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Open Access
Article
Publication date: 14 October 2022

Boxu Yang, Xielin Liu and Wen Liu

The purpose of this paper is to reveal the paradox between diversification and specialization from a dynamic perspective. More precisely, this paper will analyze the impact of…

Abstract

Purpose

The purpose of this paper is to reveal the paradox between diversification and specialization from a dynamic perspective. More precisely, this paper will analyze the impact of diversification and specialization as well as their interaction on regional innovation in different development stages.

Design/methodology/approach

Based on the principles of new economic geography and innovation geography, data from 30 provinces from 2001 to 2017 was used to explore the relationship. Least squares regressions with fix effect were used to examine the hypotheses.

Findings

The results show that both diversification and specialization have a significant and positive impact on regional innovation. The interaction of diversification and specialization also significantly and positively impacts regional innovation. The effect of industrial agglomeration is heterogeneity under different development stages.

Practical implications

This paper verifies the positive role of diversification and specialization and their interaction in promoting regional innovation. The impact of industrial agglomeration on innovation is dynamic and changes with the regional development process. Emerging economies should make appropriate industrial agglomeration strategies according to their development stages.

Originality/value

This paper introduces diversification, specialization and their interaction into the research framework at the same time to analyze their impact on innovation performance which deepened the research of industrial agglomeration. Taking China as an example, this paper also examines the impact of industrial agglomeration on regional innovation in different development stages that expands the dynamic perspective of industrial agglomeration.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 16 no. 2
Type: Research Article
ISSN: 2071-1395

Keywords

Open Access
Article
Publication date: 28 August 2019

Andres Dominguez

This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not comply with…

1216

Abstract

Purpose

This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not comply with official regulations. This issue is relevant because, similar to other developing countries, the informal sector in Colombia employs more than 50 per cent of the workforce. The results of this study demonstrate that one standard deviation increase in agglomeration reduces by 52 per cent the probability of being informal. Results are consistent with the idea that informal firms benefit less from agglomeration because of legal restrictions that block the relationship with formal firms.

Design/methodology/approach

The objective of the present paper is to estimate the effect of agglomeration on the probability that a firm – given a location – chooses to be informal. The authors deal with endogeneity issues by using soil information related to earthquake risk, which reduces the height of buildings and therefore increases the cost of agglomeration. The analysis focuses on Cali, Colombia, where the informal sector employs 60 per cent of the workforce. The registration of economic activities is used as a criterion to identify informal firms, in such a way that the percentage of informal firms is 42 per cent.

Findings

The authors find that the effect of agglomeration is strongly negative. The probability of being informal diminishes by 52 per cent when agglomeration increases by one standard deviation. Results in this paper shed light on how formal firms tend to be localized in high-density commercial and industrial areas, while informal firms are localized in low-density and peripheral areas where the land for production is cheaper and where they can avoid the control of authorities.

Originality/value

Theory argues that spatial production externalities and commuting costs are among the main forces that shape the city’s internal structure. Externalities include effects that increase firms’ production, and therefore workers’ income, when the size of the local economy grows. The authors now have strong evidence that firms’ productivity is positively related with the volume of nearby employment. Most of the empirical findings concern firms in the formal sector and, accordingly, the literature says little about the effect of agglomeration on informal firms’ location. However, this effect is crucial for developing countries where informal work is the main option for less-educated workers facing unemployment.

Details

Applied Economic Analysis, vol. 27 no. 80
Type: Research Article
ISSN:

Keywords

Open Access
Article
Publication date: 15 November 2018

Wu Fuxiang and Cai Yue

At present, China’s industrial spatial layout faces the predicament of over-agglomeration of Eastern China industries and the near disintegration of industrial structure in the…

1536

Abstract

Purpose

At present, China’s industrial spatial layout faces the predicament of over-agglomeration of Eastern China industries and the near disintegration of industrial structure in the central and western regions. The paper aims to discuss this issue.

Design/methodology/approach

Based on the perspective of differentiated inter-regional labor mobility, this paper constructed a model framework of quadratic sub-utility quasi-linear preference utility function, and conducted model deduction and numerical simulation on causal factors of this spatial imbalance along the two dimensions of individual and regional welfare.

Findings

The study finds that in the long run, industrial spatial layout imposes a certain threshold limit on the portfolio proportion of differentiated labor. The dilemma of China’s industrial spatial layout is attributable to the deviation of the market’s optimal agglomeration from the social optimal agglomeration, and to the disfunction of Eastern China’s role as an intermediary between the global and the domestic value chain.

Originality/value

To resolve this predicament of industrial layout, the unitary welfare compensation based on fiscal transfer payment has to be switched to a more comprehensive approach giving consideration to industrial rebalancing.

