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The Market as a Factor in the Localization of Industry in the United States
Annals of the American Association of Geographers
... His extensive and complex ideas, therefore, can be seamlessly woven into a unified theoretical economic framework. For this purpose, we will employ the instrument of commercial gravitational field, which refers to the spatial distribution of economic activity influenced by market potential and the magnitude of trade interactions, with the consequent commercial center of gravity of a market, as delineated in the market potential theory (Harris 1954;Capoani 2023). Such application is a revival of the multilateralism that was present in Isard's original model, which is more akin to a gravitational field than to Newton's bilateral formula of gravity, evident from Stewart's (1950aStewart's ( , 1950b work from which Isard was inspired (1954), and further discussed in recent literature. ...
... This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. both the detected gravitational pull that businesses and consumers exert, and the theoretical conceptualizations that have evolved in the literature since Harris (1954). ...
... Furthermore, our model diverges from existing structural gravity models by incorporating multidimensional factors, thus offering a more nuanced understanding of trade dynamics in conflict-ridden scenarios. It comprehensively considers all countries and incorporates the spatial aspect, drawing upon the concept of market potential found in the literature, specifically, Harris's (1954) concept of market potential, which quantifies the extent of potential market relations through an abstract index and is calculated as follows: Anderson and van Wincoop (2003) contributed to create a multilateral approach based on Tinbergen's model, though it is important to note that the idea of a multilateral trade gravity model had already been anticipated by Isard in his original formula (3). While Anderson and van Wincoop's model serves as a solid foundation due to its consideration of inward and outward multilateral resistance, it lacks direct incorporation of transition costs that may arise in scenarios of localized conflicts and the inclusion of spatiality. ...
Building on Walter Isard's location and gravity theories in economics, we extend his trade model to better understand its core principles, including commercial attraction, center of gravity in markets, and favorable location for exporting firms. This extended model highlights the importance of trade agreements, free trade zones, and markets for national development. Additionally, we incorporate concepts of peace and conflicts in economics, applying these to trade and integrating them with the idea of gravitational fields in economics. Regarding this, we develop an analysis based on NUTS2. Our refined theory of conflict for markets suggests that competing states can develop either military or political strategies to counteract the positive effects of their adversaries' markets and international trade.
... The general aim here is to explain the phenomena of spatial concentration among businesses and to set the stage for the hypothesis explored in the following section: considering a gravitational model of trade, a conflict or any interfering element has a more destabilizing effect on an area or market when it is geolocated in a central position within the market (a high-magnetism region with a high concentration of businesses). We will expand on this by looking at Harris' (1954) concept of market potential and Capoani's (2023) concept of trade gravitational field. ...
... Building on Isard's multilateral gravity model, the development of a gravitational field model emerges as a logical progression. By applying a physical perspective, international economics could adopt a similar approach, recognizing the need to consider the gravitational effects of a market potential composed of more than two regions or multiple source masses (Harris 1954;Capoani 2023). For example, Harris highlighted three major gravitational centers in the United States: the East served by New York City, the Central area served by Chicago, and the West served by Los Angeles. ...
... This concept was developed in 1989 by a group of French geographers led by Roger Brunet. By dividing the economic space into "active" and "passive" zones, he observed the presence of an economic backbone rich in firms, urbanization and services stretching from Northern England to Harris (1954), Market potential in the Southeastern United States , Vol. 44, No. 4 (Dec., 1954), pp. 315-348 4 As the objective of this article is to develop theoretical concepts and not to demonstrate their direct empirical application, mere geographic distance will be employed, similar to how Isard, and later Tobler, did. ...
Within a comprehensive framework influenced by Walter Isard’s economic theories on location and gravitation, we suggest a theoretical development encompassing his key areas of interest: trade, peace economics, and regional science. Commercial appeal, market gravity centers, and beneficial locations for exporting enterprises are influenced by the presence of trade-based comparative advantages. As a result, trade agreements, free trade zones, and market dynamics emerge as key accelerators for national growth. In this context, we introduce the concept of peace and economic theories of conflict, giving a framework for analyzing wars and other variables that contribute to political and social instability, providing an analysis of Brexit. Concurrently, we examine recent spatial interaction models. By extending these principles, we develop a new theory of market conflict that is critical for interpreting the relationship between conflict severity, spatial proximity, and market dynamics within the gravitational field paradigm.
... The parameters of interest are the β j 's, which measure the elasticity of the outcome to market access. Market Access is computed based on the cost distance approach following Rauch and Maurer (2022) and inspired by a vast literature using similar methods (Ahlfeldt, Redding, Sturm, & Wolf, 2015;Donaldson & Hornbeck, 2016;Harris, 1954;Redding & Sturm, 2008). The change in market access comes from the change in the set of effective ports. ...
