AGGLOMERATION ECONOMICS IN REGIONS: THE CASE IN THE RUSSIAN INDUSTRY

Svetlana RASTVORTSEVA

World Economy Department – National Research University Higher School of Economics, Russia, http://www.hse.ru

Srartvortseva@gmail.ru

Abstract

The paper deals with the issues of economic activity location in the Russian regions, that is influ-enced not only by factors “first nature” – the presence of minerals, fertile land, favorable geographic position, but also factors of a “second nature”, in particular, the agglomeration effects and the econ-omy of scale. Analysis of geographic concentration and regional specialization reflects the general trend of the location of industrial production, investment and human resources, provides the necessary information basis for a balanced economic policy.

Keywords: New Economic Geography, Regional Economics, Location Theory, the Geographic Concentration of Economic Activity, Regions of Russia

JEL classification: R11, R12

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REGIONAL STRATEGIES FOR DEALING WITH STRUCTURAL CHANGE

Eleonora CUTRINI

Associate Professor, Department of Law, University of Macerata

eleonora.cutrini@unimc.it

Enzo VALENTINI

Research Fellow,Department of Political Sciences, Communication and International Relations, University of Macerata

enzo.valentini@unimc.it

Abstract

In recent decades, the low economic performance of European countries has been mainly responsible for the emergence of an economic policy increasingly intended to strengthen the innovative and technology capacity of regions. In particular, the European periphery is lagging behind in the transition to a knowledge driven and eventually service-oriented economy. In a general context of de-industrialization and transition to service economy, and bearing in mind the policy debate at the EU level, the aim of this paper is to analyze the factors driving knowledge-intensive service specialization at the regional level in Italy. Our main research questions here can be summarized as follows: What determines the transition to Services and the specialization in Knowledge-Intensive Services (KIS) in Italy? What are the structural characteristics that may explain the regional variation of employment share in high-knowledge services? Using data on Italian regions over the period 1995-2014 (and spatial panel models as a methodology), the analysis carried out in the paper suggests some considerations: the “mere” (but needed) transition to service activities can be positively associated with R&D Personnel, Tertiary Education, University Attractiveness, Tourism and efficient infrastructure (Railroad). But the transition to Knowledge Intensive Services, supposed to pay higher wages, may deserve a more appropriate and focused public intervention, in view of the fact that it seems to be mainly associated with Public R&D, Tertiary Education and University Attractiveness.

Keywords: Structural Change, Specialization, Spatial Panels, Regional Economy

JEL classification: I25, O32, R11, R12

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WHO CARES ABOUT REGIONAL INEQUALITIES? EFFECTS OF FISCAL CONSOLIDATION

Vinko MUSTRA

Assistant professor Faculty of Economics, University of Split, Cvite Fiskovića 5, 21000 Split, Croatia

vmustra@efst.hr

Abstract

The most recent global economic crisis and the concerns about long-term (un)sustainability of public finances has supported the implementation of budgetary consolidation measures. Although there are relatively large number of papers investigating the impact of fiscal consolidation on different aspect of economy this paper represent unique attempt of investigating the effects of fiscal consolidation on regional inequalities. We test the hypothesis that in the period of fiscal consolidation, when some spending cut and/or tax hikes, less developed regions are not in position to protect themselves against undesired redistributive policies which put them in more disadvantaged position and increase regional inequalities. In empirical part of the paper we explore the impact of fiscal consolidation on regional inequalities on national levels among 13 EU member countries for period 1995-2009. Two groups of variables are particularly important for this study: measure of regional inequality and fiscal consolidation. Due to fact that recent literature recognizes problems with using cyclically-adjusted primary budget balance (CAPB) as a measure for fiscal consolidation we extend regional empirical literature by using a new database of fiscal consolidation that successfully tackles all this issues. The results indicate that fiscal consolidation led by tax hikes increases regional inequalities and that fiscal consolidation led by spending cuts doesn’t have significant influence on regional inequalities. Finally, the paper highlights that fiscal consolidation is not only the matter of the public debt levels or economic growth, but also important regional issue.

Keywords: Regional inequalities, Fiscal consolidation, European Union

JEL classification: R12, E62, H23

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