Riassunto Smart Cities | Schemi e mappe concettuali di Economia Dello Sviluppo

Growth model

Two different model:

ENDOGENOUS GROWTH MODEL

The factors of growth are endogenous and it’s characterized by the absence of a perfect competition and

the constant return to scale, production factors have no decreasing marginal return, and externalities allow

the “maintenance” of the economic growth process

EXOGENOUS GROWTH MODEL

Developed by Solow (1956) -> the factors pushing growth are exogenous to the economic (demographic

dynamics and technological progress) system and it’s characterized by perfect competition, constant return

to scale, no public intervention, and a closed economic system (no trades and no knowledge flow)

Solow equation -> k’ = sf(ᵗk’ ) – (n + δ)ᵗ kᵗ

When countries reach the steady-state equilibrium, there is no growth (income, capital and labour grow

with the same rate)

In equilibrium -> sf(k’ᵗ) = (n + δ) kᵗ

According to Solow there are two types of convergences: absolute (same values of s, n, δ but different

initial level of kᵗ) and conditional/relative (different values of s, n, δ and a different initial level of kᵗ)

The convergence is the conditional convergence (each economic system converges towards its own steady-

state level and the speed depend on the distance from it)

Agglomeration and local externalities

There are forces within the system that allow for increasing returns of the accumulation of physical, human

and knowledge capital

A key factor is the spatial concentration of economic activities -> they locate close to each other to take

advantage of: labour market pooling (for workers is easy to find a new job while for firms is easier to find

workers with specific skills), input sharing (attract specialized suppliers and because of this capital goods

become cheaper), and knowledge spillovers (three conditions to materialize: firms cannot fully appropriate

of the new knowledge, they can exchange information, and distance is an impediment)

Exist three types of dynamic local externalities: MAR (local specialization and monopoly), Porter (local

specialization and competition), Jacobs (local differentiation and competition)

Aggregate level empirical evidence:

Glaser 1992 -> specialization hurts, competition helps, and diversity has a positive effect

Henderson 1995 -> MAR push employment in mature capital goods industries, Jacob and Porter

push employment in new high-tech industries

Combes 2000 -> local economic structure affects local employment growth, sectoral specialization

and diversity have a negative impact on growth for industrial sectors, service sectors always exhibit

negative specialization effects and positive diversity effects, competition and plant size have a

negative impact, there is evidence of sector-specific heterogeneity

Cingano and Schivardi 2004 -> results depend on considering employment, TFP, or wage growth as

dependent variable

Firm level empirical evidence:

Glaser 1992 -> knowledge spillovers take time to materialize

Martin 2011 -> excessive agglomeration leads to congestion effects overcoming positive

externalities, estimated elasticity varies depending on the scale of spatial agglomeration

(localization externalities’ positive effects do not attenuate as distance increases, diversification

externalities negative up to 5km and positive between 10km and 30km), and smaller firms gain

more than larger ones

Efficiency and productivity increases are driven also by innovation (new to markets products or process

innovation)

Policy implications -> local and national policies play an important role in the agglomeration of innovation

Also, external infrastructure can play an important role for innovation and entrepreneurship (policymakers

should focus on getting the general conditions correct)

Anteprima parziale del testo

Scarica Riassunto Smart Cities e più Schemi e mappe concettuali in PDF di Economia Dello Sviluppo solo su Docsity!

Growth model

Two different model: ENDOGENOUS GROWTH MODEL The factors of growth are endogenous and it’s characterized by the absence of a perfect competition and the constant return to scale, production factors have no decreasing marginal return, and externalities allow the “maintenance” of the economic growth process EXOGENOUS GROWTH MODEL Developed by Solow (1956) -> the factors pushing growth are exogenous to the economic (demographic dynamics and technological progress) system and it’s characterized by perfect competition, constant return to scale, no public intervention, and a closed economic system (no trades and no knowledge flow) Solow equation -> k’ ᵗ = sf(k’ ᵗ) – (n + δ) kᵗ When countries reach the steady-state equilibrium, there is no growth (income, capital and labour grow with the same rate) In equilibrium -> sf(k’ᵗ) = (n + δ) kᵗ According to Solow there are two types of convergences: absolute (same values of s, n, δ but different initial level of kᵗ) and conditional/relative (different values of s, n, δ and a different initial level of kᵗ) The convergence is the conditional convergence (each economic system converges towards its own steady- state level and the speed depend on the distance from it)