... What M A p |channel measures is the market access after the five Limfjord ports become suitable for international cargo because of the channel. θ is the distance elasticity, which in the default specification is assumed to be -1 as in Harris (1954) and Rauch and Maurer (2022). CostDistance is computed based on α = 10. ...
... The standard θ = −1 is used in the main specification. This is the original value suggested by Harris (1954), but is also used in Rauch and Maurer (2022) and is very close to what is empirically estimated by Redding and Sturm (2008). However, it is plausible that other values are more appropriate e.g. ...
Is geography destiny? What is the role of first-nature geography in determining prosperity? This paper estimates the effect of randomly removing and introducing favorable first-nature geography to a specific region using a difference in difference design. In 1825 a storm created a new natural navigable waterway, bringing trade and prosperity to the otherwise relatively isolated northwestern Denmark. 700 years prior, the same event happened in reverse, when a previous channel closed up between 1086 and 1208. The elasticity of geography-induced market access is estimated to be 1.6, corresponding to 26.7 percent population growth within a generation of the event. Demonstrated mechanisms include trade, fertility, fishing, and the rise of manufacturing. The central finding is replicated in reverse in a register of dated archaeological sites. The 1086-1208 closing caused fewer buildings and sites containing coins. The general insight is the same: First-nature geography determines the levels and location of prosperity.
... In the 1950s, space economists Harris [8] and Myrdal [9] proposed that the social and economic development of backward areas has a certain relationship with the local geographical location. By the 1990s, the research and application of the theory of spatial poverty had received extensive attention from researchers, and the understanding of geographic capital also appeared in the study of spatial poverty. ...
... When selecting an indicator, it is necessary to comprehensively consider the basic principles of comprehensiveness, scientifcity, conciseness, rationality, and operability of the indicator. It can meet the poverty alleviation requirements of Per capita public fnancial revenue X 7 Yuan/person Statistics data Per capita household savings balance X 8 Yuan/person Statistics data Per capita net income of farmers X 9 Yuan/person Statistics data Illiteracy rate X 10 % Statistics data Bed number per 10000 of health institutions X 11 Bed Statistics data Average nighttime light X 12 _ Raster data 6 Complexity multidimensional comprehensiveness and fairness of spatial poverty identifcation, the pertinence of research objects, policy relevance, and availability of evaluation data on the national scale at the same time. By referring to relevant literature [38] and the actual situation of poverty-stricken counties in China, and taking into account the monitoring needs of the core indicators of the current national comprehensive poverty alleviation strategy, this paper is guided by the theory of spatial poverty and the theory of man-land relationship, and takes the county-level administrative division as the research object. ...
... Terefore, the training level is of great importance. 8 Complexity ...
Regional poverty is one of the most serious challenges facing the world today. Poverty, antipoverty, and poverty alleviation are the focus of the attention of scholars and the public. This paper takes China’s counties as the research unit, selects the influencing factors of poverty from natural and socio-economic factors, establishes an evaluation index system, simulates the natural poverty index and socio-economic poverty eradication index of each county, and clarifies the distribution characteristics of spatial poverty using GIS spatial analysis and BP artificial neural network. The results indicate that natural factors are the main cause of poverty in Chinese counties, with 710 counties having a high natural poverty index, accounting for nearly 30% of the total number of counties in the country. The national county-level natural poverty index shows a clear strip distribution pattern along latitude and longitude, with a strip distribution from north to south and from west to east; socio-economic factors have played a certain role in poverty alleviation, with as many as 1521 counties with low socio-economic poverty alleviation indices, accounting for approximately 64% of the total number of counties in the country. The spatial distribution of the county-level socio-economic poverty alleviation index is relatively fragmented. Through spatial scanning statistics, a total of 44 county poverty pressure index risk clusters reached a statistical significance level, involving 243 counties and districts. In poverty reduction practice, the internal counties and districts of contiguous poverty-stricken areas should strengthen cooperation and exchange. In the process of poverty alleviation and development, targeted poverty alleviation and economic development should be carried out based on the poverty-dominant type and self-development ability of the county, in order to improve efficiency. Regions that are relatively prosperous and have taken the lead in poverty reduction should play a leading and exemplary role in strengthening the radiation power of regional central cities. The prominent feature of this study is the comprehensive utilization of multisource data and the use of new spatial analysis methods (flexible spatial scanning method is widely used in the field of infectious disease prevention and control research). By constructing a multidimensional poverty measurement system that includes natural and social factors, it distinguishes the differences between the factors that cause poverty and the factors that eliminate poverty in regional poverty. At the same time, the flexible spatial scanning detection method was used to detect the differentiation mechanism of poverty spatial patterns.
