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Self‐reinforcing Agglomerations? An Empirical Industry Study

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  • Karen Helene Midelfart Knarvik
  • Frode Steen

Abstract

We test for the existence of endogenous agglomeration forces, using structural econometric models. After showing generally how to establish the existence of agglomeration forces empirically, we undertake an industry study of the maritime industry in Norway. The results suggest that there are significant economies of scale in the maritime industry. These economies of scale are mainly found in sub‐groups of a set of nine maritime industries. This indicates that the maritime industry consists of two self‐reinforcing agglomerations, but that there are few mechanisms actually keeping the two together. JEL classification: C33; D24; O47; R11; R12

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  • Karen Helene Midelfart Knarvik & Frode Steen, 1999. "Self‐reinforcing Agglomerations? An Empirical Industry Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 515-532, December.
    • Handle: RePEc:bla:scandj:v:101:y:1999:i:4:p:515-532
    DOI: 10.1111/1467-9442.00171
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    Cited by:

    1. Yang, Dong & Li, Chengkun & Li, Lu & Lai, Kee-hung & Lun, Venus Y.H., 2022. "Maritime cluster relatedness and policy implications," Transport Policy, Elsevier, vol. 128(C), pages 76-88.
    2. Frode Steen, 2002. "Vertical Industry Linkages: Sources of Productivity Gains and Cumulative Causation?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 21(1), pages 3-20, August.
    3. Helena Marques, 2008. "Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 364-408, April.
    4. Patrice Pieretti & Arnaud Bourgain, 2006. "Measuring Agglomeration Forces in a Financial Center," Economics Bulletin, AccessEcon, vol. 18(3), pages 1-9.

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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