Template-type: ReDIF-Paper 1.0 Author-Name: Lamia Kamal-Chaoui Author-Workplace-Name: OECD Author-Name: Edward Leeman Author-Name: Zhang Rufei Title: Urban Trends and Policy in China Abstract: China has become the world’s largest urban nation, with over 600 million urban citizens today. Projections indicate that this level may reach 900 million in 2030. The way this urbanisation process is managed will have important policy implications for China and beyond. This paper provides an introduction to urban trends and policies in China. It describes urban growth trends, where and in what kinds of cities growth is occurring, how China’s cities are governed, and how public policy has influenced the extent, pace, and spatial distribution of urbanisation. As China continues to integrate with the globalising economy, its competitiveness will increasingly be driven by the capacities of its metropolitan regions to improve the productivity of enterprises in ever-widening supply chains. The report concludes with a description of some of the key policy challenges facing central and local urban governments in this global context, including: 1) institutional constraints to markets and factor mobility; 2) environmental challenges; 3) ensuring equity and helping vulnerable groups; and 4) metropolitan governance. Creation-Date: 2009-03-25 Number: 2009/1 Handle: RePEc:oec:govaab:2009/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lamia Kamal-Chaoui Author-Workplace-Name: OECD Author-Name: Alexis Robert Author-Workplace-Name: OECD Title: Competitive Cities and Climate Change Abstract: Cities are part of the climate change problem, but they are also a key part of the solution. This report offers a comprehensive analysis of how cities and metropolitan regions can change the way we think about responding to climate change. Cities consume the vast majority of global energy and are therefore major contributors of greenhouse gas emissions. At the same time, the exposed infrastructure and prevalent coastal location of many cities makes them common targets for climate change impacts such as sea level rise and fiercer storms. This report illustrates how local involvement through ?climate-conscious? urban planning and management can help achieve national climate goals and minimise tradeoffs between environmental and economic priorities. Six main chapters analyse the link between urbanisation, energy use and CO2 emissions; assess the potential contribution of local policies in reducing global energy demand and the trade-offs between economic and environmental objectives at the local scale; discuss complementary and mutually reinforcing policies such as the combination of compact growth policies with those that improve mass transit linkages; and evaluate a number of tools, including the ?greening? of existing fiscal policies, financing arrangements to combat climate change at the local level, and green innovation and jobs programmes. One of the main messages of this report is that urban policies (e.g. densification or congestion charges) can complement global climate policies (e.g. a carbon tax) by reducing global energy demand, CO2 emissions and the overall abatement costs of reducing carbon emissions. To inform the groundswell of local climate change action planning, the report highlights best practices principally from OECD member countries but also from certain non-member countries. Classification-JEL: Q42; Q48; Q54; Q55; Q58; R00 Keywords: cities, climate change, global warming, government policy, planning, regional, regional economics, sustainable development, territorial, urban, urban sustainability Creation-Date: 2009-12-15 Number: 2009/2 Handle: RePEc:oec:govaab:2009/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tetsuya Shimomura Author-Workplace-Name: OECD Author-Name: Tadashi Matsumoto Author-Workplace-Name: OECD Title: Policies to Enhance the Physical Urban Environment for Competitiveness: A New Partnership between Public and Private Sectors Abstract: Globalisation and subsequent competition among cities have triggered a profound change in the mode of the governance of cities. It is often described as a shift from a managerial mode of governance, which had been primarily concerned with provision of social welfare services and control of private activities, to that of entrepreneurialism, strongly characterised by a pro-economic growth strategic approach. Subsequently, attractiveness has been increasingly regarded as a key factor for urban policies, since attractive cities are competitive and able to attract newly-emerging businesses and highly-skilled workforces that are the driving force in the global economy. Today, enhancing urban attractiveness is high on the agenda of urban policy in many OECD countries. A city?s attractiveness is determined by a wide range of elements. The OECD report “Competitive Cities: A New Entrepreneurial Paradigm in Spatial Development” (OECD, 2007) analysed various elements contributing to urban attractiveness (e.g. flagship redevelopment, cultural facilities, international events, etc.). Among various findings, it emphasises that it is important for a city to enhance its distinctiveness by identifying and building up urban assets that are unique to the city. In particular, many cities have recognised that attractive physical environment of cities can enhance their uniqueness and distinctiveness. Classification-JEL: H41; H76; R11; R33; R53; R58 Creation-Date: 2010-01-29 Number: 2010/1 Handle: RePEc:oec:govaab:2010/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Paul Benneworth Author-Workplace-Name: University of Twente Author-Name: Adrie Dassen Author-Workplace-Name: University of Twente Title: Strengthening Global-Local Connectivity in Regional Innovation Strategies: Implications for Regional Innovation Policy Abstract: With innovation increasingly important to economic development, innovation policy is attracting attention from politicians and policy-makers at all levels. Regional policy-makers face a distinctive challenge in that innovation takes place in international networks reaching far beyond their region‘s boundaries. What regional policy-makers can achieve is therefore constrained by the kind of firms and innovation networks already in their regions. This paper creates a framework for analysing regional innovation policy sensitive to this global dimension. Drawing on a global-local network analysis, the paper develops a regional classification for global-local innovation connectivity. The paper then analyses a set of common innovation policy measures, identifying how these policies can be optimised across these regional classes. The paper then highlights typical policy strengths and weaknesses for each of these various classes of regional global orientation. It argues that regional innovation strategies should pay more attention to their regions‘ global orientation if they are to become an effective tool across OECD members for improving innovation performance and economic growth rates.
L‘innovation étant de plus en plus importante pour le développement économique, les politiques en matière d‘innovation attirent l‘attention des politiciens et décideurs politiques de tous niveaux. Les responsables régionaux se trouvent face à un défi particulier puisque l‘innovation est le fruit de réseaux qui s‘étendent largement au-delà des limites de leurs régions. Ce que les décideurs politiques peuvent réaliser dépend donc des types d‘entreprises et de réseaux d‘innovation déjà présents dans leurs régions. Ce document crée un cadre pour l‘analyse des politiques d‘innovation sensibles à cette dimension globale. En s‘appuyant sur une analyse des réseaux au niveau mondial et local, il développe une classification régionale pour la connectivité entre les niveaux mondial et local en matière d‘innovation. Le document analyse ensuite un ensemble de mesures communes des politiques d‘innovation et identifie comment ces politiques peuvent être optimisées à travers ces catégories régionales. Enfin, le document souligne les forces et les faiblesses des politiques, typiques pour chacune des différentes catégories d‘orientation régionale ou mondiale. Il soutient que les stratégies d‘innovation régionales devraient davantage prendre en compte l‘orientation mondiale de leurs régions si elles veulent devenir un outil efficace au sein des pays membres de l‘OCDE pour améliorer la performance en matière d‘innovation et les taux de croissance économique. Classification-JEL: D2; H7; L2; O23; O31; O32; R3; R5 Keywords: economic development, firms, innovation policy, networks, regional competitiveness, regional development, regional innovation strategies, universities Creation-Date: 2011-05-01 Number: 2011/1 Handle: RePEc:oec:govaab:2011/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lamia Kamal-Chaoui Author-Workplace-Name: OECD Author-Name: Fabio Grazi Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement Author-Name: Jongwan Joo Author-Workplace-Name: OECD Author-Name: Marissa Plouin Author-Workplace-Name: OECD Title: The Implementation of the Korean Green Growth Strategy in Urban Areas Abstract: This report on the Korean Strategy for Green Growth and its implementation in urban areas assesses the contributions of sub-national governments to Korea's National Strategy for Green Growth and identifies the main challenges for effective implementation at the local level. Korea's economy, heavily reliant on foreign exports, was hard hit by the recent global financial crisis. Since the 1970s, Korea has become one of the most energy-intensive economies in the OECD area, thanks to higher living standards, rapid urbanisation and an expanding industrial sector. As a result, the country's greenhouse gas emissions almost doubled between 1990 and 2005, registering the highest growth rate in the OECD area. It is in this context of rapid urbanisation and unprecedented resource consumption and environmental pressures that the report focuses on the role of urban areas within Korea's National Strategy for Green Growth. The effectiveness of Korea's green growth agenda, which has been driven by a central government vision and strategy, will largely hinge on the contribution of urban areas toward more sustainable, greener growth. Through the lens of a multilevel governance framework, an assessment of green growth policies in Korean cities helps to identify concrete strategies for delivering a coherent policy message and improving governance across all levels of government, with particular recommendations in terms of policy, funding, technical capacity and information sharing. Classification-JEL: Q2; Q3; Q4; Q5; R1; R4; R5 Keywords: cities, climate, development, global warming, government policy, green growth, planning, regional, regional economics, sustainable development, territorial, urban, urban sustainability Creation-Date: 2011-07-01 Number: 2011/2 Handle: RePEc:oec:govaab:2011/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Author-Name: Karen Maguire Author-Workplace-Name: OECD Title: Categorisation of OECD Regions Using Innovation-Related Variables Abstract: National policy makers have shown a growing interest in the regional dimension of innovation processes, and regional policy makers are seeking to promote their own competitiveness by supporting innovation. To advance the OECD quantitative research on regions and innovation, a categorisation of regions was developed using socio-demographic, economic, and innovation-related variables. Many different categorisations are possible depending on the purpose of the peer group comparisons. This categorisation was developed with the main goal of highlighting the diversity of regional profiles across OECD regions. Similar types of analysis have been performed with regions of the European Union. This analysis identifies eight groups of regions based on the similarity of their performance on the 12 variables used in the statistical cluster analysis. These eight groups were then classified into three macro categories based on relevance for policy recommendations. Possibilities for further research to develop different forms of regional peer groupings are discussed.
Les responsables politiques nationaux montrent un intérêt croissant envers la dimension régionale des processus d’innovation, et les responsables politiques régionaux cherchent à promouvoir leur propre compétitivité en soutenant l’innovation. Afin d’améliorer la recherche quantitative de l’OCDE sur les régions et l’innovation, une catégorisation des régions a été développée en utilisant des variables socio-démographiques, économiques et liées à l’innovation. De nombreuses catégorisations sont possibles en fonction de l’objectif des comparaisons entre « groupes de pairs ». La présente catégorisation a été développée avec l’objectif principal de mettre en évidence la diversité des profils régionaux au sein des régions de l’OCDE. Des types d’analyse similaires ont été réalisés avec les régions de l’Union européenne. Cette analyse identifie huit groupes de régions sur la base de la similitude de leur performance dans les 12 variables utilisées pour l’analyse statistique en « cluster ». Ces huit groupes ont ensuite été classés en trois macro-catégories suivant leur pertinence pour les recommandations politiques. Les possibilités de continuer les recherches pour développer différentes formes de groupes de pairs régionaux sont également abordées. Classification-JEL: D2; L2; O2; O31; O32; R3; R5 Keywords: cluster analysis, economic development, innovation policy, regional competitiveness, regional development, regional innovation strategies Creation-Date: 2011-07-01 Number: 2011/3 Handle: RePEc:oec:govaab:2011/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Charbit Author-Workplace-Name: OECD Title: Governance of Public Policies in Decentralised Contexts: The Multi-level Approach Abstract: The ability of sub national governments to “better spend”, by identifying relevant paths for territorial competitiveness and effective delivery of public services, is largely enshrined in their institutional background. Rather than isolated actors, sub national authorities and central governments are “mutually dependent”. In this context, and for a majority of OECD member and non-member countries, the key underlying question is not whether to “decentralise or not” or even opt for a specific decentralisation model, but to look at ways to improve capacity and coordination among public stakeholders at different levels of government to increase efficiency, equity and sustainability of public spending. This question of “multi level governance” is therefore accurate, whatever the constitutional framework of countries, federal or unitary. This paper provides: first, a methodology to diagnose multi level governance challenges; and, second, examples of tools used by OECD countries to bridge co-ordination and capacity “gaps”. This approach has been inspired by OECD regional development policy work, as regional development policy relies both on the diversity of territorial situations and the coherence of regional strategies at the national level. In practice, it has already been tested in a variety of public policies such as public investment, water, and innovation, which all contributed to enrich it with concrete sectoral evidence and experience. Classification-JEL: H1; H5; H6; H7; R1 Keywords: decentralisation, intergovernmental relationships, local and state governments, multi-level governance, regional development, sub-national government Creation-Date: 2011-07-19 Number: 2011/4 Handle: RePEc:oec:govaab:2011/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dorothée Allain-Dupré Title: Multi-level Governance of Public Investment: Lessons from the Crisis Abstract: Over 2008-11, most OECD countries switched from highly expansive fiscal policies to the tightest in decades. During the crisis and subsequent recession in 2008-09, many OECD and G20 countries implemented stimulus packages, which in some cases amounted to 4% or more of GDP. On the expenditure side, the fiscal programmes typically focused on public investment. Given their large traditional role in public investment in OECD countries, sub-national governments (SNGs) have played an important role in implementing investment recovery strategies. For future investment strategies it is important to learn about obstacles encountered across levels of government and the instruments that facilitated implementation. The crisis has made more obvious the multi-level governance challenges – in particular fiscal, policy, capacity or administrative challenges – that are inherent to decentralised political systems. Co-ordination across levels of government has proven critical for targeting investment priorities, ensuring coherence in fiscal policy and facilitating the implementation of national strategies during the crisis. As stimulus packages are phased out, many countries are planning some combination of spending cuts and tax increases in 2011-12. To avoid simply shifting the problem from the centre to the regions, co-ordinated efforts from all levels of government are required to accommodate appropriate budget cuts for fiscal consolidation and better prioritise investment in what unlocks each region?s potential to restore growth. Both the stimulus and the process of fiscal consolidation highlight the need to foster and improve policy co-ordination, transparency and information sharing across levels of government. Classification-JEL: H5; H6; H7; R1; R5 Keywords: crisis, fiscal consolidation, multi-level governance, public investment, regional development, sub-national government Creation-Date: 2011-07-01 Number: 2011/5 Handle: RePEc:oec:govaab:2011/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: Monica Brezzi Author-Workplace-Name: OECD Author-Name: Lewis Dijkstra Author-Workplace-Name: European Commission Author-Name: Vicente Ruiz Author-Workplace-Name: OECD Title: OECD Extended Regional Typology: The Economic Performance of Remote Rural Regions Abstract: To account for differences among rural and urban regions, the OECD s established a regional typology, classifying TL3 regions as predominantly urban (PU), intermediate (IN) or predominantly rural (PR) (OECD, 2009). This typology, based essentially on the percentage of regional population living in urban or rural communities, has proved to be meaningful to better explain regional differences in economic and labour market performance. However this typology does not take into account the presence of economic agglomerations if they happen to be in neighbouring regions. For example, a region is classified as rural or intermediate regardless its distance from a large urban centre where labour market, access to services, education opportunities and logistics for firms can be wider. Previous work reveals great heterogeneity in economic growth among rural regions and the distance from a populated centre could be a significant factor explaining these differences. For the latter, the OECD regional typology is extended to include an accessibility criterion. This criterion is based on the driving time needed for at least half of the population in a region to reach a populated centre of with 50 000 or more inhabitants. The resulting classification consists of four types of regions: Predominantly Urban (PU), Intermediate (IN), Predominantly Rural Close to a city (PRC) and Predominantly Rural Remote (PRR). For the time being, the extended typology has only been computed for regions in North America (Canada, Mexico and the United States) and Europe. The extended typology is used to compare the dynamics of population and labour markets. Remote rural regions show a stronger decline in population and a faster ageing process than rural regions close to a city. The remoteness of rural regions is in fact a significant factor explaining regional outflows of working age population, confirming that this extended typology captures the economic distance from market and services. Remote rural regions appear economically more fragile: lower employment rates (Canada and Mexico) and economic output (Europe).