... It is widely regarded as one of the fundamental conditions for regional economic development. Harris [32] first applied the market potential model, integrating land and water transport, to measure Multidimensional evaluation framework that offers a more precise and applicable assessment of iron deposit accessibility. ...
... It is widely regarded as one of the fundamental conditions for regional economic development. Harris [32] first applied the market potential model, integrating land and water transport, to measure market accessibility and argued that transportation accessibility was a crucial factor influencing the development of domestic manufacturing in the United States. Subsequently, Hansen [33] proposed a definition of accessibility, describing it as the magnitude of interaction opportunities among nodes in the transportation network. ...
The Qinghai–Xizang Plateau (QXP) is the highest plateau on Earth, with a significant quantity of iron resources that significantly contribute to regional economic development in Western China. However, the exploitation of these iron deposits on the QXP is confronted with dual challenges. The complex geography and weak infrastructure lead to inadequate transport accessibility, while the strict ecological regulations and stringent environmental protection policies further complicate resource development. This study focuses on the transport accessibility issues related to iron deposits on the QXP, aiming to assess the suitability for regional iron resource development. This study conducts a comprehensive, multidimensional analysis encompassing the spatial distribution of iron deposits, the characteristics of the transport network, and economic dynamics. Based on these analyses, an integrated suitability evaluation model is developed to assess the accessibility of iron deposits on the QXP. The results indicate that the transport accessibility of iron deposits on the QXP displays obvious spatial disparities. The deposits on the western QXP exhibit lower accessibility due to the remoteness from major economic centers and underdeveloped transport infrastructure. In contrast, the deposits on the eastern QXP, which are closer to transportation and economic centers, show greater development potential. Additionally, this study innovatively incorporates economic dynamics and ecological protection factors into the transport accessibility evaluation framework, revealing the coupling relationship between the transport conditions, economic patterns, and mineral resource development potential. It provides scientific evidence for the balancing of resource development and environmental protection in ecologically sensitive areas. The findings could contribute to optimizing the iron resource development strategies on the QXP and provide theoretical support for future regional infrastructure planning.
... However, as indicated in the title, this study will focus on the American rather than on the European example. In addition, the paper partially revisits the analytical interests and approaches of Stewart (1941), Isard (1954), and Harris (1954). More specifically, upon conducting a thorough historical analysis of the central tenet of the US market, namely the concept of free market, the subsequent examination will primarily center on GDP and the population of the United States, explored by observing historical perspectives and by applying the Moran's Index and gravity model to various economic topics. ...
... Isard (1951) thought that once this sophisticated model had been included into an interregional inputoutput framework, eventually it would have been possible to bridge the gap between short-and long-run trade and location theories. Finally, Harris (1954), inspired by the application of Stewart and Isard's gravitational model, introduced the concept of market potential to indicate the intensity of potential market interactions through an abstract index, following the formula: ...
In this article, the concept of gravitational fields applied to trade is revisited and extended to multiple economic variables, integrated within Moran’s I analysis. Following Isard’s thinking, emphasis is placed on the use of the gravitational model in spatial analysis, with the intent of theoretically developing an econophysical methodology. To map the interactions between the economic forces generated by the individual gravitational fields of various regions, the principle of vector superposition is applied to provide the resulting total field. Through a cross-analysis that employs gravitational fields and Moran's I, spatial concentration phenomena in the American market will be studied.
JEL classification: A12, B1, B27, C31, F10, F20, R30.
... Increased market potential promotes urban development, and this demand stimulates the breeding of new development models through technological innovation, creating new development advantages, which in turn lead to the goal of reducing risk and increasing resilience. Therefore, this paper refers to Harris (1954) and uses the market potential indicator for each city to measure the market demand effect. Moreover, this is how the equation is configured: ...
How to enhance urban resilience (UR) through innovation is an emerging issue in urban governance. The National Innovative City Pilot Policy (NICPP) has become an important driving force to enhance UR and promote sustainable urban development. Examining the panel data of 280 Chinese prefecture-level cities from 2006 to 2020, this paper uses a time-varying difference-in-differences (DID) model to identify the impact of the NICPP on UR and its impact path and investigates the spatial effect of UR by constructing a spatial Durbin model (SDM). Benchmark regression results show that NICPP can significantly improve UR. The results of the moderating effect show that both industrial diversification and market demand play a positive moderating role in the relationship between NICPP and UR. Heterogeneity analysis reveals that the effect of NICPP on UR is greater in cities east of the Hu Huanyong line, with larger city sizes and higher administrative levels. The SDM test shows that NICPP has a positive spatial spillover effect on UR in the neighboring areas. This study not only enriches the empirical evidence of the microeconomic impacts of the NICPP but also puts forward novel insights and new starting points for the construction of resilient cities.
