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Transport Infrastructure, Agglomeration Economies, and Firm Birth: Empirical Evidence from Portugal

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  • Adelheid Holl

Abstract

This paper uses municipality-level data to study firm birth in Portugal from 1986 to 1997. This is a period of significant improvements to the Portuguese motorway network raising important questions as to its impact on the spatial pattern of firm birth. The paper focuses on the effect of such large-scale road investment together with the role played by agglomeration economies for firm birth in 13 industry sectors and 9 service sectors. Motorways increase the attractiveness of locations close to the new infrastructure for most sectors. However, marked differences among sectors exist in the way transport improvements affect geographical firm-birth concentration. The results also indicate that a more diversified local economic environment encourages firm birth, but little evidence is found for agglomeration benefits stemming from sectoral specialization at the local level. Copyright Blackwell Publishing, Inc. 2004

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 44 (2004)
Issue (Month): 4 ()
Pages: 693-712

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Handle: RePEc:bla:jregsc:v:44:y:2004:i:4:p:693-712

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Cited by:
  1. Ángel Alañón & Rafael Myro, . "Does neighboring "industrial atmosphere" matter in industrial location?. Empirical evidence from Spanish municipalities," Studies on the Spanish Economy 199, FEDEA.
  2. Strobl, Eric & Valfort, Marie-Anne, 2012. "The Effect of Weather-Induced Internal Migration on Local Labor Markets: Evidence from Uganda," IZA Discussion Papers 6923, Institute for the Study of Labor (IZA).
  3. Diego Puga, 2008. "Agglomeration and cross-border infrastructure," Working Papers 2008-06, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  4. Josep Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2006. "Industrial location at the intra-metropolitan level: The role of agglomeration economies," Working Papers 2006/5, Institut d'Economia de Barcelona (IEB).
  5. Miguel Angel García & Ivan Muñiz, 2005. "The spatial effect of intra-metropolitan agglomeration economies," Working Papers wpdea0513, Department of Applied Economics at Universitat Autonoma of Barcelona.
  6. Arauzo Carod, Josep Maria, 2011. "Location Determinants of New Firms: Does Skill Level of Human Capital Really Matter?," Working Papers 2072/152136, Universitat Rovira i Virgili, Department of Economics.
  7. Angel Alañón & Josep Maria Arauzo Carod, . "Accessibility and Industrial Location. Some Evidence from Spain," Studies on the Spanish Economy 214, FEDEA.
  8. Ángel Alañón Pardo, 2006. "Análisis espacial de la creación de establecimientos manufactureros en los municipios andaluces," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 2, pages 135-159.
  9. Arauzo Carod, Josep Maria, 2007. "Industrial location at a local level: some comments about the territorial level of the analysis," Working Papers 2072/4178, Universitat Rovira i Virgili, Department of Economics.
  10. Rui Baptista & Joana Mendonça, 2010. "Proximity to knowledge sources and the location of knowledge-based start-ups," The Annals of Regional Science, Springer, vol. 45(1), pages 5-29, August.
  11. Corentin Trevien & Thierry Mayer, 2013. "Urban Public Transportation and Firm Location Choice Evidence from the Regional Express Rail of Paris Metropolitan area," ERSA conference papers ersa13p566, European Regional Science Association.
  12. Josep-Maria Arauzo-Carod & Miguel Manjón-Antolín, 2012. "(Optimal) spatial aggregation in the determinants of industrial location," Small Business Economics, Springer, vol. 39(3), pages 645-658, October.
  13. Funderburg, Richard G. & Nixon, Hilary & Boarnet, Marlon G. & Ferguson, Gavin, 2010. "New highways and land use change: Results from a quasi-experimental research design," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(2), pages 76-98, February.
  14. Miguel C. Manjon-Antolin & Josep Maria Arauzo-Carod, 2006. "Locations and Relocations: Modelling, Determinants, and Interrelations," ERSA conference papers ersa06p33, European Regional Science Association.
  15. Luisa Alamá-Sabater & Andrés Artal-Tur & José Navarro-Azorín, 2011. "Industrial location, spatial discrete choice models and the need to account for neighbourhood effects," The Annals of Regional Science, Springer, vol. 47(2), pages 393-418, October.
  16. Grimaldi, Raffaele & Beria, Paolo, 2013. "Open issues in the practice of cost benefit analysis of transport projects," MPRA Paper 53766, University Library of Munich, Germany.
  17. Arauzo Carod, Josep Maria & Liviano, Daniel, 2007. "Agglomeration and location: a nonparametric approach," Working Papers 2072/4288, Universitat Rovira i Virgili, Department of Economics.

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