Afin de prendre en compte les différences entre les régions rurales et urbaines, l’OCDE a établi une typologie régionale qui classe les régions TL3 en 3 catégories : régions majoritairement urbaines (PU), intermédiaires (IN) ou à prédominance rurale (PR), (OCDE, 2009). Cette typologie, qui repose essentiellement sur le pourcentage de la population régionale vivant dans des communautés urbaines ou rurales, s'est révélée significative pour mieux expliquer les différences régionales au niveau de la performance économique et du marché du travail. Toutefois, cette typologie ne tient pas compte de la présence de grandes agglomérations, si celles-ci se trouvent dans des régions voisines. Par exemple, une région est considérée comme rurale ou intermédiaire indépendamment de sa distance d'un grand centre urbain, où le marché du travail, l'accès aux services, les possibilités d'éducation et l’offre logistique pour les entreprises peuvent être meilleurs. Des travaux antérieurs révèlent une grande hétérogénéité de croissance économique entre les régions rurales, et la distance d'un centre fortement peuplé pourrait être un facteur important pour expliquer ces différences. C’est pour cette raison que la typologie régionale de l'OCDE a été élargie afin d’y inclure un critère d'accessibilité. Ce critère est basé sur le temps de trajet que doit réaliser au moins la moitié de la population d’une région pour atteindre un centre urbain de 50 000 habitants ou plus. La classification qui en résulte se compose de quatre types de régions: Majoritairement Urbaines (PU), Intermédiaires (IN), à prédominance rurale proches d'une ville (RPC) et à prédominance rurale éloignées (PRR). Pour l'heure, la typologie élargie n'a été calculée que pour les régions en Amérique du Nord (Canada, Mexique, États-Unis) et en Europe. La typologie élargie est utilisée pour comparer la dynamique de la population et celle des marchés du travail. Elle montre que les régions rurales éloignées ont une baisse plus importante de leur population et un processus de vieillissement plus rapide que les régions rurales proches d'une ville. L'éloignement des régions rurales est en effet un facteur important pour expliquer les migrations régionales de la population en âge de travailler, ce qui confirme que cette typologie élargie prend bien en compte la distance économique du marché et des services. Les régions rurales éloignées apparaissent plus fragiles au niveau économique : des taux d'emploi inférieurs (Canada et Mexique) et une production économique moindre (Europe). Classification-JEL: C80; J61; R1; R4 Keywords: ageing, distance to markets, labour market mobility, OECD regional typology, road networks, rural regions Creation-Date: 2011-08-02 Number: 2011/6 Handle: RePEc:oec:govaab:2011/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: César Ducruet Author-Workplace-Name: Université Paris 1 Panthéon-Sorbonne Author-Name: Patrick Dubarle Author-Name: Elvira Haezendonck Author-Workplace-Name: Vrije Universiteit Brussel Author-Name: Michael Dooms Author-Workplace-Name: Vrije Universiteit Brussel Title: The Competitiveness of Global Port-Cities: The Case of the Seine Axis (Le Havre, Rouen, Paris, Caen), France Abstract: This working paper offers an evaluation of the performance of the ports of the Seine Axis (Le Havre, Rouen, Caen and Paris), as well as an analysis of the impact of the ports on their territory and an assessment of policies and governance in this field. It examines declining port performance in the last decade and identifies the principal factors that have contributed to it. In addition, the report studies the potential for synergies between the different ports, and surveys impending developments that are likely to influence port performance. The effect of the ports on economic, social and environmental questions is studied and quantified where possible. The value added of the port cluster of Le Havre/Rouen is calculated and its interlinkages with other economic sectors and other regions in France delineated. The paper outlines the impact of the ports' operations, and shows how their activities spill over into other regions. The major policies governing the ports are assessed, along with policies governing transport and economic development, innovation, the environment and spatial planning. These include measures instituted by the port authorities, as well as by local, regional and national governments. Governance mechanisms at these different levels are described and analysed. A port reform package, implemented in 2011, has changed the roles of the principal actors within the ports, and initiatives at the regional level have been intensified. Based on the report's findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the ports on their territory. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: input-output, inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2011-09-14 Number: 2011/7 Handle: RePEc:oec:govaab:2011/7-EN Template-type: ReDIF-Paper 1.0 Author-Name: Stephen Hammer Author-Workplace-Name: Massachusetts Institute of Technology Author-Name: Lamia Kamal-Chaoui Author-Workplace-Name: OECD Author-Name: Alexis Robert Author-Workplace-Name: OECD Author-Name: Marissa Plouin Author-Workplace-Name: OECD Title: Cities and Green Growth: A Conceptual Framework Abstract: This report examines the current state of knowledge about green growth in cities and outlines the key research questions and protocols that will guide the OECD Green Cities programme. It builds the case for an urban green growth agenda by examining the economic and environmental conditions that have pushed the green growth agenda to the forefront of policy debate and assessing the critical role of cities in advancing green growth. Section 1 lays the context for the paper, examining why green growth is important and how it can be defined in an urban context. Section 2 focuses on policies and tools that enable the transition to green growth in cities. It concludes with a proposal for a policy framework for an urban green growth agenda that is based on a set of hypotheses of desirable economic scenarios. Section 3 examines the main challenges to advancing an urban green growth agenda. It explores the roles that multi-level governance, measuring and monitoring tools and finance must play in delivering green growth in cities. The report concludes with suggestions for future research, including recommendations on how national policymakers responsible for regional and urban policies can advance an urban green growth agenda. Classification-JEL: O1; O3; Q1; Q2; Q3; Q4; Q5; R1; R4; R5 Keywords: cities, climate, global warming, government policy, green growth, planning, regional, regional economics, sustainable development, territorial, urban, urban sustainability Creation-Date: 2011-12-06 Number: 2011/8 Handle: RePEc:oec:govaab:2011/8-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lamia Kamal-Chaoui Author-Workplace-Name: OECD Author-Name: Javier Sanchez-Reaza Author-Workplace-Name: OECD Title: Urban Trends and Policies in OECD Countries Abstract: This working paper is one in a series of OECD Working Papers on Regional Development of the OECD Public Governance and Territorial Development Directorate, conducted under the responsibility of Joaquim Oliveira Martins, Head of the OECD Regional Competitiveness and Governance Division (www.oecd.org/regionaldevelopment). Classification-JEL: O1; O3; Q2; Q3; Q4; Q5; R1; R2; R3; R4; R5 Creation-Date: 2012-02-15 Number: 2012/1 Handle: RePEc:oec:govaab:2012/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lamia Kamal-Chaoui Author-Workplace-Name: OECD Author-Name: Marissa Plouin Author-Workplace-Name: OECD Title: Cities and Green Growth: Case Study of the Paris/Ile-de-France Region Abstract: This report, developed within the framework of the OECD Green Cities programme, is a pilot case study examining the green growth potential of the Paris-IDF region. In a context of stiff international competition and internal socio-economic and environmental pressures, green growth could be an appropriate path toward revitalising the regional economy and improving environmental outcomes. Building and transportation are among the urban sectors with the greatest potential. Several emerging approaches to a more flexible form of metropolitan governance show promise, yet would benefit from greater private sector involvement throughout the policymaking process. Financing green growth will require the further greening of public revenue sources and the creation of new ones. Adapting procurement processes and pursuing innovative coorerative arrangements with the private sector could also be considered. Classification-JEL: O1; O3; Q1; Q2; Q3; Q4; Q5; R1; R4; R5 Keywords: cities, climate, global warming, government policy, green growth, planning, regional, regional economics, sustainable development, territorial, urban, urban sustainability Creation-Date: 2012-02-23 Number: 2012/2 Handle: RePEc:oec:govaab:2012/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Author-Name: Annalisa Primi Author-Workplace-Name: OECD Title: Tell Me Who You Patent With and I'll Tell You Who You Are: Evidence from Inter-Regional Patenting Networks in Three Emerging Technological Fields Abstract: This paper presents an overview of co-patenting trends at the national and regional level in three technology fields (biotechnology, telecommunications and renewable energy), across regions in the OECD and emerging economies, from the late 1970s to the late 2000s. After a general introduction on regional patenting activities, inter-regional co-inventorship networks in the three selected technologies are built and analysed. Different behaviors and relative network positioning emerge, in terms of top patenting regions both across technological fields and over time. Co-patenting networks increase their density over time and they show preferential attachment properties, namely regions with a central position in an early phase of development of the network tend to maintain their positioning in the future. However, there are also windows of opportunity for new central nodes to emerge in the network. Evidence shows that the structure of the network evolves differently depending on technological field and that the role of spatial proximity and capability proximity is mixed in influencing co-inventorship patterns. Co-patenting networks include star players that establish connections regardless of the proximity of partners; but also several wellperforming actors that benefit from proximity or relative proximity of agents.
Cet article analyse des réseaux de co-brevets parmi les régions des pays OCDE et des économies émergentes sélectionnées, dans trois secteurs technologiques (télécommunications, biotechnologie, énergie renouvelable) sur la période 1977-2007. Après une introduction générale sur la production de brevets à niveau régional, les réseaux inter-régionaux de co-brevets dans les trois technologies sont construits et analysés. Des comportements et des positionnements différents à niveau des régions émergent, dans la structure générale des réseaux analysés, selon la technologie et dans le temps. Les réseaux de co-brevets deviennent plus denses avec le temps et montrent la propriété de l’attachement préférentiel, soit les régions avec une position centrale dans le réseau au début tendent à la garder dans le temps. Toutefois, il existe des opportunités pour atteindre un positionnement central même pour les régions qui entrent dans le réseau dans des phases successives. Les données montrent comment la structure du réseau évolue avec des caractéristiques différentes selon la classe technologique et comment la proximité spatiale et la proximité des connaissances influencent l’évolution du phénomène de la co-invention des brevets : les réseaux d’excellence contiennent les acteurs leaders, qui établissent leurs collaborations innovantes sans tenir en compte la proximité géographique, ainsi que plusieurs acteurs performants qui bénéficient aussi de la proximité géographique relative avec autres agents. Classification-JEL: D85; L00; O1; O25; O3; R12 Keywords: biotechnology, co-inventorship, green technologies, ICT, network analysis, patents, regional innovation Creation-Date: 2012-03-20 Number: 2012/3 Handle: RePEc:oec:govaab:2012/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Aziza Akhmouch Author-Workplace-Name: OECD Title: Water Governance in Latin America and the Caribbean: A Multi-Level Approach Abstract: The water debate in relation to poverty alleviation has one dimension that is often sidelined: its relationship with public governance. This report attempts to shed some light on the governance of water policy in Latin American and Caribbean (LAC) countries. It argues that public governance of water in most LAC countries is fragmented, as it is in the OECD area as well, and that greater efforts to co-ordinate water with other policy areas are crucial to maximise the impact on poverty reduction. It emphasises the need to design water policies in a more integrated manner and implement effective water governance tools and mechanisms that are context-specific, flexible and beneficial to the poor. Classification-JEL: H41; H79; R58 Creation-Date: 2012-03-28 Number: 2012/4 Handle: RePEc:oec:govaab:2012/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Mario Piacentini Author-Workplace-Name: OECD Author-Name: Konstantin Rosina Author-Workplace-Name: Institute of Geography Title: Measuring the Environmental Performance of Metropolitan Areas with Geographic Information Sources Abstract: This paper presents recent work undertaken at the OECD to produce environmental indicators at the regional level from geographic data sources. New indicators have been tested and produced in five different domains: a) land cover, b) forest ecosystems, c) urban density, d) CO2 emissions, e) air quality. The indicators measure the environmental performance of administrative regions (OECD TL2 and TL3 regions) and of OECD metropolitan areas. High-quality geographic datasets have been combined and harmonized with the objectives of producing internationally comparable results, and of achieving the largest possible coverage of OECD and non-OECD countries. The results show that geographic information data are a key and underexploited resource for monitoring the state of local environmental assets. There are still methodological and measurement challenges in the use of geographic data for the analysis of environmental changes at the local level. More coordination across national and international programs producing geographic data is needed to further increase their policy relevance. Classification-JEL: Q5; R1 Keywords: environment, Geographic Information Systems, regional development Creation-Date: 2012-04-25 Number: 2012/5 Handle: RePEc:oec:govaab:2012/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Markus Hesse Author-Workplace-Name: University of Luxembourg Title: The Competitiveness of Global Port-Cities: The Case of Hamburg, Germany Abstract: This working paper offers an evaluation of the performance of the Port of Hamburg, as well as an analysis of the port?s impact on its territory and an assessment of relevant policies and governance. It examines port performance in the last decade and identifies the principal factors that have contributed to it. In addition, the report studies the potential for synergies between the Hamburg and Bremerhaven ports. The study also considers the effect of these ports on economic and environmental questions. The value added of the port cluster of Hamburg is calculated, and its linkages with other economic sectors and regions in Germany are delineated. Specifically, the paper outlines the impact of the port?s operations, and shows how its activities spill over into other regions. The report also assesses major policies governing the port, as well as transport and economic development, the environment and spatial planning. These policies include measures instituted by the port authority and local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report?s findings, proposed recommendations aim to improve port performance and increase the positive effects of the port on its territory. Classification-JEL: D57; L91; R11; R12; R15; R41 Creation-Date: 2012-06-27 Number: 2012/6 Handle: RePEc:oec:govaab:2012/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claudio Ferrari Author-Workplace-Name: University of Genoa Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Anna Bottasso Author-Workplace-Name: University of Genoa Author-Name: Maurizio Conti Author-Workplace-Name: University of Genoa Author-Name: Alessio Tei Author-Workplace-Name: University of Genoa Title: Ports and Regional Development: A European Perspective Abstract: This paper studies the impact of port activity on regional employment, analysing approximately 560 western European regions, including the largest OECD European ports (116 ports), from 2000-06. The empirical analysis is based on a set of employment equations using the Blundell and Bond (1998) GMM-System estimator that takes into account persistence effects in employment, regional unobserved time-invariant heterogeneity and endogeneity of port activity. Our main findings are (1) regional employment is positively correlated to port throughput, while the number of passengers is not; (2) the impact of port throughput on employment might depend on the institutional characteristics of each port, with private ports having the largest impact on regional employment of the host region if compared with those operating under different governance models (“Hanseatic”, “Latin”); (3) there is a higher impact of port throughput when liquid bulk is not considered; and (4) the main results are confirmed when service and manufacturing employment rather than total employment are considered. Classification-JEL: H54; L91; O47; R11; R41 Keywords: ports, regional development, regional growth, transportation Creation-Date: 2012-09-11 Number: 2012/7 Handle: RePEc:oec:govaab:2012/7-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Olli-Pekka Hilmola Author-Workplace-Name: Lappeenranta University of Technology Author-Name: Patrick Dubarle Title: The Competitiveness of Global Port-Cities: The Case of Helsinki, Finland Abstract: This working paper offers an evaluation of the performance of the Port of Helsinki, as well as an analysis of the port?s impact on its territory and an assessment of relevant policies and governance. It examines declining port performance in the last decade and identifies the principal factors that have contributed to it. In addition, the report studies the potential for synergies between the Helsinki and HaminaKotka ports. The study also considers the effect of these ports on economic and environmental questions. Specifically, the paper outlines the impact of the Helsinki port?s operations, and shows how its activities spill over into other regions. The report also assesses major policies governing the port, as well as transport and economic development, the environment and spatial planning. These policies include measures instituted by the Helsinki Port Authority and local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report?s findings, proposed recommendations aim to improve port performance and increase the positive effects of the port on its territory. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2012-09-11 Number: 2012/8 Handle: RePEc:oec:govaab:2012/8-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Thai-Thanh Dang Title: Efficiency of World Ports in Container and Bulk Cargo (oil, coal, ores and grain) Abstract: Port efficiency is an important indicator of port performance; more efficient ports lower transportation costs and facilitate imports and exports of a country. Despite the importance of the subject, the exisiting port efficiency studies have almost exclusively focused on container ports. This Working Paper aims to fill that gap by calculating efficiency scores of world ports per cargo type (containers, oil, coal, iron ore and grain). These calculcations have been made using a database constructed for this purpose. Several findings can be derived from these calculations. Significant improvements can be made when the technical efficiency of ports is increased. Among the sample, gaps between terminal efficiency mostly reflected gaps in pure technical efficiency. When comparing the level of efficiency achieved by ports across commodities, technical gaps were more marked for container and oil terminals. Promoting policies to raise throughput levels in order to minimise production scale inefficiencies is another important area for improvement. Production scale inefficiencies arise when throughput levels are below or above optimal levels given the current capacity of terminal infrastructure. Such inefficiencies were mostly found in a substantial number of ports handling crude oil and iron ore, suggesting that efficiency is more sensitive and driven by exogenous factors related to traffic flows. The analysis also shows that the size of ports matters for port efficiency. The crude oil, iron-ore and grain ports have higher efficiency scores at larger total port size, suggesting that this size is more efficient because they can drive technological development. Finally, there are regional patterns emerging across commodities. Terminals in China are among the most efficient in handling coal bulk and containers with terminals in Southeast Asia. By contrast, the most efficient grain and iron-ore terminals are located in Latin America, and the most efficient crude-oil transhipment terminals are mostly found in the Gulf region. Further, Australia is also found to perform well in handling coal bulk and grains. Classification-JEL: L91; R11; R41 Keywords: port efficiency, ports, transportation Creation-Date: 2012-09-13 Number: 2012/9 Handle: RePEc:oec:govaab:2012/9-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Stéphane Saussier Author-Workplace-Name: Sorbonne Business School Author-Name: Carine Staropoli Author-Workplace-Name: University of Paris I Author-Name: Enid Slack Author-Workplace-Name: University of Toronto Author-Name: Jay-Hyung Kim Author-Workplace-Name: Korea Development Institute Title: Financing Green Urban Infrastructure Abstract: This paper presents an overview of practices and challenges related to financing green sustainable cities. Cities are essential actors in stimulating green infrastructure; and urban finance is one of the promising ways in which this can be achieved. Cities are key investors in infrastructure with green potential, such as buildings, transport, water and waste. Their main revenue sources, such as property taxes, transport fees and other charges, are based on these same sectors; cities thus have great potential to ?green? their financial instruments. At the same time, increased public constraints call for a mobilisation of new sources of finance and partnerships with the private sector. This working paper analyses several of these sources: public-private partnerships, tax-increment financing, development charges, value-capture taxes, loans, bonds and carbon finance. The challenge in mobilising these instruments is to design them in a green way, while building capacity to engage in real co-operative and flexible arrangements with the private sector. Keywords: green growth, infrastructure finance, private finance, public private partnerships, urban development, urban finance, urban infrastructure Creation-Date: 2012-09-24 Number: 2012/10 Handle: RePEc:oec:govaab:2012/10-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Claude Comtois Author-Workplace-Name: University of Montreal Title: Competitiveness of Port-Cities: The Case of Marseille-Fos, France Abstract: This working paper offers an evaluation of the performance of the port of Marseille-Fos, an analysis of the impact of the port on its territory and an assessment of policies and governance in this field. It examines declining port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the ports on economic and environmental questions is studied and quantified where possible. The value added of the port cluster of Marseille-Fos is calculated and its interlinkages with other economic sectors and other regions in France delineated. The paper outlines the impact of the ports? operations, and shows how their activities spill over into other regions than the one in which the port of Marseille-Fos is located. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. These include measures instituted by the port authorities, as well as by local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report?s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the port of Marseille-Fos on its territory. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: input-output, inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2012-12-19 Number: 2012/11 Handle: RePEc:oec:govaab:2012/11-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Oguz Bagis Title: The Competitiveness of Global Port-Cities: The Case of Mersin, Turkey Abstract: This working paper offers an evaluation of the performance of the port of Mersin, an analysis of the impact of the port on its territory and an assessment of policies and governance in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the ports on economic and environmental questions is studied and quantified where possible. The value added of the port cluster of Mersin is calculated and its interlinkages with other economic sectors in Turkey delineated. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. These include measures instituted by the port authorities, as well as by local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the port of Mersin on its territory. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: input-output, inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2013-02-20 Number: 2013/1 Handle: RePEc:oec:govaab:2013/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Camila Vammalle Author-Workplace-Name: OECD Author-Name: Claudia Hulbert Author-Workplace-Name: OECD Title: Sub-national Finances and Fiscal Consolidation: Walking on Thin Ice Abstract: Recent crises and national consolidation packages affected sub-national finances. In many OECD countries, central governments introduced reductions in transfers to sub-national governments, and established expenditure and/or deficit objectives to be met by local or regional authorities. Such measures have reduced the financial room of sub-national governments for implementing key public services or investments. In parallel, borrowing conditions deteriorated for many sub-national governments, as banks and financial markets became increasingly reluctant to lend. Since late 2008, financial markets started discriminating between high- and low-quality SNG bonds, and yields reached record-high levels for sub-national governments perceived as less creditworthy. Facing degraded finances, upward pressure on expenditures and deteriorated borrowing conditions, many sub-national governments have used public investment as an adjustment variable to reduce their budget deficits and preserve their spending on welfare, health or education. However, such policies may hinder long-term growth perspectives. Classification-JEL: H12; H70; H74; H81 Keywords: bailouts, fiscal stress, public debt, sub-national government Creation-Date: 2013-03-11 Number: 2013/2 Handle: RePEc:oec:govaab:2013/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Paolo Veneri Author-Workplace-Name: OECD Author-Name: Vicente Ruiz Author-Workplace-Name: OECD Title: Urban-to-Rural Population Growth Linkages: Evidence from OECD TL3 Regions Abstract: The objective of this paper is to better understand how the population growth rates of rural regions are affected by their closeness to urban regions and by the economic performance of the latter. By means of a cross-sectional analysis of OECD TL3 regions, it identifies the growth spillover effects from the net effect of distance to non-rural places. Distance-based measures are used to approximate the extent to which urban and rural areas are integrated in relational terms. Results shows that positive growth spillovers exist, suggesting that spread effects overcome backwash effects and thus that rural regions benefit from the growth process taking place in urban and intermediate regions. After having controlled for these growth spillovers, the distance from urban and intermediate regions has a negative effect on the population growth rate of rural regions. Nevertheless, both the strength of this effect and the growth spillovers decay with distance. Results further suggest that proximity to urban areas has higher positive influence than to intermediate areas. Classification-JEL: R11; R12; R58 Keywords: growth, linkages, rural, spillovers, urban Creation-Date: 2013-03-13 Number: 2013/3 Handle: RePEc:oec:govaab:2013/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lee Mizell Author-Workplace-Name: OECD Author-Name: Dorothée Allain-Dupré Author-Workplace-Name: OECD Title: Creating Conditions for Effective Public Investment: Sub-national Capacities in a Multi-level Governance Context Abstract: Growth and jobs are top concerns for policy makers confronting difficult economic conditions in many OECD countries. Sub-national governments are important contributors to national growth, but in many cases their economies are struggling as well. Faced with tight fiscal conditions, all levels of government must achieve policy goals with fewer resources. This is particularly true for public investment, a potentially growth-enhancing form of public expenditure which numerous governments are reducing to meet other (current) financial obligations. Even where public investment is stable or increasing, governments may want to improve returns to public and private investment. On average, nearly two-thirds of public investment in OECD countries occurs at the sub-national level. Clearly then, any discussion of improving returns to investment must address the capacities of sub-national governments to invest effectively. Unfortunately, the implementation of recovery packages across OECD countries revealed that both national and sub-national actors may lack the appropriate tools and governance arrangements to make the best use of investment funds. Taking this finding as its starting point, this paper seeks to 1) identify capacities that enable sub-national governments to design and implement sound public investment strategies for regional development, and 2) provide practical guidance for assessing and strengthening these capacities in a context of multi-level governance. Classification-JEL: H1; H5; H7; R1; R5 Keywords: capacity, decentralisation, multi-level governance, public investment, regional development, sub-national government Creation-Date: 2013-03-19 Number: 2013/4 Handle: RePEc:oec:govaab:2013/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rudiger Ahrend Author-Workplace-Name: OECD Author-Name: Marta Curto-Grau Author-Workplace-Name: University of Barcelona Author-Name: Camila Vammalle Author-Workplace-Name: OECD Title: Passing the Buck? Central and Sub-national Governments in Times of Fiscal Stress Abstract: The paper explores interrelations between the fiscal situation of sub-national and central governments, or – put differently – whether and how sub-national and central governments contribute to each other’s fiscal difficulties. The first part of the paper examines sub-national government policies that may negatively affect the fiscal situation of the central government. Based on a new cross-country data-set at the level of individual regions, it examines structural factors that increase the probability of sub-national entities accumulating amounts of debt that may ultimately turn out to be unsustainable. The underlying idea is to explore to what degree such debt levels could result from moral hazard-driven behaviour at the regional level. The second part of the paper examines whether and how national governments hand the burden of fiscal adjustment down to sub-national levels, mainly looking at examples from the wave of fiscal adjustments in the wake of the 2007-09 global financial crisis.
Cette étude examine dans quelle mesure la situation budgétaire des gouvernements infra-nationaux et celle des gouvernements centraux sont liées – ou, exprimé différemment, comment les gouvernements infra-nationaux et centraux contribuent à leurs difficultés budgétaires réciproques. La première partie de l’étude analyse les politiques conduites par les gouvernements infra-nationaux pouvant affecter négativement la situation budgétaire du gouvernement central. Une analyse des facteurs structurels susceptibles d’accroître la probabilité d’accumulation de dette par les entités infra-nationales (et pouvant au final la rendre insoutenable) est alors conduite. Basée sur une nouvelle base de données au niveau regional pour six pays de l’OCDE, elle cherche à déterminer à quel point ces niveaux de dette sont susceptibles d’être influencés par des comportements d’aléa moral de la part des autorités régionales. La seconde partie de cette étude examine la manière dont les gouvernements centraux transfèrent le poids de l’ajustement budgétaire aux gouvernements infra-nationaux, en se concentrant sur des épisodes de consolidation budgétaire ayant suivi la crise financière internationale de 2007-2009. Classification-JEL: H12; H70; H74; H81 Keywords: bailouts, fiscal stress, gouvernements infra-nationaux, plan de sauvetage, public debt, stress budgétaire, sub-national government Creation-Date: 2013-03-26 Number: 2013/5 Handle: RePEc:oec:govaab:2013/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Cities and Green Growth: The Case of the Chicago Tri-State Metropolitan Area Abstract: This working paper assesses opportunities and policies for green growth in the Chicago Tri-State Metropolitan Area. It first examines the Chicago metro-region's economic and environmental performance and potential constraints to regional growth, and identifies emerging regional specialisations in green products and services. This is followed by a review of sector-specific policies that can contribute to green jobs, green firms and urban attractiveness, with particular attention to energy-efficient buildings, the wind energy industry, public transportation, and the water and waste sectors. Finally, the working paper considers the role of workforce, innovation and governance policies, focusing on skill shortages and skill mismatches in the regional labour market, ways to make the most of the region's innovation assets, and opportunities for regional institutional co-ordination. Classification-JEL: O18; O44; Q01; Q55; Q58; R11; R58 Keywords: attractiveness, Chicago, cities, climate change, energy efficiency, green cities, green economy, green growth, green technologies, Illinois, Indiana, innovation, metro-region, Milwaukee, multi-level governance, regional clusters, renewable energy, sustainable development, transport, urban development, urban sustainability, Wisconsin Creation-Date: 2013-05-03 Number: 2013/6 Handle: RePEc:oec:govaab:2013/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Urbanisation and Green Growth in China Abstract: This working paper assesses national policy and governance mechanisms that can influence green growth in Chinese cities. It applies the OECD conceptual framework for urban green growth to examine the potential challenges and opportunities for increasing economic growth through reducing the environmental impact of urban land use, transport and buildings; through improving water and air quality; and through fostering supply and demand of green products and services. The paper first situates the issue of green growth within the nexus of urbanisation and environmental challenges now facing China. This is followed by a review of environmental and quality of life challenges posed by rapid urbanisation. Opportunities for national policies to influence green growth in four key urban policy sectors are then examined. The paper concludes with an assessment of governance challenges and considers potential changes to facilitate economic growth while reducing the environmental impact of cities. Classification-JEL: O18; O44; Q01; Q55; Q58; R11; R58 Keywords: attractiveness, China, cities, climate change, energy efficiency, green cities, green economy, green growth, green technologies, innovation, metro-region, multi-level governance, regional clusters, renewable energy, sustainable development, transport, urban development, urban sustainability Creation-Date: 2013-05-17 Number: 2013/7 Handle: RePEc:oec:govaab:2013/7-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Theo Notteboom Author-Workplace-Name: University of Antwerp Title: The Competitiveness of Global Port-Cities: The Case of Rotterdam/Amsterdam, the Netherlands Abstract: This working paper offers an evaluation of the performance of the ports of Rotterdam and Amsterdam, an analysis of the impact of these ports on their territory and an assessment of policies and governance in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the ports on economic and environmental questions is studied and quantified where possible. The value added of the port clusters of Rotterdam and Amsterdam is calculated and its interlinkages with other economic sectors and regions in the Netherlands delineated. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. These include measures instituted by the port authorities, as well as by local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report‘s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the ports of Rotterdam and Amsterdam on their territory. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: input-output, inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2013-05-14 Number: 2013/8 Handle: RePEc:oec:govaab:2013/8-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Bartolini Author-Workplace-Name: OECD Title: The Role of Incentives in Co-operation Failures Abstract: There are many situations where the best outcome is reached through co-operation and co-ordination of agents’ actions. Although this is the best collective outcome, economic agents may fail to implement such co-operative strategy. The reason for this failure may be lack of information about the gains from co-operation, or lack of capacity to implement the co-operative strategy. The present work focuses on two obstacles to co-operation that are linked with the incentives of the economic agents, and that are present even when the problems of information and capacity are taken care off. The two obstacles are the incentive to free ride and the strategic risk. The former stems from the possibility of obtaining gains without paying the associated costs (which are incurred by the agents that decide to co-operate); the latter is the risk of being the only one (or among the few) that acts co-operatively, so that the agent pays the costs but obtains less than what it would be feasible had other agents decided to co-operate. In this setting, using a game theoretical approach, we distinguish several cases of co-operation failures according to the relevance of those two obstacles. The analysis is then applied to contractual design and financial incentives. The overall message is the importance of identifying the source of co-operation failure in order to devise an effective policy to induce co-operation. It may not be enough to tell people (and institutions) that they should co-operate because it is in their interest, it is necessary to identify the incentives that shape agents’ decisions and are responsible for co-operation failures. Classification-JEL: C70; C72; D86 Keywords: co-operation and co-ordination failure, economic incentives, game theory Creation-Date: 2013-05-27 Number: 2013/9 Handle: RePEc:oec:govaab:2013/9-EN Template-type: ReDIF-Paper 1.0 Author-Name: Enrique Garcilazo Author-Workplace-Name: OECD Title: Growth Trends and Characteristics of OECD Rural Regions Abstract: This paper benchmarks the performance of OECD rural regions with other types of OECD regions over the period 1995-2010. OECD regions are classified into three types according to the OECD regional typology and into four types according to the extended OECD typology. The latter classifies rural regions into rural regions close to cities and rural remote regions. The analysis focuses on two time-periods: the first prior to the global financial crisis covering 1995 to 2007 and the second capturing the effects of the crisis from 2007- 2010. The results display a relative stable trend in settlement patterns among urban and rural regions over the last 15 years. Level comparisons reveal important differences between urban and rural regions. The latter are characterised with low density, long distances and lack of critical mass in comparison to other OECD regions. Notable differences are also present within rural regions. In terms of performance, rural regions record the highest average growth in GDP per capita and in productivity but also the highest volatility in growth rates during the pre-crises period. Within countries, rural regions record the fastest rate of growth in GDP per capita in 40% of OECD countries considered. Among rural regions, those close to a city are the most dynamic in GDP per capita, productivity and population growth during 1995-2007. The effects of the crisis have been more severe in urban regions in GDP, GDP per-capita and employment rates. Rural regions in contrast have suffered a higher increase in unemployment rates. Overall the effects of the crisis will likely have a more lasting effect on rural regions, particularly in remote rural regions, due to their thinner and less diversified economic base. In sum this paper finds stark difference between rural and urban regions and between rural regions close to cities and remote rural regions which suggests the need for a differentiated policy approach capable of addressing the different types of challenge. Classification-JEL: O18; P25; R11 Keywords: convergence, growth and volatility, impact of global financial crisis, rural development Creation-Date: 2013-06-11 Number: 2013/10 Handle: RePEc:oec:govaab:2013/10-EN Template-type: ReDIF-Paper 1.0 Author-Name: Sabine D’Costa Author-Workplace-Name: University of London Author-Name: Enrique Garcilazo Author-Workplace-Name: OECD Author-Name: Joaquim Oliveira Martins Author-Workplace-Name: OECD Title: The Impact of Structural and Macroeconomic Factors on Regional Growth Abstract: This papers aims to understand the impact of nation-wide structural policies such as product market regulation in six upstream sectors and employment protection legislation and that of macroeconomic factors on the productivity growth of OECD regions. In particular we explore how this effect varies with the productivity gap of regions with their country’s frontier region. We use a policy-augmented growth model that allows us to simultaneously estimate the effects of macroeconomic and structural policies on regional productivity growth controlling for region-specific determinants of growth. We estimate our model with an unbalanced panel dataset consisting of 217 regions from 22 OECD countries covering the period 1995 to 2007. We find a strong statistical negative effect of product market regulation on regional productivity growth in five of the six upstream sectors considered and the effects are differentiated with respect to the productivity gap. Our estimates also reveal that dispersion of policies hurts regional productivity growth suggesting that policy complementarity can boost productivity growth. The effects of employment protection legislation are negative overall and are especially detrimental to productivity growth in lagging regions. The three macroeconomic factors we consider also influence regional performance: inflation has a negative effect on regional growth and government debt has a positive effect on average. When differentiating the effects by the distance to the frontier, trade-openness is more beneficial to lagging regions and the negative effects of inflation are less negative in lagging regions. These results reveal a strong link between nation-wide policies and the productivity of regions, which carries important policy implications, mainly that these effects should be taken into account in the policy design. Classification-JEL: E66; R12 Keywords: regional impact of structural policies, regional productivity growth, spatial impact of national policies Creation-Date: 2013-06-13 Number: 2013/11 Handle: RePEc:oec:govaab:2013/11-EN Template-type: ReDIF-Paper 1.0 Author-Name: Andrés Rodriguez-Pose Author-Workplace-Name: London School of Economics Author-Name: Enrique Garcilazo Author-Workplace-Name: OECD Title: Quality of Government and the Returns of Investment: Examining the Impact of Cohesion Expenditure in European Regions Abstract: This paper sets out to examine the impact of the quality of local and regional governments on the returns of investment, focusing on the returns of EU structural and cohesion funds. Despite the widespread belief that the quality of government affects the returns of public investments, whether this is effectively the case has seldom been proved. Using primary data on quality of government collected by the Quality of Government Institute, combined with World Bank Global Governance Indicators data, we conduct a two-way fixed effect panel regression model for a total of 169 in European regions during the period 1996 to 2007. The results of the analysis underline the importance of the quality of government both as a direct determinant of economic growth, as well as a moderator of the efficiency of structural and cohesion funds expenditure. Our analysis finds that both EU investments targeting regions and quality of government make a difference for regional economic growth, but that above a significant threshold level of expenditure, the quality of government is the key factor determining the returns of public investment. In many of the regions receiving the bulk of structural funds, greater levels of cohesion expenditure would, in the best case scenario, only lead to a marginal improvement in economic growth, unless the quality of government is significantly enhanced. Classification-JEL: O43; R11 Keywords: European Union, investment, quality of government, regional development and growth, regions Creation-Date: 2013-07-02 Number: 2013/12 Handle: RePEc:oec:govaab:2013/12-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Title: The Competitiveness of Global Port-Cities: Synthesis Report Abstract: This report provides a synthesis of main findings from the OECD Port-Cities Programme, created in 2010 in order to assess the impact of ports on their cities and provide policy recommendations to increase the positive impacts of ports on their cities. Creation-Date: 2013-09-06 Number: 2013/13 Handle: RePEc:oec:govaab:2013/13-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marten van den Bossche Author-Workplace-Name: Ecorys Consulting Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Jing Li Author-Workplace-Name: OECD Title: The Competitiveness of Global Port-Cities: The Case of Danube Axis (Bratislava, Štúrovo, Komárno), Slovak Republic Abstract: This working paper offers an evaluation of the performance of the inland ports of the Slovak Republic within the framework of the Danube Axis, an analysis of the impact of the ports on their territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the port on economic and environmental questions is studied and quantified where possible. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the inland ports of Slovak Republic. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2013-09-27 Number: 2013/14 Handle: RePEc:oec:govaab:2013/14-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Title: The Competitiveness of Global Port-Cities: The Case of Antofagasta, Chile Abstract: This working paper offers an evaluation of the performance of ports of Antofagasta, an analysis of the impact of the ports on their territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the port on economic and environmental questions is studied and quantified where possible. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the ports of Antofagasta. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2013-09-30 Number: 2013/15 Handle: RePEc:oec:govaab:2013/15-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Jing Li Author-Workplace-Name: OECD Title: The Competitiveness of Global Port-Cities: The Case of Hong Kong, China Abstract: This working paper offers an evaluation of the performance of the port of Hong Kong, an analysis of the impact of the port on the territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the port on economic and environmental questions is studied and quantified where possible. The major policies governing the port are assessed, along with policies governing transport and economic development, the environment and spatial planning. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the port of Hong Kong. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2013-11-26 Number: 2013/16 Handle: RePEc:oec:govaab:2013/16-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Nauwelaers Author-Name: Karen Maguire Author-Workplace-Name: OECD Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Title: The Case of the Bothnian Arc (Finland-Sweden) – Regions and Innovation: Collaborating Across Borders Abstract: The Bothnian Arc is a cross-border area on the border of Finland and Sweden that covers the most populated areas along the upper Bothnian Bay, spanning 800 kilometres. It has a population of around 710 000, across 55 000 km² with an economic output of USD 31 billion. The Bothnian Arc collaboration was initiated by local authorities, with strong commitment of the mayors of the cities of Oulu and Luleå (300 kilometres apart). Despite a peripheral location in all respects, some parts of the Bothnian Arc have shown a remarkable vitality, notably Oulu (Finland), driven by an innovation ecosystem that builds on the heritage of Nokia and the contribution of Oulu University. Luleå (Sweden) has recently attracted the European Facebook data centre. The area is looking to go beyond ad hoc projects for a more strategic approach to innovation-driven collaboration to be the dynamic hub of the north. This case study is part of the project Regions and Innovation: Collaborating Across Borders. A summary of this working paper appears in a report of the same name. Classification-JEL: L52; L53; O14; O18; O38; R11; R58 Keywords: Bothnian Arc, cross-border, Finland, innovation, Luleä, Oulu, regional development, regional growth, regional innovation, regional innovation strategies, science and technology, Sweden Creation-Date: 2013-11-25 Number: 2013/17 Handle: RePEc:oec:govaab:2013/17-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Nauwelaers Author-Name: Karen Maguire Author-Workplace-Name: OECD Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Title: The Case of Hedmark-Dalarna (Norway-Sweden) – Regions and Innovation: Collaborating Across Borders Abstract: Hedmark County (Norway) and Dalarna County (Sweden) are both rural, with the border being remote from regional centres. The total population of less than half a million inhabitants spans across almost 58 800 km², with an economic output of USD 22 billion. Efforts to support collaboration at the border focus on the sector of tourism that both share, and which would be facilitated by the construction of one airport to serve both sides. As most science and technology-related assets are located far from the border, the region does not seem to have the relevant conditions for a broad cross-border regional innovation policy since urban centres are perhaps better served by looking towards other locations rather than this border. On the border, efforts for innovation in other forms, such as in marketing and organisational methods in tourism, are more relevant. This case study is part of the project Regions and Innovation: Collaborating Across Borders. A summary of this working paper appears in a report of the same name. Classification-JEL: L52; L53; O14; O18; O38; R11; R58 Creation-Date: 2013-11-25 Number: 2013/18 Handle: RePEc:oec:govaab:2013/18-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Nauwelaers Author-Name: Karen Maguire Author-Workplace-Name: OECD Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Title: The Case of Helsinki-Tallinn (Finland-Estonia) – Regions and Innovation: Collaborating Across Borders Abstract: Estonia and Finland have centuries of collaboration, mainly between the capital areas of Tallinn and Helsinki that currently account for 2 million inhabitants and USD 76 billion in economic output. The entry of Estonia into the European Union and, since the mid-2000s, a two-hour ferry trip, have both facilitated flows of people and merchandise across the Gulf of Finland. The different levels of development between Helsinki and Tallinn result in many asymmetric flows (workers to Helsinki, tourists to Tallinn). Beyond infrastructure and labour market issues, there are interesting opportunities for joint innovation policy efforts given their shared strengths such as in ICT, a dynamic start-up environment and technologically sophisticated public services. Cross-border collaboration can help build an “entrepreneurial knowledge region” brand. This case study is part of the project Regions and Innovation: Collaborating Across Borders. A summary of this working paper appears in a report of the same name. Classification-JEL: L52; L53; O14; O18; O38; R11; R58 Creation-Date: 2013-11-25 Number: 2013/19 Handle: RePEc:oec:govaab:2013/19-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Nauwelaers Author-Workplace-Name: OECD Author-Name: Karen Maguire Author-Workplace-Name: OECD Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Title: The Case of Ireland-Northern Ireland (United Kingdom) – Regions and Innovation: Collaborating Across Borders Abstract: The island of Ireland, which includes both Ireland and Northern Ireland (United Kingdom), is home to 6.4 million people and has a combined economic output of USD 205 billion. Several cross-border institutions were created in response to the 1998 Belfast/Good Friday Agreement to recreate functional economic linkages across the border. InterTradeIreland is a rare example internationally of a cross-border entity to promote trade and innovation that is co-funded by respective governments. These efforts have led to stability in funding such programmes. The differences between the public sector driven economy in Northern Ireland and the dual economy of Ireland (outward looking multinationals and the local small and medium-sized enterprise base) are a challenge for cross-border efforts. This case study is part of the project Regions and Innovation: Collaborating Across Borders. A summary of this working paper appears in a report of the same name. Classification-JEL: L52; L53; O14; O18; O38; R11; R58 Creation-Date: 2013-12-12 Number: 2013/20 Handle: RePEc:oec:govaab:2013/20-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Nauwelaers Author-Workplace-Name: OECD Author-Name: Karen Maguire Author-Workplace-Name: OECD Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Title: The case of Oresund (Denmark-Sweden) – Regions and Innovation: Collaborating Across Borders Abstract: The Oresund is the most well-known example of European cross-border collaboration, building on the metropolitan area around Copenhagen and, across the sound, southern Sweden with the cities of Malmö, Lund and Helsingborg. Cross-border integration intensified following the opening of a fixed-link bridge/tunnel in 2000. Commuting, student flows and cross-border residency have been on the rise in this knowledge-intensive area. Cross-border cluster efforts have had varying degrees of longevity, with Medicon Valley being the most internationally known brand. After hitting a plateau in terms of integration, the area is seeking renewed inspiration for cross-border efforts. This case study is part of the project Regions and Innovation: Collaborating Across Borders. A summary of this working paper appears in a report of the same name. Classification-JEL: L52; L53; O14; O18; O38; R11; R58 Creation-Date: 2013-12-11 Number: 2013/21 Handle: RePEc:oec:govaab:2013/21-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Nauwelaers Author-Workplace-Name: OECD Author-Name: Karen Maguire Author-Workplace-Name: OECD Author-Name: Giulia Ajmone Marsan Author-Workplace-Name: OECD Title: The Case of the Top Technology Region/Eindhoven-Leuven-Aachen Triangle (TTR-ELAt) – Regions and Innovation: Collaborating Across Borders Abstract: The Top Technology Region/Eindhoven-Leuven-Aachen triangle (TTR-ELAt) is an initiative to support cross-border collaboration in a densely populated network of small and medium-sized cities located at the heart of western Europe with an annual economic output of USD 244 billion. The collaboration spans three countries, four science and technology policy regimes and six sub-regions. The collaboration centres on a shared recognition of technological strengths (chemicals and advanced materials, high-tech systems and health sciences). The area seeks to better capitalise on its skilled workforce, multinational enterprises and strong research facilities. While building on decades of cross-border activities, the TTR-ELAt seeks to overcome cumbersome governance issues to create the benefits of agglomeration with complementarity expertise so as to increase international attractiveness. This case study is part of the project Regions and Innovation: Collaborating Across Borders. A summary of this working paper appears in a report of the same name. Classification-JEL: L52; L53; O14; O18; O38; R11; R58 Creation-Date: 2013-12-11 Number: 2013/22 Handle: RePEc:oec:govaab:2013/22-EN Template-type: ReDIF-Paper 1.0 Author-Name: Zhen Hong Author-Workplace-Name: SISI Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Zhao Nan Author-Workplace-Name: SISI Author-Name: Jing Li Author-Workplace-Name: OECD Author-Name: Xu Mingying Author-Workplace-Name: SISI Author-Name: Xie Wenqing Author-Workplace-Name: SISI Author-Name: Du Xufeng Author-Workplace-Name: SISI Author-Name: Wang Jinggai Author-Workplace-Name: SISI Title: The Competitiveness of Global Port-Cities: The Case of Shanghai, China Abstract: This working paper offers an evaluation of the performance of the port of Shanghai, an analysis of the impact of the port on its territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the port on economic and environmental questions is studied and quantified where possible. The major policies governing the port are assessed, along with policies governing transport and economic development, the environment and spatial planning. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the port of Shanghai. Classification-JEL: D57; L91; R11; R12; R15; R41 Keywords: inter-regional trade, ports, regional development, regional growth, transportation, urban growth Creation-Date: 2013-11-28 Number: 2013/23 Handle: RePEc:oec:govaab:2013/23-EN Template-type: ReDIF-Paper 1.0 Author-Name: Salvador del Saz-Salazar Author-Workplace-Name: University of Valencia Author-Name: Leandro García-Menéndez Author-Workplace-Name: University of Valencia Author-Name: Olaf Merk Author-Workplace-Name: OECD Title: The Port and its Environment: Methodological Approach for Economic Appraisal Abstract: In times of increasing environmental awareness, the port-city relationship has gained a new meaning since ports have been seen as the origin of both negative and positive externalities affecting the public wellbeing. While the former are the result of port expansion, the latter are the result of transforming obsolete port areas into recreational facilities. Therefore, in order to support effective policy-making, in this research is emphasized the need of measuring these environmental externalities. Considering their non-market nature, the contingent valuation method is introduced as an economic tool capable of overcoming this obstacle. Thus, the cases of two ports in Spain, namely Valencia and Castellón, are reviewed. The policy implications of this are discussed with the aim to improve the understanding of the changing relationship between ports and cities. Classification-JEL: H41; Q51; Q58; R14 Keywords: contingent valuation, economic appraisal, environmental externalities, port expansion, port-city relationship, waterfront redevelopment Creation-Date: 2013-12-03 Number: 2013/24 Handle: RePEc:oec:govaab:2013/24-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Author-Name: Thai-Thanh Dang Author-Workplace-Name: OECD Title: The Effectiveness of Port-City Policies: A Comparative Approach Abstract: The relation between ports and their cities have evolved: it is no longer evident that well-functioning ports have automatically a net positive impact on the port-city. There are various trajectories and many ports and port-cities attempt to stimulate port-city development by a range of public policies. Yet, little is known about effectiveness of policies to promote performance of ports and port-cities. This paper aims at filling this gap, by assessing the effectiveness of port-city policies, within various policy areas including port development, port-city economic development, transportation, environment, research and development, spatial development and communication. This is done via a principal component analysis (PCA), based on a database constructed for the purpose of this paper with outcome variables and scores of policies for a set of 27 large world port-cities, that makes it possible to identify policies that are associated with effective policy outcomes and show patterns of related policy outcomes and policies. Classification-JEL: C38; L98; R42 Keywords: policy evaluation, port development, port-cities, principal component analysis, transportation Creation-Date: 2013-12-16 Number: 2013/25 Handle: RePEc:oec:govaab:2013/25-EN Template-type: ReDIF-Paper 1.0 Author-Name: JoAnn Carmin Author-Workplace-Name: Massachusetts Institute of Technology Author-Name: David Dodman Author-Workplace-Name: International Institute for Environment and Development Author-Name: Eric Chu Author-Workplace-Name: Massachusetts Institute of Technology Title: Urban Climate Adaptation and Leadership: From Conceptual Understanding to Practical Action Abstract: The impacts of climate change are expected to create numerous challenges for cities. This report synthesizes key points raised in a series of discussions among “adaptation leaders” from fourteen cities around the world. Critical issues for urban adaptation that emerged from the discussions include the need for political commitment at multiple levels of government, information and data as a basis for understanding potential risks and vulnerabilities, meaningful and effective stakeholder engagement shaped by local contexts, and sustained financial and staff resources that are sensitive to urban variability. Further, the findings highlight how policy-makers and international organizations working with cities on issues of adaptation and resilience must support and facilitate processes of testing ideas, learning from experiences, and recalibrating as new information is obtained and lessons are learned. Classification-JEL: O19; O20; O21; O22; Q51; Q52; Q53; Q54; Q55; Q56; Q58; R00 Keywords: climate change adaptation, partnerships and participation, urban development, urban governance, urban planning Creation-Date: 2013-12-16 Number: 2013/26 Handle: RePEc:oec:govaab:2013/26-EN Template-type: ReDIF-Paper 1.0 Author-Name: Paolo Veneri Author-Workplace-Name: OECD Title: On City Size Distribution: Evidence from OECD Functional Urban Areas Abstract: An increasing amount of empirical evidence documents that city-size distribution within a country follows a power law, often in the form of Zipf’s law. This paper provides new comparative evidence on city size distribution across OECD countries. It uses a database where urban agglomerations are consistently identified across different countries, through an algorithm based on population density and commuting patterns. The paper investigates whether Zipf’s law fits well with data. A robustness check is carried out using a traditional administrative definition of cities. Results show that Zipf’s law describes well city size distribution not only at country level, but also at wider spatial scales. The law does not fit as well with the data when using a traditional administrative definition of cities. Classification-JEL: O40; R12 Keywords: city size distribution, metropolitan areas, rank-size rule, Zipf’s law Creation-Date: 2013-12-17 Number: 2013/27 Handle: RePEc:oec:govaab:2013/27-EN Template-type: ReDIF-Paper 1.0 Author-Name: Enrique Garcilazo Author-Workplace-Name: OECD Author-Name: Joaquim Oliveira Martins Author-Workplace-Name: OECD Title: The Contribution of Regions to Aggregate Growth in the OECD Abstract: This paper investigates the contribution of regions to aggregate growth in the OECD. We find a great degree of heterogeneity in the performance of OECD TL3 regions and among the OECD regional typology (urban, intermediate and rural). While the distribution in GDP and GDP per capita growth rates follows an approximately normal distribution, the regional contributions to aggregate growth follow a power law, with a coefficient around 1.2 (in absolute terms). This implies that Few-Large (FL) regions contribute disproportionately to aggregate growth whereas Many-Small (MS) individual regions contribute only marginally. Nevertheless, because the number of these smaller regions is very large and the decay of their contribution to growth is slow (generating a fat tail distribution), their cumulated contribution is actually around 2/3 of aggregate growth. For the period 1995-2007, only 2.4% of OECD TL3 regions contribute to 27% of OECD GDP growth, but the remaining 97.6% corresponds to 73%. We also found that the distribution of growth rates by size follows a non-monotonic pattern, with the largest concentration of above average regional growth rates being concentrated for middle-sized regions. This heterogeneity suggests that the possibilities for growth seem to exist in many different types of regions. Keywords: metrology Creation-Date: 2013-12-24 Number: 2013/28 Handle: RePEc:oec:govaab:2013/28-EN Template-type: ReDIF-Paper 1.0 Author-Name: Monica Brezzi Author-Workplace-Name: OECD Author-Name: Paolo Veneri Author-Workplace-Name: OECD Title: Assessing Polycentric Urban Systems in the OECD: Country, Regional and Metropolitan Perspectives Abstract: Contemporary urban systems in OECD countries are structured around functional regions, which often overcome established city boundaries. Reading space in terms of functional regions allows assessing changes in urban hierarchies and spatial structures, including the polycentricity of urban systems at national, regional and metropolitan scale. By using a harmonised definition of functional urban areas in OECD countries, this paper first provides a sound definition of polycentricity at each spatial scale, highlighting for each of them the different links with policy. Second, it provides measures of polycentricity and explores the economic implications of different spatial structures. Results show that relatively more monocentric regions have higher GDP per capita than their more polycentric counterparts. At country level, on the other hand, polycentricity is associated with higher GDP per capita. Classification-JEL: R11; R12; R14; R58 Keywords: polycentricity, Spatial structure, urban system Creation-Date: 2014-04-14 Number: 2014/1 Handle: RePEc:oec:govaab:2014/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claudia Hulbert Author-Name: Camila Vammalle Author-Workplace-Name: OECD Title: A Sub-national Perspective on Financing Investment for Growth I - Measuring Fiscal Space for Public Investment: Influences, Evolution and Perspectives Abstract: Sub-national governments are key players for public investment, as they are responsible on average for 62% of total public investment in OECD countries. This article analyses the different factors affecting sub-national governments’ fiscal space for public investment. It proposes an indicator for measuring this fiscal space and analyses the evolution of its different components over 2007-2012. The article shows that the global financial crisis and the ensuring consolidation drive have reduced sub-national governments’ fiscal space for public investment, through a downward pressure on revenues, increased expenditure obligations, and constrained capacity to borrow or issue debt on financial markets.
