No “Greek‐Letter Writing”: Local Models of Resource Economies

ABSTRACT In trying to understand resource economies, the article develops the idea of local models. A local model, in contrast to a universal model, is sensitive to the peculiarities of geographical context. Those peculiarities, rather than being reduced to some higher order of logic as in universal models, are kept intact, forming the very basis of understanding. Our approach to local modeling draws specifically on institutional economics. That tradition makes the argument that the economy is shaped by various institutions (not all of which are economic), which are continually changing and which take on different constellations in different places. By setting out a grid of central institutions operating in resource economies, and comparatively using the examples of the forest economies of British Columbia, Canada, North Island, New Zealand, and Tasmania, Australia, the article constructs three local models. Each has the same constituent elements, but how they are related and what eventuates are peculiar to the specific region.     

Reflections on the “Old” Economy, “New” Economy,and Services

ABSTRACT Economic competitiveness now has less to do with new materials than with new ways of producing, utilizing, and combining diverse knowledges. It is branded as symptomatic of a “new” economy and is often juxtaposed against the “old” economy. As accelerating technological change has greatly increased the volume and quality of the information available to organizations, to firms, and to individual employees, it is asserted that the economy has become more “new” than “old.” But this is predicated on the assumption that there is a “new” economy and that it is somehow distinguishable from the “old.” This paper explores the basis for this dichotomy and whether it really adds anything to understanding contemporary economies and their ongoing development. It will be argued that it is more useful and constructive to examine the economy through a lens dominated by service industries that are now the key drivers of change (innovation, competition, employment) and development. The paper is concluded with a discussion of some items that could usefully be part of an agenda for further research by economic geographers on the evolving spatial and structural attributes of service work and organizations and their impact on cities or regions at different scales of analysis.     

Redefining “Offshore” in Latin America

Offshoring and outsourcing are two terms—often used interchangeably—that comprise an essential element of the modern post‐industrial global economy. Analysis of this phenomenon in the United States is often framed in the light of job loss and economic decline relating to the manufacturing or low‐end services sectors, but this paper will revisit the traditional offshore industry—that of offshore finance and offshore financial centers (OFCs) and compare OFC offshoring with traditional offshoring in Latin America. This paper argues that some similarities are evident when comparing OFC offshoring with traditional offshoring but many differences exist. Using the framework or “lens” of politics certain OFC offshoring issues and tensions with the onshore world relating to unfair tax competition, money laundering, sovereignty, secrecy, regulation, trust, and reputation are analyzed and are shown to be more onerous, tense and different from those occurring in the mainstream offshoring/outsourcing world. In addition, using the “lens” of cyberspace and e‐commerce, and a case study of the Cayman Islands and the Bahamas, this paper argues that the creation of an electronic infrastructure in the OFC offshoring world is as necessary as in the onshore world, but the actors and institutions creating and promoting such infrastructures are different. Future work could pursue more reputable and comparative data gathering to further more rigorous statistical modeling of the relationships both between OFCs as they compete for offshore capital, and between offshore and onshore as the onshore world seeks to further lift the veil of offshore financial opacity, particularly related to issues of money laundering.     

Fluctuations and Downturns in a “Company Town”

ABSTRACT A semi-structural VAR time-series model was used to examine movements in Flint Metropolitan Statistical Area (MSA) employment levels and determine how area employment was affected by movements in different sectors of the U.S. economy. Flint was chosen because in 1958 over 50 percent of the area's population was employed by the transportation industry, the majority in automobile production, and therefore Flint should be considered as a company town prototype for this modeling technique. Due to the dependency of this area's employment base on the automotive industry and the highly volatile nature of area employment levels, the Choleski decomposition was used instead of the structural Bernanke method. It was found that the effects of movements in the automotive industry were a major impact on aggregate area employment as well as on virtually all manufacturing sectors. These results are more robust than those for the Detroit Metropolitan Statistical Area (PSA) ¹ 1 As found in Rushen (1993).
. This is due primarily to Flint's greater degree of area dependency on the automotive-industry.     

