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New Perspectives on Regional Development

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Ce numéro - tiré d'un colloque de la Western Regional Science Association à San Francisco - présente un certain nombre d'avancées récentes dans les analyses du développement régional, concernant en particulier l'évolution des structures et des disparités régionales, la localisation des activités économiques et le rôle de l'éducation et du capital humain. (Numéro en anglais).

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Published 01 May 2011
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EAN13 9782296463028
Language English
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RÉGION ET DÉVELOPPEMENT
n° 33-2011
New Perspectives on Regional Development
L’Harmattan
REVUE RÉGION ET DÉVELOPPEMENT
Revue fondée en 1995 par Gilbert Benhayoun et Maurice Catin
Directeur de la rédaction
Maurice CATIN Laboratoire d’Économie Appliquée au Développement (LÉAD) Université du Sud Toulon-Var. Mél : maurice.catin@univ-tln.fr
Comité de rédaction Michel DIMOU(Université de La Réunion) Mél : dimou@univ-reunion.fr El Mouhoub MOUHOUD(Université de Paris Dauphine) Mél : em.mouhoud@dauphine.fr
Comité scientifique Graziella BERTOCCHI(University of Modena and Reggio Emilia, Italy),Jacques CHARMES(Institut de Recherche pour le Développement, Paris),JuanR. CUADRADO ROURA(University of Alcalà, Madrid, Spain),Gilles DURANTON(University of Toronto, Canada),Patrick GUILLAUMONT(CERDI, Universitéd'Auvergne),Philippe HUGON (Universitéde Paris X-Nanterre),Julie LE GALLO(Universitéde Franche-Comté),Jean-Yves LESUEUR(GATE, Universitéde Lyon 2),Gianmarco OTTAVIANO(Bocconi University and University of Bologna, Ital y),John PARR(University of Glasgow, UK),Mark PARTRIDGE(Ohio State University, USA),David A.PLANE(University of Arizona, USA), Henri REGNAULT(CATT, Universitéde Pau),Sergio REY(Arizona State University, USA),Allen J. SCOTT(University of California, Los Angeles, USA),Khalid SEKKAT (Economic Research Forum, Cairo, Egy pt),Jean-Marc SIROEN(UniversitéParis IX Dauphine),Bernd SÜSSMUTH),(University of Leipzig, Germany Clem TISDELL (University of Queensland, Brisbane, Australia),Heng-fu ZOU(Peking University, Beijing, China and the World Bank, USA).
Revue semestrielle référencée dans ECONLIT
Site web : www.regionetdeveloppement.org
©LHarmattan, 2011 5-7, rue de lÉcole polytechnique, 75005 Paris
http://www.librairieharmattan.com diffusion.harmattan@wanadoo.fr harmattan1@wanadoo.fr
ISBN : 978-2-296-55184-8 EAN : 9782296551848
Région et Développement
n° 33 - 2011
New Perspectives on Regional Development
Guest edited by Sandy DALL’ERBA, Jaewon LIM, Daoqin TONG, David PLANE
Sandy DALL°ERBA, Jaewon LIM, Daoqin TONG, David PLANE Introduction......................................................................................................... 5
Articles SudhirK. THAKUR Fundamental economic structure and structural change in regional economies: a methodological approach..............................................................9
Florence BOUVET What does greater economic integration mean for interregional income inequality? An analysis of OECD countries and regions.......................39
Pierre-Marcel DESJARDINS Regional disparities in Canada: interprovincial or urban/rural?.........................59
Luisa GAGLIARDI and Marco PERCOCO Regional disparities in Italy over the long run: the role of human capital and trade policy...................................................................................................81
Maribel ELIAS and Sergio J. REY Educational performance and spatial convergence in Peru..............................107
Bumsoo LEE and Peter GORDON Urban structure: its role in urban growth, Net new business formation and industrial churn..........................................................................137
Gebremeskel H. GEBREMARIAM, Tesfa G. GEBREMEDHIN, Peter V. SCHAEFFER, Randall W. JACKSON and Tim T. PHIPPS A spatial model of regional variations in employment growth in Appalachia........................................................................................................161
Andi IRAWAN The geographic distribution of Indonesia°s East Java manufacturing industries...........................................................................................................185
Shaoming CHENG and PeterV. SCHAEFFER Evaluation without bias: a methodological perspective on performance measures for business incubators...............................................211
***
Marc-Hubert DEPRET and Abdelillah HAMDOUCH Multiscalar clusters and networks as the foundations of innovation dynamics in the biopharmaceutical industry ...................................................227
***
Review Essay................................................................................................269
Abdelillah HAMDOUCH Investigating cluster emergence and evolution dynamics
Comptes rendus............................................................................................279
Rémy TREMBLAY et Diane-Gabrielle TREMBLAY(dir.),La classe créative selon Richard FloridaUn paradigme urbain plausible ? (parMaurice Catin)
Emmanuel MULLER, Jean-Alain HERAUD, Francis GOSSELIN (éds.),Regards croisés sur la culture d’innovation et la créativité en Alsace (parChristian Le Bas)
Annie VINOKUR et Carole SIGMAN (dir.),L’enseignement supérieur entre nouvelle gestion publique et crise systémique (parJean-Claude Vérez)
__________________Région et Développement n° 33-2011___________________
INTRODUCTION
