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Industry Characteristics Linked to Establishment Concentrations in Nonmetropolitan Areas

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  • Yunsoo Kim
  • David L. Barkley
  • Mark S. Henry

Abstract

In this paper we investigate industry characteristics associated with the clustering of establishments in three‐digit SIC manufacturing industries in nonmetropolitan areas. The dispersion parameter k of the negative binomial distribution is selected as the measure of industry spatial concentration. Associations between industry characteristics and spatial concentration are investigated using OLS regression analysis. Our findings indicate that the spatial clustering of establishments is positively related to industry average establishment size, reliance on natural resource inputs, labor intensity, cost shares of professional and technical employees, and cost shares of low‐skilled workers. Agglomeration is negatively related to multiplant structure, employment in precision production, and reliance on local product and input markets.

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  • Yunsoo Kim & David L. Barkley & Mark S. Henry, 2000. "Industry Characteristics Linked to Establishment Concentrations in Nonmetropolitan Areas," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 234-259, May.
    • Handle: RePEc:bla:jregsc:v:40:y:2000:i:2:p:234-259
    DOI: 10.1111/0022-4146.00173
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