Publications

2002
Globalization Processes and their Impact on the Structure of the Tel Aviv Metropolitan Area
A., Shachar, and Felsenstein D. 2002.“Globalization Processes and their Impact on the Structure of the Tel Aviv Metropolitan Area”. Pp. 35-56 in Felsenstein D., Schamp E. and Shachar A. (2002) (eds), Emerging Nodes in the Global Economy: Frankfurt and Tel Aviv Compared. Dordrecht, The Netherlands: Kluwer Academic Publishers. Publisher's VersionAbstract

The chapter deals with processes of change in the functional structure of the Tel Aviv Metropolitan Area (TAMA) in the wake of economic globalization processes of the 1980s and 1990s. Of all the components making up the spatial organization of the TAMA, the chapter focuses on the development of two Central Business Districts (CBD) in metropolitan Tel Aviv: the traditional central city business arena and a new emerging center. Rather than heralding the formation of a polycentric urban structure, the new Tel Aviv CBD represents a real-estate led response at generating a new center of gravity for economic activity in Tel Aviv. The new center therefore competes vigorously with the established center. A further unique feature of the developing metropolitan structure is the ex nihilo nature of the new development. Instead of following the well-known pattern of incremental CBD expansion via new building at the margins of the established center, the new Tel Aviv business district represents an attempt at re-directing growth to a new location altogether.

Globalization Trends in the Cultural Industries of tel Aviv
D., Felsenstein, and Barkai H. 2002.“Globalization Trends in the Cultural Industries of tel Aviv”. Pp. 237-256 in Felsenstein D., Schamp E. and Shachar A. (2002) (eds), Emerging Nodes in the Global Economy: Frankfurt and Tel Aviv Compared. Dordrecht, The Netherlands: Kluwer Academic Publishers. Publisher's VersionAbstract

This study focuses on globalization trends in the cultural industries of the Tel Aviv metropolitan area. It is well known that global centers are often cultural service centers as well. London, New York, Paris and Moscow are all economic hubs in the global system but are also cultural centers. The centrality of a cultural node can be measured (like the centrality of any node in a system) through observing the flows into and out of that center (see above Chapters 1 and 6). The identification of flows gives a more dynamic view of the relations between nodes than do static rankings (Beaverstock et al., 2000). In addition, attribute-based characterizations are particularly likely to under-identify ‘emerging’ nodes and the activities that take place within them. As such, a flows-based approach seems more appropriate for yielding insights into the way emerging nodes attempt to break into global networks using cultural activity as a vehicle of entry.

High Technology Employment Concentration and Urban Sprawl in the Chicago Metropolitan Area
D., Felsenstein. 2002.“High Technology Employment Concentration and Urban Sprawl in the Chicago Metropolitan Area”. Pp. 207-227 in Wiewel W. and Persky J. (eds), Suburban Sprawl: Private Decisions and Public Policy. Armonck, NY: ME Sharpe Inc. Publisher's Version
Investing in an Emerging Node: Foreign-Owned Companies in the Tel Aviv Economy
D., Felsenstein, and Ergas Y. 2002.“Investing in an Emerging Node: Foreign-Owned Companies in the Tel Aviv Economy”. Pp. 57-80 in Felsenstein D., Schamp E. and Shachar A. (2002) (eds), Emerging Nodes in the Global Economy: Frankfurt and Tel Aviv Compared. Dordrecht, The Netherlands: Kluwer Academic Publishers. Publisher's VersionAbstract

This chapter investigates Israel’s role as an `emerging node’ in the global economy through the prism of foreign direct investment (FDI). Empirically, we investigate the probability that a foreign-owned firm will locate in Tel Aviv. Foreign ownership is taken here as representing one facet of globalization. While we are aware that globalization processes encompass much more than the presence of foreign investors in the domestic economy and should also include some investigation of Israeli firms operating abroad, this topic will be touched on, inter-alia, through the analysis of patterns of FDI. As will be noted, much of this latter process is bound up with FDI in that many Israeli, technologically advanced, firms that try to break into global markets do so through by being incorporated or traded abroad (see chapter 6 and also Haaretz, 2000; Red Herring, 2000). A presence abroad is therefore linked to some form of foreign control over local firms and thus the two facets of globalization are inter-linked.

