Abstract In this article, we investigate how some MNEs which spread their home culture over time and space to the rest of the world are affecting, in turn, trade flows from home. By selling products embodying cultural information related to their country of origin, those MNEs embrace the role of ambassadors of their home country. We argue that IKEA offers an ideal case to identify a multinational’s culture-promotion effect on trade. We build a dataset on IKEA’s presence in foreign markets between 1995 and 2015 and merge it with disaggregated product level trade between pairs of countries. We find solid evidence of an externality linked to IKEA: a setting of an IKEA new store in a destination increases trade flows by around 2% from Sweden for products that resemble to what the multinational offers (despite being completely unrelated to that multinational). This result is driven primarily by the products identified to encompass a high-cultural content. Other robustness checks and tests seem to be very much consistent with the hypothesis of IKEA promoting the Swedish culture to the world.
{"title":"The culture-promotion effect of multinationals on trade: the IKEA case","authors":"Dylan Bourny, Daniel Mirza, Camélia Turcu","doi":"10.1093/jeg/lbac033","DOIUrl":"https://doi.org/10.1093/jeg/lbac033","url":null,"abstract":"Abstract In this article, we investigate how some MNEs which spread their home culture over time and space to the rest of the world are affecting, in turn, trade flows from home. By selling products embodying cultural information related to their country of origin, those MNEs embrace the role of ambassadors of their home country. We argue that IKEA offers an ideal case to identify a multinational’s culture-promotion effect on trade. We build a dataset on IKEA’s presence in foreign markets between 1995 and 2015 and merge it with disaggregated product level trade between pairs of countries. We find solid evidence of an externality linked to IKEA: a setting of an IKEA new store in a destination increases trade flows by around 2% from Sweden for products that resemble to what the multinational offers (despite being completely unrelated to that multinational). This result is driven primarily by the products identified to encompass a high-cultural content. Other robustness checks and tests seem to be very much consistent with the hypothesis of IKEA promoting the Swedish culture to the world.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135013231","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 measures the effects of workers’ mobility across regions characterised by different productivity levels through the lens of a search and matching model with heterogeneous workers and firms estimated using administrative data. In an application to Italy, the model estimates imply that the relocation of workers to the most productive region boosts employment and output at the country level, reduces inequality and widens productivity gaps. There is an interplay between the sorting of workers across regions and across firms, and migration mitigates the frictions caused by worker–firm sorting. The model allows for the evaluation of general equilibrium effects of place-based policies towards the least productive region. Subsidising the creation of high-technology jobs reduces migration substantially while increasing employment and productivity. In contrast, subsidies for hiring unemployed or high-skill migrants imply indirect effects that limit policy effectiveness.
{"title":"Matching and sorting across regions","authors":"Chiara Lacava","doi":"10.1093/jeg/lbac038","DOIUrl":"https://doi.org/10.1093/jeg/lbac038","url":null,"abstract":"\u0000 This article measures the effects of workers’ mobility across regions characterised by different productivity levels through the lens of a search and matching model with heterogeneous workers and firms estimated using administrative data. In an application to Italy, the model estimates imply that the relocation of workers to the most productive region boosts employment and output at the country level, reduces inequality and widens productivity gaps. There is an interplay between the sorting of workers across regions and across firms, and migration mitigates the frictions caused by worker–firm sorting. The model allows for the evaluation of general equilibrium effects of place-based policies towards the least productive region. Subsidising the creation of high-technology jobs reduces migration substantially while increasing employment and productivity. In contrast, subsidies for hiring unemployed or high-skill migrants imply indirect effects that limit policy effectiveness.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43910822","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}
Lídia Farré, Jordi Jofre-Monseny, Juan Torrecillas
In this article, we investigate the contribution of increasing travel times to the persistent gender gap in labor market participation. In doing so, we estimate the effect of commuting times on the labor supply of men and women in the USA using microdata from the censuses of the last two decades. To address endogeneity concerns, we adopt an instrumental variables approach that exploits the shape of cities as an exogenous source of variation for travel times. Our estimates indicate that a 10-min increase in commuting time decreases the probability of married women participating in the labor market by 4.4 percentage points. In contrast, the estimated effect on men is small and statistically insignificant. When exploring potential mechanisms behind the gender asymmetry in our results, we do not find evidence that differences in labor market productivity within couples contribute to the larger penalty of commuting times on women. However, we do find that the negative effect on women increases with the number of children and is larger among those originating from countries with more gendered social norms. Based on this evidence, we conclude that in a context of increasing commuting costs the presence of gender norms that attribute to women the role of main caregivers may prevent gender convergence.
