Where do foreign firms locate in transition countries? An empirical investigation

Firm-level data sets on foreign manufacturing plants in four Central and Eastern European Countries are used in this paper, to trace their location and estimate the determinants of their choice processes. A nested logit model as developed by McFadden (1974) is used in the analysis. A central focus of the analysis is foreign direct investment (FDI) which is a good indicator of where location of foreign investments is made. Several reasons explain the need for mapping the location of FDI. First of all, it facilitates understanding the real competitiveness of regions and countries in providing location advantages able to complement multi-national enterprises’ (MNE) specific advantages. Secondly, it directly shows the distribution of the benefits usually associated with FDI. Finally, an understanding of FDI location decisions is important for policy makers who believe that MNEs may offer a positive contribution to the economic development of disadvantaged areas and thus correct potential regional imbalances. The main results show that sector specific factors affect the choice of the final location. These unobserved characteristics influence both the determinants and the structure of MNEs location choice process. This paper has been written as a part of the Research Network on “The Impact of the European Integration and Enlargement on Regional Structural Change and Cohesion”, financed by the European Commission through the 5th Framework Programme. The authors are grateful to the other members of the Research Consortium and the participants at the international workshop “Modelling the Entrepreneurial and Innovative Space-Economy” organized by the Tinbergen Institute on 22–23 August 2005 for very helpful comments and suggestions provided on an earlier version of this work.     

The social profitability of rural roads in a small open economy: Do urban agglomeration economies matter?

The effects of a rural roads programme depend on labour mobility, how the programme is financed, and agglomeration economies. If financed by a rural poll tax and cross-price effects and agglomeration economies are sufficiently small, the wage will rise, with some return migration. Taxes on trade act as countervailing distortions, yielding urban households some relief. Rural-urban commuting promotes the exploitation of agglomeration economies; taxes on international trade are then inferior to a poll tax. The change in the value, at producer prices, of the rural sector's net supply vector can be a poor measure of the programme's social profitability.     

The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?

We estimate the respective importance of spatial sorting and agglomeration economies in explaining the urban wage premium for workers with different sets of skills. Sorting is the main source of the wage premium. Agglomeration economies are in general small, but are larger for workers with skills associated with non‐routine job tasks. They also appear to involve human capital accumulation, as evidenced by the change in the wage of workers moving away from denser regions. For workers with routine jobs, agglomeration economies are virtually non‐existent. Our results provide further evidence of spatial density bringing about productivity advantages primarily in contexts when problem‐solving and interaction with others are important.     

Where is urban food policy in Switzerland? A frame analysis

Food is increasingly included on the urban agenda in many countries, and comprehensive food policies have been developed in several cities, but the development of articulate urban food policies is still in its infancy in Switzerland. The goal of this paper is to explore the ways in which food is framed in official policies in Switzerland and thereby gain a better understanding of the potential for the development of urban food policies. The analysis is based on a case study approach focusing on the formal frames of food: reconstructed from official policy documents on agriculture, food, health, environment, and planning, at the federal and the local level. The results show that ‘urban food’ is not a major topic in most policy documents and that the dominant frame of food is economic. There is a clear distinction between the rural and the urban, and there were no frames integrating (rural) food production and (urban) consumption, across the city’s departments, or between the local and the federal level. We can conclude that there is not yet a comprehensive urban food policy in Switzerland. The analysis further allows the nomination of two possible pathways to guide the development of coherent and integrative urban food policies.     

Spatially blind policies? Analysing agglomeration economies and European Investment Bank funding in European neighbouring countries

Policies promoting development need to take into account the fact that globalisation has made space more rather than less important. To take full advantage of agglomeration economies that come with urban concentration, infrastructure plays a key role. For a long time development policies have focused on the provision of infrastructure. In this work, we analyse: first how urban concentration and infrastructure interact with each other for encouraging economic growth; and second whether policies promoting infrastructure have considered the spatial distribution of economic activity. As a case study, we focus on the European Investment Bank (EIB) projects financing infrastructures, for both the European Union and the EU neighbourhood. We perform panel data analysis considering different measures of infrastructure, and we also analyse the EIB projects. Our results suggest a relevant role of connectivity infrastructure (i.e. transport and communications) for agglomeration benefits to take place in European Neighbouring Policy countries. Our results also suggest that EIB funding in ENP countries is mostly country specific and displays no spatial dimension.     

