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G04-O3 Location of economic activity

Tracks
Ordinary Session
Wednesday, August 29, 2018
4:30 PM - 6:00 PM
WGB_G18

Details

Chair: Toshiharu Ishikawa


Speaker

Prof. Luiz Carlos de Santana Ribeiro
Assistant Professor
Federal University of Sergipe

Productive specialization and spatial spillovers of the industrial sector in Brazilian municipalities

Author(s) - Presenters are indicated with (p)

Luiz Carlos Ribeiro (p), Weslem Rodrigues Faria , Thiago Henrique Lopes

Abstract

This paper aims to study the spatial effects of industrial development in Brazilian municipalities. Given that industry can be the engine of growth, this article contributes to identify spatial patterns of industrial development in Brazilian municipalities in 2014. To do so, the first step is to create synthetic indicators, through factorial analysis, which summarize a set of information regarding industry in each municipality. Subsequently, the Local Indicators of Spatial Association (LISA) is performed to verify any spatial autocorrelation in the calculated dimensions. The main results show the creation of four dimensions associated with: i) Industrial Specialization; ii) Industry Labour Productivity; iii) Income and Schooling; and iv) Urban Agglomerations. All these indicators present patterns of spatial autocorrelation. LISA indicates the presence of high-high clusters in the South and Southeast regions of Brazil, while in the North and Northeast mainly, there is the presence of low-low clusters.
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Dr. Rafael González-Val
Associate Professor
Universidad de Zaragoza & IEB

The spatial distribution of firms in Aragon (Spain)

Author(s) - Presenters are indicated with (p)

Rafael González-Val (p), Miriam Marcén

Abstract

In this paper, we examine the spatial distribution of firms in Aragon, a NUTS III region in Spain. Aragon is a region located in the northeast of the country, covering an area of 47,719 km2, and including a population of nearly 1.4 million people. Around half of the total population (50%) and firms (46%) are located in Zaragoza, the capital city of the region. We estimate K-densities using the methodology by Duranton and Overman (2005, 2008) to identify different spatial patterns by industry, by using micro-geographic data obtained from the SABI (Sistema de Análisis de Balances Ibéricos) database, which includes data from almost 25,000 firms located in Aragon in 2017. We find significant patterns of localization and dispersion depending on the type of industry.
Dr. Toshiharu Ishikawa
Full Professor
Chuo University

An analysis of effects of general location factors on location and production composition of industrial parks

Author(s) - Presenters are indicated with (p)

Toshiharu Ishikawa (p)

Abstract

Manufacturing firms have fragmented production processes into small blocs to reduce production costs, and they have located the fragmented processes across borders. While, many governments try to attract these small processes into their territory to improve regional economy and change regional economic structure. In this economic situation, industrial park is attractive to both the manufacturing firms and the governments because industrial park provides the factories with appropriate external economies and production and social facilities, and the governments can induce the factories to intended sites in regions.
The paper, first, clarifies that the location of industrial park is not limited to a specific point, but it is settled at arbitrary point within the overlapping area of the Location Prospective Areas of the factories. And then, as the general locational factors, the paper selects freight rate, external economies and labor cost, and corporation tax rate is selected as a key location factor in the globalized economy. The paper analyzes how these location factors influence location and production composition of industrial park. From this analysis the paper derives following results: The change of the freight rate of goods varies location of industrial park: Both the increase and the decease of the freight rate create a cause to move industrial park, and the locational change alters combination of business types of the factories in the industrial park. External economies generated in industrial park influence location and production composition of the park: If contents of external economies provided by industrial park are changed, the location and production composition are also varied. Labor cost has a locational power to move industrial park. The mechanism in which labor cost influences location of industrial park is complicated: Since effect of changing labor cost is offset in a certain range by shifting production composition in the industrial park, slight change of labor cost does not vary the profit level of the factories, consequently, it does not influence the location of industrial park in certain range. But, if the change is large enough to exceed the certain level, it changes location and production composition of the industrial park. Lastly, corporation tax rate of the country plays a role of location factor in firm’s location selection of factory within a country. The increase and decrease of the corporation tax rate change the location and the combination of business types of the factories in the industrial park.
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