Details

China Political Economy, vol. 1 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 22 August 2023

André M. Marques

This paper aims to test three hypotheses in city growth literature documenting the poverty reduction observed in Brazil and exploring a rich spatial dataset for 5,564 Brazilian…

Abstract

Purpose

This paper aims to test three hypotheses in city growth literature documenting the poverty reduction observed in Brazil and exploring a rich spatial dataset for 5,564 Brazilian cities observed between 1991 and 2010. The large sample and the author's improved econometric methods allows one to better understand and measure how important income growth is for poverty reduction, the patterns of agglomeration and population growth in all Brazilian cities.

Design/methodology/approach

The author identifies literature gaps and use a sizeable spatial dataset for 5,564 Brazilian cities observed in 1991, 2000 and 2010 applying instrumental variables methods. The bias-corrected accelerated bootstrap percentile interval supports the author's point estimates.

Findings

This manuscript finds that Brazilian data for cities does not support Gibrat's law, raising the scope for urban planning and associated policies. Second, economic growth on a sustainable basis is still a vital source of poverty reduction (The author estimates the poverty elasticity at four percentage points). Lastly, agglomeration effects positively affect the city's productivity, while negative externalities underlie the city's development patterns.

Originality/value

Data for cities in Brazil possess unique characteristics such as spatial autocorrelation and endogeneity. Applying proper methods to find more reliable answers to the above three questions is a desirable procedure that must be encouraged. As the author points out in the manuscript, dealing with endogenous regressors in regional economics is still a developing matter that regional scientists could more generally apply to many regional issues.

Details

EconomiA, vol. 24 no. 2
Type: Research Article
ISSN: 1517-7580

Keywords

Open Access
Article
Publication date: 23 December 2020

Chen Yang and Tongliang An

By observing facts of the “reversal of agglomeration” of Chinese enterprises during the period of rapid Internet development and using a new economic geography model combined with…

1433

Abstract

Purpose

By observing facts of the “reversal of agglomeration” of Chinese enterprises during the period of rapid Internet development and using a new economic geography model combined with the data of the real estate sector, this paper deduces the influence of the “reshaping mechanisms” of the Internet on China's economic geography based on the “gravitation mechanism” of the Internet that affects the enterprises and the “amplification mechanism” of the Internet that amplifies the dispersion force of house prices.

Design/methodology/approach

In the empirical aspect, the dynamic spatial panel data model is used to test the micromechanisms of the impact of the Internet on enterprises' choice of location and the instrumental variable method is used to verify the macro effects of the Internet in reshaping economic geography.

Findings

It is found that in the era of the network economy, the Internet has become a source of regional competitive advantage and is extremely attractive to enterprises. The rapidly rising house price has greatly increased the congestion cost and has become the force behind the dispersion of enterprises. China's infrastructure miracle has closed the access gap which gives full play to network externalities and promotes the movement of enterprises from areas with high house prices to areas with low house prices.

Originality/value

The Internet is amplifying the dispersion force of congestion costs manifested as house prices and is reshaping China's economic geography. This paper further proposes policy suggestions such as taking the Internet economy as the new momentum of China's economic development and implementing the strategy of regional coordinated development.

Details

China Political Economy, vol. 3 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 25 October 2022

Andrea Valenzuela-Ortiz, Jorge Chica-Olmo and José-Alberto Castañeda

This research investigates the effect of accessibility to points of tourist interest (buffer) and direct and indirect spatial spillover effects of agglomeration economies on…

2840

Abstract

Purpose

This research investigates the effect of accessibility to points of tourist interest (buffer) and direct and indirect spatial spillover effects of agglomeration economies on tourism industry revenues in Spain.

Design/methodology/approach

Data were collected from the Bureau van Dijk's (BvD) Orbis global database. The data were analysed using a spatial econometric model and the Cobb–Douglas production function.

Findings

This study reveals that hotels located inside the buffer zone of points of tourist interest achieve better economic outcomes than hotels located outside the buffer. Furthermore, the results show that there is a direct and indirect spatial spillover effect in the hotel industry.

Practical implications

The results provide valuable information for identifying areas where the agglomeration of hotels will produce a spillover effect on hotel revenue and the area of influence of location characteristics. This information is relevant for hotels already established in a destination or when seeking a location for a new hotel.

Social implications

The results of this study can help city planners in influencing the distribution of hotels to fit desired patterns and improve an area's spatial beauty.

Originality/value

The paper provides insights into how investment, structural characteristics, reputation and location affect hotel revenue.