Creating urban platforms — Opportunities and challenges for innovation in commercial real estate development

Current theories on commercial urban development are dominated by the concept of linearity, which does not adequately take into account the demands of adaptation posed by the pace of change in digital developments, a pace that stands in marked contrast to the pace of change in physical developments. In the hi-tech sector, platform ecosystems have been employed to accommodate innovation and change. This paper explores the potential application of platform ecosystem theory to the commercial urban development process, where there is now great uncertainty regarding the future economic implications and societal requirements of physical commercial space. The boundary conditions for value creation in platform ecosystems are as follows: modularity, standardisation, complementarity and connectivity. Each is explored through a survey of key actors in recently completed commercial urban developments. The analysis identifies significant differences in the capacity of public- and private-sector actors to promote the creation of platform ecosystems, particularly in the complementary actions of development participants. Applying an approach to urban development based on a platform ecosystem might offer great opportunities, but will also be limited by the major challenges identified in this paper.     

Where do I go from here? Motivated reasoning in construction decisions

Early stage decisions have the greatest impact on construction projects and so, attention at conception and realization of projects is imperative. Decisions are influenced by actors’ interdependencies, thus, it is important to understand how actors determine meanings of their situations and actions. Meaning is derived from situational cues that are contextually bounded and, through actions, determines decisions’ outcomes via sensemaking. The objectives of this critical essay are to examine the impact of motivated reasoning on sensemaking and, thus, decision-making through scrutinising how actors make sense of projects and contexts to yield meanings. The focus of the discussion is on the human interactional aspects of decisions to examine potential bias, effected through the vague goals held by the actors, and the assumption of rationality, extending to bounded rationality, and how that leads to traps/pitfalls in decision-making. The discussion encompasses the concepts of sensemaking and of motivated reasoning in construction decisions from the perspectives of the dominant logic and the dynamic states of flux in the construction environment – in particular, the aspects of open-mindedness and directional bias, over-optimism, and attitudinal predispositions which impact on motivated reasoning of decision-makers in construction projects. This essay concludes that motivated reasoning, as a bias vector, operates to influence how actors arrive at understandings, reach decisions and behave to generate outcomes. The motivated reasoning perspective gives insight into the nature of decision-making in many project processes and the outcomes achieved.     

How do habitat variability and management regime shape the spatial heterogeneity of birds within a large Mediterranean urban park?

Large urban parks can support a diverse bird community. However, the effects of variability among habitats and of park management on bird assemblages are poorly understood. We studied bird communities within the Yarkon Park, Tel Aviv, the largest urban park in Israel. We examined species richness, abundance and community composition across 20 locations that differ in levels of park management to identify habitat variables responsible for variation in bird richness and composition. Of 91 recorded bird species, 13 were aliens (14%), 4 were urban exploiters (4%), 54 were urban adapters (60%) and 20 were migrants (22%). Management had a significant effect on native bird richness and bird community structure varied among areas with different management regimes. Species richness of all the above species’ groups was lowest in intensively managed areas. Areas with intermediate levels of management had higher or equal richness compared to unmanaged areas. The majority of urban exploiters were found at all locations within the park reaching their highest abundances in intensively managed areas. Species richness of alien birds did not vary across levels of management. Bird species richness was negatively associated with lawn cover and with distance from nearest water source and was positively associated with the number of woody plant species. We suggest that urban parks should be designed such that the heterogeneity of native vegetation is preserved, if we aim to maintain native bird species diversity and minimize urban exploiter and alien species. When lightly managed or unmanaged, urban parks can retain large remnants of sub-natural habitats and can serve as important contributors to the conservation of native biodiversity within a large urban metropolis.     

Partition of pollution between dissolved and particulate phases: what about emerging substances in urban stormwater catchments?

