scholarly journals Spatial Spillover Effects of Agricultural Transport Costs in Peru

Author(s):  
Pedro Herrera-Catalán ◽  
Coro Chasco ◽  
Máximo Torero

The role of agricultural transport costs in core-periphery structures has habitually been ignored in New Economic Geography (NEG) models. This is due to the convention of treating the agricultural good as the numéraire, thus implying that agricultural transportation costs are assumed to be zero in these models. For more than three decades, this has been the standard setting in spatial equilibrium analysis. The paper examines the effects of agricultural transport costs on the spatial organisation of regional structures in Peru. In doing so, the Krugman’s formulation of iceberg transport costs is modified to introduce the agricultural transport costs into the dynamic of the NEG models. We use exploratory spatial flow data analysis methods and non-spatial and spatial origin-destination flow models to explore how the regional spatial structure change when real transportation data for agricultural goods is included into the iceberg transport costs formulation. We show that agricultural transport costs generate flows that are systematically associated with flows to or from nearby regions generating thus the emergence of spatial spillovers across Peruvian regions. The results of the paper support the contention that NEG models have overshadowed the role of agricultural transport costs in determining the spatial configuration of economic activities.

Land ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 58
Author(s):  
Pedro Herrera-Catalán ◽  
Coro Chasco ◽  
Máximo Torero

The role of agricultural transport costs in core-periphery structures has habitually been ignored in New Economic Geography (NEG) models. This is due to the convention of treating the agricultural good as the numéraire, thus implying that agricultural transportation costs are assumed to be zero in these models. For more than three decades, this has been the standard setting in spatial equilibrium analysis. This paper examines the effects of agricultural transport costs on the spatial organisation of regional structures in Peru. In doing so, Krugman’s formulation of iceberg transport costs is modified to introduce agricultural transport costs into the dynamic of the NEG models. We use exploratory spatial flow data analysis methods and non-spatial and spatial origin-destination flow models to explore how the regional spatial structure changes when real transportation data for agricultural goods are included into the iceberg transport costs formulation. We show that agricultural transport costs generate flows that are systematically associated with flows to or from nearby regions generating thus the emergence of spatial spillovers across Peruvian regions. The results of the paper support the contention that NEG models have overshadowed the role of agricultural transport costs in determining the spatial configuration of economic activities.


2009 ◽  
Vol 53 (1-2) ◽  
Author(s):  
Rolf Sternberg

First Nobel Prize given to an “economic geographer” - a critical assessment from the perspective of a proper economic geographer. This paper critically assesses both the theoretical approach of the New Economic Geography (NEG) developed by US economist Paul Krugman and the decision of the Royal Swedish Academy of Sciences to give him the 2008 “Nobel Prize in Economics” for his work on trading patterns and the spatial concentration of economic activities. This assessment is done from the perspective of a proper economic geographer. The basics of Krugman’s NEG models are presented and discussed in the lights of the state-of-the-art of current theoretical and empirical work on NEG. A considerable effort is undertaken to identify the specific strengths and weaknesses of this attempt to explain spatial concentration of economic activities in the scope of spatial equilibrium models. Despite the fact that most of the proper economic geographers, namely in Germany, have hitherto been quite reluctant in working with NEG models and its propositions the message targeted at economic geographers is clear: they should use the huge potential of the NEG available for empirical and policy-related research more intensively than before. Thus, the decision of the Nobel Prize committee is good news not only for economists interested in spatial concentration, but for proper economic geographers as well.


