The Power of Governance in Financial Relationships: Governing Tensions in Exotic Infrastructure Territory

ABSTRACT The scope of financial products has recently extended to include investments in infrastructure assets that were previously community owned. While private investment in infrastructure is not new, the rise of institutional investors searching for infrastructure investments to match long‐term liabilities is a recent phenomenon. Most cannot hire the necessary expertise or take on the relatively large risks that accompany undertaking such endeavors in‐house, with many opting to place capital in specialised infrastructure funds. While there is a plethora of studies on various aspects of public and corporate governance, this paper concentrates on the governance of relationships between institutional investors and their infrastructure fund managers, contributing to the growing body of literature on financial geographies through a focus on the decision‐making of financial actors at the micro level, where the origins and destination of capital into geographies are determined. This private governance is defined as the “regulation” by private agents, insofar as they must anticipate and deal with potential or inherent conflicts of interest. Even as the “embedded” argument stresses the role of concrete personal relations and networks in generating trust, when interests need to be safeguarded in new and unfamiliar settings such as in infrastructure equity investing, the scope of private governance plays a central role in creating the financial relationship. This is supported through a discussion of four problems in private infrastructure governance, which are affected by but also have an impact upon the development of trust and long‐term relationships. Despite differing constraints and various degrees of negotiating leverage, innovative economic action is structured through anticipating and aligning diverging interests of (new) social relations.     

Agglomeration and Competition among Chinese Cities: An Investigation of Taiwanese High‐Tech Foreign Direct Investment

The purpose of this study was to investigate how Taiwanese high‐tech firms' foreign direct investment (FDI) leads to agglomeration and competition among cities in China. By using social network analysis to analyze 1,111 subsidiaries affiliated with 270 multinational corporations (MNCs) during the years between 1988 and 2006 in 30 major Chinese cities, this study finds that: 1) agglomeration in Chinese cities falls into three primary categories: the hub cluster, the communication‐extended cluster, and the computer‐extended cluster. Among the aforementioned clusters, the hub cluster is the most critical in terms of firm location, and therefore is often a high‐priority investment site for Taiwanese high‐tech firms. 2) Chinese cities fall into four primary groups, or “blocks”: the core block, the coast block, the inland block, and the periphery block; these groups were determined by applying a structural equivalence analysis of which members of each type are in competition with one another. By linking the findings of the urban network characteristics to Chinese regional economic policies, this study provides guidance to aid executives in determining the optimal location for future FDI. Implications and suggestions for host country governments in terms of firms' investment strategies are also discussed.     

Progress towards flowering of faba bean (Vicia faba L.) is more than photothermal

Predicting and understanding the progress towards flowering in faba bean are important to achieve the adaptation and high productivity of the crop under varying environmental conditions. Traditional controlled‐environment experiments showed that the rate of progress towards flowering was dependent mainly on photoperiod and temperature. Here, we highlight the need to include measures of solar radiation and water deficit in order to achieve an adequate model for field conditions. The improved model was assessed in two steps: first with a “basic” model across all 20 cultivars and then with an “extended” model that included terms to fit exceptional cultivars. The two new parameters were necessary to achieve an acceptable fit of progress towards flowering and clearly separated two cultivars, “Kontu” and “Witkiem Manita,” that were significantly quicker to flower than the other 18, which fit a single line. As the regression coefficients of the two exceptional cultivars differed only in intercept, not slope, we conclude that flowering responses to day length, temperature, solar radiation and drought stresses were consistent in this set of germplasm and that the two cultivars differed in earliness “per se.” Growth‐chamber experiments added information about differing ceiling temperatures for progress to flowering in four cultivars and different sensitivities to supraoptimal temperatures.     

Low‐Income Dynamics in Canadian Communities: A Place‐Based Approach

ABSTRACT Canadian poverty rates have persisted at disappointingly high levels despite almost 15 years of continuous economic growth. The problem is exacerbated by some communities and neighborhoods having exceedingly high poverty, including very high rates for vulnerable demographic groups, such as aboriginals and recent immigrants. We investigate low‐income rates (poverty rates) for 2,400 Canadian “communities” over the 1981–2001 period. By focusing on communities, we fill a void in the related Canadian literature, which tends to focus on individuals, case studies, or more aggregate measures, such as provinces. Our approach allows us to assess the role of place‐based policies. Particular attention is given to communities with differing shares of aboriginal Canadians and recent immigrants. One novel feature is our analysis of both “short‐term” and “long‐term” causes of differential community poverty rates. The results suggest that community low‐income rates are more affected by initial economic conditions in the short term, with certain demographic factors becoming relatively more important in the long run.     

