{"title":"Limits of buyer-driven governance for sustainability: inherent challenges of fragmented supplier networks","authors":"Rachel Alexander","doi":"10.1093/JEG/LBAB039","DOIUrl":"https://doi.org/10.1093/JEG/LBAB039","url":null,"abstract":"","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48941672","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Hans R A Koster, Takatoshi Tabuchi, Jacques-François Thisse
We investigate whether localities gain or lose employment when there are connected to a transportation network, such as a high-speed railway line. We argue that long-haul economies—implying that the marginal transportation cost decreases with network distance—play a pivotal role in understanding the location choices of firms. We develop a new spatial model to show that improvements in transportation infrastructure have nontrivial impacts on the location choices of firms. Using data on Japan’s Shinkansen, we show that ‘in-between’ municipalities that are connected to the Shinkansen witness a sizable decrease in employment.
{"title":"To be connected or not to be connected? The role of long-haul economies","authors":"Hans R A Koster, Takatoshi Tabuchi, Jacques-François Thisse","doi":"10.1093/jeg/lbab042","DOIUrl":"https://doi.org/10.1093/jeg/lbab042","url":null,"abstract":"We investigate whether localities gain or lose employment when there are connected to a transportation network, such as a high-speed railway line. We argue that long-haul economies—implying that the marginal transportation cost decreases with network distance—play a pivotal role in understanding the location choices of firms. We develop a new spatial model to show that improvements in transportation infrastructure have nontrivial impacts on the location choices of firms. Using data on Japan’s Shinkansen, we show that ‘in-between’ municipalities that are connected to the Shinkansen witness a sizable decrease in employment.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-10-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138529708","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corrigendum to: Impasse or mutation? Austerity and (de)financialisation of local governments in Britain","authors":"Hulya Dagdeviren, E. Karwowski","doi":"10.1093/jeg/lbab037","DOIUrl":"https://doi.org/10.1093/jeg/lbab037","url":null,"abstract":"","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46258095","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Erratum to: Spillovers and strategic interaction in immigration policies","authors":"","doi":"10.1093/jeg/lbab015","DOIUrl":"https://doi.org/10.1093/jeg/lbab015","url":null,"abstract":"","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42154510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate the impact of an increase in immigrant inflows on natives’ residential choices in a large metropolitan city. We utilize an administrative dataset containing information about residential address changes and self-reported reasons for relocation. Exploiting the expansion of a special visa program as an exogenous shock, we find that immigration inflows are both a push and a pull factor for natives. While neighborhoods in Seoul lost more than 6 natives for every 10 additional immigrants between 2006 and 2015, certain native workers were drawn to areas with immigrant inflows for job-related reasons.
{"title":"To move or not to move? Immigration and natives’ neighborhood choices in Seoul, Korea","authors":"Joseph Han, J. Hur, Jongkwan Lee, Hyun-Ok Yang","doi":"10.1093/JEG/LBAB022","DOIUrl":"https://doi.org/10.1093/JEG/LBAB022","url":null,"abstract":"\u0000 We investigate the impact of an increase in immigrant inflows on natives’ residential choices in a large metropolitan city. We utilize an administrative dataset containing information about residential address changes and self-reported reasons for relocation. Exploiting the expansion of a special visa program as an exogenous shock, we find that immigration inflows are both a push and a pull factor for natives. While neighborhoods in Seoul lost more than 6 natives for every 10 additional immigrants between 2006 and 2015, certain native workers were drawn to areas with immigrant inflows for job-related reasons.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47902867","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study the impact of immigration on the product mix of the receiving economy by combining information on the local presence of immigrants with a highly detailed definition of the set of goods produced by Italian provinces. For the period 2002–2011, we find that an increase in the share of migrants shifts the manufacturing output composition of host provinces in favour of less capital intensive products. This evidence is based on an IV strategy resting on the settlement of immigrants in the pre-sample period and is robust to several sensitivity checks. We shed light on two mechanisms potentially driving our result. On the one hand, we show that immigration reduces provinces’ dependence on imports of low capital intensity intermediate goods. On the other hand, immigration fosters relatively more the creation of new firms in local low capital intensity industries.