NEW PERSPECTIVES ON REGIONAL DEVELOPMENT
1 2 Sandy DALL°ERBA, Jaewon LIM , 3 4 Daoqin TONG , David PLANE
The bailout of Greece and the rescue packages many industrialized coun-tries have implemented following the current economic crisis bring to the fore many questions that constitute the bread-and-butter of the regional scientist: Why does a country/a region persistently lag behind? Should national/supra-national governments come to the rescue of the most distressed areas? Ifso, what criteria are used to define those worthy of being rescued from the others? How are the recipient areas going to use the money? Will it promote local de-velopment only or will it spillover to other areas, etc. While the goal of this special issue ofRégion et Développementis not to provide specific answers to the current economic crisis nor the bailout of Greece, it proposes a unique view of the current state of what urban and regional scientists can do when uncover-ing the origin of territorial imbalances of development, accounting for spatial dependences across places and drawing recommendations for dissemination in the policy arena. As such, most of the articles you will find here rely on state-of-the-art techniques that have flourished over the years in the field of regional science.
This special issue is composed of nine papers that could be classified in five parts. The first article is concerned with the identification of a region°s fundamental economic structure. The second and third papers focus on estimat-ing regional convergence at different spatial scales: within an economically integrated block and within Canada. Those are followed by two papers that demonstrate how education plays an important role in explaining regional dis-parities both within Italy and Peru. The sixth and seventh contributions are in-terested in the factors at the origin of uneven distribution in employment growth
1 The University of Arizona, School Geography and Development, Tucson, USA ; Mail : dallerba@email.arizona.edu 2 The University of Arizona, Office of University Research Parks, School Geography and De-velopment, Tucson, USA ; Mail : jlim@email.arizona.edu 3 The University of Arizona, School Geography and Development, Tucson, USA ; Mail : daoqin@email.arizona.edu 4 The University of Arizona, School Geography and Development, Tucson, USA ; Mail : plane@email.arizona.edu
6
Introduction
within various US metropolitan areas and across the Appalachian counties respectively. The next piece that deals with uncovering the factors at the origin of manufacturing location decision in Indonesia. Finally, the last contribution is a research note aiming at developing better measurements of business incuba-tors° performance. Further details on all the contributions are below.
The paper bySudhir Thakurfocuses on the link between regional eco-nomic development and structural change. As economic development takes place the strength and direction of intersectoral relationships change, which leads to shifts in the importance, direction and interaction among economic sectors. As such, the identification of a region°s fundamental economic struc-ture is necessary as it leads to an improved understanding of the space-time evolution of regional economic activities. This paper not only reviews the dif-ferent techniques used to study structural change analysis, but provide also a methodology to identify the fundamental economic structure of a region.
The paper byFlorence Bouvetcontributes to the debate on economic in-tegration and regional convergence. Focusing on four economic integration systems, namely the United States, the European Economic and Monetary Un-ion, the European Union, and the North-American Free Trade Agreement, the paper shows that interregional income inequality is negatively related with the level of economic integration. Further analysis uncovers the extent to which inequality is higher in poor regions, which confirms Kuznet°s inverted U rela-tionship between economic development (measured by the level of per capita income) and regional income inequality.
The work byPierre-Marcel Desjardinsinvestigates whether regional disparities in Canada are interprovincial or urban/rural in nature. In particular, the paper focuses on regional disparities in population growth, income, labor force participation rate, employment rate and population without a high school degree in Canada between 2001 and 2006. Results indicate that urban/rural dis-parities dominate interprovincial disparities in explaining regional disparities in Canada.
The next set of papers focus on the role of human capital.Luisa Gagliardi and Marco Percocotake a fresh look at one of the most studied, classic cases of regional economic disparities: the longstanding development gap between the North and South of Italy. Their long-run (18911951 time-span) econometric modeling deploys a new panel data set to provide evidence that the higher human capital stock in the North provided the prerequisites for early industrialization. Furthermore, they conclude that policies protecting agri-culture resulted in an incentive for the South to specialize further in the primary sector, which hindered development over the longer term. Their work is fol-lowed by the paper ofMaribel Elias and Sergio Rey, which demonstrates that social indicators should be used in addition to economic indicators when it comes to examining regionalinequality and its dynamics in a developing coun-try. Spatial econometric regressions indicate the presence of significant spillo-ver effects and convergence in education and in socioeconomic levels across Peruvian provinces over 19932005.