Tel Aviv as a Global High Tech ‘Hot Spot’: Does Location Really Matter?
D., Felsenstein, and Ergas Y. 2002.“Tel Aviv as a Global High Tech ‘Hot Spot’: Does Location Really Matter?”. Pp. 109-130 in Felsenstein D., Schamp E. and Shachar A. (2002) (eds), Emerging Nodes in the Global Economy: Frankfurt and Tel Aviv Compared. Dordrecht, The Netherlands: Kluwer Academic Publishers. Publisher's VersionAbstract

One of the most salient features of technological development and progress is its tendency to agglomeration in space. Popular accounts glorify the emergence of these new global high tech ‘hot-spots’ (Business Week, 1998; Newsweek, 1998) and academic studies debate their uniqueness (Bania, Eberts and Fogarty, 1993; Castells and Hall, 1994, Pouder and St. John, 1996). However, one feature that seems to have been over-looked relates to the extent to which these agglomerations are concretely linked into their regional and national economies. If they act as integral components in their regional contexts, then we would expect some form of unique linkages to exist between them and their environs, linkages which could not exist if the concentration was located elsewhere. On the other hand, if they function purely as nodes in global networks, then the local context within which they perform will act purely as a back-drop. In this kind of abstract environment, little uniqueness is related to a specific location. The external economies of the agglomeration could have developed in similar fashion somewhere else. As Krugman notes with respect to the Los Angeles economy:

(the people of L.A.) are there because of each other: if one could uproot the whole city and move it 500 miles, the economic base would hardly be affected (Krugman 1996, p. 209).

Emerging Nodes in the Global Economy: Frankfurt and Tel Aviv Compared
D., Felsenstein, Schamp E., and Shachar A. 2002.Emerging Nodes in the Global Economy: Frankfurt and Tel Aviv Compared. Dordrecht, The Netherlands: Kluwer Academic Publishers. Publisher's VersionAbstract

Cities form one of the principal arenas in which globalization processes are manifest. Much of the interest in the urban outcomes of globalization is focused on a limited number of iconic 'global' or 'world' cities. Most places however will never attain that status. They are more likely to play limited and specialized roles in a world economy increasingly dominated by flows. Emerging Nodes in a Global Network looks at the temporal and volatile ways in which two such cities, Frankfurt and Tel Aviv, engage the global economy. The central thesis of the book contends that the current round of globalization is characterized by places selectively functioning as nodes within global networks. Drawing on a combination of qualitative and quantitative empirical studies of leading sectors in Frankfurt and Tel Aviv (financial and business services, high technology, air transportation, tourism and cultural industries), the process of network formation is systematically analyzed and the role of national and regional policy is highlighted. 
Audience: This book will be of major interest to academics, researchers, practitioners and policy makers in the areas of urban and economic geography, public policy and economic development. It also provides valuable material for government officials and regional and national agencies involved in metropolitan planning and development.

Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event
A., Fleischer, and Felsenstein D. 2002. “Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event”. Journal of Cultural Economics 26 (2):139-156. Publisher's VersionAbstract

Economic impact studies based on short-run spending injections and multipliers lack conceptual ties to measures of economic surplus, fail to capture intangible benefits and generally fail to measure costs. In this case study of the Eurovision Song Contest (ESC) held in Israel in 1999, national benefits from the government-financed televising of the ESC are measured as producer surplus (approximated by private sector incremental profits), consumer surplus (measured as the incremental willingness to pay for an event staged at home) and government surplus (linked to national implicit benefits in the form of promotional advertising cost savings). The opportunity costs of diverting resources to this particular televised event are expressly included as an offset to these gross surplus benefits. Despite the conservative approach, the results show moderate social justification for public support of this high profile televised spectacle and suggest that a cost-benefit approach to cultural events can have wider applications.