... We employ two types of outcome variables: A dummy variable indicating the presence of an assembly house or folk high school in a given parish and, to account for establishments in neighboring parishes, the local density of these institutions as an alternative measure. The local density of Grundtvigian institutions is calculated using an inverse distance-weighted measure of market access, following Harris (1954). This approach assigns greater influence to nearby institutions while still accounting for the presence of more distant ones. ...
How do transport infrastructures shape economic transformation and social change? We examine the impact of railway expansion in nineteenth-century Denmark on local population growth, occupational shifts, and the diffusion of ideas. Using a historical panel dataset and a difference-in-differences approach, we document that railway access significantly increased population growth and accelerated structural change. Moreover, railway-connected areas were more likely to establish key institutions linked to civic engagement and the cooperative movement. These findings suggest that improved market access was not only a driver of economic modernization but also a catalyst for institutional and cultural transformation.
... A usual operationalization of accessibility in transport studies, regardless of scale, is based on origin-specific potential models (a.k.a. modified location-based cumulative models; see (Geurs and Van Wee, 2004;Horner, 2004;Hansen, 1959;Harris, 1954). For example, a modified 'Hansen' model for an origin-based potential accessibility measure may be written as: ...
Mass transit is a key transport strategy in helping cities decarbonize, adapt to an era of rapid climate change, and guide rapid urbanization. Central to transit planning is the ability to accurately estimate demand for an effective, efficient, and equitable infrastructure and services. Instrumental to this effort is direct-demand modelling (DDM), which has evolved to become more nuanced in predicting ridership at station-level and station-to-station levels and in shedding light on key ridership and performance determinants. Local and Metropolitan accessibility as predictors of transit patronage has been shown significant in recent DDM studies at station-level, with an apparent synergistic relationship. This, however, has not been explored on a station-to-station passenger flow level. In several ways this is a more valid unit of analysis for rail ridership studies as it captures critical factors between and at both ends of the trip that are experienced by the passenger. It is also well documented that the sensitivity of passengers to key ridership determinants varies across income levels. In some jurisdictions income level strongly correlates with race/ethnicity and/or class, due in part to historical legacies of classism and/or racism. Segregation because of class and/or race prejudice, often found in US cities, might yield spatial heterogeneity in whole-network DDM model parameters and introduce bias that could potentially mislead transit analysts, policy makers, and systemwide effectiveness. We explored and tested these possibilities and considered modelling and policy implications as we leveraged Atlanta’s legacy of racial and income segregation in studying MARTA’s Origin-Destination (O-D) passenger flow patterns. First, a potential synergistic relationship between origin-stations’ and destination-stations’ walking accessibility levels was tested. Disparities, if any, in this and other ridership determinants were then explored between two distinct sets of O-D pairs whose origin Pedsheds accommodate majority-white or majority-nonwhite residents. Comparison and testing using generalized crossed-effects modelling reveals important differences in fit, magnitude, and significance of some parameters across submodels and as compared to the whole-network model. We also identified distinct moderating effects of distance between O-D pair stations and walking accessibility levels across submodels. In racially- and/or class-segregated cities planners would benefit from developing race- and/or class-based DDM submodels that would likely yield less biassed parameters; improve our understanding of rail transit patronage determinants; and help in crafting more effective and equitable transit and land-use policies.
... The analysis above indicates that informatization can stimulate market vitality, thereby enhancing entrepreneurial activity. This study draws on the definition of market demand outlined by Harris (1954) and Liu and Li (2021) that the market demand of a region is closely related to the accessible market and diminishes as distance increases. The specific formula of market demand (Potential1) is as follows: ...
Informatization plays a leading role in promoting the deep integration of technology and industry and stimulating the vitality of new business creation. Based on city-level data from 2003 to 2022, this study investigates the effect of informatization on urban entrepreneurial activity and the mechanisms using the establishment of “pilot zones for informatization and industrialization integration” as a policy shock and employing a time-varying difference-in-differences (DID) method. The findings show that informatization significantly enhances urban entrepreneurial activity. Moreover, this effect is stronger in the smart manufacturing and service industries, as well as in cities with superior economic levels and higher administrative rankings. The mechanism test reveals that informatization mainly stimulates urban entrepreneurial activity by enhancing technical talents and technological foundations, expanding market demand, and improving the investment environment. This study not only enriches research on the correlation between informatization and entrepreneurship but also provides important theoretical basis and policy implications for fully leveraging the advantages of informatization construction and promoting urban entrepreneurship development.