This paper presents results about the occurrence, the concentrations of urban priority substances on both the dissolved and the particulate phases in stormwater. Samples were collected at the outlet of a dense urban catchment in Paris suburb (2.30 km²). 13 chemical groups were investigated including 88 individual substances. Results showed that stormwater discharges contained 45 substances among them some metals, organotins, PAHs, PCBs, alkylphenols, pesticides, phthalates, cholorophenols and one volatile organic compound, i.e. methylene chloride. With respect to the European Water Framework Directive, these substances included 47% of the priority hazardous substances (n = 8), 38% of the priority substances (n = 10). The remaining substances (n = 27) belong to a list of others specific urban substances not included in the Water Framework Directive but monitored during this work. Finally, stormwater quality was evaluated by comparing the substance concentrations to environmental quality standards (EQS) and the particulate content to Canadian sediment quality guidelines. This showed that stormwater was highly contaminated and should be treated before being discharged to receiving waters in order to avoid any adverse impact on the river quality.     

Does spatial configuration matter? Understanding the effects of land cover pattern on land surface temperature in urban landscapes

The effects of land cover composition on land surface temperature (LST) have been extensively documented. Few studies, however, have examined the effects of land cover configuration. This paper investigates the effects of both the composition and configuration of land cover features on LST in Baltimore, MD, USA, using correlation analyses and multiple linear regressions. Landsat ETM + image data were used to estimate LST. The composition and configuration of land cover features were measured by a series of landscape metrics, which were calculated based on a high-resolution land cover map with an overall accuracy of 92.3%. We found that the composition of land cover features is more important in determining LST than their configuration. The land cover feature that most significantly affects the magnitude of LST is the percent cover of buildings. In contrast, percent cover of woody vegetation is the most important factor mitigating UHI effects. However, the configuration of land cover features also matters. Holding composition constant, LST can be significantly increased or decreased by different spatial arrangements of land cover features. These results suggest that the impact of urbanization on UHI can be mitigated not only by balancing the relative amounts of various land cover features, but also by optimizing their spatial configuration. This research expands our scientific understanding of the effects of land cover pattern on UHI by explicitly quantifying the effects of configuration. In addition, it may provide important insights for urban planners and natural resources managers on mitigating the impact of urban development on UHI.     

Very important,yet very neglected: Where do local communities stand when examining social sustainability in major construction projects?

Major construction projects are characterized by a heterogeneous audience of stakeholders who can create severe reputational risk to project organizations when not properly addressed. The inclusion and support that project organizations devote to local communities form a crucial part of a project's delivery and social sustainability considerations, yet this has only recently attracted attention in project studies. To address social sustainability, project managers should reinforce accountability and the inclusion of ‘new voices’ in the project decision-making process. Through mixed-methods research, this paper contributes to the project stakeholder engagement discourse and normative stance of stakeholder theory concerning the role of local communities and examines the ways in which inclusion can provide a response to the sustainability challenges of major projects. Findings suggest means-ends decoupling situations where current project management practices towards communities' engagement are weakly linked to their goals and induced by convergent pressures and reactive mechanisms, thus preventing an inclusive decision-making process.     

What has debt got to do with it? The Valuation of Homeownership in the Era of Financialization

Based on comparative focus group data from Norway, Denmark and England, this article asks why people take on substantial mortgages to become homeowners. It argues that financialization of the housing market has resulted in a widespread investment philosophy at the household level and changed the way people think and talk about “the home”. High levels of mortgage borrowing have become commonplace and are justified by social valuations of owner-occupation based on beliefs around freedom through homeownership. Like previous research, the study shows that homeownership offers social identity, stability and belonging. But, this is wrapped up in an investor’s language, such that the distinction between homes as socially valued living environments and homes as investment objects has become blurred. This makes it difficult – perhaps impossible – for households to assess the risks involved in home purchases.     

Trace elements in stream bed sediments from agricultural catchments (Gascogne region, S-W France): Where do they come from?