Author(s):  
Pascal Mossay ◽  
Pierre M. Picard

New Economic Geography (NEG) provides microeconomic foundations for explaining the spatial concentration of economic activities across regions, cities, and urban areas. The origins of the NEG literature trace back to trade, location, and urbans economics theories. In NEG, agglomeration and dispersion forces explain the existence of spatial agglomerations. A NEG model usually incorporates a combination of such forces. In particular, firm proximity to large markets and the importance of linkages along a supply chain are typical agglomeration forces. Equilibria properties derived from NEG models are very specific to NEG as they involve multiple equilibria and have a very high dependence on changes in parameters. This phenomenon has important implications for the emergence of nations, regions, and cities. In particular, high transport costs imply the dispersion of economic activities, while low transport costs lead to their spatial concentration. The same forces that shape inequalities and disparities between regions also shape the internal structure of cities. Firms concentrate in urban centers to gain greater access to larger demand. The empirical literature has developed several approaches that shed light on spatial agglomeration and estimate the role and impact of transport costs on market access. A key empirical research question is whether observed patterns could be explained by location amenities or agglomeration forces as put forward by NEG. Quasi-experimental methodology is frequently used for such a purpose. NEG theory is supported by empirical evidence, demonstrating the role of market access.


2021 ◽  
Vol 55 (1) ◽  
Author(s):  
Marcin Wozniak

AbstractIn the paper, we investigate spatial relationship on the labor market of Poznań agglomeration (Poland) with unique data on job vacancies. We have developed spatial panel models to assess the search and matching process with a particular focus on spatial spillovers. In general, spatial models may provide different findings than regular panel models regarding returns to scale in matching technology. Moreover, we have identified global spillover effects as well as other factors that impact the job-worker matching. We underline the role of data on job vacancies: the data retrieved from commercial job portals produced much more reliable estimates than underestimated registered data.


2020 ◽  
Vol 3 ◽  
pp. 1-11
Author(s):  
Laura Hall ◽  
Urpi Pine ◽  
Tanya Shute

Abstract This paper will reflect on key findings from a Summer 2017 initiative entitled The Role of Culture and Land-Based Healing in Addressing and Ending Violence against Indigenous Women and Two-Spirited People. The Indigenist and decolonizing methodological approach of this work ensured that all research was grounded in experiential and reciprocal ways of learning. Two major findings guide the next phase of this research, complicating the premise that traditional economic activities are healing for Indigenous women and Two-Spirit people. First, the complexities of the mainstream labour force were raised numerous times. Traditional economies are pressured in ongoing ways through exploitative labour practices. Secondly, participants emphasized the importance of attending to the responsibility of nurturing, enriching, and sustaining the wellbeing of soil, water, and original seeds in the process of creating renewal gardens as a healing endeavour. In other words, we have an active role to play in healing the environment and not merely using the environment to heal ourselves. Gardening as research and embodied knowledge was stressed by extreme weather changes including hail in June, 2018, which meant that participants spent as much time talking about the healing of the earth and her systems as the healing of Indigenous women in a context of ongoing colonialism.


2021 ◽  
Vol 13 (11) ◽  
pp. 6411
Author(s):  
Muhammad Shahid Hassan ◽  
Haider Mahmood ◽  
Muhammad Ibrahim Saeed ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Noman Arshed ◽  
...  

Institutions help to streamline the economic activity-related procedures, where government intervention might be involved. Institutions also play a significant role in social sustainability. The findings using the Autoregressive Distributed Lag approach to cointegration for the period from 1984–2019 reveal that investment portfolio and democratic accountability reduce poverty in Pakistan both in the long and short run. Moreover, democratic accountability helps to reduce income inequality, but the investment portfolio’s role is not significant. The literacy rate helps to reduce income inequality, and inflation increases poverty and income inequality. The remittances increase income inequality, and urbanization increases poverty. To eradicate poverty and income inequality, the governments should be accountable for their actions to the general public while they remain in power. If they do not deliver as per their manifestoes, they will not be reelected in the next election. Moreover, there is a dire need to redefine the role of an investment portfolio to reduce the risk of investment. So, investments would increase economic activities and could reduce poverty and income inequality. This study contributes to the literature by inquiring about the role of the investment portfolio and democratic accountability in social sustainability by reducing poverty and income inequality. This study only considers Pakistan’s economy due to limitations of poverty data availability in other countries. The scope could further be broadened by accessing data for a wider Asia region to test the role of the investment portfolio and democratic accountability to reduce poverty and income inequality.


2021 ◽  
Vol 125 ◽  
pp. 102398
Author(s):  
Michael Cary ◽  
Festus Victor Bekun
Keyword(s):  

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