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Book part

Yuxue Sheng and James P. LeSage

We are interested in modeling the impact of spatial and interindustry dependence on firm-level innovation of Chinese firms The existence of network ties between cities…

Abstract

We are interested in modeling the impact of spatial and interindustry dependence on firm-level innovation of Chinese firms The existence of network ties between cities imply that changes taking place in one city could influence innovation by firms in nearby cities (local spatial spillovers), or set in motion a series of spatial diffusion and feedback impacts across multiple cities (global spatial spillovers). We use the term local spatial spillovers to reflect a scenario where only immediately neighboring cities are impacted, whereas the term global spatial spillovers represent a situation where impacts fall on neighboring cities, as well as higher order neighbors (neighbors to the neighboring cities, neighbors to the neighbors of the neighbors, and so on). Global spatial spillovers also involve feedback impacts from neighboring cities, and imply the existence of a wider diffusion of impacts over space (higher order neighbors).

Similarly, the existence of national interindustry input-output ties implies that changes occurring in one industry could influence innovation by firms operating in directly related industries (local interindustry spillovers), or set in motion a series of in interindustry diffusion and feedback impacts across multiple industries (global interindustry spillovers).

Typical linear models of firm-level innovation based on knowledge production functions would rely on city- and industry-specific fixed effects to allow for differences in the level of innovation by firms located in different cities and operating in different industries. This approach however ignores the fact that, spatial dependence between cities and interindustry dependence arising from input-output relationships, may imply interaction, not simply heterogeneity across cities and industries.

We construct a Bayesian hierarchical model that allows for both city- and industry-level interaction (global spillovers) and subsumes other innovation scenarios such as: (1) heterogeneity that implies level differences (fixed effects) and (2) contextual effects that imply local spillovers as special cases.

Details

Spatial Econometrics: Qualitative and Limited Dependent Variables
Type: Book
ISBN: 978-1-78560-986-2

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Article

Ahmet Ali Koç, T. Edward Yu, Taylan Kıymaz and Bijay Prasad Sharma

Domestic supports on Turkish agriculture have substantially increased over the past decade while empirical evaluation of their output impact is limited. Also, the existing…

Abstract

Purpose

Domestic supports on Turkish agriculture have substantially increased over the past decade while empirical evaluation of their output impact is limited. Also, the existing literature often neglects potential spatial spillover effects of agricultural policies or subsidies. The purpose of this paper is to quantify the direct and spillover effects of Turkish agricultural domestic measures and agricultural credits use on the added agricultural value.

Design/methodology/approach

This study applied a spatial panel model incorporating spatial interactions among the dependent and explanatory variables to evaluate the impact of government support and credit on Turkish agricultural output. A provincial data set of agricultural output values, input factors and government subsidies from 2004 to 2014 was used to model the spatial spillover effects of government supports.

Findings

Results show that a one percent increase in agricultural credits in a given province leads to an average increase of 0.17 percent overall in agricultural value-added per hectare, including 0.05 percent from the direct effect and 0.12 percent from the spillover effect. Contrary to agricultural credits, a one percent increase in government supports in a province generates a mixed direct and spillover effects, resulting in an overall reduction of 0.13 percent in agricultural value-added per hectare in Turkey.

Research limitations/implications

This study could be extended by controlling for climate, biodiversity and investment factors to agricultural output in addition to input and policy factors if such data were available.

Originality/value

This study fills the gap in the literature by determining the total effect, including direct and spatial spillover effect, of domestic supports and credits on Turkish agricultural value. The findings provide crucial information to decision makers regarding the importance of incorporating spatial spillover effects in the design of agricultural policy.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 4
Type: Research Article
ISSN: 2044-0839

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Article

Cong Peng and Peng Yuan

China intends to enhance its environmental regulations, which will affect many industries, because of the serious environmental pollution that the country faces. This…

Abstract

Purpose

China intends to enhance its environmental regulations, which will affect many industries, because of the serious environmental pollution that the country faces. This study aims to investigate the influence of environmental regulations on China’s provincial tourism competitiveness.