Région et Développement
7
The following two contributions are mostly interested in the origins of employment growth differentials. Assuch, the paper byBumsoo Lee and Peter Gordoninvestigates the impact of the spatial structure of an urban area (de-fined by dispersion and polycentricity) on employment growth, net new busi-ness formation and ¯industrial churn®. While the authors° previous work re-vealed that in the 1990s more clustering in small metros and more dispersion in large metros were associated with faster employment growth, their current con-tribution is based on the 2000s data. Though ordinary leastsquares regression failed to validate a similar pattern, locally weighted regressions are able to con-firm the links between spatial structure and urban growth found in the earlier paper. In the following paper,G. Gebremariam, T. Gebremedhin, P. Schaeffer, R. Jackson and T. Phippsdevelop and estimate a spatialequilibri-um model of employment growth across the Appalachian counties for 19902000. Besides the existence of spatial spillover effects, the results suggest that agglomerative effects that arise from the demand and the supply side contribute to employment growth. Based on these findings, they recommend counties and communities to cooperate to design policies that support employment growth and/or attract people with high endowments of human capital and high income.
The contribution ofAndi Irawandeals with the spatial distribution of large and medium manufacturing industries in Indonesia°s East Java Provinces. More precisely, it investigates the degree of localization and co-localization, the randomness of the observed localization, and the industrial structure of several cities. His results reveal that differences in technology and scale economies are significant determinants in the localization process of industries. In addition, he finds evidence of agglomeration spillovers by applying the notion of neighbor-hood effects in the frame of a spatial econometric model.
This is followed by the research note ofShaoming Cheng and Peter Schaeffer, which argues that existing performance measures to gauge the effec-tiveness of business incubators suffer from numerous limitations and are often biased, underestimating their effect on entrepreneurship and economic devel-opment in distressed areas. Two approaches for developing more theoretically grounded measures are explored, one based onquasi-experimental ¯matching® procedures and the other on input-output derived ¯relative contributions®.
Putting together this special issue was not solely the work of the guest ed-itors. We are thankful to Michel Dimou, one of the full-time editors ofRégion et Développement, for suggesting us to work on this special issue, the plan for which came together at the 2009 WRSA conference. We have appreciated the strong support he gave us since then. Finally, we extend our special thanks to the members of the Comitéde Rédaction ofRégion et Développementand all the persons who volunteered their time and provided us with the necessary 5 feedbacks to improve thequality of this issue .
5 As such, our special thanks go, in alphabetical order, to Florence Bouvet (Sonoma State Univer-sity, USA), Andrew Cassey (Washington State University, USA), Pierre-Marcel Desjardins (Universitéde Moncton, Canada), Gebremeskel Gebremariam (Virginia Polytechnic Institute and State University, USA), Carolyn D. Guo (United Nations Industrial Development Organization,
8
Introduction
Last but not least, we would like to use this opportunity to dedicate this special issue to Professor Lay James Gibson, and we hope it will come as a surprise to him. Being edited by aquartet of current regional scientists at the University of Arizona in Tucson, this issue reflects the¯Arizona School® of regional development, which owes a substantial portion of its intellectual herit-age to his longtime leadership and promotional efforts on behalf of the field. Lay's applied geographic studies on issues of local economic development have played a major role in building Arizona's international reputation. His entrepre-neurship and leadership in promoting "regional development" as a Bachelor of Science major field of study resulted in our undergraduate geography program developing into the second largest in the United States. For decades Lay has traveled the globe, ceaselessly promoting the cross-cultural collegiality and the multidisciplinary perspectives that have come to be such distinguishing attrib-utes of the spirit of regional science. As one of the early Presidents of the Re-gional Science Association International (RSAI), and as longtime Executive Secretary of the Western Regional Science Association (WRSA), Lay has fos-tered numerous collaborative venturesboth intellectual and socialwith the French-speaking regional science community of scholars. We thus take enor-mous pride and pleasure in dedicating this special issue ofRégion et Dé-veloppement, which was born during discussions at the 2009 Presidential Re-ception at WRSA, to Professor Gibson. So, with a clink of our wine glasses: Santé, Lay!
