This paper sets up a two country monopolistic competition model with intra-industry trade to study the effects of an exogenous differential in wage and social policies on the location of industry. Two model scenarios are considered. In the traditional one with physical capital, such a differential induces a relocation effect which increases with the level of trade integration. The ‘new economic...

A large body of research has established a positive connection between an industry’s productivity and the magnitude of its presence within locally defined geographic areas. This paper examines the extent to which this relationship can be explained by a micro-level underpinning commonly associated with productivity: establishment scale. Looking at data on two-digit manufacturing across a sample ...

This paper studies the role of land as a factor of production in a simple monopolistic competition model of trade and geography. Overall we find that land for production is a powerful dispersion force. More specifically, we show that, in contrast to the new trade literature, a larger country will have lower wages, in general. Moreover, allowing for labor mobility, we show that agglomeration is ...

This paper has two goals. First, to provide an accurate characterisation of the new small firm in Scotland by reference to markets, finance, costs, business strategy, human capital, internal organisation and technical change. Second, to use these same features to discover salient differences between small firms which either survive or close, two or three years after inception. The empirical evi...

Using administrative data from firms in Australia that conduct research and development (R&D), we examine how R&D activity of other firms and public institutions affect a firm’s own R&D expenditure. We distinguish between the impact of peers, suppliers and clients. We examine whether geographical proximity and industrial clustering affect R&D spillovers. Overall, we detect positive effects on R...

The modifiable areal unit problems (MAUP) is a problem by which aggregated units of data influence the results of spatial data analysis. Standard GWR, which ignores aggregation mechanisms, cannot be considered to serve as an efficient countermeasure of MAUP. Accordingly, this study proposes a type of GWR with aggregation mechanisms, termed area-to-point (ATP) GWR herein. ATP GWR, which is close...

Two new problems of bivalent propositional logic are proposed here: firstly, to distinguish the sense of propositions, besides the logical value and secondly, to analyze the ”ponderal” difference between two parts of a proposition: subject-predicate. 1 Relational projections and extensions Let r = (A1, A2, A3, R) be a ternary relation (see [3]). Starting with this, we may define three binary re...

This paper compares the geographic “reach” of knowledge flows from university inventions through two important channels: market contracts (licenses) and non–market “spillovers” exemplified by patent citations. We find that knowledge flows through market transactions to be more geographically localized than those operating through non–market spillovers. Moreover, the differential effects of dist...

We document that the Bay Area rose from 4% of all successful US patent applications in 1976 to 16% in 2008. This is partly driven by the increase in the prevalence of information and communication technology; however, even for patents unrelated to information and communication technology, we see a disproportionate increase in the share of all US patents from the Bay Area. We interpret this to s...

We analyze the internal spatial wage and employment structures of the Czech Republic, Hungary, Poland, Slovenia and Slovakia, using regional data for 1996-2000. A new economic geography model predicts wage gradients and specialization patterns that are smoothly related to regions’ relative market access. As an alternative, we formulate a “Comecon hypothesis”, according to which wages and sector...