THE ECONOMIC INTEGRATION OF IMMIGRANTS AND REGIONAL RESILIENCE

This article explores variation in the economic integration of immigrants across U.S. metropolitan areas and tests a basic hypothesis that greater economic integration promotes regional resilience. Here we construct two quantitative indexes of occupational diversity as primary indicators of economic integration and develop a conceptual framework of social, economic, and spatial factors that are likely to shape occupational diversity at the regional scale. We conduct an exploratory quantitative analysis in two steps. First, we model labor market diversity in 2000 with metro level data drawn primarily from the Building Resilient Regions (BRR) database. Next, we use the occupational diversity indexes as dependent variables and assess whether greater occupational diversity among immigrants led to greater economic resilience between 2000 and 2010, as measured by changes in unemployment rate and real wage growth. We find some evidence that immigrants in regions that have more broadly integrated immigrants (across occupations) were relatively more resilient in the face of the economic shocks of the Great Recession.     

REGIONAL ECONOMIC STRUCTURE AND CAPITAL INVESTMENT IN THE BUILT PHYSICAL ENVIRONMENT

ABSTRACT While previous studies have shown that capital stock differences influence regional variations in economic performance, the dynamics by which regional capital differences arise remain poorly understood. This paper investigates the role of industry composition as a factor in regional investment. The scope is limited to nonresidential structures capital. Significant differences in industry investment are shown through analysis of historic trends, capital intensity, and investment determinants using U.S. national data for the period 1954–89. Regional analysis demonstrates that spatial patterns of investment over the period 1977–90 can to a large extent be explained by economic structure, industry production levels, and public infrastructure investment.     

On the efficiency of regional production in Poland, 1976–1982

The aim of this study is the analysis of the factors influencing regional production levels in Poland and of the impacts of the investment expenditure flows on the country's overall economic efficiency. Cross-regional estimates of production functions based on the concept of (spatially immobile) input potentials as well as the analysis of regional bottlenecks hampering production are conducted. Comparisons between the derived regional performance scores and the flows of investments are performed. The results show that not the regions which use production factors more efficiently, but those which dispose of stronger political influences receive most of the investment means; thus, economic and social polarization in space is increased.     

SPATIAL RESPONSES TO FORDIST AND POST-FORDIST ACCUMULATION AND REGULATION

ABSTRACT This paper deals with the political geography of regional economic development under Fordism and its transition to post-Fordism. It summarises international, national and regional trends in Fordist accumulation and regulation. Second, it indicates haw Fordism dissolves and is replaced by a so tar insufficiently perceived and defined "post-Fordism." A general sketch of the political and economic geography for this, perhaps, new stage in capitalist development is put forward. Third, the authors discuss which elements in different institutional and neo-Marxian theories of the state are the most helpful to understand the role of the state under Fordism and the transition to post-Fordism.     

Incorporating demand-side aspects into regional policy: variations in the importance of private investment decision factors across regions

Most regional programs focus on the supply side of regions, emphasizing the attraction conditions offered, such as infrastructure, labor skills, tax incentives, etc. This study analyzes one aspect of the demand side, that is, how investment decisions of private firms are made by asking the question: “Do corporations decide the same way on investments in different parts of the territory?” The paper analyzes the investments of 373 large Brazilian firms during 1996–2004. Based on the investment decisions of these firms, the role of sales, cash-flow, external financing, and working capital is investigated through regression analysis. The regional influence is captured by explanatory variables representing regional and firm characteristics, and by interaction dummies between the region and the main investment determinants. The results indicate significant differences across regions in the importance of investment determinants. This information is important for regional development policy, because different mechanisms should be used in different regions to foster private investments.     

Regional investment incentives in Germany: Impacts on factor demand and growth

The aim of this paper is to analyse the effects of regional investment incentives – a main component of regional policy in West Germany – on regional factor demand (investment and labor), growth and convergence of per capita income for the period 1978 to 1989. Demand for investment and labor arise from a model of cost minimization at given output with a putty-clay production function. The production function allows for regional technical efficiency. To model the output effect on factor demand an auxiliary output function is specified. In estimating the functions attention is given to the short-run dynamics and the long-run behaviour of factor demand by error-correction models. The empirical long-run relationships are then used to simulate the effects of regional investment incentives. In contrast to most studies for other countries the empirical results provide evidence that regional policy in Germany induces not only additional investment but also creates positive employment effects. However, the effects of regional investment incentives on growth and convergence of labor productivity are negligible. Received: October 1996/Accepted: May 1999     

Growth effects of regional policy in Germany: results from a spatially augmented multiplicative interaction model

Private investment subsidies are a key instrument for regional policy making to foster the economic development in lagging regions. In this paper, we analyze their effect on labor productivity growth for German labor market regions for the period from 1994 to 2006. A spatially augmented multiplicative interaction model based on neoclassical growth theory is used, which allows us to assess the marginal effect of regional policy proxied by overall payments of the main German regional development program on the region’s convergence speed conditional on its initial income position as well as policy-related spillovers from its spatial neighborhood. Our results show a statistically significant positive effect of regional policy on labor productivity growth, which increases, the further away the supported region is from its steady-state income level, and the more grants are provided to its geographical neighborhood. The latter effect highlights the existence of positive spatial spillover effects from regional policy in Germany, which enhance the attractiveness of the whole macro region for private sector investments. The additional growth stimulus provided by a 1 % increase in the region’s funding volume is thereby related to an up to 0.3 % gain in terms of labor productivity growth. For regions with the highest initial gaps to steady-state income in the sample distribution, the regional policy stimulus accounts for almost 8 % of the regions’ productivity growth performance.     