{"title":"Commuting time and the gender gap in labor market participation","authors":"Lídia Farré, Jordi Jofre-Monseny, Juan Torrecillas","doi":"10.1093/jeg/lbac037","DOIUrl":"https://doi.org/10.1093/jeg/lbac037","url":null,"abstract":"In this article, we investigate the contribution of increasing travel times to the persistent gender gap in labor market participation. In doing so, we estimate the effect of commuting times on the labor supply of men and women in the USA using microdata from the censuses of the last two decades. To address endogeneity concerns, we adopt an instrumental variables approach that exploits the shape of cities as an exogenous source of variation for travel times. Our estimates indicate that a 10-min increase in commuting time decreases the probability of married women participating in the labor market by 4.4 percentage points. In contrast, the estimated effect on men is small and statistically insignificant. When exploring potential mechanisms behind the gender asymmetry in our results, we do not find evidence that differences in labor market productivity within couples contribute to the larger penalty of commuting times on women. However, we do find that the negative effect on women increases with the number of children and is larger among those originating from countries with more gendered social norms. Based on this evidence, we conclude that in a context of increasing commuting costs the presence of gender norms that attribute to women the role of main caregivers may prevent gender convergence.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":"9 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138529697","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}
Ioulia V Ossokina, Jos van Ommeren, Henk van Mourik
Highway construction occurs nowadays mainly through widening of existing roads rather than building new roads. This article documents that highway widenings considerably reduce congestion in the short run, defined here as 6 years. Using longitudinal microdata from highway detector loops in the Netherlands, we find substantial travel time savings. These savings occur despite strong increases in traffic flow. The welfare benefits in the short run already cover 40% of the widenings’ investment costs. Our article contributes to an explanation why countries invest in roadworks even when the fundamental law of congestion predicts that travel savings disappear in the long run.
{"title":"Do highway widenings reduce congestion?","authors":"Ioulia V Ossokina, Jos van Ommeren, Henk van Mourik","doi":"10.1093/jeg/lbac034","DOIUrl":"https://doi.org/10.1093/jeg/lbac034","url":null,"abstract":"Highway construction occurs nowadays mainly through widening of existing roads rather than building new roads. This article documents that highway widenings considerably reduce congestion in the short run, defined here as 6 years. Using longitudinal microdata from highway detector loops in the Netherlands, we find substantial travel time savings. These savings occur despite strong increases in traffic flow. The welfare benefits in the short run already cover 40% of the widenings’ investment costs. Our article contributes to an explanation why countries invest in roadworks even when the fundamental law of congestion predicts that travel savings disappear in the long run.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":"21 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138529701","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}
Local communities have been identified as crucial actors in the diffusion of renewable energy, considered one of the most important eco-innovations of our time. Anecdotal evidence has indicated that local communities tend to play different roles in promoting eco-innovation, particularly renewable energy. However, what this heterogeneity looks like has not yet been quantitatively examined. Our study addresses this gap by systematically exploring the involvement of communities in the promotion of eco-innovation at the local level. We focus on their participation in renewable energy partnerships with the private sector in rural areas in Israel's southern periphery. Our study indicates that local communities play diverse roles in promoting renewable energy through varying involvement in finance, ownership, knowledge contribution, employment, energy consumption, and, most common according to our findings, the leasing of natural resources. The study further tracks the factors that shape this diverse involvement, including the community’s land size, population size, socio-economic ranking, and experience. Finally, the study unpacks the levels of risks and gains that local communities face when promoting renewable energy through their partnerships with the private sector. By confronting theory with quantitative research, this study sheds light on the diverse roles local communities play in the diffusion of eco-innovation, a prerequisite for renewable energy.