“Weakness” as “Strength” in the Scottish Life Sciences: The Institutional Grounding of Knowledge‐based Commodity Chains in a Less‐favoured Region

Despite all the talk of knowledge‐driven, knowledge‐based, and learning economies, it is not always clear or self‐evident whether all countries, let alone regions, will share the spoils of emerging technological trends and changes. In particular, less‐favoured regions (LFRs) like Scotland face a number of difficulties as a consequence of this emerging knowledge‐based economy (KBE) and the strategies necessary to overcome their existing uneven position in order to adapt to new global economic imperatives. More specifically, the KBE agenda invokes strategies that do not adequately address the existing uneven development of LFRs in relation to “growth” regions that have the institutional infrastructure and arrangements necessary to attract and embed new forms of employment, new knowledge capacities, and new industrial sectors. However, this article will explore the institutional grounding of the life sciences sector in Scotland in order to consider how particular institutional arrangements that may appear disadvantageous can also lead to new, potentially advantageous arrangements that can help LFRs to avoid continuing economic stagnation or decline.     

“Space Obesity”: The Effect of Remoteness on County Obesity

We test if remoteness of a county is one of the environmental factors that contribute to obesity. First, we employ geographically weighted regressions (GWRs) that allow us to observe local or regional patterns. We find that county obesity rate is spatially non‐stationary, remoteness affects county obesity rates, and there are spatial heterogeneities in how distance affects county obesity rates. Next, we refine our estimates of the effect of remoteness on county obesity rate using a random effect model that accounts for county‐level unobserved heterogeneity. Even after accounting for these heterogeneities and state fixed effects, we find measurable impact of remoteness on county obesity rate. Splitting the sample into metro and non‐metro counties, we find that remoteness matters more for the obesity rates in the metro counties.     

The Agglomeration Dilemma: “Should I Stay or Should I Go?”

This paper presents a critical survey of some recent developments in the theory of international trade. Particular emphasis is given to the role of increasing returns to scale and labor mobility in shaping the pattern of industrial location across integrating countries. The goal is to review and discuss the novel insights and predictions of the so‐called “new” theories in order to pose and stimulate avenues for future research.     

“Moderate” Environmental Amenities and Economic Change: The Nonmetropolitan Northern Forest of the Northeast U.S., 1970‐2000

ABSTRACT Population, employment, and income changes in a region comprised of eighteen nonmetropolitan counties of Maine, New Hampshire, Vermont, and New York are described using Bureau of Economic Analysis data covering 1970 to 2000. Changes at the county level are examined as net differences using pooled cross‐section time series analysis. The specific focus of the empirical analysis is the effect that environmental amenities have in population and economic change. Empirical results indicate that a county's relative endowment of environmental amenities has positive economic change effects, but only when the county is relatively accessible as well. Further, the environmental amenity effects vary in their temporal consistency, even when accessibility is taken into account. In general, however, the reported results support the proposition that even relatively moderate environmental amenities can hold positive effects for economic change.     

Gibrat's Law in the “Third Italy”: Firm Growth in the Veneto Region

According to Gibrat's Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the period examined. While earlier studies tended to confirm the Law, more recent research generally rejects it. The aim of this paper is to test whether Gibrat's Law is confirmed, for the 1995–2005 period, for a large sample of firms active in the Veneto region of Italy. Controlling for firm age and size, findings show that the Law is not confirmed in the early stages of a firm's life cycle, with younger firms growing faster than established ones, whereas it cannot be rejected once a given threshold in terms of age is reached. These findings are consistent with the life cycle theory of the firm and with the hypothesis that fast growing small and medium‐sized enterprises may have played a role in the evolution and the structural transformation of local systems in the “Third Italy” during the 1990s and early 2000s.     

Beyond “Global Production Networks”: Australian Fashion Week's Trans‐Sectoral Synergies

ABSTRACT When studies of industrial organisation are informed by commodity chain, actor network, or global production network theories and focus on tracing commodity flows, social networks, or a combination of the two, they can easily overlook the less routine trans‐sectoral associations that are crucial to the creation and realisation of value. This paper shifts attention to identifying the sites at which diverse specialisations meet to concentrate and amplify mutually reinforcing circuits of value. These valorisation processes are demonstrated in the case of Australian Fashion Week, an event in which multiple interests converge to synchronize different expressions of fashion ideas, actively construct fashion markets and enhance the value of a diverse range of fashionable commodities. Conceptualising these interconnected industries as components of a trans‐sectoral fashion complex has implications for understanding regional development, world cities, production location, and the manner in which production systems “touch down” in different places.     