Ireland's Foreign‐Owned Technology Sector: Evolving Towards Sustainability?

ABSTRACT For some, Ireland's pursuit of an exogenous‐led development model has proved to be the cornerstone of recent economic success. Others point to recent high‐profile closures and argue that foreign‐owned operations are attracted to Ireland solely because of the advantageous tax breaks and lucrative grants scheme offered by the Irish government. We pay tribute to both arguments by pushing the level of enquiry beyond that of supply and backward linkages to try and gauge the actual performance of affiliates themselves. This brings some interesting facets of the Irish foreign direct investment scene to light. We highlight complexity of process, attainment of broader investment remits, and the emergence of a managerial class as integral to the ability of affiliates to adapt to and exploit organisational change. By examining 10 case studies and making use of media searches and company interviews, we highlight evidence of Ireland's largest technology transnational corporation affiliates showing positive performance advances. With these movements come, what we term, increased nodal significance of Irish operations within the global production network of their corporations. We argue against policy and theories that see these movements as linear and provide evidence of how some Irish operations have leveraged control and gained significant regional and global remits that have resulted in their growing significance, both in the corporation and in the country in which they are based. In the same line we argue that embeddedness in terms of supply linkages does not fit the Irish case and instead employ the term “network anchoring” of affiliates as they increase their nodal weighting through increased mandates.     

Rural‐to‐Urban Commuting: Three Degrees of Integration

Commuting ties between rural places of residence and urban places of employment are among the most visible forms of rural–urban integration. For some rural areas, access to urban employment is a key source of population retention and growth. However, this access varies considerably across rural areas, with distance representing a primary deterrent. In addition to distance, the size of the urban community will also influence rural‐to‐urban commuting opportunities. In this paper, using Canadian data, we empirically estimated the influence of local rural population and job growth on rural out‐commuting within the urban hierarchy. We find consistent support for the deconcentration hypothesis where population moves to rural areas for lifestyle and quality of life reasons, while retaining urban employment. Further, we find some evidence that in addition to distance from the nearest urban center being a deterrent, increased remoteness from the top of the urban hierarchy exerts a positive influence on out‐commuting. Recognition of these types of rural–urban linkages through commuting is essential in designing Canadian rural policy and targeted programs that may effectively support local rural populations. In particular, they point to the need to have reasonable transportation infrastructure for urban accessibility, which should be complemented by other “built” infrastructure to improve the livability of rural communities.     

The brokerage role of small states and territories in global corporate networks

Global economic activity is networked through cross‐national linkages between firm headquarters, branches, and subsidiaries. Brokerage emerges as a key territorial function of this network, with some places acting as gateways or intermediaries for flows of global knowledge, information, or trade. This function is particularly salient for small states and territories leveraging the benefits of borrowed size by offering global professional services, warehousing, logistics, shipping, and finance to wealthy nations or high net individuals. Nonetheless, to date our understanding of how small states and territories facilitate wealth accumulation is limited to broad concepts of their role as “gateways” or “brokers.” Drawing on a typology of brokerage and a network analysis applied to the ties between approximately 700,000 firm headquarter and subsidiary locations of 13 of the world's largest stock exchanges, we explore the brokerage role of small states and territories through case studies of Luxembourg, Singapore, Hong Kong, and Panama. Brokerage is found to play an important role in the economy of all four. We argue that each of these small states and territories is uniquely positioned as a broker in global corporate networks, but that this role differs according to geo‐economic and political positionality.     

In the gateway's shadow: Interactions between Singapore's Hinterlands

During the 1990s, Singapore, the Malaysian state of Johor and the Riau Islands in Indonesia marketed themselves as a single investment destination. Due to its capital, technology, and superior logistics, Singapore was the “gateway”; Johor and the Riau Islands were the hinterland—supplying land, labour, and resources. Since then, production networks between the three territories have deepened. Interactions with Singapore have also catalysed connections between Johor and the Riau Islands. To date, research has focussed on the city‐state as the gateway and/or linkages between it and one of the two hinterlands. This emphasis is inherent in the “Gateway City” framework, which focusses on the primary city at the expense of its hinterlands and also overlooks mediating influences such as borders and border regimes. This article proposes complementing the Gateway City with the Cross‐Border Region framework to gain stronger purchase on the unit of analysis and focusing on inter‐hinterland dynamics to gain a more complete picture of how gateway cities affect their surrounding areas. Through applying this expanded theoretical framework to study the interactions of Johor and the Riau Islands, this article seeks to shed light on an under‐theorised and under‐studied aspect of gateway cities.     