Design/methodology/approach

A vertical-and-horizontal scatter degree method is used to construct provincial-level tourism competitiveness and environmental regulation indices in China. Thereafter, a spatial econometric model is established to empirically assess the influence of environmental regulations on China’s provincial tourism competitiveness and investigate the spatial spillover effects of environmental regulations.

Findings

Environmental regulations and China’s provincial tourism competitiveness exhibit a “U”-shaped relationship, mainly because of the indirect effects of environmental regulations (spatial spillover effects). The environmental regulation indices of the majority of the provinces have crossed the turning point. Thus, improving environmental regulations has a positive effect on tourism competitiveness. This effect mainly originates from the positive spatial spillover effects.

Social implications

Tourism development plays an important role in promoting economic growth. However, increasing environmental pollution may constrain the development of tourism. Therefore, the possible influence of environmental regulations on tourism development should be understood.

Originality/value

At present, no research has explored the influence of environmental regulations on China’s tourism competitiveness. The current study considers the nonlinear effects of environmental regulations and investigates their spatial spillover effects.

Details

Nankai Business Review International, vol. 10 no. 3
Type: Research Article
ISSN: 2040-8749

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Book part

Fernando Barreiro-Pereira

This chapter analyses some internal territorial and economic conflicts in Spain among its autonomous communities. The Basque country has a very favourable tax system from…

Abstract

This chapter analyses some internal territorial and economic conflicts in Spain among its autonomous communities. The Basque country has a very favourable tax system from 1878, which historically is stipulated in the Spanish constitution as a special case. This generates an asymmetry with respect to the other 18 Spanish communities including Catalonia, which would like to have a fiscal regime similar to that of the Basque country. After the Spanish state has built the fiscal balances for all autonomous communities, the Catalans argue that Spain steals them and they demand independence for Catalonia, which would affect the political and economic stability of the European Union. Specifically, this chapter attempts to describe a way to resolve territorial conflicts that have been exacerbated by the results of the fiscal balances in a context of fiscal decentralisation, since capital stock balances are not considered in the fiscal balances or in the inter-regional balance of payments. In this chapter, a production function approach, where the public capital production factor is separated into internal and imported capital stock, is used to calculate how the capital stock of the transportation infrastructure actually used can affect the labour productivity in each province or region. This study takes into account the direct effects of the capital stock of the road transport infrastructure of a region and the indirect effects that it receives from the use of infrastructures in other regions. Both types of public capital have been calculated by a network analysis, which allows us to calculate the stock of public capital effectively used in commercial activities, across 47 Spanish provinces during the period 1980–2007. The author estimates the spillover effects using spatial panel data techniques including spatial auto-correlation models with auto-regressive disturbances. In terms of labour productivity, the results indicate that the stock of imported capital is highly significant in all estimates while internal capital is not significant for all Spanish provinces, which classifies the Spanish provinces into users and used. This indicates that capital stock balances should be considered in some way into the inter-regional compensation fund to balance local fiscal balances, minimising some conflicts among regions.

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New Frontiers in Conflict Management and Peace Economics: With a Focus on Human Security
Type: Book
ISBN: 978-1-83982-426-5

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Article

Hui Wang and Meiqing Zhang

The large-scale construction of China’s transportation infrastructure has driven the flow of elements between regions, which has provided convenient conditions for the…

Abstract

Purpose

The large-scale construction of China’s transportation infrastructure has driven the flow of elements between regions, which has provided convenient conditions for the accumulation of advantageous resources.

Design/methodology/approach

Based on the panel data of 31 provinces in China in the past 2003-2017 years, this paper applies the spatial econometric model and partial differential method and empirically analyzes the spatial spillover effect of transportation infrastructure on employment in the service industry under four spatial weighting matrices.