“Debrucing” the Link between Tax and Expenditure Limits and Special District Governments

We provide a direct test of the extent to which the stringency of a Tax and Expenditure Limit (TEL) influences the creation of special district governments by examining one of the strictest TELs in U.S. history, the Colorado Taxpayer's Bill of Rights (TABOR). Through analysis of panel data from 1993 to 2004 of general purpose and special district governments, we test the relationship between TABOR and the creation of special districts. The novelty of our research involves the use of successful and failed attempts to override TABOR to measure variation in TEL restrictiveness at the county and municipal geography. Our results indicate that counties and municipalities unable to override TABOR's restrictions and therefore bound by the TEL have no greater use of special district governments than local jurisdictions experiencing similar demand for services but not bound by TABOR. These results are robust to failed override attempts specific to tax revenue as well as debt proceeds. Furthermore, results are unaffected by the use of multiyear lagged measures of override attempts and the inclusion of county debrucing initiatives that passed or failed by a small margin—i.e., less than 60 percent of votes. Contrary to anecdotal evidence, our results find no relationship between tax and expenditure limits and the formation of special districts.     

An “Orphan” Creative Industry: Exploring the Institutional Factors Constraining the Canadian Fashion Industry

In recent years, tier‐two fashion countries have been making gains in the global fashion industry, with hip young brands, buzz‐worthy fashion weeks and export‐oriented designers. The Canadian fashion industry, on the other hand, continues to fall behind and instead has experienced recent high‐profile closures of leading domestic fashion names. This paper explores why this is the case by considering a wide range of factors from a historical and institutional perspective. We argue that Canadian fashion is facing a number of systemic problems relating to wider institutional and policy weaknesses, rather than a lack of talent and know‐how within the entrepreneurs and businesses in the sector. While the fashion industry is indeed global, we argue that it is in fact national and local level factors—political, economic, and cultural—that structure and constrain the Canadian fashion industry for independent designers. Through exploring the experiences of this group of actors—entrepreneurial fashion designers—in this particular context, we not only learn about Canada as an economy but also what is needed in order to develop the fashion industry more broadly. We provide a framework for analysing the range of socio‐economic, historical, and political factors at the national level which affect the performance of the fashion sector and the operation of fashion designers as the entrepreneurial actors at the heart of the industry.     

Alleles on the two dwarfing loci on 4B and 4D are main drivers of FHB‐related traits in the Canadian winter wheat population “Vienna” × “25R47”

Fusarium head blight (FHB), leaf rust and stem rust are among the most destructive wheat diseases. High‐yielding, native disease resistance sources are available in North America. The objective of this study was to map loci associated with FHB traits, leaf rust, stem rust and plant height in a “Vienna”/”25R47” population. DArT markers were used to generate a genetic map, and quantitative trait loci (QTL) analysis was performed by evaluating 113 doubled haploid lines across three environments in Ontario, Canada. FHB resistance QTL were identified on chromosomes 4D, 4B, 2D and 7A, while a QTL for leaf and stem rust resistance was identified on chromosome 1B. The dwarfing alleles of both Rht‐B1 and Rht‐D1 were associated with increased FHB index and DON content.     

Location Decision Making of “Creative” Industries: The Media and Computer Game Sectors in Dublin,Ireland

There has been significant research undertaken examining the “creative class” thesis within the context of the locational preferences of creative workers. However, relatively little attention has been given to the locational preferences of creative companies within the same context. This paper reports on research conducted to qualitatively analyse the location decision making of companies in two creative sectors: media and computer games. We address the role of the so‐called “hard” and “soft” factors in company location decision making within the context of the creative class thesis, which suggests that company location is primarily determined by “soft” factors rather than “hard” factors. The study focuses upon “core” creative industries in the media and computer game sectors and utilises interview data with company managers and key elite actors in the sector to investigate the foregoing questions. The results show that “hard” factors are of primary importance for the location decision making in the sectors analysed, but that “soft” factors play quite an important role when “hard” factors are satisfactory in more than one competing city‐region.