{"title":"Do migrants affect the local product mix? An analysis of the effects and underlying mechanisms","authors":"E. Casabianca, Alessia Lo Turco, D. Maggioni","doi":"10.1093/JEG/LBAB017","DOIUrl":"https://doi.org/10.1093/JEG/LBAB017","url":null,"abstract":"\u0000 We study the impact of immigration on the product mix of the receiving economy by combining information on the local presence of immigrants with a highly detailed definition of the set of goods produced by Italian provinces. For the period 2002–2011, we find that an increase in the share of migrants shifts the manufacturing output composition of host provinces in favour of less capital intensive products. This evidence is based on an IV strategy resting on the settlement of immigrants in the pre-sample period and is robust to several sensitivity checks. We shed light on two mechanisms potentially driving our result. On the one hand, we show that immigration reduces provinces’ dependence on imports of low capital intensity intermediate goods. On the other hand, immigration fosters relatively more the creation of new firms in local low capital intensity industries.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-06-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43281943","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article analyses how the private governance of global value chains (GVCs) varies across multiple end-markets. This is explored through a two-stage mixed-methods analysis of Kenya’s participation in leather value chains serving Europe, China, India and the COMESA region. We first draw on transaction-level customs data to analyse private governance in terms of the stability of buyer–supplier interactions and presence of intermediaries. We then interrogate these results through supplier interviews. Our article highlights the combined role of product specifications and trust in shaping private governance, and heterogeneity of GVCs across the global North and South, as well as within the South. It further questions commonly held assumptions that lower quality products (generally characterising Southern end-markets) are necessarily governed by market-based coordination mechanisms. We therefore challenge links established in the GVC literature between product standards and private governance.
{"title":"Global value chains, private governance and multiple end-markets: insights from Kenyan leather","authors":"Giovanni Pasquali, M. Alford","doi":"10.1093/JEG/LBAB018","DOIUrl":"https://doi.org/10.1093/JEG/LBAB018","url":null,"abstract":"\u0000 This article analyses how the private governance of global value chains (GVCs) varies across multiple end-markets. This is explored through a two-stage mixed-methods analysis of Kenya’s participation in leather value chains serving Europe, China, India and the COMESA region. We first draw on transaction-level customs data to analyse private governance in terms of the stability of buyer–supplier interactions and presence of intermediaries. We then interrogate these results through supplier interviews. Our article highlights the combined role of product specifications and trust in shaping private governance, and heterogeneity of GVCs across the global North and South, as well as within the South. It further questions commonly held assumptions that lower quality products (generally characterising Southern end-markets) are necessarily governed by market-based coordination mechanisms. We therefore challenge links established in the GVC literature between product standards and private governance.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1093/JEG/LBAB018","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44625963","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article exploits the quasi-natural experiment provided by the extensive road network that was built across the Horn of Africa during the Italian occupation of Ethiopia (1936–1941), to examine how a first-mover advantage in transportation can affect the spatial distribution of economic activity in developing countries over the long run. The results show that Italian paved roads rendered areas located within 10 km of them significantly more populated, urbanized and luminous around 2010, relative to comparable, more distant locations. Early roadbuilding lifted first-mover locations out of isolation and allowed for net welfare gains, thanks to a reduction in transport costs and specialization. To this day, first-mover locations continue to diverge from the control group, due to a coordination mechanism that led to an oversupply of governmental facilities in the post-colonial period.
