Advanced Search
MyIDEAS: Login to save this article or follow this journal

The mechanisms of agglomeration: Evidence from the effect of inter-industry relations on the location of new firms

Contents:

Author Info

  • Jofre-Monseny, Jordi
  • Marín-López, Raquel
  • Viladecans-Marsal, Elisabet

Abstract

The objective of this paper is to explore the relative importance of each of Marshall's agglomeration mechanisms by examining the location of new manufacturing firms in Spain. In particular, we estimate the count of new firms by industry and location as a function of (pre-determined) local employment levels in industries that: (1) use similar workers (labor market pooling); (2) have a customer-supplier relationship (input sharing); and (3) use similar technologies (knowledge spillovers). We examine the variation in the creation of new firms across cities and across municipalities within large cities to shed light on the geographical scope of each of the three agglomeration mechanisms. We find evidence of all three agglomeration mechanisms, although their incidence differs depending on the geographical scale of the analysis.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0094119011000325
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 70 (2011)
Issue (Month): 2-3 (September)
Pages: 61-74

as in new window
Handle: RePEc:eee:juecon:v:70:y:2011:i:2-3:p:61-74

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622905

Related research

Keywords: Agglomeration economies Co-agglomeration Labor market pooling Input sharing Knowledge spillovers;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Firms in the European Union," Sciences Po publications, Sciences Po info:hdl:2441/10192, Sciences Po.
  2. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
  3. Thomas J. Holmes, 1999. "Localization Of Industry And Vertical Disintegration," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 81(2), pages 314-325, May.
  4. Ajay Agrawal & Iain Cockburn & Carlos Rosell, 2010. "Not Invented Here? Innovation in Company Towns," NBER Chapters, National Bureau of Economic Research, Inc, in: Cities and Entrepreneurship National Bureau of Economic Research, Inc.
  5. Guy Dumais & Glenn Ellison & Edward Glaeser, 1997. "Geographic Concentration as a Dynamic Process," NBER Working Papers 6270, National Bureau of Economic Research, Inc.
  6. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117 Elsevier.
  7. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1862, Harvard - Institute of Economic Research.
  8. Dora L. Costa & Matthew E. Kahn, 1999. "Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990," NBER Working Papers 7109, National Bureau of Economic Research, Inc.
  9. Edward Glaeser & William Kerr, 2008. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Working Papers, Center for Economic Studies, U.S. Census Bureau 08-37, Center for Economic Studies, U.S. Census Bureau.
  10. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, McMaster University Archive for the History of Economic Thought, number marshall1890.
  11. William R. Kerr & Scott Duke Kominers, 2010. "Agglomerative Forces and Cluster Shapes," Harvard Business School Working Papers, Harvard Business School 11-061, Harvard Business School, revised Nov 2012.
  12. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 50(1), pages 203-219.
  13. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, Elsevier, vol. 64(2), pages 373-389, September.
  14. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," Harvard Business School Working Papers, Harvard Business School 07-064, Harvard Business School.
  15. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," NBER Working Papers 14806, National Bureau of Economic Research, Inc.
  16. Mark Doms & Ethan Lewis & Alicia Robb, 2010. "Local Labor Force Education, New Business Characteristics, and Firm Performance," NBER Chapters, National Bureau of Economic Research, Inc, in: Cities and Entrepreneurship National Bureau of Economic Research, Inc.
  17. Jordi Jofre-Monseny, 2009. "The scope of agglomeration economies: Evidence from Catalonia," Papers in Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 88(3), pages 575-590, 08.
  18. Josep-Maria Arauzo-Carod & Daniel Liviano-Solis & Miguel Manjón-Antolín, 2010. "Empirical Studies In Industrial Location: An Assessment Of Their Methods And Results," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 50(3), pages 685-711.
  19. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 65(3), pages 440-49, August.
  20. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, Elsevier, vol. 50(2), pages 191-229, September.
  21. Paulo Guimaraes & Octavio Figueiredo & Douglas Woodward, 2000. "A tractable approach to the firm location decision problem," NIMA Working Papers, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho 2, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  22. Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers, Center for Policy Research, Maxwell School, Syracuse University 14, Center for Policy Research, Maxwell School, Syracuse University.
  23. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 3(1), pages 14-22, January.
  24. Stuart S. Rosenthal & William C. Strange, 2010. "Small Establishments/Big Effects: Agglomeration, Industrial Organization and Entrepreneurship," NBER Chapters, National Bureau of Economic Research, Inc, in: Agglomeration Economics, pages 277-302 National Bureau of Economic Research, Inc.
