A common theme in economic geography is that increasing returns to scale at the local level are essential for explaining the geographical distribution of economic activity. These agglomerative forces are often cited as a rationale for policy intervention to attract new firms to areas.
Caution to place makers: Greater firm density does not always promote incumbent firm health
William Kerr, Oliver Falck, Christina Günther, Stephan Heblich, 11 February 2013
Why policies may need to be place-based in order to be people-centred
Jose Enrique Garcilazo, Joaquim Oliveira Martins, William Tompson, 20 November 2010
In a recent Vox column “Regional Development Policies: Place-Based or People-Centred?”, Indermit Gill (2010), the World Bank’s Chief Economist for the Europe and Central Asia Region, argues strongly for the “spatially blind” approach to regional development policies advocated by the Bank’s 2009 World De
You can raise productivity through R&D, but geography matters a lot
Sergey Lychagin, John Van Reenen, Margaret E Slade, Joris Pinkse, 25 October 2010
President Obama recently proposed increasing the generosity of the US research and development (R&D) tax credit system and making it a permanent feature of the US tax code. This was justified by the idea that more R&D would lead to growth, not just worldwide but particularly in the US.
But such a bold statement raises some fundamental questions:
Multinational firms, agglomeration, and global networks
Laura Alfaro, Maggie Chen, 8 January 2010
Recent decades have witnessed an explosion in the activities of multinational corporations. Sharp declines in trade and telecommunication costs have led to increasing separation of management and production facilities within individual firms. The rise of multinational firms represents a particularly extreme example of expanding geographic distance between firm leadership and production.
Clustering together abroad: South Korean multinationals in China
Peter Debaere, Joon H. Lee , Myungho Paik, 3 June 2009
Foreign direct investment has played a prominent role in the current wave of globalisation. The World Investment Report (UNCTAD, 2008) notes that total worldwide FDI flows in 2007 amounted to 1.8 trillion dollars. More than 25% of these flows were to developing economies.
Is the new economic geography passé?
Marius Brülhart, 7 January 2009
Long-run spatial inequality in France: Evolution and determinants
Pierre-Philippe Combes, Miren Lafourcade, Jacques-François Thisse, Jean-Claude Toutain, 5 December 2008
This is a very special year for economic geography.
Industrial agglomeration and entrepreneurship
Edward Glaeser, William Kerr, 26 November 2008
Many academics, policy makers, and business leaders stress the importance of local conditions for explaining spatial differences in entrepreneurship and economic development. Behind the rhetoric, however, are many unresolved questions. Why do the plants of many industries group so tightly together? How do these groupings affect the location decisions of entering start-ups?
Natural clusters: Why policies promoting agglomeration are unnecessary
Philippe Martin, Thierry Mayer, Florian Mayneris, 4 July 2008
Policymakers love to promote industrial clusters. Since the end of the 1980s, national and local governments in Germany, Brazil, Japan, South Korea, Spanish Basque country, and France, inter alia, have attempted to foster their development.
- Distilling the macroeconomic news flowBeber, Brandt, Luisi
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
CEPR Policy Research
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí
- Does Supporting Passenger Railways Reduce Road Traffic Externalities?Lalive, Luechinger, Schmutzler
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood
- Austerity: Too Much of a Good Thing?Corsetti