Does Proximity Matter in the Choice of Partners in Collaborative R&D Projects? – An Empirical Analysis of Granted Projects in Germany
Mirko Titze, Philipp Marek, Ulrich Blum, Clemens Fuhrmeister
IWH Discussion Papers,
No. 12,
2014
Abstract
This paper contributes to the discussion on the importance of physical distance in the emergence of cross-region collaborative Research and Development (R&D) interactions. The proximity theory, and its extensions, is used as a theoretical framework. A spatial interaction model for count data was implemented for the empirical analysis of German data from the period from 2005 to 2010. The results show that all tested proximity measurements (geographical, cognitive, social and institutional proximity) have a significant positive influence on collaboration intensity. The proximity paradox, however, cannot be confirmed for geographical, social and institutional proximity, but for cognitive proximity.
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Interbank Lending and Distress: Observables, Unobservables, and Network Structure
Ben Craig, Michael Koetter, U. Krüger
Deutsche Bundesbank Discussion Paper, No. 18/2014,
No. 18,
2014
Abstract
We provide empirical evidence on the relevance of systemic risk through the interbank lending channel. We adapt a spatial probit model that allows for correlated error terms in the cross-sectional variation that depend on the measured network connections of the banks. The latter are in our application observed interbank exposures among German bank holding companies during 2001 and 2006. The results clearly indicate significant spillover effects between banks’ probabilities of distress and the financial profiles of connected peers. Better capitalized and managed connections reduce the banks own risk. Higher network centrality reduces the probability of distress, supporting the notion that more complete networks tend to be more stable. Finally, spatial autocorrelation is significant and negative. This last result may indicate too-many-to-fail mechanics such that bank distress is less likely if many peers already experienced distress.
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Determinants of Foreign Technological Activity in German Regions – A Count Model Analysis of Transnational Patents (1996-2009)
Eva Dettmann, Iciar Dominguez Lacasa, Jutta Günther, Björn Jindra
Abstract
This paper analyses the determinants of spatial distribution of foreign technological activity across 96 German regions (1996-2009). We identify foreign inventive activity by applying the ‘cross-border-ownership concept’ to transnational patent applications. The descriptive analysis shows that foreign technological activity more than doubled during the observation period with persistent spatial heterogeneity in Germany. Using a pooled count data model, we estimate the effect of various sources for externalities on the extent of foreign technological activity across regions. Our results show that foreign technological activity is attracted by technologically specialised sectors of regions. In contrast to existing findings this effect applies both to foreign as well as domestic sources of specialisation. We show that the relation between specialisation and foreign technological activity is non-linear and that it is influenced by sectoral heterogeneity. Externalities related to technological diversification attract foreign R&D only into ‘higher order’ regions.
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The Social Capital Legacy of Communism-results from the Berlin Wall Experiment
Peter Bönisch, Lutz Schneider
European Journal of Political Economy,
No. 32,
2013
Abstract
In this paper we establish a direct link between the communist history, the resulting structure of social capital, and attitudes toward spatial mobility. We argue that the communist regime induced a specific social capital mix that discouraged geographic mobility even after its demise. Theoretically, we integrate two branches of the social capital literature into one more comprehensive framework distinguishing an open type and a closed type of social capital. Using the German Socio-Economic Panel (GSOEP) we take advantage of the natural experiment that separated Germany into two parts after the WWII to identify the causal effect of social capital on mobility. We estimate a three equation ordered probit model and provide strong empirical evidence for our theoretical propositions.
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Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap
Boris Hirsch, Marion König, Joachim Möller
Scottish Journal of Political Economy,
No. 4,
2013
Abstract
In this paper, we investigate regional differences in the gender pay gap both theoretically and empirically. Within a spatial model of monopsonistic competition, we show that more densely populated labour markets are more competitive and constrain employers’ ability to discriminate against women. Utilizing a large administrative data set for western Germany and a flexible semi-parametric propensity score matching approach, we find that the unexplained gender pay gap for young workers is substantially lower in large metropolitan than in rural areas. This regional gap in the gap of roughly 10 percentage points remained surprisingly constant over the entire observation period of 30 years.
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Geoadditive Models for Regional Count Data: An Application to Industrial Location
Davide Castellani
ERSA conference papers,
2012
Abstract
We propose a geoadditive negative binomial model (Geo-NB-GAM) for regional count data which allows us to simultaneously address some important methodological issues, such as spatial clustering, nonlinearities and overdispersion. We apply this model to study location determinants of inward greenfield investments occurred over the 2003-2007 period in 249 European regions. The inclusion of a geoadditive component (a smooth spatial trend surface) permits us to control for spatial unobserved heterogeneity which induces spatial clustering. Allowing for nonlinearities reveals, in line with theoretical predictions, that the positive effect of agglomeration economies fades as the density of economic activities reaches some limit value. However, no matter how dense the economic activity becomes, our results suggest that congestion costs would never overcome positive agglomeration externalities.
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Natural-resource or Market-seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries
K. Gonchar, Philipp Marek
HSE Working Papers, Series: Economics, WP BRP 26/EC/2013,
2013
Abstract
This paper analyzes the spatial distribution of foreign direct investment (FDI) across regions in Russia. Our analysis employs data on Russian firms with a foreign investor during the 2000-2009 period and links regional statistics in the conditional logit model. The main findings are threefold. First, we conclude that market-related factors and the availability of natural resources are important factors in attracting FDI. Second, existing agglomeration economies encourage foreign investors. Third, the findings imply that service-oriented FDI co-locates with extraction industries in resource-endowed regions.
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Natural-resource or Market-seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries
K. Gonchar, Philipp Marek
IWH Discussion Papers,
No. 3,
2013
Abstract
This paper conducts an empirical study of the factors that affect the spatial distribution of foreign direct investment (FDI) across regions in Russia; in particular, this paper is concerned with those regions that are endowed with natural resources and market-related benefits. Our analysis employs data on Russian firms with a foreign investor during the 2000-2009 period and linked regional statistics in the conditional logit model. The main findings are threefold. First, we conclude that one theory alone is not able to explain the geographical pattern of foreign investments in Russia. A combination of determinants is at work; market-related factors and the availability of natural resources are important factors in attracting FDI. The relative importance of natural resources seems to grow over time, despite shocks associated with events such as the Yukos trial. Second, existing agglomeration economies encourage foreign investors by means of forces generated simultaneously by sector-specific and inter-sectoral externalities. Third, the findings imply that service-oriented FDI co-locates with extraction industries in resource-endowed regions. The results are robust when Moscow is excluded and for subsamples including only Greenfield investments or both Greenfield investments and mergers and acquisitions (M&A).
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Human Capital Mobility and Regional Convergence
Lutz Schneider, Alexander Kubis
Regional Studies,
2012
Abstract
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