{"title":"The long-term impact of Italian colonial roads in the Horn of Africa, 1935–2015","authors":"Mattia C. Bertazzini","doi":"10.1093/JEG/LBAA017","DOIUrl":"https://doi.org/10.1093/JEG/LBAA017","url":null,"abstract":"\u0000 This article exploits the quasi-natural experiment provided by the extensive road network that was built across the Horn of Africa during the Italian occupation of Ethiopia (1936–1941), to examine how a first-mover advantage in transportation can affect the spatial distribution of economic activity in developing countries over the long run. The results show that Italian paved roads rendered areas located within 10 km of them significantly more populated, urbanized and luminous around 2010, relative to comparable, more distant locations. Early roadbuilding lifted first-mover locations out of isolation and allowed for net welfare gains, thanks to a reduction in transport costs and specialization. To this day, first-mover locations continue to diverge from the control group, due to a coordination mechanism that led to an oversupply of governmental facilities in the post-colonial period.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1093/JEG/LBAA017","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43373615","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Trade costs contribute to price differentials across geographically separated regions. However, when using price differential data, the identification of distance-elastic trade costs depends on how producers set prices in remote markets. To address this problem, we first empirically demonstrate that a variable markup model is more relevant than a constant markup model to describe the data variation. We then adopt a nonhomothetic preference framework to consider pricing-to-market and self-selection bias to pin down the distance effect. If these factors are not accounted for, the distance elasticity of trade costs is small. However, by incorporating these mechanisms, our empirical analysis using micro-level data reveals that the distance effect is significantly large, suggesting that the price of geographic barriers to regional trade is high.
{"title":"The price of distance: pricing-to-market and geographic barriers","authors":"Kazuko Kano, T. Kano, Kazutaka Takechi","doi":"10.1093/jeg/lbab013","DOIUrl":"https://doi.org/10.1093/jeg/lbab013","url":null,"abstract":"\u0000 Trade costs contribute to price differentials across geographically separated regions. However, when using price differential data, the identification of distance-elastic trade costs depends on how producers set prices in remote markets. To address this problem, we first empirically demonstrate that a variable markup model is more relevant than a constant markup model to describe the data variation. We then adopt a nonhomothetic preference framework to consider pricing-to-market and self-selection bias to pin down the distance effect. If these factors are not accounted for, the distance elasticity of trade costs is small. However, by incorporating these mechanisms, our empirical analysis using micro-level data reveals that the distance effect is significantly large, suggesting that the price of geographic barriers to regional trade is high.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1093/jeg/lbab013","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41578745","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Rising political skepticism on the benefits of global economic integration has increased public scrutiny of the foreign activities of domestic firms in virtually all advanced economies. Decisions to invest in new activities abroad are seen by some commentators as potentially detrimental to domestic employment. We contribute to this debate by scrutinizing the relationship between outward ‘greenfield’ Foreign Direct Investments (FDI) and local employment levels. The analysis, at the scale of USA Economic Areas, finds a generally positive link between outward investment and local employment, but with an important range of differences across regions and sectors. Less developed regions benefit the most from the positive returns of outward FDI, and, particularly, from outward FDI if it is undertaken by firms in high-tech manufacturing and services industries. But there is a downside, in the form of increasing intra-regional inequalities between high-skilled and low-skilled workers in these areas.
{"title":"Does foreign investment hurt job creation at home? The geography of outward FDI and employment in the USA","authors":"R. Crescenzi, R. Ganau, M. Storper","doi":"10.1093/jeg/lbab016","DOIUrl":"https://doi.org/10.1093/jeg/lbab016","url":null,"abstract":"\u0000 Rising political skepticism on the benefits of global economic integration has increased public scrutiny of the foreign activities of domestic firms in virtually all advanced economies. Decisions to invest in new activities abroad are seen by some commentators as potentially detrimental to domestic employment. We contribute to this debate by scrutinizing the relationship between outward ‘greenfield’ Foreign Direct Investments (FDI) and local employment levels. The analysis, at the scale of USA Economic Areas, finds a generally positive link between outward investment and local employment, but with an important range of differences across regions and sectors. Less developed regions benefit the most from the positive returns of outward FDI, and, particularly, from outward FDI if it is undertaken by firms in high-tech manufacturing and services industries. But there is a downside, in the form of increasing intra-regional inequalities between high-skilled and low-skilled workers in these areas.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2021-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1093/jeg/lbab016","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47332974","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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