Les gouvernements infra-nationaux sont des acteurs majeurs de l'investissement public dans les pays de l'OCDE, et représentent en moyenne 62% de l'investissement public total. Cet article analyse les déterminants de la marge de manoeuvre budgétaire disponible pour l'investissement public infra-national. Il propose un indicateur pour mesurer cette marge de manoeuvre, et analyse l'évolution de ses composantes entre 2007 et 2012. La crise et les plans de rigueur introduits dans de nombreux pays ont réduit l'espace budgétaire des gouvernements infra-nationaux disponible pour l'investissement. Ceci s'explique à la fois par une baisse des revenus infra-nationaux, une hausse des dépenses ainsi que par une plus grande limitation dans leur accès à l'emprunt bancaire ou à l'emprunt sur les marchés financiers. Classification-JEL: G28; H41; H71; H74; H77 Keywords: fiscal relations across levels of government, fiscal space, gouvernements infra-nationaux, institutions, institutions, investissement public, marge de manoeuvre budgétaire, public investment, public services, relations budgétaires entre niveaux de gouvernement, services publics, sub-national government Creation-Date: 2014-05-22 Number: 2014/2 Handle: RePEc:oec:govaab:2014/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rudiger Ahrend Author-Workplace-Name: OECD Author-Name: Abel Schumann Author-Workplace-Name: OECD Title: Approaches to Metropolitan Area Governance: A Country Overview Abstract: This paper provides an overview of country specific approaches to metropolitan area governance. It provides brief descriptions of the typical structures of metropolitan governance, with a particular focus on the involved organisations. It points out metropolitan areas that have unusual governance arrangements, but generally does not emphasise individual cases. The paper aims to give a descriptive overview of governance structures while abstaining from evaluating their performance.
Ce rapport offre un panorama des approches spécifiques que les pays adoptent face à la gouvernance métropolitaine. Il fournit une brève description des structures typiques de gouvernance métropolitaine, avec un accent particulier sur les organisations impliquées. Le papier souligne les régions métropolitaines dotées de dispositifs inhabituels de gouvernance, mais ne s’étend pas sur les cas individuels. L’objectif du papier consiste à fournir un aperçu descriptif des structures de gouvernance sans évaluer leurs performances. Classification-JEL: H11; H70; R50 Keywords: country profiles, gouvernance métropolitaine, metropolitan area governance, profils de pays, structure de l'administration locale, structure of local government Creation-Date: 2014-04-22 Number: 2014/3 Handle: RePEc:oec:govaab:2014/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rudiger Ahrend Author-Workplace-Name: OECD Author-Name: Catherine Gamper Author-Workplace-Name: OECD Author-Name: Abel Schumann Author-Workplace-Name: OECD Title: The OECD Metropolitan Governance Survey: A Quantitative Description of Governance Structures in large Urban Agglomerations Abstract: Even though metropolitan areas account for half of the population, and an even larger share of economic activity of OECD countries, almost no systematic information on governance structures in these areas exists. This study – based on a novel data set – gives an overview of governance arrangements in OECD metropolitan areas. It shows that organisations dedicated to metropolitan area governance are common, but often have little powers. Nevertheless, the existence of such organisations is related with better performance on a range of important outcome variables, such as public transport systems, environmental issues, and urban sprawl. Classification-JEL: H11; H70; R50 Keywords: data collection, local governance, metropolitan areas Creation-Date: 2014-05-14 Number: 2014/4 Handle: RePEc:oec:govaab:2014/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rudiger Ahrend Author-Workplace-Name: OECD Author-Name: Emily Farchy Author-Workplace-Name: OECD Author-Name: Ioannis Kaplanis Author-Workplace-Name: OECD Author-Name: Alexander C. Lembcke Author-Workplace-Name: OECD Title: What Makes Cities More Productive? Evidence on the Role of Urban Governance from Five OECD Countries Abstract: This paper estimates agglomeration benefits based on city productivity differentials across five OECD countries (Germany, Mexico, Spain, United Kingdom, and United States). It highlights the relationship between cities’ governmental fragmentation and productivity, and represents the first empirical analysis of how metropolitan governance structures affect this relationship. The comparability of results in a multi-country setting is supported through the use of Functional Urban Areas – an internationally harmonised definition of cities based on economic linkages rather than administrative boundaries. In line with the previous literature, the analysis confirms that city productivity tends to increase with city size; doubling city size is found to be associated with an increase in productivity of between two and five percent. What is more, city productivity is positively associated with the population size of nearby cities. On the governance side, the paper finds that cities with fragmented governance structures tend to have lower levels of productivity. For a given population size, a metropolitan area with twice the number of municipalities is associated with around six percent lower productivity; an effect that is mitigated by almost half by the existence of a governance body at the metropolitan level. Classification-JEL: H73; R12; R23; R50 Keywords: agglomeration economies, cities, governance, productivity Creation-Date: 2014-05-16 Number: 2014/5 Handle: RePEc:oec:govaab:2014/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: Camila Vammalle Author-Workplace-Name: OECD Author-Name: Rudiger Ahrend Author-Workplace-Name: OECD Author-Name: Claudia Hulbert Title: A Sub-national Perspective on Financing Investment for Growth II - Creating Fiscal Space for Public Investment: The Role of Institutions Abstract: Sub-national governments (SNGs) are key players for public investment in OECD countries, responsible for nearly two-thirds of it. At the same time, both the well-being of the population and economic performance depend on an adequate provision of public services, which require public facilities and thus public investment. Ensuring that sub-national governments command the resources for necessary public investment is hence important. While in the immediate, the fiscal space of a SNG for public investment is basically determined by its current fiscal capacities, in a longer-term perspective the evolution of fiscal space comes to depend increasingly on the institutional context. This includes the national framework of fiscal relations across levels of government, the nature and characteristics of SNGs’ revenue sources and spending responsibilities, SNGs resilience to crises, and their structural ability to borrow. This paper explores the institutional ability of SNGs to influence their fiscal space for public investment. In this context, it also analyses the main challenges to be faced by SNG finances in the decades to come, as well as recent reforms implemented by SNGs to tackle these specific issues.
Les gouvernements infranationaux, responsables de deux tiers de l’investissement public dans les pays de l’OCDE, jouent un rôle crucial en matière d’investissement. Le bien-être de la population et la performance économique reposent en partie sur une provision adéquate de services publics, et réclament des infrastructures et équipements efficaces, financés à travers l’investissement public. S’assurer que les gouvernements infranationaux ont à leur disposition des ressources suffisantes pour investir constitue donc un enjeu de taille. À court terme, leur marge de manoeuvre budgétaire disponible pour l’investissement est déterminée, en grande part, par leur capacité financière immédiate. Cependant dans une perspective de long terme, l’évolution de cette marge de manoeuvre repose davantage sur le contexte institutionnel – relations budgétaires entre niveaux de gouvernement, nature et caractéristiques des sources de revenus et de dépenses infranationales, résilience des gouvernements infranationaux aux crises, capacité structurelle à emprunter. Cet article analyse la capacité institutionnelle d’un gouvernement infranational à influencer sa marge de manoeuvre budgétaire disponible pour l’investissement. Pour ce faire, il étudie les principaux défis que devraient rencontrer les gouvernements infranationaux dans les décennies à venir, ainsi que les réformes introduites récemment pour y répondre. Classification-JEL: G28; H41; H71; H74; H77 Keywords: fiscal relations across levels of government, fiscal space, gouvernements infra-nationaux, institutions, institutions, investissement public, marge de manoeuvre budgétaire, public investment, public services, relations budgétaires entre niveaux de gouvernement, services publics, sub-national government Creation-Date: 2014-05-22 Number: 2014/6 Handle: RePEc:oec:govaab:2014/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rudiger Ahrend Author-Workplace-Name: OECD Author-Name: Abel Schumann Author-Workplace-Name: OECD Title: Does Regional Economic Growth Depend on Proximity to Urban Centres? Abstract: This paper analyses the spatial patterns of regional economic growth in Europe over the 1995 to 2010 period. It finds that regions, which contain large urban agglomerations, have been growing significantly faster than those that do not. Furthermore, proximity to large urban agglomerations has been positively correlated to economic growth. Halving travel time to a large urban agglomeration is associated with a 0.2 to 0.4 percentage points increase in annual per capita growth. More generally, the study also shows that measures of population density are positively correlated to growth. Among the different measures, by far the best predictor of growth between 1995 and 2010 is the maximum population density of a region. Classification-JEL: R11; R12 Keywords: population distribution and economic growth, regional growth, spatial distribution of economic activity Creation-Date: 2014-07-30 Number: 2014/7 Handle: RePEc:oec:govaab:2014/7-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olaf Merk Author-Workplace-Name: OECD Title: Metropolitan Governance of Transport and Land Use in Chicago Abstract: This study aims to assess the degree of institutional fragmentation of transport and land use planning in Chicago and to assess the main challenges related to this institutional fragmentation. It provides an overview of local governments in metropolitan Chicago and mechanisms for metropolitan coordination, including organisations at the metropolitan scale, dealing with planning, land use and transport. Five main challenges related to institutional fragmentation in transport and land use planning are identified: a lack of (1) interconnectivity, (2) coherence across transit modes, (3) regional freight planning, (4) accountability and (5) implementation power of regional planning and transport objectives. These challenges are analysed. The concluding section suggests some avenues for reform that could be explored in order to overcome the challenges of metropolitan fragmentation in transport and land use in Chicago. Classification-JEL: R4; R5 Keywords: Chicago, metropolitan governance, public transit, urban infrastructure, urban transport Creation-Date: 2014-08-19 Number: 2014/8 Handle: RePEc:oec:govaab:2014/8-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jibran J. Punthakey Author-Workplace-Name: OECD Title: Exploring Policy Complementarities in Transition Economies: The Case of Kazakhstan Abstract: Policy complementarities have often been overlooked in transition economies, leading to the exclusion or partial adoption of reforms. This paper examines the key determinants of successful transition strategies, and concludes that an approach exploiting complementary relationships and interactions between policies is most likely to result in a welfare improvement. Based on nine policy areas from the European Bank for Reconstruction and Development (EBRD) Transition Indicators database, composite indicators measuring reform implementation and complementarity are constructed. Panel data estimates for 30 countries over the period 1989 to 2012 demonstrate a positive association between improvements in reform complementarity and economic growth. Moreover, the effects are found to persist over time for up to two years after the initial policy change, and are robust to the inclusion of a wide range of control variables. Applying these findings to the case of Kazakhstan illustrates that comprehensive reforms to a targeted group of complementary policies generate sustained increases in output growth, whereas a partial reform strategy results in a loss of welfare. Classification-JEL: C33; O40; P2 Keywords: complementarity, economic growth, Kazakhstan, panel data, reform indicators, structural reforms, transition economies Creation-Date: 2014-10-07 Number: 2014/9 Handle: RePEc:oec:govaab:2014/9-EN Template-type: ReDIF-Paper 1.0 Author-Name: Vicente Royuela Author-Workplace-Name: University of Barcelona Author-Name: Paolo Veneri Author-Workplace-Name: OECD Author-Name: Raul Ramos Author-Workplace-Name: University of Barcelona Title: Income Inequality, Urban Size and Economic Growth in OECD Regions Abstract: The purpose of this paper is to understand how income inequality is associated with economic growth in OECD regions and whether the degree and type of urban concentration affects this relationship. Both income inequality and urban concentration can be seen as patterns of resource allocation that are particularly interlinked at the regional level. We combine household survey data and macroeconomic databases, covering a period ranging from 2004 to 2012 for comparable regions in 15 OECD countries. Econometric results show that, at least for the short period under consideration, there is a general negative association between inequalities and economic growth, especially since the start of the economic crisis. This relationship is sensitive to the type of urban structure. Higher inequalities seem to be more detrimental for growth in large cities, while regions characterised by small cities and rural areas are less affected. Classification-JEL: O15; R11; R12 Keywords: economic growth, inequality, OECD regions, urban Creation-Date: 2014-12-22 Number: 2014/10 Handle: RePEc:oec:govaab:2014/10-EN Template-type: ReDIF-Paper 1.0 Author-Name: Monica Brezzi Author-Workplace-Name: OECD Author-Name: Daniel Sanchez-Serra Author-Workplace-Name: OECD Title: Breathing the Same Air? Measuring Air Pollution in Cities and Regions Abstract: This paper presents a new set of estimates of exposure to air pollution (fine particulate matter - PM2.5) at the city, regional and national levels for the 34 OECD countries, and at the regional and national levels for Brazil, China, India, Russia and South Africa. The estimates are developed by the computation of satellite-based observations. They have the advantage of providing consistent values of the magnitude and spatial distribution of air pollution to be compared across and within countries and over time. The paper also explores the association between shape of cities (population density, share of built-up area, extension of the hinterlands, etc.) and air pollution. The estimates of air pollution at (TL2) regional level have been used in the newly released OECD Regional Well-Being Database as a measure of the environmental dimension. Classification-JEL: Q53; Q56 Keywords: air pollution, health, sub-national disparities, urban form Creation-Date: 2014-12-22 Number: 2014/11 Handle: RePEc:oec:govaab:2014/11-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tadashi Matsumoto Author-Workplace-Name: OECD Author-Name: Loïc Daudey Author-Workplace-Name: OECD Title: Urban Green Growth in Dynamic Asia: A Conceptual Framework Abstract: The development of Asian cities is characterised by rapid and continuous urbanisation on an unprecedented scale, with rapid economic growth led in most places by the manufacturing industry, and rapidly increasing motorisation. The result has been escalating greenhouse gas emissions, sprawling urban development and local environmental impacts, as well as disparities in income, education levels and job opportunities in the urban population. These trends differ sharply from those in most of the OECD area and call for a green growth model that differs from those identified in previous OECD studies and that addresses the specific circumstances of Asian cities. This paper proposes an analytical framework for assessing policies for green growth in rapidly growing cities in the emerging world. It builds on Cities and Green Growth: A Conceptual Framework (Hammer et al., 2011) and is adapted to the urban policy context of dynamic Asia. Its three main elements are: i) identification of the key policy strategies for urban green growth in fast-growing Asian cities, highlighting similarities to and differences from OECD cities; ii) opportunities for green growth; and iii) enabling strategies for implementing urban green growth. Classification-JEL: O18; O19; Q53; Q54; R11; R58 Keywords: Asia, cities, climate change, energy, government policy, green growth, land use, solid waste management, transport, water Creation-Date: 2014-12-22 Number: 2014/12 Handle: RePEc:oec:govaab:2014/12-EN Template-type: ReDIF-Paper 1.0 Author-Name: Paolo Veneri Author-Workplace-Name: OECD Title: Urban Spatial Structure in OECD Cities: is Urban Population Decentralising or Clustering? Abstract: This paper presents an analysis of urban spatial structure and its trends in the OECD between 2001 and 2011. It does so by using a standardised definition of urban areas in 29 OECD countries as composed of high density cores and their respective commuting zones. While urban population is growing everywhere, the way in which populations locate throughout the urban space differs across OECD cities and countries. The prevalent trend is an increasing dispersion of the population, with growth taking place outside existing centres. However, in specific countries, there are cities experiencing a higher growth in their central cores, while others are strengthening their polycentric structures. Overall, the population has grown more in relatively low-density locations close to the main centre, but outside it. Closeness to sub-centres also proves to be a strong advantage for growth and suggests the emergence of new centralities shaping urban spatial structures. Classification-JEL: R10; R12; R14 Keywords: polycentricity, sprawl, suburbanization, Urban spatial structure Creation-Date: 2015-04-03 Number: 