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Sectoral and geographical specificities in the spatial structure of economic activities

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Author Info
Bottazzi, Giulio
Dosi, Giovanni
Fagiolo, Giorgio
Secchi, Angelo

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Abstract

This work explores the spatial distribution of productive activities in the Italian manufacturing industry. We propose an econometric model which tries to disentangle location-specific from sectoral drivers in the dynamic process of spatial agglomeration. The basic idea is that the former typically apply "horizontally" (i.e. across all industrial sectors), while the latter unfold in the form of non-decreasing dynamic returns to the current stock of installed business units. Three different specifications of the model are tested against Italian data on the location of manufacturing activities, studying the distribution of the number of firms and employees. Our results suggest that different locations exert different structural influences on the distribution of both variables. Moreover, a significant horizontal power of "urbanization", which makes some locations, especially metropolitan areas, more attractive irrespectively of the sector, does emerge. However, after controlling for the latter, one is still left with very significant sector-specific forms of dynamic increasing returns to agglomeration, which vary a lot across different manufacturing activities and which plausibly have to do with sectoral-specific and localized forms of knowledge accumulation and spin-offs.

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Publisher Info
Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 19 (2008)
Issue (Month): 3 (September)
Pages: 189-202
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Handle: RePEc:eee:streco:v:19:y:2008:i:3:p:189-202

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Web page: http://www.elsevier.com/locate/inca/525148

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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.:
  1. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September. [Downloadable!] (restricted)
  2. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909 Elsevier. [Downloadable!] (restricted)
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  3. Michael P. Devereux & Rachel Griffith & Helen Simpson, 2000. "The Geographic Distribution of Production Activity in the UK," Econometric Society World Congress 2000 Contributed Papers 1397, Econometric Society. [Downloadable!]
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  4. Kirman, Alan, 1993. "Ants, Rationality, and Recruitment," The Quarterly Journal of Economics, MIT Press, vol. 108(1), pages 137-56, February. [Downloadable!] (restricted)
  5. Dosi, Giovanni & Ermoliev, Yuri & Kaniovski, Yuri, 1994. "Generalized urn schemes and technological dynamics," Journal of Mathematical Economics, Elsevier, vol. 23(1), pages 1-19, January. [Downloadable!] (restricted)
  6. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May. [Downloadable!] (restricted)
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  7. Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2003. "Comparative Analysis of Firm Demographics and Survival: Micro-Level Evidence for the OECD Countries," OECD Economics Department Working Papers 348, OECD, Economics Department. [Downloadable!]
  8. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476.
  9. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  10. T. Brenner, 2003. "An Identification of Local Industrial Clusters in Germany," Papers on Economics and Evolution 2003-04, Max Planck Institute of Economics, Evolutionary Economics Group.
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(explanations, 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.)

  1. Giulio Bottazzi & Giovanni Dosi & Giorgio Fagiolo & Angelo Secchi, 2007. "Modeling Industrial Evolution in Geographical Space," LEM Papers Series 2007/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
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  2. Giulio Bottazzi & Pietro Dindo, 2008. "An evolutionary model of firms location with technological externalities," LEM Papers Series 2008/27, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  3. T. Brenner, 2006. "A Stochastic Theory of Geographic Concentration and the Empirical Evidence in Germany," Papers on Economics and Evolution 2005-23, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  4. Matteo Barigozzi & Lucia Alessi & Marco Capasso & Giorgio Fagiolo, 2008. "The Distribution of Consumption-Expenditure Budget Shares. Evidence from Italian Households," Papers on Economics and Evolution 2008-09, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
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  5. Thomas Brenner, 2006. "The Regional Industry-size Distribution - An Analysis of all Types of Industries in Germany," Papers on Economics and Evolution 2005-16, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
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