Employment,income, migration and public services: A simultaneous spatial panel data model of regional growth*

We estimate a regional spatial panel simultaneous‐equations growth model, using a five‐step new estimation strategy that generalizes an approach outlined in Kelejian and Prucha. The study region consists of the 418 Appalachian counties 1980?2000. Estimates show feedback simultaneities among the endogenous variables, conditional convergence with respect to the respective endogenous variables, and spatial autoregressive lag and spatial cross‐regressive lag effects with respect to the endogenous variables. A key policy conclusion is that sector‐specific programs should be integrated and harmonized and that regionally differentiated development policies may yield greater returns than treating all locations the same. Estimamos un modelo de crecimiento de panel espacial regional por ecuaciones simultaneas, utilizando una nueva estrategia de estimación de cinco pasos que generaliza una enfoque descrito en Kelejian y Prucha. La región de estudio comprende los 418 condados Apalaches 1980‐2000. Las estimaciones muestran simultaneidades de retroalimentación entre las variables endógenas, convergencia condicional con respecto a las variables endógenas respectivas, y un retardo espacial autorregresivo y efectos de retardo regresivos cruzados espaciales con respecto a las variables endógenas. Una conclusión clave sobre políticas es que los programas sectoriales específicos deberían estar integrados y armonizados, y que las políticas de desarrollo diferenciadas regionalmente podrían producir mejores retornos que si se tratasen todas las localizaciones del mismo modo.      

One country,two systems: How regional institutions shape governance modes in the greater Pearl River Delta,China

This paper, which is positioned in the interface of economic geography and institutional economics, studies the spatial aspect of institutions and its relevance for regional economic development in the Greater Pearl River Delta (GPRD). The GPRD consists of Hong Kong (HK) on the one hand, providing an advanced institutional system, and the Pearl River Delta (PRD) in China on the other hand, with its evolving institutional setting. Despite or even because of the ‘one country, two systems’ situation, firms in the GPRD have become established suppliers in the electronics value chain. The paper takes up the challenge of operationalizing and empirically studying the relations of HK firms and PRD producers adapted to regionally specific institutional pattern and demand for flexibility in production using a quantitative approach based in a survey of HK electronic firms and a logit model explaining the relations between HK firms and PRD producers. The analysis reveals that in the course of time, HK firms have used different entry modes as a response to the maturity the institutional setting.