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.     

Modelling Local and Regional Economic Development in Turkey: A “Curate's Egg”

This paper explores and unpacks the nature of the processes shaping regional economic growth in Turkey using an econometric modelling strategy. Existing empirical research in this field has focussed on regions in economically advanced and technologically innovative economies. As a consequence, the broader picture of the dynamics of regional development in less developed countries, particularly its social and political origins and the overall changes in regional inequality, has remained elusive and less clear. In this study, a set of econometric models is developed to explore the validity of a range of theoretical propositions in explaining the trajectories of regional economic change in Turkey between 2004 and 2008. Growth is calibrated in terms of employment and changing rates of unemployment in the chosen time period in the 81 provinces of Turkey. The results of the study explain that implications of the current local and regional economic development theories are a “Curate's Egg”—good in parts—because these theories are only partially relevant in the Turkish context.     

“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.     

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.     

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.     

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.     

“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.     

Some Micro‐Evidence on the “Porter Hypothesis” from Austrian VOC Emission Standards

This paper presents some micro‐evidence relevant to the “Porter Hypothesis” on the techno‐economic consequences of Austrian Volatile Organic Compound (VOC) emission standards, the most restrictive of their kind in the world. Using firm‐level survey data and complementing it with highly disaggregated foreign trade data, the paper explores whether the standards had a palpable impact on the competitiveness of Austrian manufacturers of paints, coatings, printing inks, and adhesives, whether compliance stimulated innovation in this industry, whether the standards crowded out other, more productive Research and Development (R&D), and whether compliance efforts gave rise to unexpected benefits of compliance. It finds no unequivocal aggregate impact on the competitiveness of regulated firms, yet does find some interesting variation with firm size. Moreover, the standards appear to have dampened import competition. The standards gave rise to considerable changes in firms’ product range and appear to have accelerated the rate of product innovation in the regulated industry. R&D spending to develop compliant products is found to be very unevenly distributed, mainly due to technological and, to a lesser extent, organizational factors. There is evidence that compliance efforts displaced or postponed existing R&D projects. However, there is also evidence that search for compliant products yielded unexpected and beneficial ideas, knowledge, and competencies.     

Heritability of spotted wilt resistance in a Florida‐EP™ “113”‐derived peanut (Arachis hypogaea) population

Spotted wilt, caused by tomato spotted wilt virus (TSWV), is a major disease of peanut (Arachis hypogaea ) in the south‐eastern United States. Cultivar resistance is the most important factor in disease control. However, spotted wilt resistance in current cultivars still carries risk in the absence of other practices when disease is severe. In contrast, a newly developed cultivar, Florida‐EP? “113,” has demonstrated excellent resistance even when spotted wilt is severe. Information on heritability of this resistance can help breeders better utilize it in breeding. F₂‐derived populations from the cross Florida‐EP? “113”/Georgia Valencia were developed and tested in field experiments in Florida from 2012 to 2014. Disease symptoms were evaluated visually, and the frequency of TSWV infection was measured by ImmunoStrip^®. Heritability estimated from ImmunoStrip^® was higher (0.66) compared to visual ratings (0.48). Genetic correlations among evaluation methods (r _A = 0.92–0.99) and environments (r _B = 0.86–0.99) were high. These results indicate that resistance in Florida‐EP? “113” is highly heritable and that selection in a high disease risk environment is feasible without significant erosion of genetic gain.     

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.     

“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.     

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.     

Genetic analysis of prolificacy in “Sikkim Primitive”—A prolific maize (Zea mays) landrace of North‐Eastern Himalaya

Prolificacy assumes significance for development of high‐yielding baby corn hybrids. “Sikkim Primitive” is a native landrace of North‐Eastern Himalaya, and is the highest prolific maize germplasm. So far, the genetics of prolificacy in “Sikkim Primitive” has not been deciphered. Here, a prolific inbred (MGU‐SP‐101) developed from “Sikkim Primitive” was crossed with four non‐prolific inbreds viz., LM13, BML7, HKI161 and HKI1128. Six generations (P₁, P₂, F₁, F₂, BC₁P₁ and BC₁P₂) of the crosses were evaluated at two locations during rainy season 2018. MGU‐SP‐101 possessed 2.50–3.78 ears per plant compared to 1.06–1.86 among non‐prolific inbreds. The variation for ears was the highest in F₂s (1–8), followed by BC₁P₁ (1–7) and BC₁P₂ (1–5). The quantitative inheritance pattern of prolificacy with prevalence of non‐allelic interactions of duplicate epistasis type has been observed. Dominance × dominance effect was predominant over additive × additive and additive × dominance effects. Total number of major gene blocks ranged from 0.41 to 2.86, thereby suggesting the involvement of at least one major gene/QTL governing the prolificacy. This is the first report of genetic dissection of prolificacy in “Sikkim Primitive”.