The Annals of Regional Science

Journal Information
ISSN / EISSN : 0570-1864 / 1432-0592
Current Publisher: Springer Science and Business Media LLC (10.1007)
Total articles ≅ 2,287
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The Annals of Regional Science pp 1-24; doi:10.1007/s00168-021-01050-5

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The Annals of Regional Science pp 1-28; doi:10.1007/s00168-021-01047-0

Abstract:
Over the years, manufacturing in advanced economies has been the object of intense reorganization driven crucially by the international strategies of multinational enterprises (MNEs), and more recently, by technological disruptions powering a new manufacturing model, defined as Industry 4.0 (I4.0). This paper aims to explore firm-based, place-based and global drivers that can determine high levels of companies’ performance in the context of the emerging manufacturing model ‘I4.0’. In particular, our article tests the relative importance of and balance between three determinants of MNEs’ performance: (i) MNEs’ internal operations and R&D capabilities; (ii) reliance on local external economies and co-location with high-value service and technological competence; and (iii) the extent of MNEs’ production in terms of spread across global value chains. We empirically address this issue by surveying top managers of MNEs operating in four advanced manufacturing industries (biotech, engineering, fashion, and new materials) and located in five European countries (Germany, Italy, Spain, Sweden and the United Kingdom). We adopt fuzzy-set qualitative comparative analysis, a configurational, case-oriented approach. MNEs can be highly profitable when they follow different, but equally successful, paths. Our findings shed light on which balance between firm-based, place-based and global drivers positively impacts on companies’ performance in European advanced manufacturing sectors. In particular, we find that companies that collaborate with local suppliers of enabling technologies linked to I4.0 - with regard to the variety and intensity of collaborations- show high levels of performance. Policy implications are drawn in the concluding remarks.
The Annals of Regional Science pp 1-25; doi:10.1007/s00168-021-01051-4

Abstract:
Accurately estimating age profiles for destination-specific migration is requisite to understanding the determinants of population growth and projecting future change as migration is the primary growth determinant for most regions. In Australia, place-to-place flows based on the age profile of migration derived from census data are commonly used to empirically estimate destination-specific internal migration. However, such flows are heterogeneous and census data is imperfect for accurately generating migration-age profiles. Demographers have addressed this by developing a range of methods for smoothing migration probabilities. These address smoothing on a bi-regional basis, primarily with one destination–origin pairing. We propose a non-parametric method for smoothing destination-specific migration probabilities which can be applied to multi-regional smoothing and is within the generation–distribution framework of Rogers et al. (Environ Plan A 34:341–359, 2002). We demonstrate that, if total age-specific out-migration has already been estimated, smoothing destination-specific migration ratios provides a solution to imperfect input data. Using the example of Australian interstate migration, we show how the method can give an accurate fit to the migration ratio profile across high-curvature ages and a good treatment of sample noise both when the population at risk is low, such as at advanced ages, and when the destination has a low conditional probability of migration. An implementation of the method is available as an Excel add-in.
The Annals of Regional Science pp 1-32; doi:10.1007/s00168-021-01046-1

Abstract:
In a number of recent elections in Western Europe, support for far-right populist parties has been significantly higher in non-urban areas than in urban areas. This paper answers the following questions; (1) Can the urban–rural divide in voting behavior be explained by the fact that urban and non-urban populations differ in terms of education, income and other individual characteristics of voters, or by variations in immigration? (2) Can variations in public service supply explain parts of the urban–rural divide in far-right populist support? and (3) How does population growth and public services relate to voting behavior when examining urban and rural municipalities separately? The analyses combine survey data on individual characteristics and register data aggregated on municipalities. The results in this paper suggest that voter characteristics and immigration explain a substantial part of the urban–rural divide. However, the propensity to vote for a far-right populist party is still higher in regions with lower population growth even when controlling for individual characteristics and immigration. When considering public service supply, the urban–rural divide is further weakened. The propensity to vote for a far-right party decreases with higher public service supply and higher share of immigrants. The findings in this paper thereby support the hypothesis that individuals in shrinking areas with lower access to public services are likely to respond to the deterioration of their location by casting a vote on the far-right (i.e., protest voting).
The Annals of Regional Science pp 1-35; doi:10.1007/s00168-021-01049-y

The publisher has not yet granted permission to display this abstract.
The Annals of Regional Science pp 1-26; doi:10.1007/s00168-021-01048-z

The publisher has not yet granted permission to display this abstract.
The Annals of Regional Science pp 1-26; doi:10.1007/s00168-020-01038-7

Abstract:
We examine the role of political alignment and the electoral business cycle on municipality revenues in Greece for the period 2003–2010. The misallocation of resources for political gain represents a waste of resources with significant negative effects on local growth and effective decentralization. The focus of our analysis is municipality mayors since they mediate the relationship between central government and voters and hence can influence the effectiveness of any potential pork-barrelling activity. A novel panel data set combining the results of two local and three national elections with annual municipality budgets is used to run a fixed-effects econometric model. This allows us to identify whether the political alignment between mayors and central government affects municipality financing. We examine this at different stages of local and national electoral cycles, investigating both direct intergovernmental transfers (grants) and the remaining sources of local revenues (own revenues, loans). We find that total revenues are significantly higher for aligned municipalities in the run-up to elections due to higher intergovernmental transfers. We also find evidence that the 2008 crisis has reduced such pork-barrelling activity. This significant resource misallocation increases vertical networking dependency and calls for policy changes promoting greater decentralization and encouraging innovation in local revenue raising.
The Annals of Regional Science pp 1-20; doi:10.1007/s00168-020-01039-6

Abstract:
Theories of inter-jurisdictional tax and yardstick competition assume that the tax decisions of one jurisdiction will influence the tax decisions of other jurisdictions. This paper empirically addresses the issue of horizontal dependence in local personal income tax rates across jurisdictions. Based on a large data set covering Swedish municipalities over a period of 14 years, we test for interactions across municipalities that share a common border, across municipalities within a distance of 100 km of each other, and across municipalities with similar political representation in the local council. We also test the hypothesis that the tax rate of relatively larger municipalities has a greater influence on their neighbors' tax rate compared to the influence of their smaller neighbors. Our results suggest that when lagged tax rates are controlled for, the horizontal correlation across municipalities that share a common border or are within a distance of 100 km from each other becomes insignificant. This result is of importance as it suggests that lagged tax rates should be included or at least tested for when testing for horizontal interactions or mimicking in local tax rates. However, our results support the hypothesis of horizontal interactions across municipalities that share a common border when the influence of neighboring municipalities is also weighted by their relative population size, i.e. relatively larger neighbors tend to have a greater impact on their neighbor's tax rates than their relatively smaller neighbors. This is of importance as it suggests that distance or proximity matters, although only in combination with the relative population size. We also find some evidence of horizontal dependence across municipalities with similar political preferences.
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