Nonlabor income measures of capital intensity versus capital stock measures in estimatingthe determinants of regional labor productivity differentials: The manufacturing sector

This study is concerned with the estimation and explanation of regional differentials in productivity and with nonlabor income per unit of labor is a usable capital intensity proxy in the estimation of Cobb-Douglas production functions. The approach is to estimate labor productivity as a function: first of regional dummy variables and urbanization; second, of these variables plus capital intensity and other production function variables; and third, of all these variables plus labor force characteristics. Large regional labor productivity differentials emerge. Adding capital intensity measured either as capital stock or nonlabor income per unit of labor substantially reduces these differentials. Adding labor force characteristics then completely eliminates the differentials in most instances. At this point, however, it becomes clear that the estimates based on nonlabor income per unit of labor are as good as, if not better than, those based on the capital stock measure. Finally, the productivity disadvantage of the South is related to its low levels of education and unionization.     

A labor market based theory of regional economic development

The Borts and Stein (1964) theory of regional economic growth and development has been widely accepted and discussed in regional economic development literature. Given their assumption that labor demand conditions are invariant between regions and that the labor demand is highly wage elastic, they conclude that regional growth is primarily supply driven and differences in growth among regions arise due to differences in the growth of labor supply assuming that wage elasticity of labor supply is the same across regions. Muth (1968, 1971) claims to have verified the Borts and Steins (BS) conclusion. We propose a regional labor market based model of economic development similar to BS with certain modifications in assumptions and show that the Borts-Stein-Muth (BSM) conclusion is based upon a narrow view of labor demand and supply elasticities. Our theory demonstrates that regional development is mainly labor demand driven once we adopt a broader view of elasticities. The broader view incorporates the direct effect of wages on labor supply and labor demand as well as the indirect effects of wages through changes in inmigration and firms' formations in a region. Received: March 1998/Accepted: August 1998     

Regional economic convergence: Do policy instruments make a difference?

The relationship between public capital, regional output and private sector productivity has been an issue of considerable interest in the regional development literature. There have however been few studies that develop linkages between these issues and the broader literature on economic convergence. This paper presents an innovative methodology to examine the process of regional economic convergence across U.S. states. We examine the effects of economic variables such as human and public capital in the convergence process, and control for business cycle and region specific effects in the analysis. Further, specification problems arising from spatial dependence are also addressed. Results from the empirical analysis show that the speed of convergence is influenced by region specific characteristics and the availability of trained labor in neighboring regions. Received: November 1998/Accepted: March 2000     

A supply-side interregional model of the U.S. manufacturing industry: 1960–78

This paper presents a multiregional simultaneous model of the U.S. manufacturing industry based on the supply-side paradigm, focusing on the behavior of the primary inputs, capital stock and labor force, across the nine Census Regions. The estimated structure shows that the regional investment sensitively responds to the marginal productivity of capital in the respective region relative to the national average, while the net interregional migration basically follows the relative regional wages. As an application, the model is used for evaluating the economic value of migration and analyzing the relationship between the overall national growth and interregional equalization of income.Presented at Ninth Pacific Conference, Molokai, 1985.     

城市形态的理论与方法——探索全面与理性的研究框架

城市形态 (urbanmor phology)作为一门跨学科课题 ,虽然与城市规划和城市设计的密切关系已得到广泛的认识 ,但城市形态的定义 ,研究内容及其方法长期以来在学术领域还未有共识。通过对相关文献的回顾 ,尝试建立新的理论研究框架。在强调以政治经济学 (politicalecono my)为基础的“城市化过程”理论的体系内 ,“形态分析”(morphologicalanalysis)与“环境行为研究” (environmentalbe havior)被强调作为主要的城市形态的分析方法。这一动态与开放的研究框架 ,将抽象的政治与社会经济因素与实体的物质环境、局部的建筑环境与整体的城市联系在一起 ,从而使城市形态研究更趋于理性与客观。同时阐述了建立系统与全面的城市形态研究框架对充实城市规划方法及建立和完善城市设计基础理论有重要的现实意义。     

CREDIT AVAILABILITY AND REGIONAL DEVELOPMENT

ABSTRACT Many economists think financial factors play no role in regional development since it is usually assumed that money can only affect the general level of prices but not the real output, that is, money is neutral to the economic process. According to this traditional view, the banking system is neutral to regional development since it simply allocates scarce financial resources among regions; although it is sometimes acknowledged that it might not be neutral when due to market failure some regional credit markets are isolated. This article argues that banks are never neutral from a regional point of view, since they do not simply intermediate between savers and borrowers, but they also provide credit to let investment and output grow. In particular it is suggested that banks may influence regional development by producing a regional pattern of credit availability that is likely to be spatially unbalanced.     