{"title":"The role of community–private sector partnerships in the diffusion of environmental innovation: renewable energy in Southern Israel","authors":"Avri Eitan, Itay Fischhendler, Lior Herman, Gillad Rosen","doi":"10.1093/jeg/lbac030","DOIUrl":"https://doi.org/10.1093/jeg/lbac030","url":null,"abstract":"\u0000 Local communities have been identified as crucial actors in the diffusion of renewable energy, considered one of the most important eco-innovations of our time. Anecdotal evidence has indicated that local communities tend to play different roles in promoting eco-innovation, particularly renewable energy. However, what this heterogeneity looks like has not yet been quantitatively examined. Our study addresses this gap by systematically exploring the involvement of communities in the promotion of eco-innovation at the local level. We focus on their participation in renewable energy partnerships with the private sector in rural areas in Israel's southern periphery. Our study indicates that local communities play diverse roles in promoting renewable energy through varying involvement in finance, ownership, knowledge contribution, employment, energy consumption, and, most common according to our findings, the leasing of natural resources. The study further tracks the factors that shape this diverse involvement, including the community’s land size, population size, socio-economic ranking, and experience. Finally, the study unpacks the levels of risks and gains that local communities face when promoting renewable energy through their partnerships with the private sector. By confronting theory with quantitative research, this study sheds light on the diverse roles local communities play in the diffusion of eco-innovation, a prerequisite for renewable energy.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48977227","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}
Using the 2016 merger of French regions as a natural experiment, this paper adopts a difference-in-differences identification strategy to recover its causal impact on individual subjective well-being. No depressing effect is found in the short term; life satisfaction has even increased in regions that were absorbed from both economic and political viewpoints. The empirical evidence at stake suggests that local economic performance has enhanced in these regions, which includes a faster decline of the unemployment rate. In the context of a unitary state, economic gains have therefore outweighed cultural attachment to administrative regions.
{"title":"Citizens’ attitude towards subnational borders: evidence from the merger of French regions","authors":"L. Wilner","doi":"10.1093/jeg/lbac032","DOIUrl":"https://doi.org/10.1093/jeg/lbac032","url":null,"abstract":"\u0000 Using the 2016 merger of French regions as a natural experiment, this paper adopts a difference-in-differences identification strategy to recover its causal impact on individual subjective well-being. No depressing effect is found in the short term; life satisfaction has even increased in regions that were absorbed from both economic and political viewpoints. The empirical evidence at stake suggests that local economic performance has enhanced in these regions, which includes a faster decline of the unemployment rate. In the context of a unitary state, economic gains have therefore outweighed cultural attachment to administrative regions.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43988439","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}
Johannes Glückler, Richard Shearmur, Kirsten Martinus
The continued emphasis on innovation in urban and clustered settings has led many geographers to conceive peripheries as laggard and non-innovative. After reconstructing discussions of the periphery in the context of the geography of firm-level innovation, we argue that normative connotations should be stripped away, and that ‘periphery’ and ‘center’ are better understood as positions in a field. We draw upon concepts current in network theory and propose a relational definition of periphery as a distant, dispersed and disconnected position relative to a core within a field. A key distinction is made between the position of an actor in geographical space (location) and the position of an actor in a social network of relations. Combining geographic and network dimensions of an actor’s position, our aim in this article is to propose a dual core-periphery framework which provides the vocabulary and concepts to empirically scrutinize the role of periphery in innovation processes. Although we focus on the geography of innovation, this framework can be applied more broadly to discussions of peripherality.
{"title":"Liability or opportunity? Reconceptualizing the periphery and its role in innovation","authors":"Johannes Glückler, Richard Shearmur, Kirsten Martinus","doi":"10.1093/jeg/lbac028","DOIUrl":"https://doi.org/10.1093/jeg/lbac028","url":null,"abstract":"\u0000 The continued emphasis on innovation in urban and clustered settings has led many geographers to conceive peripheries as laggard and non-innovative. After reconstructing discussions of the periphery in the context of the geography of firm-level innovation, we argue that normative connotations should be stripped away, and that ‘periphery’ and ‘center’ are better understood as positions in a field. We draw upon concepts current in network theory and propose a relational definition of periphery as a distant, dispersed and disconnected position relative to a core within a field. A key distinction is made between the position of an actor in geographical space (location) and the position of an actor in a social network of relations. Combining geographic and network dimensions of an actor’s position, our aim in this article is to propose a dual core-periphery framework which provides the vocabulary and concepts to empirically scrutinize the role of periphery in innovation processes. Although we focus on the geography of innovation, this framework can be applied more broadly to discussions of peripherality.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-10-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44417887","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 perform, to our best knowledge, the first systematic mapping of the foundational economy (FE) at the sub-national level by looking at the FE employment in Swedish regions between 2007 and 2016. We show that the FE itself not only suffered less than traded activities from employment decline during the Great Recession of 2007–2009 but was also a domain of substantial job creation in the post-crisis recovery. At the same time, regions with higher dependence on foundational employment were hit harder during the crisis in terms of overall labour market performance. We demonstrate that it is specific compositions of foundational and traded activities in the regional employment mix that relate differently to regional employment growth in times of crisis and recovery. Jointly, these findings allow us to contribute to the literatures on the FE and regional resilience.