... The potential demand for goods and services of a region can be estimated by the level of development of the trading regions. However, economic geography points out that there is a telescopic reduction in demand with increasing geographical distance (Harris 1954); this means that the market potential of a region can be simply expressed as the weighted sum of income of other regions. The market potentials have often been utilized to study the regional wage levels. ...
In open market economies, spatial externalities play a crucial role in economic growth. These spatial externalities emerge from the agglomeration economies or the market potentials of the regions. The present study examining the economic growth spillovers among states of India for the period 2005–2020 finds that growth spillover plays a major role in shaping the regional economic development in India. The impact of labor and capital on economic growth is weaker, showing the structural issues in these two sectors, but human capital is found to have a significant impact on regional economic growth. The states with direct access to the sea (coasts) are found to be having higher levels of development. The study also shows that household inequalities in asset ownership within states negatively impact economic growth. This shows that economic inequality within Indian states is already higher, and there is a need to bring it down to accelerate economic growth. The chapter also discusses the infrastructural bottlenecks, lack of effective governance, and rising cost of higher education, which may have a negative impact on the economic spillover process.
... Market size expansion (lnmp): According to the existing research (Harris, 1954), this paper uses the market potential indicator to represent the market size, the calculation formula used to measure market potential is shown in equation (7): ...
... This paper concerns whether the population size and distribution across cities will change as a result of improvements in transportation infrastructure. According to Harris (1954), areas closer to surrounding markets have the ability to deliver quickly to the consumers and furnish suitable conditions for the development of economy. Therefore, traditional wisdom would argue ''yes'' because the reduction of transportation costs apparently shortens the distance from a city to the surrounding markets, which in turn creates a favorable environment attracting population and labor force concentration. ...
Population mobility is becoming a common phenomenon worldwide which can contribute to the development of individuals and societies. This paper offers that the launch of HSR would facilitate population mobility and spatial disparity. We also find that the HSR connection mainly affects migration of people under 14 and 15 to 64 years old, with no effect on the old over 65. This implies that labor-led family migration has become the main form of movement under the effect of HSR. Furthermore, HSR connection has promoted the concentration of high-skilled labor and the outflow of low-skilled labor in large cities. This study offers useful insights for policy makers that concerns transport infrastructure and the issue of household and workforce structure it raises.
JEL: O30, O18, D60, L31.
... The centrality weight γ indicates the most attractive place in term of market (Harris, 1954;Reilly, 1929). For discussion and estimation of μ and γ see Appendix A. For a summary of spatial interpolation procedures and associated assumptions, see Figure C1 in Appendix C. Lastly, a third indicator is derived by replacing distance D ij with travel time T ij . ...
Purpose
This study aims to identify the location of regional growth poles in Vietnam.
Design/methodology/approach
A potential gravity model is constructed to estimate how attractive a location is in relation to other locations within a specifically defined region using spatial interpolation tools.
Findings
We present the calculated and visualized potential gravitational energy (or attractiveness) for every province showcasing regional growth poles in Vietnam.
Research limitations/implications
Graphical evidence need to be supported by statistical analysis to establish causal effects of driving factors on growth measures.
Originality/value
This is the first study to use a potential gravity model to study growth poles in Vietnam.
... Extensive research has been carried to evaluate industrial localisation, with several methods developed to quantify trade preferences [33][34][35]. However, these studies are based on aggregated, coarse-grained data, effectively inhibiting and limiting the analysis of the structural, systemic features of trade among businesses and firms. ...
The trade distance is an important constraining factor underpinning the emergence of social and economic interactions of complex systems. However, agent-based studies supported by the granular analysis of distances are limited. Here, we present a complexity method that places the actual geographical locations of individual firms in Japan at the epicentre of our research. By combining methods derived from network science together with information theory measures, and by using a comprehensive dataset of Japanese inter-firm business transactions, we evaluate the effects of spatial features on the structural patterns of the economy. We find that the normalised probability distributions of the distances between interacting firms obey a power law like decay concomitant with the sizes of firms and regions. Furthermore, small firms would reach large distances to become customers of large firms, while trading between either only small firms or only large firms tends to be at smaller distances. Furthermore, a time evolution analysis suggests a reduction in the overall average trading distances in last 20 years. Lastly, our analysis concerning the trading dynamics among prefectures indicates that the preference to trade with neighbouring prefectures tends to be more pronounced at rural regions as opposed to the larger central conurbations.