2015/1 Handle: RePEc:oec:govaab:2015/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Bartolini Author-Workplace-Name: OECD Title: Municipal Fragmentation and Economic Performance of OECD TL2 Regions Abstract: The present work investigates the relationship between municipal fragmentation and regional per capita GDP growth rate, using a panel of OECD TL2 regions in the period 1996-2011. According to the fiscal decentralisation literature, fragmentation should enhance growth as local government closer to citizens can implement policies that better match their needs, thus providing services and public goods in a more efficient way. The presence of many local governments, however, may create problems in terms of overlapping functions, (dis)economies of scale, and policy fragmentation. The results of the empirical analysis show that municipal fragmentation has a negative impact on per capita GDP growth, thus supporting the view that costs prevail on benefits. The introduction of regional territorial characteristic – namely, the share of population living in rural areas – provides a different picture, however. The negative impact of fragmentation decreases with the share of population living in rural areas. Indeed, in extremely “rural” regions the effect turns mildly positive. This is because the costs and benefits of fragmentation have a different weight in urban and rural regions. The key insight is the different distribution of the population over the territory: more concentrated in urban than in rural regions. This implies that, for a given level of municipal fragmentation overlapping of function is more severe in urban regions (where people are likely to commute over municipal boundaries) than in rural area. In the same vein, for the same level of municipal fragmentation access to the local government is more difficult in rural areas (where people is sparsely located within municipal boundaries) than in urban areas. The policy implications of the analysis are twofold. Firstly, reducing municipal fragmentation may have a heterogeneous impact within the country, thus raising concern for one-size-fits-all policies of municipal agglomeration in favour of a place-based approach to institutional reform. For instance, the principle guiding municipal amalgamation should not be the average municipal size at the country level, but it should be weighted for the rural/urban characteristics of each region. Secondly, the analysis suggests that processes of agglomeration of people should be accompanied by a consistent amalgamation of the local administration, otherwise representing an obstacle to the full realisation of agglomeration economies. Classification-JEL: R11; R50 Keywords: institutions, local governments, regional growth Creation-Date: 2015-07-01 Number: 2015/2 Handle: RePEc:oec:govaab:2015/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Abel Schumann Author-Workplace-Name: OECD Title: Using Outcome Indicators to Improve Policies: Methods, Design Strategies and Implementation Abstract: This paper discusses the use of outcome indicators for policy monitoring. In addition to providing general recommendations on their design and implementation, it makes two contributions to the existing literature. First, it shows the importance of distinguishing outcome indicators from other types of indicators and demonstrates the need to develop clear policy objectives as a prerequisite for meaningful outcome indicators. Second, it analyses the use of outcome indicators in specific settings; on the sub-national level, in multi-level governance frameworks and in the context of EU cohesion policy. The paper argues that outcome indicators are better used in relational contracts than in transactional contracts between governments. Furthermore, it highlights the need to harmonise different monitoring frameworks within an administration. Classification-JEL: Y80 Keywords: indicators, monitoring and evaluation, performance measurement Creation-Date: 2016-01-18 Number: 2016/2 Handle: RePEc:oec:govaab:2016/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Monica Brezzi Author-Workplace-Name: OECD Author-Name: Marcos Diaz Ramirez Author-Workplace-Name: OECD Title: Building subjective well-being indicators at the subnational level: A preliminary assessment in OECD regions Abstract: This paper provides, for the first time, estimates of subjective well-being variables in 373 OECD subnational regions, allowing comparison of various measures of how people experience and evaluate their lives within and across all 34 OECD countries. Different weighting strategies as well as several robustness checks have been carried out to ensure regional representativeness and to provide reliable indicators. The results show that it is possible to obtain robust regional estimates of subjective well-being through the Gallup World Poll for the variables satisfaction with life and social support network. These estimates could be included in the OECD Regional Well-Being Database to provide two additional well-being dimensions measured uniquely with subjective indicators. In addition to these two variables, the paper explores the feasibility of other subjective indicators, either from Gallup or the European Statistics on Income and Living Standards (EU SILC), which are particularly meaningful when measured at the city or regional levels, such as satisfaction with the living environment, satisfaction with commuting time, trust in the political system, and feeling of safety in the community. Finally, a regression analysis is performed to give an insight of the explanatory power of both individual and regional specific characteristics to self-reported life satisfaction. The results show that regional fixed effects capture around 10 percentage points of the variation in life satisfaction, of which 30% can be associated to observable regional characteristics such as mortality rate and air pollution. Furthermore, life satisfaction tends to be negatively affected not only by the individual unemployment status but also by the level of unemployment of the region; in the OECD area, everything else equal, being unemployed is associated with 7 percentage points less of life satisfaction compared to someone that is employed; whereas, an increase of 1 percentage point in the unemployment rate at the regional level is related with 0.4 percentage points less of satisfaction with life as a whole. Classification-JEL: I31; R11 Keywords: access to services, European Statistics on Income and Living Conditions, regional disparities, subjective well-being, World Gallup Poll Creation-Date: 2016-03-04 Number: 2016/3 Handle: RePEc:oec:govaab:2016/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Monica Brezzi Author-Workplace-Name: OECD Author-Name: Patrizia Luongo Author-Workplace-Name: The World Bank Title: Regional Disparities In Access To Health Care: A Multilevel Analysis In Selected OECD Countries Abstract: This paper investigates regional disparities in access to healthcare, measured by self-reported unmet medical needs. It looks at disparities across 86 regions in 5 European countries: Czech Republic, France, Italy, Spain and the United Kingdom. The results show that in addition to individual factors, such as age, gender, health status, or education, the characteristics of the region where people live, such as the average skill endowment or employment rate, have a significant impact on the probability of unmet medical needs. Individual and regional determinants play different roles across regions in these five countries. Moreover, in three of these countries (Czech Republic, Italy and Spain), age and chronic illness have different impacts on unmet medical needs depending on the region of residence, when all the other conditions are kept the same. The result calls for further investigation on regionalspecific factors that could be modified with targeted policies in order to reduce the probability of foregone health care. Classification-JEL: C14; I14; R11; R12 Keywords: access to health care, health, multilevel logistic analysis, regional inequality Creation-Date: 2016-04-14 Number: 2016/4 Handle: RePEc:oec:govaab:2016/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Masaru Sugahara Author-Name: Leslie Bermont Title: Energy and Resilient Cities Abstract: This paper analyses the role of cities in energy policies to build resilience and assesses related energy policy practices in cities. It analyses how energy affects resilience in cities from the economic, environmental, social and institutional perspectives. It also assesses the policy practices of six cities; Barcelona (Spain), Bristol (UK), Kyoto (Japan), Munich (Germany), Perpignan (France) and Toronto (Canada). This paper outlines the building blocks of key policy strategies; adaptive energy management, robust energy management, redundant energy management, flexible energy management, inclusive energy management, resourceful energy management and integrated energy management. It proposes a number of policy measures in the building blocks for managing energy smartly in cities to build resilience. Classification-JEL: Q48; Q54; R11; R58 Keywords: cities, energy, renewables, resilience, urban development Creation-Date: 2016-07-01 Number: 2016/5 Handle: RePEc:oec:govaab:2016/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: Justine Boulant Author-Workplace-Name: OECD Author-Name: Monica Brezzi Author-Workplace-Name: OECD Author-Name: Paolo Veneri Author-Workplace-Name: OECD Title: Income Levels And Inequality in Metropolitan Areas: A Comparative Approach in OECD Countries Abstract: This paper assesses levels and distribution of household disposable income in OECD metropolitan areas. All indicators were produced through a dedicated data collection, which, for most countries, uses administrative data from tax records available at detailed local scale (i.e. municipalities, local authorities, counties, etc.). Using different estimation techniques, we provide internationally comparable figures for 216 OECD metropolitan areas. The results highlight stark differences in both income levels and inequality within metropolitan areas, even for those belonging to the same country. Larger metropolitan areas feature, on average, higher levels of household disposable income but also higher income inequality. The paper then provides a measure of spatial segregation, or the extent to which households with similar incomes concentrate within a metropolitan area. On the governance side, the paper finds a stable and positive relationship between administratively fragmented metropolitan areas and spatial segregation by income. Creation-Date: 2016-07-01 Number: 2016/6 Handle: RePEc:oec:govaab:2016/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Daniela Glocker Author-Workplace-Name: OECD Author-Name: Marissa Plouin Author-Workplace-Name: OECD Title: Overview of Housing Policy Interventions in Poland Abstract: This paper assesses national public expenditure on housing in Poland, within the context of recent trends in the housing market. It focuses on direct expenditure on housing by the former Ministry of Infrastructure and Development, which until 2016 was the primary ministry charged with housing policy. While Poland has made considerable progress in reducing the housing deficit and improving housing quality, housing affordability and limited diversity of the housing stock remain important policy challenges. A comprehensive and conclusive evaluation of housing policy instruments in Poland is difficult, due to limited relevant data. As such, this paper outlines a series of key questions to guide policy makers in selecting housing policy instruments and in facilitating a more robust framework to measure the efficiency and effectiveness of housing policy instruments. Keywords: housing, housing policies, housing prices, indicators, monitoring and evaluation Creation-Date: 2016-10-20 Number: 2016/7 Handle: RePEc:oec:govaab:2016/7-EN Template-type: ReDIF-Paper 1.0 Author-Name: Daniel Sanchez-Serra Author-Workplace-Name: OECD Title: Functional Urban Areas in Colombia Abstract: This paper applies the OECD-EU methodology to identify the functional urban areas (FUAs) in Colombia. Using the municipal boundaries, population grid data and inter-municipalities commuting flows from the 2005 population census, the paper identifies 53 FUAs accounting for 27 million people, or 63% of the national population. The resulting FUAs are then compared with the existing national definition (Misión del Sistema de Ciudades) and the legally constituted metropolitan areas in Colombia. Finally, using the OECD-EU methodology already applied to OECD countries, the eight largest FUAs in Colombia are compared with the 281 largest FUA in OECD countries, through a set of economic, social and environmental indicators. The application of the OECD-EU methodology allows to identify the whole system of urban areas in Colombia, with the same criterion; it thus provides a complementary tool to the national and city government to better plan and design future urban policy strategies. For example, this paper finds that metropolitan areas in Colombia have smaller commuting areas relative to OECD average and that improvements in the transport infrastructure may strengthen the economic integration of Colombian metropolitan areas. Classification-JEL: R12; R23 Keywords: GIS, metropolitan areas Creation-Date: 2016-11-15 Number: 2016/8 Handle: RePEc:oec:govaab:2016/8-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rudiger Ahrend Author-Name: Alexander C. Lembcke Title: Does It Pay to Live in Big(ger) Cities?: The Role of Agglomeration Benefits, Local Amenities, and Costs of Living Abstract: This study approaches the question whether it “pays” to live in big(ger) cities in a three-fold manner: first, it estimates how city size affects worker productivity (agglomeration benefits) in Germany, based on individual-level wage data. Second, it considers whether productivity benefits translate into real gains for workers by taking local price levels into account. Third, it examines the role of amenities in explaining differences in real benefits across cities. The estimated elasticity for agglomeration benefits is around 0.02, implying that comparable workers in Hamburg (3 million residents) are about 6% more productive than in Recklinghausen (150 000). But agglomeration benefits are, on average, offset by higher prices, i.e. city size does not systematically translate into real pecuniary benefits for workers. Amenities, e.g. seaside access, theatres, universities, or “disamenities”, e.g. air pollution, explain – to a large degree – variation in real pecuniary benefits, i.e. real wages are higher in low-amenity cities. Classification-JEL: J31; R23; R12 Keywords: agglomeration benefits, agglomeration costs, cities, cost of living, Functional Urban Areas, local amenities Creation-Date: 2016-12-15 Number: 2016/9 Handle: RePEc:oec:govaab:2016/9-EN Template-type: ReDIF-Paper 1.0 Author-Name: Alexander C. Lembcke Author-Name: Carlo Menon Title: The impact of road infrastructure investment on incumbent firms in Korea Abstract: This paper develops an indicator that combines the area that residents can reach within a certain time of travel with population density to create a proxy for “accessibility”, i.e. access to employment and consumption opportunities. Using a large scale firm level dataset, with nearly one million firm year observations over 14 years, the paper quantifies the link between firm-level outcomes and the change in accessibility in Korea due to the expansion of the network of major roads. The results suggest that the most productive firms benefited in terms of employment, output, and productivity, as accessibility improved. For the majority of incumbent firms, improved accessibility leaves most balance sheet variables broadly unaffected, but is associated with a decrease in fixed assets. The estimates also suggest that there was little job displacement, with the exception of service sectors where employment increased in response to improved local accessibility and declined for long distance accessibility. Classification-JEL: L23; R12; R32; R40 Keywords: accessibility, capital, employment, firm-level data, highways, productivity, roads Creation-Date: 2017-03-17 Number: 2017/1 Handle: RePEc:oec:govaab:2017/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Charbit Author-Name: Guillaume Desmoulins Title: Civic Crowdfunding: A collective option for local public goods? Abstract: This paper investigates the potential of civic crowdfunding as an innovative and collective option for contributing to the production of local public goods. It is articulated around two pillars. The first section provides a general understanding of crowdfunding practices and focuses principally on its civic component. Civic crowdfunding should be distinguished from other types of crowdfunding since it pursues an objective of general interest and mainly concerns place-based projects instigated by citizens and civil society organisations. The aim of this section is to better understand this field, from the general principles to the specific characteristics of actors and their motivations. The second section goes a step further towards the analysis of this practice with regards to the provision of local public goods. Crowdfunded local public goods usually belong to a specific category of public goods, “urban commons”, which generate significant challenges in terms of production, governance and sustainability. Building on the theory of contracts to better understand the interaction among stakeholders in this process, a new model of co-production relying on civic crowdfunding is proposed. Subnational governments would have a key role to play in enabling this practice and facilitating citizen empowerment through the mobilisation of platforms assets. Civic crowdfunding can provide opportunities for subnational governments in terms of citizens/user information, funding, communication, trust and territorial attractiveness. This paper outlines a series of key questions to guide policy makers in experimenting this practice. Classification-JEL: G20; H40; R10; R50 Keywords: citizen engagement, civic crowdfunding, co-production, local pubic goods Creation-Date: 2017-03-17 Number: 2017/2 Handle: RePEc:oec:govaab:2017/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Martin W. Adler Author-Workplace-Name: Free University Amsterdam Author-Name: Rudiger Ahrend Author-Workplace-Name: OECD Title: Traffic Safety in Korea: Understanding the Vulnerability of Elderly Pedestrians Abstract: Pedestrians are vulnerable in traffic, with frequently reported injuries and fatalities. These risks are believed to be correlated with socio-economic attributes such as age, income or education levels. For Korea, it is shown that elderly pedestrians have a higher