The Gascogne region (SW of France) is cultivated for more than 75% of the area. 83 samples of stream bed sediments were collected in three main Gascogne river basins (Gers, Save and Touch, left tributaries of the Garonne river) to evaluate the impact of agricultural practices on trace elements behavior. Eight potential harmful elements (PHE) (Cr, Co, Ni, Cu, Zn, As, Cd and Pb), four reference elements for normalization (Sc, Cs, Al and Fe) and four major elements (Mn, Ca, Mg and P) were considered. The average trace element concentrations in the fine fractions (< 63 µm) are in the decreasing order: Zn > Cr > Ni > Pb > Cu > Co > As > Sc > Cs > Cd. Geochemical investigations and an original approach combining regression analysis and chemical sequential extraction allowed to select the most adequate reference material (regional molasse) and reference element (Cs) for normalization procedure. The enrichment factor (EF) is generally lower than 2.5, particularly for Cr, Ni, Cu, As, Zn; however, 23% of the sampling stations are more contaminated (2.5 < EF < 4.5), particularly for Cd, Pb and Co. The PHE in the Gascogne river sediments are mainly originated from natural weathering processes; nevertheless, anthropogenic contribution could represent up to 34% of the total sediment content. For lead, geochemical and isotopic methods gave very similar anthropogenic contributions (24% and 22%, respectively).The enrichment of Cu, Pb, Zn, Co, As, Ni, Cr was mainly related to global and local atmospheric deposition of industrial emissions and gasoline combustion, and was associated to forested catchments. All PHE's are controlled by clay and oxi-hydroxides minerals. Cd was the only PHE enriched downstream cultivated catchments and this enrichment was linked to Ca and P. This indicates a major origin of Cd from fertilizer inputs and a main control by carbonate minerals.     

How do metro stations integrate with walking environments? Results from walking access within three types of built environment in Beijing

China is in a period of rapid metro system development. However, there are few empirical evaluations of the complex interactions between the local built environment and metro ridership in the Chinese context. In this study, we collected empirical data on the influence of local environmental characteristics on walking access in Beijing. Walking behaviors and built environment perceptions among commuters (N = 495) were collected at six metro stations in three distinctly different physical settings in Beijing—two in hutong, two in danwei, and two in xiaoqu. Participants recorded walking routes from the metro stations until they arrived at their destinations. Evaluations of the built environment were collected using a questionnaire after the participants arrived. Geographic information system was used to map walking routes and code built environment variables. Walking behavior outcomes were measured as walked time from metro exit to participant's destination. ANOVA compared differences between perceived and measured built environment characteristics and walking behaviors among selected neighborhoods. Multiple regression was used to test for associations between the built environment and metro station routes. We found that mean walking time from the metro station to a destination was 8 min. Recreational and office destinations had similar walking times to the metro station as residential destinations. Metro riders in xiaoqu and danwei walked longer distances to their destinations compared to metro riders in hutong. Physical obstacles to crossing streets made walking times longer. Greater connectivity, both perceived and measured, predicted shorter walking times. Local land use is not well integrated into metro station placement in Beijing. Better connectivity, pedestrian-friendly designs and higher building coverage ratio around the metro station might promote easier walking access and have the potential to capture more metro riders.     

Why do individuals engage in collective actions against major construction projects? —An empirical analysis based on Chinese data

Collective actions against major construction projects are becoming common because of the public’s increasing civil rights awareness and environmental consciousness. Thus, it is important to explore the critical factors responsible for collective actions against major construction projects. This study initially developed 25 indicators inducing collective actions based on a comprehensive literature review. An empirical study with 127 samples was conducted using questionnaire surveys and semi-structured interviews from projects located in Central China. Furthermore, ranking analysis and factor analyses were implemented to conclude that collective actions in major construction projects can be explained by a six-dimension critical factor system: benefits to the public, characteristics of project performers, layout of projects, living quality of the public, perceptions of the public, and influence from the authority. This study contributes to government administration for collective actions against major construction projects and serves as a useful reference for further studies of this type.     

How Do People with Disabilities Consider Fire Safety and Evacuation Possibilities in Historical Buildings?—A Swedish Case Study

An exploratory focus group study of people with different types of disabilities, e.g. mobility, visual and auditory, was carried out to explore how evacuation safety in historical buildings can be improved for people with various disabilities. Accounts of real life experiences on how well evacuation routes in historical buildings are adapted to people with different types of disabilities, as well as suggestions for safety enhancing measures, were collected. Some examples of reported problems were level differences on the way to and in evacuation routes for people with mobility impairments. Other examples were problems with orientation for people with visual disabilities and problems with detecting the evacuation alarm signal for people with auditory disabilities. In general the participants expressed different problems and needs depending on their type of disability. A common view amongst all the participants were that organizational parameters concerning evacuation of people with disabilities have to be improved. One conclusion from the study was that there are shortcomings in the physical environment as well as in the organization of evacuation in historical buildings today. This means that emergency evacuation safety must be properly focused on when improving accessibility in historical buildings. Measures must be taken to address the different needs of people with various types of disabilities as well as to make improvements for all user groups.