Credit Resource Availability and Innovation Output: Evidence from Chinese Industrial Enterprises

This paper investigates the effect of credit availability on the number of industrial enterprises' patents from the perspective of financial geography, using the number of bank branches in the vicinity of industrial enterprises in China as a proxy variable. The number of patents is a proxy for the innovation output of an enterprise. The study finds that the higher availability of credit resources, represented by the number of bank branches in the vicinity, inhibits the innovation output of enterprises, and this inhibitory effect is more obvious in state-owned enterprises and large enterprises. Higher availability of credit resources leads industrial firms to fall more easily into the resource curse trap and thus fail to gain more innovative capabilities. This paper also provides a theoretical and data base for China's inability to complete industrial upgrading; it provides new evidence for the phenomenon of insufficient innovation capacity of industrial enterprises under China's rapid economic development in recent years; and it also provides a policy reference for financial supply reform. Keywords: Availability of credit resources, Innovation output, Financial geography.

Financial geography III: Research strategies, designs, methods and data

I review research strategies, designs, methods and data in financial geography, by focussing on 449 articles published in 2001–2020. The analysis shows considerable methodological diversity and originality, contributing to geography and studies of finance. Over time, qualitative strategies, case study design and interviews as a method and data source are growing, while quantitative strategy, longitudinal design, regression methods and the use of government data are declining. The analysis helps identify gaps, opportunities and challenges, including the need for more methodological transparency, more in-depth qualitative and quantitative approaches supporting causal analysis, and a more ambitious historical and geographical scope.

Was adam smith an economic geographer?

Economic geographers typically associate Adam Smith with the pin factory, the division of labour, and the ‘invisible hand’ of the market. We show that a closer reading of The Wealth of Nations reveals a much richer and broader range of ideas, which we illustrate by focusing on six themes: methodology, the role of physical geography and land in development, urban scale, institutions, commercial centres, and financial geography. On commercial centres, for example, Smith offers a vivid elaboration of what causes a ‘home bias’ in international trade. Similarly, in a largely neglected part of the book, Smith offers a thorough set of reflections as to what turned Amsterdam into the leading financial centre of Europe during the seventeenth century and eighteenth centuries. Overall, we argue that in all these themes and across them, Smith offers insights valuable to contemporary economic geography, making the Wealth of Nations worthy a place in an anthology of the discipline.

The agency of reformers in new European financial centres: A historically informed financial geography

While institutional frameworks are the dominant approach to analysing the geography of finance, this article focuses on how individual policymakers influence the characteristics of financial institutions and set, or even alter, financial centre development. The historical narratives from Central and Eastern Europe (CEE) that this article presents reveal post-socialist reformers’ contrasting philosophies and approaches, despite their shared goals of market liberalisation and European integration. These reforms (or lack thereof) differentiated the securities markets in Warsaw, Prague, and Budapest, especially with respect to financial intermediary mechanisms. Although the legacies of such reforms continue to shape an uneven landscape of financial centres in CEE, this article proposes reformer-centred narratives as an alternative to deterministic institutional thinking. The article argues that historical narratives that foreground the actions and ideas of key policymakers need to be included in the observation framework of financial centre development, in a similar way to how scholars analyse foreign policy by focusing on the heads of governments and ministers.

Alternative ESG Ratings: How Technological Innovation Is Reshaping Sustainable Investment

Environmental, Social and Governance (ESG) rating agencies have been instrumental in mainstreaming sustainability in the investment industry. Traditionally, they have relied on company disclosure and human analysis to produce their ratings. More recently however, technological innovation in data scraping and Artificial Intelligence (AI) have undercut the traditional approach. Tech-driven Alternative ESG ratings are becoming increasingly influential yet remain critically underexplored in sustainable finance scholarship. Grounded within financial geography and using mixed methods, this paper fills this gap by comparing a set of Traditional ratings, sourced from MSCI ESG, with an Alternative AI-based set of ESG ratings sourced from Truvalue Labs. Our results expand upon recent research on ESG ratings by shedding new light on low commensurability between Traditional and Alternative ESG ratings. Specifically, we show that differences in ratings are driven by four main factors: differences in ESG theorisation based on key issue selection, differences in data sources analysed, differences in weighting structures for rating aggregation, and finally differences in controversy analysis. Our findings are contextualised using participatory observations collected during fieldwork at a leading asset manager in the City of London. Overall, we show that the advantages of Alternative ESG ratings include higher levels of standardisation, a transparent ‘outside-in’ perspective on ratings, a more democratic aggregation process, and rigorous real-time analytics. We argue that these characteristics reflect a geographic reconfiguration of ESG rating construction, expanding from financial agglomerations to technological and digital spaces of innovation. While Alternative ESG ratings make major promises on how technology can reform sustainable investing, we recognise that risks remain.

A gender approach to housing loss in Spain: the case of Las Palmas de Gran Canaria

In pre-pandemic times, Spain was one of the European countries where the economic crisis hit the real estate market hardest, leading to rising mortgage foreclosures and eviction of tenants, as highlighted by many scholars on the financial geography of housing. Its matched social effects reveal the outstanding role of gender, foreign status, and income levels, starting from the hypothesis that the intersection among these categories shows the dimension of inequality in the neoliberal configuration of cities. The aim of this article is to provide this evidence through the study case of Las Palmas de Gran Canaria, using a GIS to implement statistical correlations of these categories on a microurban scale. The created database rests on information contained in judicial archives (women’s foreclosures and evictions) and on ethnicity and income level statistical information. This allows us to go deeper into the factors of exposure to vulnerability, in accordance with an established academic tradition regarding gender, housing and the city.