... Since the influence of the industrial structure of core cities on spillovers is our focus, we measured separately the market potential of the core city to the non-core city. Following Harris (1954) and Black and Henderson (2003), MPCC and MPAC are defined as: ...
By integrating the literature on urban specialization and externalities, this paper proposes that the industrial sector is likely to reduce regional inequality between core cities and surrounding small and medium-sized cities through its effects on city size, while core cities that focus on these advanced producer services (APS) contribute to greater regional inequality. The mechanisms by which the industrial sector influences regional inequality are examined using China’s regional systems. The results support the hypothesis that large core cities with a high concentration of manufacturing reduce regional inequality through positive local spillover effects. On the other hand, cities with a high concentration of high value-added services have lower spillover effects, which in turn increases regional inequality.
The paper seeks to adapt methods of national and regional beta and sigma convergence from socio-economic sciences to a spatial framework. The process of reducing disparities in accessibility levels is commonly linked with the concept of territorial cohesion. We dynamically explore this concept by integrating economic terminology and applying it within a spatial context. This is accomplished through the utilization of beta and sigma accessibility convergence indices at both national and regional levels. We further extend the potential accessibility-based territorial cohesion index by using absolute and relative approaches. Accessibility indices are calculated for Germany, France, Spain, Poland, and Romania, covering six decades and various decay parameters (half-lives) from 1960 to 2020. Our analysis uncovers significant variations among the countries in terms of the pace, phases, direction, and underlying causes of both national (inter-country) and regional convergence processes. The approach presented serves as a model for dynamic, comparative analyses of accessibility changes across countries, examining both national convergence in potential accessibility and regional convergence in its diversity over the long term. It also provides a robust foundation for further research into phenomena such as club accessibility convergence, the impacts of cohesion policy, and the interplay between European spatial and transport policies and national strategies of major EU countries in shaping accessibility dynamics and regional development.
Since the 1970s, under the impetus of scholars such as Lefebvre, Foucault, Harvey, Gidens, Castels, and Bourdieu, space has become a central concept in sociology. Spatial sociology has developed as an important branch of sociology.
The urban knowledge network in China has undergone in-depth development in recent decades, intimately connecting the position characteristics of cities in the knowledge network to their knowledge production performance. While existing research focuses predominantly on the unidirectional relationship between network position and the knowledge production of cities, there is a notable dearth of studies exploring the bidirectional relationship between the two constructs. By proposing a conceptual framework, this paper empirically examines the interplay between network position and knowledge production of cities through simultaneous equation models. The results revealed a mutually reinforcing relationship between network position and knowledge production, and this relationship exhibits heterogeneous characteristics and spillover effects. Specifically, cities in the periphery block and the central-western region benefit more from the effect of network position on knowledge production, while cities in the core block and the eastern region benefit more from the effect of knowledge production on network position. Moreover, the interactive effect between network position and knowledge production of cities is significantly affected by the network position characteristics and knowledge production performance of their neighboring cities in geographically adjacent regions and relationally adjacent regions. These findings enhance the understanding of urban network externalities and the connotations of the knowledge production function.
Regions and industries are not isolated islands; so, when evaluating productivity growth, regional and sectoral growth paths should not be expected to generate independently. Moreover, accounting for spatial interactions via econometric models has become normal practice; but modelling interindustry dependencies has not. Thus, we expand labour productivity econometric convergence models by introducing interindustry spillovers in addition to spillovers that are spatial in nature. To illustrate our findings, we present an empirical application predicated upon Galicia (extreme northwest Spain), a region posing major challenges to such modelling. Our results point to the relevance of interindustry spillovers in explaining productivity growth. Furthermore, the approach allows us to better interpret covariates that explain the different growth paths across regions and industries, thus enabling more reliable policy recommendations. We find that interindustry dependencies transmit productivity shocks across regions. In addition, our results suggest that spatial and interindustry dependencies should be considered when formulating (sub)regional economic development policies. Finally, our approach corrects possible mis-specification problems that arise from data scarcity. This makes it a viable alternative for multiregional econometric tests in which some sectoral detail is needed. It is particularly useful for sets of regions where data needed to populate such models is scarce.