Findings

The results show that for every 1 per cent increase in the level of transportation infrastructure, the employment density of the service industry in the region can be increased by 0.1274 per cent. It is worth noting that roads promote the employment of the service industry more than railways and inland waterways. However, inland waterways have not shown positive effects. The results on spatial spillover of transportation infrastructure indicate that railway has obvious promotion effect on the employment level of service industry in the surrounding area, while the highway has hindered the effect. The spatial spillover effect of inland waterway is not obvious.

Originality/value

The value of this paper is to consider the impact of China’s transportation infrastructure on employment in a particular industry, especially in the service industry. The research will help to provide empirical evidence for policymakers. The government needs to invest and build transportation infrastructure based on the stage and development potential of the employment development of the regional service industry.

Details

Kybernetes, vol. 49 no. 11
Type: Research Article
ISSN: 0368-492X

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Article

Li Zhou, Fan Zhang, Shudong Zhou and Calum G. Turvey

The purpose of this paper is to examine the relationships of technical training and the peer effects of technical training with farmers' pesticide use behaviors.

Abstract

Purpose

The purpose of this paper is to examine the relationships of technical training and the peer effects of technical training with farmers' pesticide use behaviors.

Design/methodology/approach

This study uses survey data from 300 peanut growers in Zoucheng County, Shandong, China, in 2016 and employs spatial econometric models to examine the relationships of technical training and the peer effects of technical training with farmers' pesticide use behaviors.

Findings

This paper reveals that important peer effects can be channeled through technical training and that these peer effects are sufficiently significant to encourage neighboring farmers to reduce the amount of pesticide use, to transform the structure of pesticide use, and to increase the usage amount of low-toxicity, low-residue pesticide use per hectare. The estimated parameters for the peer effects from technical training are significantly larger than those from technical training alone, which suggests that the technical training of neighboring farmers plays a greater role than technical training for farmers individually.

Originality/value

The research finds that technical training within smaller, localized, groups can induce previously unobservable spillover effects, and this provides a scientific, theoretical and empirical justification for agricultural technology extension that can lead to a rapid, effective transformation of applying new agricultural technologies in an environmentally sensitive and economically sustainable manner.

Details

China Agricultural Economic Review, vol. 12 no. 3
Type: Research Article
ISSN: 1756-137X

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Article

Wei Yang and Basil Sharp

The New Zealand (NZ) dairy industry faces the challenge of increasing productivity and dealing with public concerns over nutrient pollution. The effective policy needs to…

Abstract

Purpose

The New Zealand (NZ) dairy industry faces the challenge of increasing productivity and dealing with public concerns over nutrient pollution. The effective policy needs to address regional differences in productivity and fertilizer use. The purpose of this paper is to investigate how spatial effects influence the relationship between dairy yields and intensive farming practices across regions in NZ.

Design/methodology/approach

This paper employs spatial panel data models to establish whether unobserved spatial effects exist in the relationship between dairy yields and nutrient inputs regionally and nationally using 2002, 2007 and 2012 data from Statistics NZ and DairyNZ.

Findings

The results show positive spatial spillovers for most intensive inputs. The high level of effluent use and estimated negative yield response to nitrogen suggests that an opportunity exists for greater use of effluent as a substitute for nitrogenous fertilizer. Substitution has the potential to reduce dependence on fertilizer and contribute to a reduction in the nutrient pollution.

Originality/value

This paper is the first empirical application of spatial econometric methods to examine the spatial relevance of dairy yields and intensive farming in NZ. In particular, the spatial panel data model accounts for cross-sectional dependence and controls for heterogeneity. The results contribute to an understanding of how farmers can improve their management of intensive inputs and contribute to the formation of regional environmental policy that recognizes regional heterogeneity.

Details

China Agricultural Economic Review, vol. 11 no. 1
Type: Research Article
ISSN: 1756-137X

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Book part

Badi H. Baltagi, Francesco Moscone and Rita Santos

The objective of this chapter is to introduce the reader to Spatial Health Econometrics (SHE). In both micro and macro health economics there are phenomena that are…

Abstract

The objective of this chapter is to introduce the reader to Spatial Health Econometrics (SHE). In both micro and macro health economics there are phenomena that are characterised by a strong spatial dimension, from hospitals engaging in local competitions in the delivery of health care services, to the regional concentration of health risk factors and needs. SHE allows health economists to incorporate these spatial effects using simple econometric models that take into account these spillover effects. This improves our understanding of issues such as hospital quality, efficiency and productivity and the sustainability of health expenditure of regional and national health care systems, to mention a few.