房地产开发投资水平影响因素研究——北京、上海、天津、深圳房地产投资开发比较研究

近年来,我国大中城市的房地产开发投资水平出现了快速增长的局面,探讨合理的房地产开发投资水平成为目前市场中的热点问题.本文对北京、上海、天津和深圳四城市的房地产开发投资水平进行了定量研究和比较分析.SHTO理论和多元回归模型表明:四城市的房地产开发投资水平受地区人口发展、产业发展和宏观经济发展的影响显著,但是不同城市房地产开发投资水平的影响因素有所不同,相同因素在不同城市的影响效果也有差异.     

Regional investment under uncertain costs of location

Due to political and economic integration, firms face increasing opportunities for locating their activities in countries, regions and cities that provide the best business environment for their specific needs. In our study, we focus on the impact of economic risk and risk preferences upon regional allocation of capital investments. The source of risk stems from the difference in costs of location and the business cycle across regions. Firms are seeking ways to reduce their exposure of regional shocks. As a result, regional concentration of investment of capital is endogenous. A comparative static analysis shows that regional capital allocation depends upon the firm’s risk preferences. Our findings demonstrate the suitability of the two-moment approach with multiple risks as an alternative to the expected utility approach. The impact of changes in distribution parameters, such as the expected costs of location, the variance of costs of location and the correlation between locational costs (or the business cycle), can be fully characterized by the elasticity of risk aversion. Elements of risk preferences beyond risk aversion prove to be important to evaluate regional policies. This insight is of interest for empirical research in regional economics.     

Modelling the regional economic effects of the Danish Great Belt link

Different approaches to modelling the impact of transport infrastructure investment on regional economic development are examined, including production function and economic potential approaches. An integrated modelling approach involving both transport costs and models of regional and interregional economic structure is advocated. This approach is applied to the question of forecasting the regional economic effects of the Danish Great Belt link, a major Danish infrastructure investment, due to open in 1997. These effects are shown to be modest.     

The paradox of unequal regional investment and equal regional economic growth in China

China's policy on Special Economic Zones has attracted increasing flows of direct foreign investment to China. The investment has been very unequally distributed among China's 30 regions.  The article focuses on the regional economic growth as a result of the direct foreign investment in the region and its spillover effects on neighboring regions. The unequal distribution of direct foreign investment should in principle tend to enlarge the regional economic differences. The article, however, shows that this is not the result of the investment.  The empirical findings highlight the impact of direct foreign investment on the Chinese regional economies in transition. Received: November 2000/Accepted: August 2001     

Regulatory governance in the Latin American telecommunications sector

Starting with Chile in the early 1980s, Latin American countries have pushed telecommunications reform to create regulatory environments that encourage private investment, especially foreign investment. I look at trends in 25 Latin American and Caribbean countries during 1980–2001 and construct an index based on the following aspects: autonomy, accountability, clarity of roles and objectives, transparency and participation, and the type of legal mandate that creates a regulatory body. The index shows clearly that, in general, most countries embraced strong regulatory reforms along the lines recommended by experts and practitioners. The index also correlates well with main political, risk, economic and telecommunications variables.     

Does wage differential driven migration continue to exist? Tests on the role of regional economic structure in wage differential driven migration

This paper explores the role of regional economic structure in the wage differential driven migration among the US Metropolitan Statistical Areas for three discrete time periods from 1993 to 2004. Rapidly increasing interregional trade attributes to the restructuring process of production internationally and interregionally. Both trade and migration can contribute to the equilibrium conditions in regional labor markets. When fragmentation increases intra-industry trade (IIT) in interregional trade, do we expect to see the increasing roles of interregional trade toward the equilibrium condition in regional labor markets? Fragmentation may force some production stages to the other regions, in other words, firms may benefit from relocating to the regions where they can minimize labor costs with cheaper wage rates. In this restructuring process, similarities in regional economic structures may increase the volumes of IIT and as a result, we may expect to see the increasing complementary role of trade in factor price equalization to migration. In contrast, when regional economic structures are quite different, migration rather than trade plays more important role in factor price equalization. Consequently, the main flows of interregional migration caused by wage differentials are more likely to be found among the regions where regional economic structures are dissimilar.     

Logistics and economic growth: a panel data approach

Logistics system has been increasingly recognized as one of the important driving forces for economic growth. This paper investigates the long-run relationship between logistics investment and economic growth, using a dataset covering 30 provinces over the period from 1998 to 2007 in China. Conditional convergence model with dynamic panel data approach is employed, and the results of System-GMM estimations show a significant and positive impact of logistics investment on regional economic growth in China, controlling for a number of other factors. Considering the immense inequality of regional economic development in China, a comparative analysis of regional economic growth between coastal provinces and interior provinces is also conducted. The results suggest that interior provincial incomes as a system tend to converge, while there is no evidence supporting the convergences of coastal provincial incomes. The findings also show that the contributive role of logistics investment is greater for undeveloped interior provinces than for coastal provinces.