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Evolving Agglomeration In The U.S. Auto Supplier Industry

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  • Thomas Klier
  • Daniel P. McMillen

Abstract

Using nonparametric descriptive tools developed by Duranton and Overman (2005, "Review of Economic Studies", 72, 1077-1106), we show that both new and old auto supplier plants are highly concentrated in the eastern United States. Conditional logit models imply that much of this concentration can be explained parametrically by distance from Detroit, proximity to assembly plants, and access to the interstate highway system. New plants are more likely to be located in zip codes that are close to existing supplier plants. However, the degree of clustering observed is still greater than implied by the logit estimates. Copyright Blackwell Publishing, Inc. 2008

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Bibliographic Info

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

Volume (Year): 48 (2008)
Issue (Month): 1 ()
Pages: 245-267

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Handle: RePEc:bla:jregsc:v:48:y:2008:i:1:p:245-267

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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References

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  1. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
  2. Gilles Duranton & Henry Overman, 2002. "Testing for Localisation Using Micro-Geographic Data," CEP Discussion Papers dp0540, Centre for Economic Performance, LSE.
  3. Gilles Duranton & Henry G Overman, 2006. "Exploring the Detailed Location Patterns of UK Manufacturing Industries using Microgeographic Data," Working Papers tecipa-248, University of Toronto, Department of Economics.
  4. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September.
  5. Thomas H. Klier & Daniel McMillen, 2006. "The geographic evolution of the U.S. auto industry (pt. 1)," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 2-6.
  6. Gilles Duranton & Henry G. Overman, 2006. "Exploring the detailed location patterns of UK manufacturing industries using microgeographic data," LSE Research Online Documents on Economics 19794, London School of Economics and Political Science, LSE Library.
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Citations

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Cited by:
  1. Tobias Scholl & Thomas Brenner & Martin Wendel, 2013. "Evolving localization patterns of company foundations Evidence from the German MST-industry," ERSA conference papers ersa13p85, European Regional Science Association.
  2. Tobias Scholl & Thomas Brenner, 2013. "Detecting Spatial Clustering Using a Firm-Level Index," Working Papers on Innovation and Space 2012-02, Philipps University Marburg, Department of Geography.
  3. Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2009. "Spatial Localization in Manufacturing: A Cross-Country Analysis," LEM Papers Series 2009/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  4. Arauzo Carod, Josep Maria & Manjón Antolín, Miguel C., 2009. "(Optimal) Spatial Aggregation in the Determinants of Industrial Location," Working Papers 2072/42866, Universitat Rovira i Virgili, Department of Economics.
  5. Eckhardt Bode & Peter Nunnenkamp & Andreas Waldkirch, 2009. "Spatial Effects of Foreign Direct Investment in US States," Kiel Working Papers 1535, Kiel Institute for the World Economy.
  6. Barlet, M. & Briant, A. & Crusson, L., 2013. "Location patterns of service industries in France: A distance-based approach," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 338-351.
  7. Billings, Stephen B. & Johnson, Erik B., 2012. "A non-parametric test for industrial specialization," Journal of Urban Economics, Elsevier, vol. 71(3), pages 312-331.
  8. Tobias Scholl & Thomas Brenner, 2011. "Testing for Clustering of Industries - Evidence from micro geographic data," Working Papers on Innovation and Space 2011-02, Philipps University Marburg, Department of Geography.
  9. Rickman, Dan S. & Guettabi, Mouhcine, 2013. "The Great Recession and Nonmetropolitan America," MPRA Paper 44829, University Library of Munich, Germany.
  10. Eckhardt Bode & Franz-Josef Bade Bade & Eleonora Cutrini Cutrini, 2011. "Domestic and International Offshoring of Tasks," ERSA conference papers ersa11p1840, European Regional Science Association.
  11. Klier, Thomas H. & McMillen, Dan, 2013. "Agglomeration in the European Automobile Supplier Industry," Working Paper Series WP-2013-15, Federal Reserve Bank of Chicago.
  12. Tobias Scholl & Thomas Brenner, 2013. "Optimizing Distance-Based Methods for Big Data Analysis," Working Papers on Innovation and Space 2013-09, Philipps University Marburg, Department of Geography.

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