Do High Technology Agglomerations Encourage Urban Sprawl?
D., Felsenstein. 2002. “Do High Technology Agglomerations Encourage Urban Sprawl?”. Annals of Regional Science 36 (4):663-682. Publisher's VersionAbstract

This paper looks at the impact of high technology employment concentrations on urban sprawl. A methodology for translating spatial employment patterns, into place of residence patterns, is presented. On this basis, the consumption of land at the urban fringe due to both residential and non-residential uses, is estimated. The method is tested empirically using data relating to the two main outer suburban agglomerations of high technology activity in the Chicago metropolitan area. Two counter-factual situations are simulated. The first relates to a spatial counter-factual whereby the high tech concentrations develop in the city of Chicago or within the inner suburbs. The second presents an industry counter-factual that estimates the land consumption impacts arising from the development of an alternative industrial concentration in the same location. The results of the actual and hypothetical cases are compared. They point to a considerable saving in acreage in all alternative scenarios. Some policy implications are highlighted.

Small-Scale Entrepreneurship and Access to Capital in Peripheral Locations: An Empirical Analysis
D., Felsenstein, and Fleischer A. 2002. “Small-Scale Entrepreneurship and Access to Capital in Peripheral Locations: An Empirical Analysis”. Growth and Change 33 (2):196-215. Publisher's VersionAbstract

This paper presents an analysis of a public assistance program for small–scale entrepreneurship in peripheral areas. Public assistance compensates for market inefficiencies where the decision rules of financial institutions discriminate against otherwise viable small firms in capital markets. Lending institutions perceive high risk in providing debt capital when little information is present. Using empirical data from Israel, the determinants of this risk are estimated and the role of location in creating this information asymmetry is stressed. These results empirically establish that (1) location matters in determining the risk profile of the firm, (2) locationally targeted programs can reduce the information asymmetries that make peripheral firms unattractive to lenders, and (3) these programs can also generate positive welfare effects. Finally, there is speculation on the potential role of ICT (information and communications technology) in increasing the visibility of small firms in remote locations and creating a more symmetrical flow of information.

2001
Analyzing Local Growth: Moving Beyond Income and Employment Counts
D., Felsenstein. 2001.“Analyzing Local Growth: Moving Beyond Income and Employment Counts”. Pp. 29-42 in Felsenstein D. and Taylor M. (2001) (eds), Promoting Local Growth: Process, Practices and Policy. Aldershot, UK: Ashgate. Publisher's Version
Gambling on the Border: Casinos, Tourism Development and the Prisoner’s Dilemma
D., Felsenstein, and Freeman D. 2001.“Gambling on the Border: Casinos, Tourism Development and the Prisoner’s Dilemma”. Pp. 95-113 in Krakover S. and Gradus Y. (eds.), Tourism in Frontier Areas. KY: Lexington. Publisher's Version
A ‘Job Chains’ Model for Assessing Employment Creation in Local Labor Markets
J., Persky, and Felsenstein D. 2001.“A ‘Job Chains’ Model for Assessing Employment Creation in Local Labor Markets”. Pp. 173-190 in Felsenstein D., McQuaid R., McCann P. and Shefer D. (2001) (eds), Public Investment and Regional Economic Development. Cheltenham, UK: Edward Elgar. Publisher's Version
National and Regional Economic Impacts of the Silicon Valley
D., Felsenstein. 2001.“National and Regional Economic Impacts of the Silicon Valley”. in idgoli H. (ed.) Encyclopedia of Information Systems. San Diego CA: Academic Press. Publisher's Version
Promoting Local Growth: Process, Practice and Policy
D., Felsenstein, and Taylor M. 2001.Promoting Local Growth: Process, Practice and Policy. Aldershot, UK: Ashgate. Publisher's VersionAbstract

As globalisation increases, much of the economic growth is found at local and regional levels. This monograph features a collection of papers by an international selection of writers which examine the factors promoting this sub-national economic growth. The collection focuses on the new industries that drive this growth, how policy is implemented to facilitate it, and the new forms of governance emerging as a means of regulating this economic activity. Issues considered include: the role of these new industries; income, employment, job creation and training; relationships between global and local forces; and the importance of sub-national governance