Details

Health Econometrics
Type: Book
ISBN: 978-1-78714-541-2

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Article

Zheng Li, Jun Li and Bin He

The purpose of this paper is to examine whether foreign direct investment (FDI) inflow impacts on regional innovation efficiency in China and whether the impacts of FDI…

Abstract

Purpose

The purpose of this paper is to examine whether foreign direct investment (FDI) inflow impacts on regional innovation efficiency in China and whether the impacts of FDI are contingent on regional conditions that may maximize the effect of FDI on regional innovation efficiency.

Design/methodology/approach

Using panel data of 30 provinces from 2000 to 2010, the authors first used data envelopment analysis to measure regional innovation efficiency, followed by a spatial panel model to test research hypotheses concerning the effect of FDI on regional innovation efficiency and the direct and moderating effects of regional characteristics such as regional innovation environment, regional absorptive capacity and regional complementary assets.

Findings

The paper finds that there are considerable inter-regional and intra-regional variations in innovation efficiency in China and that regional variations in innovation efficiency in China can first be explained by the differences in inflow FDI and then be accounted for by the direct and moderating effect of regional innovation environment, absorptive capacity and complementary assets.

Research limitations/implications

The research findings have three policy implications. First, governments should continue their efforts to increase the transparency and predictability of the framework for inward FDI and align FDI with the region’s strategic priorities of development to improve innovation efficiency. Second, governments should develop holistic and coherent policies that address the key aspects of regional conditions conducive to the inflow of FDI. Third, governments at the regional level should cultivate an open innovation environment and support the development of financial markets to maximize the positive effect of FDI technology spillover and externalities.

Originality value

This paper fills a gap in research on the spatial heterogeneity characteristics of spillover effects of FDI on regional innovation efficiency.

Details

Chinese Management Studies, vol. 12 no. 1
Type: Research Article
ISSN: 1750-614X

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Article

Nkechi Srodah Owoo

Recent research into enterprise performance has focussed on the importance of firm proximity to total productivity. Using spatial correlation of firm performance as a…

Abstract

Purpose

Recent research into enterprise performance has focussed on the importance of firm proximity to total productivity. Using spatial correlation of firm performance as a proxy for knowledge transfers and diffusion, the purpose of this paper is to examine the evidence for these spatial effects in non-farm enterprise performance in Uganda, across space and time.

Design/methodology/approach

The author uses data from the geo-referenced Uganda National Panel Survey from 2010 to 2012, and employs explicit spatial techniques in the analysis of rural non-farm enterprise performance. Spatial autocorrelation of firm performance are used as proxies for knowledge transfers and information flows among enterprises across space and over time.

Findings

The study finds evidence of spatial spillover effects across space and time in Uganda. This implies that, as existing studies of developed countries have found, social infrastructure and firm proximity contribute significantly to the performance of rural economies, through information exchange and knowledge transfers.

Practical implications

Given the communal nature of rural households in the African setting, knowledge exchange and transfers among neighbouring firms should be encouraged as studies have found they have strong effects on business performance. Additionally, business “leaders” could also be useful in disseminating useful new technologies and applications to neighbouring enterprises in order to boost performance and productivity.

Social implications

There should be better targeting of policy interventions to clusters of particularly needy enterprises.

Originality/value

To the best of the author’s knowledge, this is the first time that spatio-temporal effects of business performance have been explored. While spatial analyses of business performance have been carried out in developed countries, studies using explicit spatial techniques in the developing country setting have been conspicuously absent.

Details

African Journal of Economic and Management Studies, vol. 7 no. 4
Type: Research Article
ISSN: 2040-0705

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