{"title":"Can foundational economy save regions in crisis?","authors":"Mikhail Martynovich, Teis Hansen, K. Lundquist","doi":"10.1093/jeg/lbac027","DOIUrl":"https://doi.org/10.1093/jeg/lbac027","url":null,"abstract":"\u0000 We perform, to our best knowledge, the first systematic mapping of the foundational economy (FE) at the sub-national level by looking at the FE employment in Swedish regions between 2007 and 2016. We show that the FE itself not only suffered less than traded activities from employment decline during the Great Recession of 2007–2009 but was also a domain of substantial job creation in the post-crisis recovery. At the same time, regions with higher dependence on foundational employment were hit harder during the crisis in terms of overall labour market performance. We demonstrate that it is specific compositions of foundational and traded activities in the regional employment mix that relate differently to regional employment growth in times of crisis and recovery. Jointly, these findings allow us to contribute to the literatures on the FE and regional resilience.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45692594","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}
Using an event study approach and a novel data set that links administrative information on German establishments with exact distance measures from geo-referenced address data, we analyze the net impact of mass layoffs on local employment. We find that local spillovers significantly attenuate the direct impact of mass layoffs on municipal-level employment. About a quarter of the 1-year direct employment loss due to a mass layoff event is absorbed within the same municipality. Local spillovers are especially pronounced very close to the mass layoff site; the majority of the absorption is concentrated within a 1000-m radius. There is little evidence of spillovers beyond the affected municipality.
{"title":"Effects of mass layoffs on local employment—evidence from geo-referenced data","authors":"Philipp vom Berge, A. Schmillen","doi":"10.1093/jeg/lbac026","DOIUrl":"https://doi.org/10.1093/jeg/lbac026","url":null,"abstract":"\u0000 Using an event study approach and a novel data set that links administrative information on German establishments with exact distance measures from geo-referenced address data, we analyze the net impact of mass layoffs on local employment. We find that local spillovers significantly attenuate the direct impact of mass layoffs on municipal-level employment. About a quarter of the 1-year direct employment loss due to a mass layoff event is absorbed within the same municipality. Local spillovers are especially pronounced very close to the mass layoff site; the majority of the absorption is concentrated within a 1000-m radius. There is little evidence of spillovers beyond the affected municipality.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48921486","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 advances a new approach using hierarchical cluster analysis (HCA) for identifying and delineating spatial agglomerations and applies it to venture-backed startups. HCA identifies nested clusters at varying aggregation levels. We describe two methods for selecting a particular aggregation level and the associated agglomerations. The ‘elbow method’ relies entirely on geographic information. Our preferred method, the ‘regression method’, uses geographic information and venture capital investment data and identifies finer agglomerations, often the size of a small neighborhood. We use heat maps to illustrate how agglomerations evolve and we describe how our methods can help assess agglomeration support policies.
{"title":"A new method for identifying and delineating spatial agglomerations with application to venture-backed startups","authors":"Edward J. Egan, James A. Brander","doi":"10.1093/jeg/lbac024","DOIUrl":"https://doi.org/10.1093/jeg/lbac024","url":null,"abstract":"\u0000 This article advances a new approach using hierarchical cluster analysis (HCA) for identifying and delineating spatial agglomerations and applies it to venture-backed startups. HCA identifies nested clusters at varying aggregation levels. We describe two methods for selecting a particular aggregation level and the associated agglomerations. The ‘elbow method’ relies entirely on geographic information. Our preferred method, the ‘regression method’, uses geographic information and venture capital investment data and identifies finer agglomerations, often the size of a small neighborhood. We use heat maps to illustrate how agglomerations evolve and we describe how our methods can help assess agglomeration support policies.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46919513","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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