Nothing is in the Air

It has often been argued that “there is something in the air” which makes firms in high‐density environments—such as cities or clusters—more innovative. The co‐location of firms facilitates the emergence of serendipity and casual encounters which promote innovation in firms. We assess this hypothesis using data from a survey of Norwegian firms engaged in innovation partnerships. The results indicate that there may be “much less in the air” than is generally assumed in the literature. The relationships conducive to innovation by Norwegian firms emerged as a consequence of purpose‐built searches and had little to do with chance, serendipity, or “being there.”     

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

This study examines the subnational flow in foreign direct investment (FDI) to Mexican states, with a focus on the finished vehicle industry. Although prior studies have examined subnational FDI in Mexico, research on the automobile sector has been scant. Utilizing a framework associated with the theory of asset specificity, we examine the influence of human capital and labor conditions, infrastructure, subnational policies, and security. The study employs a data set on finished vehicle FDI across 31 states and the Federal district for the period of 2004–2014. We adopt a two‐part model. The first part, which includes all states and the Federal district, is estimated with pooled logistic and Firth logistic regressions. In the second part, we examine variation in levels of FDI among states selected for investment with pooled ordinary least squares with panel‐corrected and Driscoll Kraay standard errors. Labor conditions are significant for both state selection and levels of FDI, but education is influential only in the selection stage. In addition, states with trunk rail lines linked to the U.S. border are more likely to be selected and receive higher FDI. After controlling for these influences, murder and homicide rates, and state development have no significant effects.     

From pathways to roadways: Issues and challenges of road transport in Nagaland

Modern transport was introduced in the Naga Hills by the British, initially to conquer the Hills, and then, the same was expanded to retain the conquered Hills. The colonial roads, however, even at the beginning of the 20th century were still largely of “bridle paths.” Significant capacity expansion in roads came only post-statehood. However, the state of transport in Nagaland, even today, is still characterized by myriad issues and challenges. Against this backdrop, and in the light of a stagnant, regionally skewed underdeveloped economy of the province, it is imperative to invest in transport infrastructure and services. A survey of literature on “transport and development” shows that investment in transport in an economy like that of Nagaland brings about huge returns.     

Income Migration and Income Convergence across U.S. States, 1995–2010

In this paper we examine how internal migration redistributes earned income across U.S. states between 1995 and 2010. We examine interregional income flows by first describing the movement of earned income between U.S. states. Second, we examine the effect of income migration on spatial patterns of income inequality. The question we ask is, “does migration increase or decrease convergence income across U.S. States?” A primary contribution of this paper is that instead of using only 1 year of income migration data to explore these issues, we use yearly data from the first year the Internal Revenue Service (IRS) data started including income (1995/1996) up to the most current data available (2009/2010). Results indicate that income convergence/divergence across states varies by whether or not there is general economic expansion or contraction. Nevertheless, some high‐amenity states continually attract high‐income households.     

关中农户型“猪-沼-粮”循环农业的能流及效益分析

为探明关中农户型“猪-沼-粮”循环模式的能流特征、调控途径、效益状况,以及是否适合在关中区域推广问题,应用能流理论与系统分析法,对该循环系统进行能量投入和产出、能流去向、能流循环指数以及效益分析。结果表明：关中农户型“猪-沼-粮”循环模式是一个以生猪养殖业为主,秸秆还田种植业和沼气工程为辅的环境友好型农业生产模式。该系统以有机能投入为主,农作物光能利用率为1.19%,能流循环指数0.92,具有较高的自我稳定性和自我维持能力,机械化程度较高,农户每年增加7149.78元的经济收入,同时兼具良好的生态和社会效益。但种植子系统复种指数低,沼气工程的科技投入低,致使整个模式的产投比不高。该循环模式适合在关中地区大力推广,同时应采取因地制宜的系统结构调整和优化原则,坚持完善农业技术指导部门的发展策略。     

Evaluating the Importance of Business Location Factors: The Influence of Facility Type

