Vertical disintegration in Marshallian industrial districts
AbstractThis paper uses a novel approach and detailed plant-level Portuguese data to reexamine the Marshallian hypothesis that specialization and the vertical disintegration of firms should be greater in areas where an industry concentrates. Our measure of firm specialization and vertical disintegration employs a Herfindhal index constructed with occupational shares for all workers within the firm. Controlling for firm size and sector of activity, we find that vertical disintegration is higher in areas where industries agglomerate. Sensitivity tests reveal that this positive relation is remarkably robust across different specifications.
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Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 40 (2010)
Issue (Month): 1 (January)
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Vertical disintegration Agglomeration economies Industrial districts;
Other versions of this item:
- Octávio Figueiredo & Paulo Guimarães & Douglas Woodward, 2008. "Vertical Disintegration in Marshallian Industrial Districts," FEP Working Papers 280, Universidade do Porto, Faculdade de Economia do Porto.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Other
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
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