Details

European Journal of Management and Business Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 31 December 2004

Peter J. Rimmer

New economic geography theorists, who have revived the importance of local roots and highlighted the significance of cities as a source of international competitiveness, have…

154

Abstract

New economic geography theorists, who have revived the importance of local roots and highlighted the significance of cities as a source of international competitiveness, have spurred the global marketing of Incheon. An examination of the new economic geography literature examines the nature of the new localism based on clusters, involving spatial proximity and concentrated face-to-face transaction, agglomeration economies and local knowledge networks. The territorial expression of these ideas is evident in competitive cities and knowledge cities. Both types of cities are embodied in civic attempts to market Incheon as an international city through the development of the international harbor and international airport and a knowledge city at Songdo. As there is no reference to Incheon in the place marketing literature there is a need to market it as Seoul-Incheon and itemize the Capital Region 's key assets and strategic advantages, including logistics and Pentaport - five ports in one - to build a presentation that attracts foreign direct investment and foreign expertise and provokes an energizing debate on the Korean Government's plan to position the country as the hub for international commerce in Northeast Asia. Critics of this place marketing approach designed to make Incheo'} a prosperously middle-class city suggest more evidence is needed before it can be assumed firms locate in cities as a base for export activities to boost their competitiveness. Perhaps there is need to give up the preoccupation with the local focus in cluster analysis and give equal attention to global connections.

Details

Journal of International Logistics and Trade, vol. 2 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 18 June 2019

Lihua Chen, Yi Lu and Rui Zhao

The purpose of this paper is make a significant contribution to the supply chain knowledge system through research on modern supply chain system in China, providing guidance for…

8953

Abstract

Purpose

The purpose of this paper is make a significant contribution to the supply chain knowledge system through research on modern supply chain system in China, providing guidance for theoretical research such as methodology of dynamic resource allocation and application of innovative small- and middle-sized service system in the supply chain.

Design/methodology/approach

The paper uses structural analysis of Chinese competitive advantage, and it applies comparative analysis of supply chain models in China, the USA and Japan through the factor disintegration of trading environment.

Findings

China’s supply chain model has virtual scale and virtual capabilities. The relationship with suppliers is more dynamic. The requirements for resolving uncertainty are higher. Business transfer is more frequent.

Research limitations/implications

Researchers are encouraged to propose the specific supply chain models in China further with the game theory, auction theory, etc.

Practical implications

It provides advice for government policy making and gives Chinese enterprises guidance to improve operation management.

Originality/value

This paper specifically analyzes characteristics of China supply chain and gives enlightenment for supply chain innovation.

Details

Modern Supply Chain Research and Applications, vol. 1 no. 2
Type: Research Article
ISSN: 2631-3871

Keywords

Open Access
Article
Publication date: 30 September 2004

Peter W. de Langen

This paper deals with the performance of port clusters. Port clusters are analyzed using a framework that draws from different schools that deal with clusters (see De Langen…

Abstract

This paper deals with the performance of port clusters. Port clusters are analyzed using a framework that draws from different schools that deal with clusters (see De Langen, 2004). Central to the framework is the identification of eight variables of cluster performance. Four of those-agglomeration and dis-agglomeration forces, internal competition, heterogeneity of the cluster and the level of entry and exit barriers-are related to the structure of a cluster and fourthe presence of trust, the presence of intermediaries, the presence of leader firms and the quality of collective action regimes-are related to the governance of clusters. The validity of these variables is confirmed in three case studies, of the port clusters of Rotterdam, Durban, and the lower Mississippi. The strengths and weaknesses of the three port clusters, the importance of the variables discussed above and opportunities for policy and management to improve the performance of clusters are discussed. The results of this study are relevant for cluster scholars and for scholars specializing in port studies and, since implications of this study for policy and management in (port) clusters are discussed, the study is also relevant for (port) cluster managers and for managers affirms in (port) clusters.

Details

Journal of International Logistics and Trade, vol. 2 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 18 April 2022

Longzhen Ni, Liang Fang and Wenhui Chen

The aim of this study is to depict the spatial pattern of the development level of China's state-owned forest farms, thereby providing theoretical reference and empirical evidence…

Abstract

Purpose

The aim of this study is to depict the spatial pattern of the development level of China's state-owned forest farms, thereby providing theoretical reference and empirical evidence for the improvement of the corresponding development policies.

Design/methodology/approach

A development evaluation index system was established in this paper to comprehensively measure the development level of China's state-owned forest farms based on the Pressure-State-Response (PSR) model analysis framework and the actual situation of state-owned forest farms by using the entropy weight - technique for order preference by similarity to an ideal solution (entropy weight TOPSIS) evaluation method and exploratory spatial analysis method.

Findings

Studies show that the state-owned forest farms in China are generally not well developed. The pressure system that represents the input level displays an apparent restrictive effect on provinces whose comprehensive score <0.15. The response system, which represents development dynamism, has an apparent restrictive function on the provinces whose comprehensive score is 0.35. In terms of the specific spatial characteristics, the V-shape displayed by southwest–northwest and southeast–northwest has an inward trend of gradual reduction, with high-low agglomeration and low-low agglomeration correlation effects as well as apparent basin characteristics.

Originality/value

In this paper, the development level and spatial pattern of state-owned forest farms in China were accurately depicted, and the development path support and decision-making basis were provided for improving the overall development level of state-owned forest farms in China.

1 – 10 of 288