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Geoadditive models for regional count data: an application to industrial location

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  • Roberto Basile

    ()

  • Luigi Benfratello
  • Davide Castellani

Abstract

We propose a geoadditive negative binomial model (Geo-NB-GAM) for regional count data which allows us to simultaneously address some important methodological issues, such as spatial clustering, nonlinearities and overdispersion. We apply this model to study location determinants of inward greenfield investments occurred over the 2003-2007 period in 249 European regions. The inclusion of a geoadditive component (a smooth spatial trend surface) permits us to control for spatial unobserved heterogeneity which induces spatial clustering. Allowing for nonlinearities reveals, in line with theoretical predictions, that the positive effect of agglomeration economies fades as the density of economic activities reaches some limit value. However, no matter how dense the economic activity becomes, our results suggest that congestion costs would never overcome positive agglomeration externalities. Keywords: Geoadditive models, Negative binomial models, Industrial location, European Union JEL classification: C14, C21, F14, F23

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa12p83.

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Date of creation: Oct 2012
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Handle: RePEc:wiw:wiwrsa:ersa12p83

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Cited by:
  1. Davide CASTELLANI & Valentina MELICIANI & Loredana Mirra, 2012. "The determinants of inward foreign direct investment in business services across european regions," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 104/2012, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  2. Roberto Basile & Alessandro Girardi & Marianna Mantuano & Francesco Pastore, 2011. "Sectoral Shifts, Diversification and Regional Unemployment. Evidence From Local Labour Systems in Italy," WIFO Working Papers, WIFO 411, WIFO.
  3. Cristina Castelli & Davide Castellani, 2013. "The internationalisation of r&d: sectoral and geographic patterns of cross-border investments," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, FrancoAngeli Editore, vol. 2013(1), pages 127-143.
  4. Eva Dettmann & Iciar Dominguez Lacasa & Jutta Günther & Björn Jindra, 2013. "Determinants of Foreign Technological Activity in German Regions – A Count Model Analysis of Transnational Patents (1996-2009)," IWH Discussion Papers, Halle Institute for Economic Research 12, Halle Institute for Economic Research.

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