Agglomeration and local externalities

There are forces within the system that allow for increasing returns of the accumulation of physical, human and knowledge capital A key factor is the spatial concentration of economic activities -> they locate close to each other to take advantage of: labour market pooling (for workers is easy to find a new job while for firms is easier to find workers with specific skills), input sharing (attract specialized suppliers and because of this capital goods become cheaper), and knowledge spillovers (three conditions to materialize: firms cannot fully appropriate of the new knowledge, they can exchange information, and distance is an impediment) Exist three types of dynamic local externalities: MAR (local specialization and monopoly), Porter (local specialization and competition), Jacobs (local differentiation and competition) Aggregate level empirical evidence:  Glaser 1992 -> specialization hurts, competition helps, and diversity has a positive effect  Henderson 1995 -> MAR push employment in mature capital goods industries, Jacob and Porter push employment in new high-tech industries  Combes 2000 -> local economic structure affects local employment growth, sectoral specialization and diversity have a negative impact on growth for industrial sectors, service sectors always exhibit negative specialization effects and positive diversity effects, competition and plant size have a negative impact, there is evidence of sector-specific heterogeneity  Cingano and Schivardi 2004 -> results depend on considering employment, TFP, or wage growth as dependent variable Firm level empirical evidence:  Glaser 1992 -> knowledge spillovers take time to materialize  Martin 2011 -> excessive agglomeration leads to congestion effects overcoming positive externalities, estimated elasticity varies depending on the scale of spatial agglomeration (localization externalities’ positive effects do not attenuate as distance increases, diversification externalities negative up to 5km and positive between 10km and 30km), and smaller firms gain more than larger ones Efficiency and productivity increases are driven also by innovation (new to markets products or process innovation) Policy implications -> local and national policies play an important role in the agglomeration of innovation Also, external infrastructure can play an important role for innovation and entrepreneurship (policymakers should focus on getting the general conditions correct)

Institution and institutional quality

Productivity is higher when workers are equipped with more physical capital, human capital, and better economy. Fast-growing economies excel at savings and investment spendings, education, and R&D Romer new growth theory -> technological progress is endogenous, so policies could be adopted to foster its growth Institutions = rules of social interaction. Three types: economic institutions (economic growth because they shape the incentives of key economic actors in the society), political power (de facto political power -> conflict of interest among various group and individuals over the choice of economic institutions), and political institutions (de jure political power) Institutions can spur economic growth through several channels: public subsidies (to infrastructure, to education, to R&D), maintaining a well-functioning financial system, protecting property rights, and political stability and good governance Rodrick 2004 -> institutions are the main cause of income level differentials across countries Can be direct positive effects or indirect (stable environment) If local governments have autonomy, can expect differences in the quality of local institutions (represented by local governments) also within the same (broader) national institutional framework. Local governments are likely to be more influential than the national one for daily economic activities High quality local institutions have positive aggregate effect at the local level. However, aggregate effects depend on individual effects Overall, local institutions (and the local context, in general) are expected to be more relevant for those firms lacking internal resources as ‘good’ institutions may compensate for such limitations Empirical evidence: Institutions comparing developed vs developing countries and heterogeneity among developing countries Institutional quality: deep heterogeneity in economic performance and growth potential, heterogeneity in sub-national institutional quality helps explaining within-country heterogeneity in economic performance Region level empirical evidence:  High quality institutions show a positive direct correlation with economic growth  Institutional quality across the EU shape both short and long run productivity growth  At the local regional level, a high-quality regional government can push firms’ performance by guaranteeing competition in the local market, promoting bureaucratic efficiency, favoring interactions among local firms  Regional institutional quality is an important driver behind levels of firms’ labor productivity: however, how institutions shapes labour productivity depends on the type of firm considered. Government effectiveness is the main driver of positive institutional quality-firm productivity relationship  SMEs in regions with high-quality institutions have greater chances of accessing non-institutional financial resources for expansion

Urban smartness and regional competitiveness

A smart city is a city that can monitor and integrate functionality of all the critical infrastructure, control maintenance activities, and help optimizing the resources while keeping an eye on security issues, stakeholder engagement in local governance and collaborative partnerships to boost civic engagement and leverage the role of the private sector in decision-making at the local level, the value of experimentation with public access to open data and collaboration within and among cities, private-public-people, national- regional-local scale, the need for an integrated and holistic approach to address urban challenges through digital innovation in a city’s governance, planning, and infrastructure investment Smart cities are a global phenomenon that highlights how bottom-up approaches to policy design and implementation are taking root over traditional top-down approaches (a smart city requires a smart governance)

Riassunto Smart Cities, Schemi e mappe concettuali di Economia Dello Sviluppo

Documenti correlati

Anteprima parziale del testo

Scarica Riassunto Smart Cities e più Schemi e mappe concettuali in PDF di Economia Dello Sviluppo solo su Docsity!

Growth model

Agglomeration and local externalities

Institution and institutional quality

Urban smartness and regional competitiveness