Austria), Andi Irawan (University of Illinois at Urbana-Champaign, USA), Andrew Isserman (University of Illinois at Urbana-Champaign, USA), Michael Keane (National University of Ireland, Galway, Ireland), Michael Lahr (Rutgers University, USA), Bumsoo Lee (University of Illinois at Urbana-Champaign, USA), Marco Millones (Clark University, USA), Daisuke Naka-mura (Universidad Católica del Norte, Chile), Suahasil Nazara (University of Indonesia, Indone-sia), John Parr (University of Glasgow, the UK), Roberto Patuelli (University of Lugano, Switzer-land), Marco Percoco (Bocconi University, Italy), Maria Plotnikova (Henley University of Read-ing, the UK), Peter Schaeffer (West Virginia University USA), Norbert Schanne (Institute for Employment Research, Germany), Jungyul Sohn (Seoul National University, Republic of Korea), Jean-François Tremblay (University of Ottawa, Canada).
___________________Région et Développement n° 33-2011__________________
FUNDAMENTAL ECONOMIC STRUCTURE AND STRUCTURAL CHANGE IN REGIONAL ECONOMIES: A METHODOLOGICAL APPROACH
/ SudhirK. THAKUR
Abstract:Regional economic structure is defined as the composition and patterns of various components of the regional economy such as: produc-tion, employment, consumption, trade, and gross regional product. Structur-al change is conceptualized as the change in relative importance of the aggregate indicators of the economy. The process of regional development and structural change are intertwined, implying as economic development takes place the strength and direction of intersectoral relationships change leading to shifts in the importance, direction and interaction of economic sectors such as: primary, secondary, tertiary, quaternary and quinary sec-tors. The fundamental economic structure (FES) concept implies that selected characteristics of an economy will vary predictably with region size. The identification of FES leads to an improved understanding of the space-time evolution of regional economic activities at different geograph-ical scales. The FES based economic activities are predictable, stable and important. This paper reviews selected themes in manifesting an improved understanding of the relationship among intersectoral transactions and economic size leading to the identification of FES. The following four ques-tions are addressed in this paper: (1) What are the relationships among sector composition and structural change in the process of economic devel-opment? (2) What are the approaches utilized to study structural change analysis? (3) Can a methodology be developed to identify FES for regional economies? (4) Would the identification of FES manifest an improved con-ception of the taxonomy of economies?
Keywords:STRUCTURAL CHANGE AND FUNDAMENTAL ECONOMIC STRUCTURE.
JEL Classification:DF7, O11, R11
/ College of Business Administration, California State University Sacramento. Thakurs@csus.edu
10
Sudhir K. Thakur
1. INTRODUCTION Economic structure is defined as the composition of various components of the macro aggregates, relative change in their size over time, and its relation-ship with the circular flow of income (Jackson et al., 1990). As regional econo-mies develop from an agricultural, to industrialized and service-sector(quater-nary and quinary sectors) based economies there is an explicit transformation among the intersectoral relationships among industries. The initial concentration of economic interaction is among primary sector activities, and matures to sec-ondary and tertiary sector interaction at later stages of development. Given this perspective the overarchingquestion addressed in this paper is whether there are identifiable patterns of relationships among economic transactions and macroe-conomic aggregates as revealed by input-output tables. Would identification of such patterns allow regional analysts to predict regional change in a statistical sense? What is the methodology to identify fundamental economic structure (FES)? Shishido et al. (2000) studied twenty countries from Asian economies and concluded that if the input coefficients in the Leontief table are partitioned into ®principal,®supportingand®primarygroups, then the second and third groups would in all likelihood change as the economy develops. The first group showed no change in pattern with economic development while the latter two showed changes. This suggests the existence of a fundamental component in the regional economic structure. FES represents those economic activities that are consistently present in regional economies of varying size and complexity with-in a nation. The compilation of input-output table is manpower intensive, ex-pensive and time consuming. If a component of the transaction matrix can be predicted using FES it will save resources in compiling national and regional tables. A survey of structural change analysis has discovered that studies in the relationship linking technical change and economic growth have gained signifi-cance during the 1990s (Silva and Teixeira, 2008). Holland and Cooke (1992) analyzed the regional tables for Washington economy and concluded that changes in output especially in the service sector were driven by international demand. Jensen et al. (1988) and West (2000) utilized a fundamental economic structure (FES) approach to identify predictable cells in the regional tables for Australia. Thakur (2008 and 2010) identified a temporal and a regional FES for the Indian economy. The analysis suggests the existence of FES at different geographical scales. Also, these economic structures are predictable, stable and important. The identification of fundamental cells was based on the assumption that regions exhibited a predictable pattern based on the similarities in regional economies across space and time. The FES approach has been an important milestone in identifying the engines of regional growth. The framework has been utilized to predict the regional tables for economies utilizing times-series and cross-section data on economic structure (West 2000 and 2001). As economic development takes place the nature of interaction among economic sectors undergoes transformation. Jackson et al. (1989) posit a rela-