This study examines two important issues concerning the evaluation of business location factors. First, in contrast to many analyses that seek to determine the influence of a single factor or set of factors on site selection, this study aims to measure the relative importance of a wide range of factors. Second, it investigates the extent to which the perceived importance of a given location factor varies based on the type of facility in question. While there is a substantial amount of research devoted to identifying industry‐specific location factors, little is known about the influence that facility type has on the assessment of location criteria. Drawing on original survey data collected from real estate professionals in the U.S., we found significant differences in the mean ratings for more than half of the 39 location factors on the basis of facility type. In particular, “corporate/office” respondents were significantly more likely than “manufacturing” or “retail” respondents to assign higher ratings to “quality‐of‐life” location factors, such as crime rates, amenities, housing, and schools. We discuss the implications of these findings for future research on location theory.     

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.     

Solving the Problems of Economic Development Incentives

ABSTRACT This paper reviews the research literature relevant to economic development incentives provided by state and local governments, and recommends reforms in these incentives. I argue that the main problem with current incentive policies is that state and local governments often provide incentives that are not in the best interest of that state or local area, for example that are excessively costly per job created, or that provide jobs that do not improve the job opportunities of local residents. I suggest that reforms should be “bottom‐up” rather than “top‐down.” Regulation of incentives by the federal government may prevent both desirable and undesirable incentives. “Bottom‐up” reforms would include more information on incentive offers, a budget constraint on the volume of incentives, stronger standards for job quality and job accessibility for the local unemployed, and better benefit‐cost analyses of incentives.     

“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.     

The Spatial Dimension of Trade‐ and FDI‐driven Productivity Growth in Chinese Provinces: A Global Cointegration Approach

This paper analyses the major determinants of long‐ and short‐run labour productivity evolution for Chinese provinces between 1978 and 2010. The role played by openness to trade and foreign direct investment (FDI) constitutes the main focus of this analysis. From a methodological perspective, our main contribution is the inclusion of spatial effects into a dynamic error correction modelling framework. The results show that, in addition to domestic factors such as investment intensity and infrastructure use, trade openness and inward FDI also exert a direct impact on labour productivity. Furthermore, the geographical environment has a strong indirect influence on productivity: The more a region is surrounded by high‐productive regions with good infrastructure and linkages to the world economy, the higher are its productivity level and growth rate. The magnitude of these impacts varies by spatial regime (coastal, interior provinces) and time period in focus. Especially in the recent past, trade and FDI activity appear to be increasingly important drivers of regional productivity evolution, both for coastal and interior regions. These findings have important policy implications: In order to fully exploit the benefits from such spillovers, coordinated industrial policies which foster regional complementarities and support the free movement of production factors across regional borders are crucial.     

Urban Development and Knowledge‐Intensive Business Services: Too Many Unanswered Questions?

ABSTRACT It is often assumed that future urban employment will be increasingly dependent on the knowledge‐intensive business services (KIBS). This underpins much of the current thinking about the development of the English “core cites.” Their example is employed to examine the more general validity of such assumptions, in terms of five critical questions to which research offers only partial and indefinite answers. For any city, how far are these activities really “knowledge intensive”? What markets do they serve? Is their future growth certain? And even when this is the case, how can they make a long‐term contribution to local urban economic success? Finally, how far do urban economic institutions and policies need to be adapted to foster knowledge‐based activities such as KIBS? It seems that, despite the growth of measured KIBS employment, most of the core cities possess few truly knowledge‐intensive KIBS, capable of serving national and international business markets, competitively adapting to future change, and adding to the competitiveness of the wider urban economy. Nationally such activities remain focused into the London region where, if anything, they have increased their concentration is recent years.     

Technology Search and Firm Bounds in Biotechnology: New Firms as Agents of Change

Schumpeterian perspectives on industrial change suggest a relationship between new firms and the regionally specific technological bases for innovation. However, the links between such firms and the knowledge bases for innovation are more implicit than explicit. The innovation process in new firms reflects both the capabilities found within the firm as well as information sourcing from without. This paper seeks to articulate the nature of change in relationships between firms in science-based industries and the technological infrastructure accessed to support innovation, as such industries mature out of the birth phase. Innovation is treated as decision making, identifying the firm as innovator and agent of change. Survey research suggests that a shift in the sourcing of information, and an associated shift in the character of information accessed, occurred with maturation in the study industry, comprised of biotechnology firms in the U.S. “Early” and “later” forming firms show somewhat different technology sourcing patterns. Interviews were conducted to help interpret these findings. Implications for industry development are suggested.