Among the properties describing the behavior of centrality measures with respect to network modifications, score monotonicity means that adding an arc increases the centrality score of the target of the arc; rank monotonicity means that adding an arc improves the importance of the target with respect to the remaining nodes. It is known (Boldi and Vigna Intern Math 10:222–262, 2014, Boldi et al. Netw Sci 5(4):529–550, 2017) that score and rank monotonicity hold in directed graphs for almost all the classical centrality measures. In undirected graphs one expects that the corresponding properties hold when adding a new edge—in this case, both endpoints of the new edge should enjoy the increase in score/rank. However, recent results (Boldi et al. in Netw Sci 11(3):1–23, 2023) have shown that this is not true: for many centrality measures, it is possible to find situations in which adding an edge reduces the rank of one of its two endpoints. In this paper we introduce a weaker property for undirected networks, semi-monotonicity, in which just one of the two endpoints of a new edge is required to enjoy score or rank monotonicity. We show that this property is satisfied by closeness centrality, by a large class of distance-based centralities, and (somehow surprisingly) by betweenness centrality. In the last two cases, we prove in fact a stronger property, basin dominance, which is of independent interest.
This chapter reviews past scholars’ understanding and definitions of transportation accessibility and proposes a definition of transportation accessibility. On this basis, a method for evaluating transportation accessibility is established, and finally, a case application of the proposed transportation accessibility evaluation method is conducted.
ZET Ekonomik gelişmenin ülkeler ölçeğinde izlemiş olduğu yollar çeşitli yaklaşımlarla ele alınmaktadır. Toplumların gelişiminde tarihin, yerleşilen bölgenin, daha geniş anlamda coğrafya gibi etkenlerin hangi düzeyde etkili olduğu gibi sorunların "yeni ekonomik coğrafya" kapsamında ele alındığı bilinmektedir. Yatırımların bölgeler ölçeğinde nasıl dağıldığının ve oluşan katma değerin ekonomik kalkınma açısından yarattığı faydanın nedenleri literatürde sıkça tartışılmaktadır. Bu çalışmada "yeni ekonomik coğrafya" yaklaşımı çerçevesinde Trak-ya'daki iller arası farklılıkların nedenleri tartışılacaktır. Bölgedeki üretim merkezlerinin toplulaşması, coğrafi dağılımının nedenleri ve iller arası farklılara olan etkisi araştırma kapsamında sorgulanmaktadır. ABSTRACT The paths of economic development in country scales have been questioning by many different scientific approaches. The impact levels of history, located region, by broader means geography for development of the communities are studying under the "new economic geography" phenomenon. The distribution of investments in regional scale and the reasons of created values and their benefits for the economic development are still debating in the economics literature. In this study, the regional distinctions in Trakya region will be argued under the "new economic geography" circumstances. The production facility agglomeration and facts of geographical allocation both influence on regional divergences is questioning in the study.
We re‐examine the respective role of local density and local concentration of human capital in the agglomeration gains for about 750,00 individuals working in 304 commuting zones of metropolitan France over the period 2009–2015. Agglomeration gains are mostly driven by human capital effects over this period. Also, because it absorbs dynamic learning effects, the use of worker fixed effects to address spatial sorting of individuals may underestimate, by about two third, the wage premium with respect to local concentration of human capital over a midterm period. Finally, wage gaps stem more from differences in human capital in the private sector than in the public sector. We do not find evidence of a multiplier effect of public employment on local human capital externalities in the private sector.
We develop a theory of non-monetary costs incurred by chief executive officers (CEOs) when deciding about layoffs and test its predictions on French data. Our results support the idea that, being embedded in their social environment, CEOs find it more difficult to fire employees closer to their own workplace. This effect is stronger whenever social interactions are less anonymous in the CEOs’ local environment. It is weaker when CEOs live further away from where they work, because of limited exposure to local discontent.
Demographic changes such as a decline in the labor force and increase in the elderly population in Japan since 2005 have not been uniform across regions. These population dynamics are issues of concern because such dynamics restrain regional industries and impede the regrowth of regional economies in Japan. Based on the degree of depopulation, we divide the time span from 2005 to 2030 into periods of mild (2005–2015) and rapid (2015–2030) depopulation. This demographic change has a significant impact on primary and food/beverage industries. The domestic supply of Japan’s primary and food/beverage industries declined between 2005 and 2015 during the period of mild depopulation. In this chapter, we evaluate the impacts of the decline in labor force, domestic market, and total-factor productivity (TFP) on the primary and food/beverage industries and regional and international economies during mild and rapid depopulation periods. As a countermeasure to the rapid decline in population and TFP in Japan’s declining population society in 2015–2030, the policies of demand-side consumption tax reduction and supply-side new agro-based food industry clusters with digital technology are proposed, and their economic effects are empirically analyzed using the four-region computable general equilibrium (4SCGE) model. We found that the long-term sustainable economic development of primary and food/beverage industries and regional economies under rapid depopulation requires a demand-side consumption tax reduction policy to stimulate short-term domestic demand as well as a supply-side new agro-based food industry cluster policy under the digital technology transformation (DX) to expand long-term domestic production.