mortality risk than other road users. On a municipal level, risk factors are high car ownership, an aging population and low population density; factors associated with rural areas. Some tentative evidence also points to financially stronger municipalities having better traffic safety, which could reflect a larger capacity to maintain roads and implement road safety measures. Classification-JEL: C25; H76; R41 Keywords: accident, ageing population, elderly, inclusiveness, Korea, pedestrian, regional, Traffic safety Creation-Date: 2017-03-27 Number: 2017/3 Handle: RePEc:oec:govaab:2017/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Charbit Author-Workplace-Name: OECD Author-Name: Oriana Romano Author-Workplace-Name: OECD Title: Governing together: An international review of contracts across levels of government for regional development Abstract: Contracts are a key tool for vertical co-ordination, enabling dialogue and capacity building across levels of government. They are frequently used for regional development policy in OECD and non-OECD countries. Drawing on contract theory and a variety of national experiences, this paper identifies three main types of contracts between central and subnational governments according to their objectives: i) empowerment; ii) delegation; and iii) policy-sharing contracts. The differentiation of contracts depending on their objective is based on two key factors: the maturity of decentralisation and the capacity of national and subnational governments. It is expected that with the development of subnational /central government capacities (or both), and with the increasing maturity of decentralisation, contracts can shift from one type to another. The paper concludes by suggesting enforcement mechanisms for more effective contracts across levels of government. Classification-JEL: H5; H7; K12; R1; R5 Keywords: contract theory, contracts, enforcement, multi-level governance, regional development Creation-Date: 2017-11-10 Number: 2017/04 Handle: RePEc:oec:govaab:2017/04-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dorothée Allain-Dupré Author-Workplace-Name: OECD Author-Name: Claudia Hulbert Author-Workplace-Name: OECD Author-Name: Margaux Vincent Author-Workplace-Name: OECD Title: Subnational Infrastructure Investment in OECD Countries: Trends and Key Governance Levers Abstract: Public investment is one of the fiscal tools with the strongest impacts on growth over the long term. However, public investment is in decline compared to the period prior to the 2008 global financial crisis in many OECD countries, and particularly in the EU. The main explanation for the decreased resources available for investment comes from the expenditure side. Subnational governments (SNGs)—defined as all levels of government (regional and local) below the national level, are responsible for a large share of public investment: on average, around 60 per cent in the OECD. Most of this public investment goes to infrastructure. This particular role of SNGs poses specific challenges for both the financing and governance of infrastructure investment. This paper focuses on subnational public investment in OECD countries and the EU, and shows that subnational governments have decreased their capital expenditures after 2010. This adjustment has been larger than at the central government level. The paper argues that only a limited diversification of public investment financing has occurred since 2010. The paper also argues that, beyond the sheer volume of investment spending, the governance of subnational investment is essential to efficient public investment. Based on a 2015 survey of 255 subnational governments in the EU, this paper explores specific challenges that subnational governments encounter in managing capital expenditures, , and possible ways to improve the quality of governance of subnational investments. Classification-JEL: H7 Keywords: Cities, Governance, Infrastructure, Investment, Regional, Regional Economics, Territorial Creation-Date: 2017-12-04 Number: 2017/05 Handle: RePEc:oec:govaab:2017/05-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marcos Diaz Ramirez Author-Workplace-Name: OECD Author-Name: Thomas Liebig Author-Workplace-Name: OECD Author-Name: Cécile Thoreau Author-Name: Paolo Veneri Author-Workplace-Name: OECD Title: The integration of migrants in OECD regions: A first assessment Abstract: This paper provides an assessment of the presence of migrants, their characteristics and integration outcomes across OECD regions, based on a new OECD database on immigrant integration at the regional level. It reveals the wide diversity of the presence of migrants within countries, as well as the specific patterns observed in the way migrants locate and integrate in society across regions. For example, migrants tend to be more spatially concentrated in capital-city and metropolitan regions than the native-born population. What is more, highly-educated migrants are more likely to locate in the same regions where the highly-educated natives concentrate, a trend that is not observed for the low-educated foreign-born. Integration outcomes of migrants, relative to the native-born, are measured through a variety of labour market and housing indicators. The paper also provides preliminary findings on public attitudes towards migrants across regions, which suggest that attitudes tend to be more positive in regions with larger shares of foreign-born population. Classification-JEL: F22; R10 Keywords: Integration, Migration, Regions Creation-Date: 2018-03-14 Number: 2018/01 Handle: RePEc:oec:govaab:2018/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lorena Figueiredo Author-Name: Taku Honiden Author-Workplace-Name: OECD Author-Name: Abel Schumann Author-Workplace-Name: OECD Title: Indicators for Resilient Cities Abstract: This paper discusses approaches to strengthen and monitor urban resilience through the use of indicators. Resilience is the capacity of a city or community to prepare for, respond to and adapt from dangerous and disruptive events, such as natural disasters, economic crises, demographic changes, health epidemics and others. Given that resilience is a multi-dimensional phenomenon, local authorities should design and implement strategies for urban resilience that integrate economic, social, environmental and institutional aspects. In order to monitor progress in becoming more resilient, local authorities should use indicators that measure resilience along these dimensions. The paper analyses different types of indicators and discusses the contexts in which they should be used. It provides recommendations on how local authorities can choose indicators tailored to their policy priorities and develops guidelines for the effective use of indicators in a broader governance framework. Creation-Date: 2018-03-20 Number: 2018/02 Handle: RePEc:oec:govaab:2018/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Gabriel Ahlfeldt Author-Name: Elisabetta Pietrostefani Author-Name: Abel Schumann Author-Name: Tadashi Matsumoto Title: Demystifying compact urban growth: Evidence from 300 studies from across the world Abstract: Most developed countries now pursue policies that implicitly or explicitly aim at promoting compact urban form. This report analyses more than 300 academic papers that study the effects of compact urban form, and finds that 69% of the papers reviewed find positive effects associated with compact urban form. Over 70% of studies find positive effects of economic density (the number of people living or working in an area). A smaller majority of studies attribute positive effects to mixed land use (58%) and the density of the built environment (56%). These averages hide significant variation across specific dimensions of urban development. In order to understand the effects of compact urban form, the report estimates the monetary per capita value of the change in 15 outcomes in response to a 10% change in economic density. The major benefits of economic density arise from improved productivity and better access to jobs and services. Further benefits are generated through the preservation of urban green space, greater energy efficiency, pollution reduction and safer urban environments. The major costs of higher economic density are related to congestion, health and well-being. Increasing compactness can also contribute to higher land values and housing costs, which are borne disproportionately by renters and first-time buyers. Increasing economic density therefore requires accompanying policy interventions to maximise the benefits and minimise the costs associated with compactness. In particular, policymakers need to facilitate large-scale investment in housing supply and public transport networks to ensure efficient and equitable access to housing, services and jobs in compact cities. Classification-JEL: R14; R23; R31 Keywords: compact cities, cost-benefit-analysis, urban form, urban policy Creation-Date: 2018-03-21 Number: 2018/03 Handle: RePEc:oec:govaab:2018/03-EN Template-type: ReDIF-Paper 1.0 Author-Name: Daniela Glocker Title: The Rise of Megaregions: Delineating a new scale of economic geography Abstract: The concept of megaregions is increasingly put forward among academics and policy makers as a new scale of economic co-ordination and social organisation. A megaregion is most commonly understood as an economic unit that comprises an agglomeration of cities and its less dense hinterlands, which are linked through infrastructure, economic connections, settlement patterns and land use, topography, an environmental system or a shared culture and history that together shape a common interest for the wider region. While there is an extensive literature on the potential benefits of a megaregion, work has been more limited in terms of identifying megaregions in an international context. This paper introduces an approach to delineate potential megaregions in the OECD. Classification-JEL: O18; R10; R12 Keywords: mean-shift algorithm, Megaregions, new economic geography, urban geography Creation-Date: 2018-12-13 Number: 2018/04 Handle: RePEc:oec:govaab:2018/04-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ross Brown Author-Name: Neil Lee Title: The theory and practice of financial instruments for small and medium-sized enterprises Abstract: This paper was prepared as a background document to the OECD-European Commission Seminar on ‘When to use financial instruments” held on 28 June 2017 at the OECD Headquarters in Paris, France. It sets a basis for reflection and discussion. This seminar is part of a five-part seminar series in the context of an EC-OECD project “Designing better economic development policies for regions and cities”. Other sessions in the series addressed the use of: contracts for flexibility/adaptability, performance indicators, financial instruments, and insights from behavioural science. The outcome of the seminars supports the work of the Regional Development Policy Committee and its mandate to promote the design and implementation of policies that are adapted to the relevant territorial scales or geographies, and that focus on the main factors that sustain the competitive advantages of regions and cities. The seminars also support the Directorate-General for Regional and Urban Policy (DG REGIO) of the European Commission in the preparation of the impact assessment for the post-2020 legislative proposals and to support broader discussion with stakeholders on the future direction of the delivery mechanisms of regional policy. Creation-Date: 2018-03-19 Number: 2018/05 Handle: RePEc:oec:govaab:2018/05-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chris McDonald Author-Name: Ana I. Moreno-Monroy Author-Name: Laura-Sofia Springare Title: Indigenous economic development and well-being in a place-based context Abstract: This paper adapts the OECD Regional Development framework to places with an Indigenous population. It identifies the importance of flexibility in geographic scale for organising policies for Indigenous communities, development objectives that reflect the self-determined and informed choices of Indigenous peoples, and implementing strategies for development based on the identification of local assets. Classification-JEL: R58 Keywords: culture, Indigenous peoples, place, regional and rural development, sustainable development goals, well-being Creation-Date: 2019-04-10 Number: 2019/01 Handle: RePEc:oec:govaab:2019/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lorena Figueiredo Author-Name: Chris McDonald Title: Making land management work for Indigenous economic development Abstract: This paper establishes an analytical framework for understanding and assessingIndigenous economic development and well-being in a place-based context. Itidentifies the importance of flexibility in geographic scale for organising policiesfor Indigenous communities, development objectives that reflect the selfdeterminedand informed choices of Indigenous peoples, and implementingstrategies for development based on the identification of local assets Classification-JEL: R58 Keywords: benefit sharing, duty to consult, Indigenous peoples, land of use governance, land rights, self-determination Creation-Date: 2019-04-10 Number: 2019/02 Handle: RePEc:oec:govaab:2019/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chris McDonald Title: Promoting Indigenous community economic development, entrepreneurship and SMEs in a rural context Abstract: This paper establishes an analytical framework for understanding and assessing Indigenous economic development and well-being in a place-based context. It identifies the importance of flexibility in geographic scale for organising policies for Indigenous communities, development objectives that reflect the self-determined and informed choices of Indigenous peoples, and implementing strategies for development based on the identification of local assets. Classification-JEL: R58 Keywords: culture, Indigenous peoples, place, regional and rural development, sustainable development goals, well-being Creation-Date: 2019-04-10 Number: 2019/03 Handle: RePEc:oec:govaab:2019/03-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chris McDonald Author-Name: Lisanne Raderschall Title: Indigenous community capacity and multi-level governance Abstract: This paper establishes an analytical framework for understanding and assessing Indigenous economic development and well-being in a place-based context. It identifies the importance of flexibility in geographic scale for organising policies for Indigenous communities, development objectives that reflect the self-determined and informed choices of Indigenous peoples, and implementing strategies for development based on the identification of local assets. Classification-JEL: R58 Keywords: capacity building, cultural match, Indigenous peoples, multi-level governance, regional development Creation-Date: 2019-04-10 Number: 2019/04 Handle: RePEc:oec:govaab:2019/04-EN Template-type: ReDIF-Paper 1.0 Author-Name: Enrique Garcilazo Author-Name: Laura-Sofia Springare Author-Name: Mai Sasaki Author-Name: Diana Oropeza Higuera Title: Rural study of Korea Abstract: This paper examines the role of rural regions in the economic transformation of Korea. The analysis at regional level reveals that, while having experiencing continued urbanisation and rapid demographic shift of aging and depopulation, the Korean rural areas performs well in terms of productivity growth thanks to the relatively higher share of tradable sectors in rural economies. It also provides the overview of how the rural policy in Korea, which has evolved in response to the socio-economic changes and growing well-being concerns. With the balanced national development at the centre of the national agenda for decades, regional policy approaches have diversified from state-led large projects to flexible policy packages and functional approaches to enhance rural economies and well-being. Finally, the paper presents a number of international policy approaches that can be useful for Korea, including the case of France, Italy and Sweden. Classification-JEL: H70; O18; R11; R58 Keywords: Balanced national development, Contract, Demographic change, Korea, Rural development, Rural well-being Creation-Date: 2019-05-02 Number: 2019/05 Handle: RePEc:oec:govaab:2019/05-EN Template-type: ReDIF-Paper 1.0 Author-Name: Milenko Fadic Author-Name: José Enrique Garcilazo Author-Name: Ana Moreno Monroy Author-Name: Paolo Veneri Title: Classifying small (TL3) regions based on metropolitan population, low density and remoteness Abstract: This paper provides a method to classify TL3regions across OECD countries based on their level of access to metropolitan areas. TL3 regions are classified as ‘metropolitan’ if more than half of their population lives in one or more functional urban area (FUA) of at least 250 thousand inhabitants and as ‘non-metropolitan’ otherwise. The method sub-classifies metropolitan regions into ‘large metro’ or ‘metro’ regions based on the population size of the FUAs located within those regions. Non-metropolitan TL3 regions are sub-classified into: with accessto a metro, with access to a small/medium city, or remote based on their level of access to a FUA with population above a predetermined threshold. The method relies on publicly available grid-level population data and localised information on driving conditions. Classification-JEL: C80; R41; R52; R58 Keywords: culture, Indigenous peoples, place, regional and rural development, sustainable development goals, well-being Creation-Date: 2019-06-06 Number: 2019/06 Handle: RePEc:oec:govaab:2019/06-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Freshwater Author-Name: Enrique Garcilazo Author-Name: Julia Latto Author-Name: Julian Pace Author-Name: Alvin Simms Author-Name: Jamie Ward Author-Name: Tim Wojan Title: Business development and the growth of rural SMEs Abstract: The paper reviews the role of Small and Medium Size Enterprises (SMEs) as drivers of employment and economic growth in rural regions across a number of OECD geographies. It argues that SME creation is especially important for rural economic development and identified lessons for national level policy that can help strengthen the performance of SMEs and enhance the creation of new SMEs. This working paper focuses on four cases studies in Atlantic Canada, Quebec, Scotland and the United States to derive general findings and recommendations. Classification-JEL: R51 Keywords: benchmarking, economic development incentives/tools, geography, innovation, place, rural development, SMEs Creation-Date: 2019-07-12 Number: 2019/07 Handle: RePEc:oec:govaab:2019/07-EN Template-type: ReDIF-Paper 1.0 Author-Name: Federica Daniele Author-Name: Taku Honiden Author-Name: Alexander C. Lembcke Title: Ageing and productivity growth in OECD regions: Combatting the economic impact of ageing through productivity growth? Abstract: OECD countries and their regions are ageing fast. In principle, the negative impact of ageing on the growth rate of per capita gross domestic product could be offset by increases in productivity. However, for many regions, productivity growth required to maintain per capita GDP levels constant has been higher than the actual growth rates they recorded in the past years. One reason for this is that ageing also has a direct negative impact on productivity growth, with the effect being concentrated in urban areas. One possible explanation is that cities specialise in sectors, such as tradable services, where the content of tasks makes it difficult to automate stages of the production process and where business dynamism, negatively affected by demographic change, is a more solid driver of productivity growth. Finally, ageing seems to be associated with a redistribution of revenues away from workers and towards capital and firm owners. Classification-JEL: J11; J24; R11 Keywords: ageing,, cities, productivity growth, regions, Creation-Date: 2019-07-18 Number: 2019/08 Handle: RePEc:oec:govaab:2019/08-EN Template-type: ReDIF-Paper 1.0 Author-Name: Maria Varinia Michalun Author-Name: Alessandra Nicita Title: Multi-level governance and cross-sector practices supporting the European Union Strategy for the Adriatic and Ionian Region Abstract: European Union Strategy for the Adriatic and Ionian Region (EUSAIR) represents a long-term strategic policy framework to promote socio-economic growth and tighter relations between European Union member countries and countries in the Western Balkan region. Of the four European Union Strategies in place, EUSAIR is potentially the most challenging, with significant degrees of diversity among the four EU and four non-EU member partner countries. This is often revealed by their differences in administrative capacity, governance and economic development. National multi-level governance structures supporting EUSAIR contribute to the Strategy’s national-level implementation. Enhancing the national multi-level governance practices applied to EUSAIR by participating countries could further build the Strategy’s ability to contribute to national and macro-regional growth, development and environmental sustainability. This paper explores how questions of ownership, funding, strategic synergies, institutional coordination mechanisms, resource capacities and constraints, and stakeholder engagement affect EUSAIR implementation, and offers a series of recommendations for action. Classification-JEL: O18; O19; R58 Keywords: Adriatic-Ionian, EUSAIR, Macro-region, Macro-regional Strategy, Multi-level Governance, Regional Development, Western Balkans Creation-Date: 2019-11-06 Number: 2019/09 Handle: RePEc:oec:govaab:2019/09-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tadashi Matsumoto Author-Name: Jonathan Crook Author-Name: Kensuke Tanaka Title: Trends for smart city strategies in Emerging Asia Abstract: Smart cities represent the future of urban development in Emerging Asia as more and more cities and countries resort to smart technologies to build more efficient and liveable urban environments, boost economic growth, foster well-being and facilitate citizen engagement. Policy makers in the region have adopted plans to develop and promote the use of technology to organise and run urban areas. Governments have also provided significant financial backing to smart city projects, acknowledging the importance of public support in this field. The development of smart cities offers significant prospects to tackle enduring issues faced by Emerging Asian cities in policy areas such as transport, the provision of public services, education, healthcare and utilities. Classification-JEL: F68; O14; O33; O38; P25; R11; R58 Keywords: China, India, innovation, megatrend, smart cities, Southeast Asia, technology, territorial approach, urban policy Creation-Date: 2019-11-20 Number: 2019/10 Handle: RePEc:oec:govaab:2019/10-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lewis Dijkstra Author-Workplace-Name: European Commission Author-Name: Hugo Poelman Author-Workplace-Name: European Commission Author-Name: Paolo Veneri Author-Workplace-Name: OECD Title: The EU-OECD definition of a functional urban area Abstract: This paper describes the EU-OECD method to define functional urban areas (FUAs). Being composed of a city and its commuting zone, FUAs encompass the economic and functional extent of cities based on daily people’s movements. The paper first presents briefly the methodological approach and subsequently provides a detailed description of the identification algorithm, together with the data needed to apply it. This definition has been applied to 33 OECD member countries and Colombia, as well as to all European Union member countries. Classification-JEL: O18; P25 Keywords: City, Delineation, Functional Urban Area, Metropolitan area Creation-Date: 2019-12-11 Number: 2019/11 Handle: RePEc:oec:govaab:2019/11-EN Template-type: ReDIF-Paper 1.0 Author-Name: Alex Costa Author-Name: Jaume Garcia Author-Name: Josep Lluís Raymond Author-Name: Daniel Sanchez-Serra Title: Subnational purchasing power of parity in OECD countries: Estimates based on the Balassa-Samuelson hypothesis Abstract: Due to the lack of Purchasing Power Parities (PPPs) at regional level, regional Gross Domestic Product (GDP) figures have been traditionally adjusted using national PPPs. The simplifying assumption that all regions of a country have the same cost of living, and implicitly that there are no regional differences in prices, might lead to regional GDP figures (adjusted for national PPPs) that are biased and might limit the design and implementation of regional policies. This paper tries to overcome this problem by estimating PPPs at subnational level (TL2 regions) for OECD countries through a new method which uses publicly available data and is based on the Balassa-Samuelson hypothesis. Classification-JEL: C20; E31; O47; R10 Keywords: Balassa-Samuelson hypothesis, regional price levels, Regional Purchasing Power Parity Creation-Date: 2019-12-16 Number: 2019/12 Handle: RePEc:oec:govaab:2019/12-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tadashi Matsumoto Author-Name: Dorothée Allain-Dupré Author-Name: Jonathan Crook Author-Name: Alexis Robert Title: An integrated approach to the Paris climate Agreement: The role of regions and cities Abstract: Following the historic 2015 Paris Agreement aiming to limit global temperature rise to well below 2°C above pre-industrial levels by 2100, 165 Intended Nationally Determined Contributions, representing 192 countries, have been submitted. Nationally Determined Contributions (NDCs) detail each Party’s efforts to reduce domestic greenhouse gas (GHG) emissions and adapt to the impacts of climate change. This paper, recognising the role of cities and regions in implementing the Paris Agreement, highlights the need for an integrated approach in implementing NDCs and long-term low GHG emission development strategies (LT-LEDS) and attempts to present key policy options for such an approach. First, the paper identifies the national and subnational co-ordination mechanisms in current NDCs, LT-LEDS and other subnational climate strategies and argues that the current processes of developing and implementing NDCs and LT-LEDS provide a unique opportunity for national governments to integrate innovative subnational climate action. The paper then assesses the potential for co-ordination of national, regional and local climate mitigation investment through the lens of the OECD Recommendation on Effective Public Investment Across Levels of Government adopted in 2014. Classification-JEL: H54; Q01; Q54; Q56; R11; R58 Keywords: cities, climate change, infrastructure, long-term low greenhouse gas emission development strategies (LT-LEDS), mitigation, Nationally Determined Contributions (NDCs), Paris Agreement, public investment Creation-Date: 2019-12-17 Number: 2019/13 Handle: RePEc:oec:govaab:2019/13-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Enhancing the contribution of digitalisation to the smart cities of the future Abstract: As digitalization reshapes urban landscapes, the concept of "smart cities" evolves from a supply-side, sector-driven approach to one focused on boosting citizen well-being. This paper redefines smart cities as initiatives leveraging digitalization for efficient, sustainable, and inclusive urban services. It delves into a decade of global smart city initiatives, analyzing successes, failures, and policy implications. Exploring diverse definitions and measurement frameworks, it assesses opportunities and challenges of digitalization, highlighting policy implications for OECD governments. Ultimately, the paper advocates harnessing digitalization's benefits to drive inclusive and sustainable urban growth. It proposes pathways for the OECD to address critical policy questions and steer smart city development towards citizen-centric outcomes. Creation-Date: 2019-06-28 Number: 2019/14 Handle: RePEc:oec:govaab:2019/14-EN Template-type: ReDIF-Paper 1.0 Author-Name: Alexandra Tsvetkova Author-Name: Rudiger Ahrend Author-Name: Joaquim Oliveira Martins Author-Name: Alexander C. Lembcke Author-Name: Polina Knutsson Author-Name: Dylan Jong Author-Name: Nikolaos Terzidis Title: The spatial dimension of productivity: Connecting the dots across industries, firms and places Abstract: This working paper offers a synthesis of the current knowledge on the determinants of productivity. It carefully reviews both “spatial” (e.g. agglomerations, infrastructure, geography) and “aspatial” (e.g. human capital, labour regulations, industry-level innovation and dynamism) productivity drivers and demonstrates how the underlying spatial dynamics behind the latter group makes all productivity determinants “spatial” in nature. The paper demonstrates that productivity is inherently a spatial phenomenon and its understanding without a local/regional dimension is incomplete. Classification-JEL: R11; R12; R58 Keywords: cities, firms, industries, local development, places, productivity growth, regions, spatial productivity Creation-Date: 2020-01-13 Number: 2020/01 Handle: RePEc:oec:govaab:2020/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Alexander C. Lembcke Author-Name: Lenka Wildnerova Title: Does FDI benefit incumbent SMEs?: FDI spillovers and competition effects at the local level Abstract: That global networks provide positive externalities to participating firms is a well‑documented fact. Less is known about how the performance of non-participating firms, especially those that are small or medium-sized, changes with exposure to an increase in the presence of globally integrated firms in their vicinity. With global trade being dominated by large firms, the benefits for SMEs are often indirect, e.g. through input relationships with larger companies or through knowledge spillovers that facilitate the adoption of best practices in firms with access to globally integrated peers. This paper combines industry and regional exposure to global links in form of foreign ownership. It uses firm-level microdata for 13 OECD countries, allowing for local spillovers (or crowding out) within the same industry and across industries. Foreign investment in the firm in the same region is associated with increasing productivity of local firms, especially in form of cross-sector externalities. Horizontal (same sector) externalities are negative, especially if they are coming from foreign firms locating in distanced regions. FDI tends to be associated with employment decline in manufacturing firms, but some growth in small firms. Classification-JEL: D22; F14; F23; F21; R12 Keywords: Employment, FDI, Firms, Productivity, SME Creation-Date: 2020-02-12 Number: 2020/02 Handle: RePEc:oec:govaab:2020/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ana Moreno Monroy Author-Name: Jared Gars Author-Name: Tadashi Matsumoto Author-Name: Jonathan Crook Author-Name: Rudiger Ahrend Author-Name: Abel Schumann Title: Housing policies for sustainable and inclusive cities: How national governments can deliver affordable housing and compact urban development Abstract: In a context marked by rapid urbanisation, growing housing demand and the worsening impacts of climate change, national governments play a vital role in delivering environmentally sustainable cities with adequate and affordable housing. This paper reviews national housing policy instruments from around the world, analysing their impacts on compact urban development and housing affordability. First, the paper proposes a framework to better understand the housing market in cities by outlining drivers of housing supply and demand as well as the constitution of the housing market and its segments: homeowners and renters, single- and multi-family homes, market and below-market price segments. Next, the paper analyses a range of policy options available to national governments, which are summarised and evaluated according to their impacts on compactness and affordability. Last, the paper provides short-, medium- and long-term policy recommendations to align national housing policies with the goal of delivering more sustainable and inclusive cities. The paper is one of the first attempts to consider the intersection of physical urban form and housing affordability from a national policy perspective. Classification-JEL: H50; O18; Q56; R21; R31; R38; R52 Keywords: affordable housing, compact urban development, housing market, housing policy, urban form, urban policy Creation-Date: 2020-04-15 Number: 2020/03 Handle: RePEc:oec:govaab:2020/03-EN Template-type: ReDIF-Paper 1.0 Author-Name: Cem Özgüzel Title: Agglomeration economies in Great Britain Abstract: This paper estimates agglomeration economies in Great Britain. The analysis employs a definition of urban areas as functional economic units developed by the OECD in collaboration with the European Union to investigate the size and sources of productivity disparities across urban areas. It uses data from the UK Annual Survey of Hours and Earnings and the UK Labour Force Survey between 2000 and 2018 and a two-step estimation procedure that accounts for bias in the extent of agglomeration economies arising from individual sorting. The results suggest that a 10% increase in employment density of a city in Great Britain, would, on average, increase city productivity by 0.9-1 percent. The analysis also shows the estimated elasticity for employment density remains the same before and after the 2007–08 global financial crisis, not showing any clear structural break between city size and productivity relationship. Classification-JEL: R12; R23; J31 Keywords: Great Britain, local labour markets, spatial wage disparities Creation-Date: 2020-06-08 Number: 2020/04 Handle: RePEc:oec:govaab:2020/04-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: A territorial approach to the Sustainable Development Goals in Kópavogur, Iceland Abstract: Kópavogur was the first municipality in Iceland to formally embrace the Sustainable Development Goals (SDGs). In September 2018, the Municipal Council adopted a holistic strategy for Kópavogur, based on the 15 prioritised SDGs and their 36 targets. The city is following a data-driven approach to implement the SDGs as a tool for public sector innovation and to bring all the municipality’s actions under one strategic framework. The city is also using the SDGs to build awareness and strengthen ownership of the local strategy among private sector and civil society. The case of Kópavogur also points to the importance of addressing the SDGs through an integrated and functional approach, since many sustainable development challenges span beyond sole perimeter of the city and require close cooperation with the hinterland, as in the case of public transport and waste management. Creation-Date: 2020-09-23 Number: 2020/05 Handle: RePEc:oec:govaab:2020/05-EN Template-type: ReDIF-Paper 1.0 Author-Name: Martin Andersson Author-Name: Johan E. Eklund Author-Name: Alexandra Tsvetkova Title: The geography of Swedish SMEs’ investments: Financial constraints across the urban-rural hierarchy in a wealthy country with low regional disparities Abstract: This paper advances our knowledge of the spatial determinants of productivity by empirically demonstrating one such mechanism – clear differences along the urban-rural continuum in the sensitivity of SMEs’ investments to own cash flow. Whereas the literature has established uneven availability of credit across space, the evidence on whether this translates into differences in actual business investments remains scarce. We answer this question in the context of Sweden – a highly digitalised country with low regional inequalities. We find that the world of financing is not yet flat for the majority of Swedish SMEs. Companies located in non-metro regions are most dependent on own cash flow in their investments. The results hold for all firms, firms of different sizes, firms operating in low-end services, unaffiliated firms and those belonging to domestic corporations. In contrast, investment – cash flow sensitivity of firms operating in high-tech services and those belonging to a multinational enterprise does not differ geographically. On average, regional investment-cash flow sensitivity is lower in bigger, denser and more educated local labour market regions; it is higher in regions with greater concentration of SMEs. Classification-JEL: O18; R10; R51; D25 Keywords: access to finance, financial constraints, investment decisions, SMEs, urban-rural continuum Creation-Date: 2020-10-19 Number: 2020/06 Handle: RePEc:oec:govaab:2020/06-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: A territorial approach to the Sustainable Development Goals in Bonn, Germany Abstract: The city of Bonn, Germany, has a long-standing commitment towards sustainable development. The city has gone through a comprehensive process to link the city’s 2030 Sustainability Strategy to the Sustainable Development Goals (SDGs), supported by the Federal Ministry for Economic Cooperation and Development. The Strategy seeks to address the main challenges faced by the city in terms of providing affordable housing, expanding and maintaining green spaces, shifting to clean forms of transport and energy, and providing employment opportunities for all, especially for low-skilled workers. The SDGs can also help to institutionalise Bonn’s Sustainability Strategy and allocate adequate resources to its implementation. They also provide a holistic framework to manage trade-offs between climate, sustainable mobility and affordable housing goals, while striving to reduce inequalities. Creation-Date: 2020-10-26 Number: 2020/07 Handle: RePEc:oec:govaab:2020/07-EN