Public Investment and Regional Economic Development
D., Felsenstein, McQuaid R., McCann P., and Shefer D. 2001.Public Investment and Regional Economic Development. Cheltenham, UK: Edward Elgar. Publisher's VersionAbstract

The relationship between public investment and regional econimic development is of perennial interest. It is particularly topical now as issues of infrastructre and innovation are high on policy agendas in may countries. Public investment is often viewed as possible method for 'jump-starting' lagging regional economics and also as a requirement for the continued development of more prosperous regions. Public investment and Regional Economic Development provides systematic analysis of the complex relationship betweem public investment and regional economic development.
The authors offer new insights into the key issues of regional growth, and present a broad variety of perspectives ranging from transport and housing infrastructure through to human capital and innovation.

With contributions from leading regional scientists, and each themed section of the book prefaced with an editorial introduction to ensure coherence, this illumination book is sure to offer policymakers new research insights in key issues of regional growth. Academics and researchers of urban and regional planning, geography and economic development will also find the book of great interest.

Estimating the Impacts of Cross-Border Competition: The Case of Gambling in Israel and Egypt
D., Felsenstein, and Freeman D. 2001. “Estimating the Impacts of Cross-Border Competition: The Case of Gambling in Israel and Egypt”. Tourism Management 22 (5):511-521. Publisher's VersionAbstract

This paper presents an empirical estimation of crossborder competition in the casino gambling sector. Informed by the ‘prisoners dilemma’ hypothesis, the paper proceeds to examine various competitive situations likely to arise with the introduction of casino gambling at two tourist locations on opposite sides of the Israeli–Egyptian border. Numerical estimations of the outcomes of three different situations are presented and the impact analysis method is described. The results point to small positive impacts and the volatility of this form of tourism development. The implications of the results point to the limited role of casino gambling in tourism development and the weighty monetary impact of social costs.

2000
D., Felsenstein. 2000.“University-Related Science Parks - 'Seedbeds' or 'Enclaves' of Innovation?”. in Westhead P. and Wright M (eds.), Advances in Entrepreneurship. UK: Edward Elgar. Publisher's Version
The Economic Impacts of a Regional College: The Case of Maale Efraim
D., Freeman, Felsenstein D., and Fleischer A. 2000.“The Economic Impacts of a Regional College: The Case of Maale Efraim”. Pp. 307-325 in Eshel Y. (ed.) Studies of Judea and Samaria, vol. 9. Ariel, Israel: Research Authority, College of Judea and Samaria (Hebrew).
Capital Assistance for Small Firms: Some Implications for Regional Economic Welfare
D., Felsenstein, and Fleischer A. 2000. “Capital Assistance for Small Firms: Some Implications for Regional Economic Welfare”. Geographical Analysis 32 (1):36-49. Publisher's VersionAbstract

This paper analyzes the role of finance capital in regional economic development. A cost-benefit approach is invoked in order to estimate the welfare impacts of a regional loan and guarantee program for small firms in Israel. Program-created employment is treated as a benefit and an employment account that separates net from gross employment, is presented. An estimate of net wage benefits is then derived. This involves adjusting wages across different earnings classes in order to account for the variation in opportunity costs of labor at different levels. The estimation of costs includes the opportunity costs of capital, administration, default, and tax-raising costs. Results point to substantial regional welfare effects. We stress the need to account for changing regional economic structure in this kind of evaluation framework.

Support for Rural Tourism: Does it Make a Difference?
A., Fleischer, and Felsenstein D. 2000. “Support for Rural Tourism: Does it Make a Difference?”. Annals of Tourism Research 27 (4):1007-1024. Publisher's VersionAbstract

The promotion of small-scale tourism is intuitively perceived as a suitable form of economic development for rural areas. However, its impact is controversial and not always obvious. To examine these issues, this paper presents an empirical analysis of public support to small-scale tourism enterprises in rural areas in Israel. Using the tools of cost-effectiveness and cost–benefit analysis, public assistance for this type of activity is shown to be able to generate considerable returns. Methodological issues in this kind of analysis are also discussed and the policy implications arising with respect to the suitability of different forms of tourism activity in rural areas are presented.

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