run favorable impact of rural electrification on economic growth. The Informal Economy negatively affects growth, while the Gini coefficient has a positive impact in both short and long terms. Vector error correction methodology (VECM) shows bidirectional causality between growth and electrification. This unique study considers diverse determinants amid Bangladesh’s evolving economic landscape. Policymakers are urged to diversify the energy mix to meet rural electrification demand, involving private investment, boosting capacity, and fostering competition. Moreover, there is a necessity to promote various channels such as sustainable agriculture, rural industrialization, poverty reduction through which electricity access may enhance growth. The error correction term (ECT) coefficients show a rather quick adjustment process, demonstrating that the model’s adjustment mechanism is agile.

Air quality is one of the largest environmental risks for people in urban areas. Therefore, research on the economic value of air quality is necessary to reduce adverse impacts from air pollution on public health and economy for achieving sustainable cities. One of the main objectives of this research was to analyze spatial variability of air quality and spatial distribution of apartment transactions in Seoul, South Korea between January 2018 and June 2020. A second aim was to conduct spatial econometrics to determine the impacts of air quality on housing prices by proposing a spatial lag model to estimate exogeneous spatial autocorrelation of air quality in adjacent areas. Transaction data from 17,000 apartments between January 2018 and June 2020 provided strong evidence for the existence of significant effects of air quality on housing prices. As expected, all three air quality measurements, levels of PM₁₀, PM_2.5 and Comprehensive Air-quality Index (CAI), showed a negative correlation with housing transaction prices, suggesting worsening air quality leads apartments in such areas to be transacted at a discount. Moreover, the spatial model showed a strong spatial dependence between air quality in a given region and neighboring regions, and such effects led to a decrease in the price effect of air quality. Under conditions of poor air quality and its impacts on human health, demands for clean air in dense urban areas when purchasing an apartment unit are increasing especially in the post-COVID era. The results of this study can help urban planners and developers determine guidelines and spatial strategies for sustainable cities.

Balancing economic growth and carbon emissions reduction is crucial for achieving integrated development in the Yangtze River Delta (YRD) region and meeting green initiatives. This study utilized the allometric growth model to analyze the decoupling relationship between economic growth (EG) and carbon emissions (CE) in the YRD city cluster from 2000 to 2017. In addition, the geographically weighted quantile regression model (GWQR) was used to identify factors influencing this relationship. The main findings are as follows: (1) from 2000 to 2017, a V-shaped positive correlation trend was observed between EG and CE. Meanwhile, the spatial correlation level declined, with strong incidence values concentrated in the central and northern parts of the delta region. Conversely, areas with low incidence intensity were scattered across certain counties in the Anhui Province and the northwest region of Zhejiang Province. (2) From 2000 to 2017, the region witnessed a dominant I-type negative allometric growth pattern with weak economic expansion between EG and CE. In addition, most counties underwent a shift from positive allometry to negative allometry, particularly types I and II. (3) The influence of various factors on allometric growth pattern varied across counties and quantiles. Population density (POP) consistently had negative impacts at the 0.1 and 0.9 quantiles for all counties, while showing both positive and negative effects at the 0.3, 0.5, and 0.7 quantiles. Urbanization rate (URB) generally had a negative impact, except at the 0.7 quantile. The ratio of the tertiary industries to GDP (TER) had a negative effect only at the 0.1 quantile but had mixed positive and negative effects at other quantiles. Carbon sequestration of terrestrial vegetation (CSE) exhibited both positive and negative impacts at higher quantiles but consistently had a positive impact at the 0.1, 0.3, and 0.5 quantiles. These findings provide valuable insights into the complex relationship between these factors and allometric growth in different regions and quantiles, informing policy-making and sustainable development strategies.

In this article, we use a three-step procedure that combines the log t convergence test, Explanatory Spatial Data Analysis, and ordered logit regression to determine the spatio-temporal dynamics and determinants of provincial income clustering in Vietnam during the 2010–2020 period. Our findings are three-fold. First, provincial income clustering in Vietnam follows patterns of club convergence towards multiple equilibria. Seven convergence clubs encompassing 61 provinces are identified. Second, spatial autocorrelation encourages neighboring provinces to converge toward shared income equilibria. High-income clusters are observed in the Northern and Southern Key Economic Regions, while low-income clusters are concentrated in the mountainous areas of Northern Vietnam. Finally, both internal and external factors significantly affect the formation of convergence clubs. Vital internal factors include localities’ initial conditions of physical capital and structural change. Meanwhile, external factors refer to spatial externalities among neighboring provinces. We highlight spatial complementarity in physical capital accumulation and spatial competition in industrial intensification among neighboring provinces.

Job–education matching drives inclusive growth through effective human capital investment. Examination of factors that promote the smooth flow of job-education is crucial in the matching process. We examined how agglomeration affects job-education mismatches among 101,748 employed graduates of vocational secondary schools in Sekolah Menengah Kejuruan (SMK). SMK graduates are the leading cause of unemployment in Indonesia. Data were obtained from the National Labor Force Survey (Sakernas) conducted between 2017 and 2019. This study revealed three different types of job-education mismatches: (1) overeducated workers (level of education exceeds the requirements of their job); (2) horizontally mismatched workers (skills do not align with the job requirements); and (3) workers who are both overeducated and horizontally mismatched, which defines a real mismatch. Employing the job-analysis approach, a 13.58 percent incidence of overeducation and a 61.58 percent incidence of horizontal mismatch among SMK graduates was determined. More than half of these graduates work in jobs where they lack the necessary skills. By assessing the two types of job-education mismatches, we determined that 10.13 percent were real mismatched workers. These workers endured major challenges as they simultaneously suffered horizontal mismatch and overeducation. Dealing with endogeneity and sample selection biases, we showed that agglomeration actively promotes the matching process between occupation and education. Adding 100 workers per square kilometer reduced the probability of overeducation by 0.15 percent, horizontal mismatch by 0.19 percent, and real mismatch by 0.1 percent. Indonesian agglomeration areas outside Java (Mebidangro and Sarbagita) are more effective for reducing risks of overeducation, horizontal and real mismatch than areas in Java (Jabodetabek, Gerbang Kertosusilo and Kedung Sepur). The presence of agglomeration economies correlates with a significant reduction in the job-education mismatch, with varying effects depending on the area..