Japanese Foreign Direct Investment (FDI) increased sharply in the late 1980s and early 1990s, especially since the JPY appreciation following the Plaza Accord in 1985. During this time, the globalization of Japanese firms rapidly progressed. Before this, most Japanese FDI was located in the USA and European Union; Japanese FDI to East Asia proliferated after the Accord. This chapter assesses the determinants of global and regional plant locational choice using microlevel data on Japanese multinational firms located worldwide, focusing on East Asia, especially China. From the results, combined survey responses of Japanese firm managers with the empirical estimation of location choice in the Japanese electrical and electronics industry since 1986, we found that real wage, market potential, and agglomeration variables play important roles in location choices of Japanese manufacturers in East Asia and China.
In this chapter, an empirical analysis using the new economic geography (NEG) model will be conducted to examine the relationship between market access (MA), supplier access (SA), industrial agglomeration, and overseas location of final and intermediate goods production sites for Japanese automotive multinational firms (MNFs) in the processing and assembly industry and Japanese food and beverage MNFs in the lifestyle-related-type industry in East Asia. In doing so, first, we conducted the conditional logit estimation of location choice of Japanese automotive MNFs in East Asia countries including China (mainland), Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam after calculating the market access and supplier access data using the bilateral trade data from 1995 to 2009 in East Asia. From the estimated results, we found wage rate, infrastructure, and market access as demand factor and supplier access as supply factor and vertical and horizontal agglomerations, which show agglomeration economy, have affected FDI of final and intermediate goods production sites for Japanese MNFs in East Asia for 1995–2009. Furthermore, comparing the period 1995–2000 with the period 2001–2009 for final and intermediate goods production sites for Japanese automotive MNFs, we found that the sign condition for domestic SA for period 1995–2000 was negative, but the sign condition for domestic SA for period 2001–2009 was positive, because the supplier access to intermediate goods increases over time in East Asia for this period. In addition, the sign condition for neighboring countries SA for two periods was positive and these results were statistically significant. Second, we present an analysis of the determinants of overseas location choices of the Japanese agro-based food industry’s MNFs’ production sites in East Asia for 1985–2009 using the conditional logit model based on the NEG model. Especially, two periods—1985–1999 (weak agglomeration period) and 2000–2009 (strong agglomeration period)—were the focus of the degree of agglomeration of Japanese food MNFs in East Asia and the overseas locations of all-goods and final goods production sites. Finally, we analyzed the determinants of overseas location choices of the Japanese beverage MNFs’ production sites in East Asia over the 1995–2009 period using the conditional logit model based on the NEG model and obtained similar location factor results to those for Japanese food products.
The purpose of this chapter was to offer an empirical investigation of spatial concentration, the spatial correlation between wages and market potential, and agglomeration externalities for production in Japan’s manufacturing industry across prefectures for 1980–2000. In the first part of this chapter, we measure the spatial concentration and agglomeration indices using Ellison and Glaeser (J Polit Econ 105(5):898–927, 1997), Maurel and Sedillot (Reg Sci Urban Econ 29:575–604, 1999), and Devereux et al. (Reg Sci Urban Econ 34:533–564, 2004) in Japan’s manufacturing industries for 1980–2000. Then, we found that the most agglomerated industries are traditional industries, industries with natural advantages, and some high technology industries, and the patterns of the most and least agglomerated industries reveal similar in the USA and UK. In the second part of this chapter, from the perspective of the demand side of the spatial economy, we examine the spatial correlation between wages and market potential to see whether regional demand linkages contribute to spatial agglomeration, that is, a market-potential effect. Then, we found the existence of a positive spatial correlation between wages and market potential, that is, a market-potential effect in some industries with high agglomeration over this period. In the last part of this chapter, from the perspective of the supply side of the spatial economy, we examine that agglomeration externalities on production exist in Japan’s manufacturing industry for 1985–2000, using a flexible translog production function and data on Ellison–Glaeser index. In other words, we scrutinize the existence of agglomeration effect in Japan’s manufacturing industry for this period. Then, we found the existence of a positive weak agglomeration effect for production and scale economies in Japan’s manufacturing industry over this period.
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