  25. Elisabet Viladecans-Marsal, 2004. "Agglomeration economies and industrial location: city-level evidence," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 4(5), pages 565-582, November.
  26. Andersson, Fredrik & Burgess, Simon & Lane, Julia I., 2007. "Cities, matching and the productivity gains of agglomeration," Journal of Urban Economics, Elsevier, Elsevier, vol. 61(1), pages 112-128, January.
  27. Rafael Boix & Vittorio Galleto, 2005. "Sistemas Locales de Trabajo y Distritos Industriales Marshallianos en España," Working Papers, Department of Applied Economics at Universitat Autonoma of Barcelona wpdea0514, Department of Applied Economics at Universitat Autonoma of Barcelona.
  28. Frederic Scherer, 1984. "Using Linked Patent and R&D Data to Measure InterindustryTechnology Flows," NBER Chapters, National Bureau of Economic Research, Inc, in: R & D, Patents, and Productivity, pages 417-464 National Bureau of Economic Research, Inc.
  29. Randy Becker & Vernon Henderson, 2000. "Effects of Air Quality Regulations on Polluting Industries," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(2), pages 379-421, April.
  30. Bartelsman, Eric J & Caballero, Ricardo J & Lyons, Richard K, 1994. "Customer- and Supplier-Driven Externalities," American Economic Review, American Economic Association, American Economic Association, vol. 84(4), pages 1075-84, September.
  31. Li, Ben & Lu, Yi, 2009. "Geographic concentration and vertical disintegration: Evidence from China," Journal of Urban Economics, Elsevier, Elsevier, vol. 65(3), pages 294-304, May.
  32. Agrawal, Ajay & Kapur, Devesh & McHale, John, 2008. "How do spatial and social proximity influence knowledge flows? Evidence from patent data," Journal of Urban Economics, Elsevier, Elsevier, vol. 64(2), pages 258-269, September.
  33. Crepon, Bruno & Duguet, Emmanuel, 1997. "Estimating the Innovation Function from Patent Numbers: GMM on Count Panel Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 12(3), pages 243-63, May-June.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Gabriel, Stuart A. & Rosenthal, Stuart S., 2013. "Urbanization, agglomeration economies, and access to mortgage credit," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(1), pages 42-50.
  2. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2014. "Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces," Small Business Economics, Springer, Springer, vol. 43(1), pages 213-228, June.
  3. Nadine Levratto & Denis Carré & Messaoud Zouikri, 2013. "Dynamique des territoires et création d’entreprises : une analyse des départements français en 2008. Local dynamics and firms creation: an analysis of French departments in 2008," EconomiX Working Papers, University of Paris West - Nanterre la Défense, EconomiX 2013-18, University of Paris West - Nanterre la Défense, EconomiX.
  4. Daniel J. Graham & David C. Maré, 2010. "Agglomeration Elasticities and Firm Heterogeneity," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0043, Spatial Economics Research Centre, LSE.
  5. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2012-08, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2012.
  6. repec:wyi:journl:002193 is not listed on IDEAS
  7. Takatoshi Tabuchi & Jacques-Fran�ois Thisse & Xiwei Zhu, 2014. "Technological Progress and Economic Geography," CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo CIRJE-F-915, CIRJE, Faculty of Economics, University of Tokyo.
  8. Peng, Ling & Hong, Yongmiao, 2013. "Productivity spillovers among linked sectors," China Economic Review, Elsevier, Elsevier, vol. 25(C), pages 44-61.
  9. Todd M. Gabe & Jaison R. Abel, 2013. "Shared knowledge and the coagglomeration of occupations," Staff Reports, Federal Reserve Bank of New York 612, Federal Reserve Bank of New York.
  10. Giulia Faggio & Olmo Silva & William C. Strange, 2014. "Heterogeneous Agglomeration," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0152, Spatial Economics Research Centre, LSE.
  11. Ghani, Ejaz & Kanbur, Ravi & O'Connell, Stephen D., 2013. "Urbanization and agglomeration benefits : gender differentiated impacts on enterprise creation in India's informal sector," Policy Research Working Paper Series, The World Bank 6553, The World Bank.
  12. Augusto Cerqua & Guido Pellegrini, 2014. "Beyond the SUTVA: how policy evaluations change when we allow for interactions among firms," Working Papers, Sapienza University of Rome, DISS 2/14, Sapienza University of Rome, DISS.
  13. Mark J. Kutzbach, 2010. "Access to Workers or Employers? An Intra-Urban Analysis of Plant Location Decisions," Working Papers, Center for Economic Studies, U.S. Census Bureau 10-21r, Center for Economic Studies, U.S. Census Bureau, revised Sep 2012.
  14. Rosa Sanchis-Guarner, 2012. "Driving Up Wages: The Effects of Road Construction in Great Britain," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0120, Spatial Economics Research Centre, LSE.
  15. Nadine Levratto & Denis Carré & Messaoud Zouikri, 2013. "Dynamique des territoires et création d'entreprises : une analyse des départements français en 2008," Working Papers, HAL halshs-00840365, HAL.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:70:y:2011:i:2-3:p:61-74. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.