Vertical Industry Linkages: Sources of Productivity Gains and Cumulative Causation?
AbstractIn this paper we analyse vertical industry linkages and the extent to which these work as channels for externalities. First, activity based externalities stemming from output growth and output level in vertically linked industries are tested for. Second, we aim at revealing the importance of a large home market for upstream industries. Eventually, by comparing results on localised inter-industry externalities as well as significance of local sales linkages, we try to identify to what extent the geographical agglomeration of an industry is self-reinforcing. A number of Norwegian maritime transport and services sectors are analysed. The results are promising in the sense that the model distinguishes empirically between different sources of externalities, and unveils which vertical linkages that give rise to endogenous agglomeration.
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Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 21 (2002)
Issue (Month): 1 (August)
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Web page: http://www.springerlink.com/link.asp?id=100336
External economies of scale; industrial agglomeration; productivity growth;
Other versions of this item:
- Knarvik, K.H.M. & Steen, F., 2000. "Vertical Industry Linkages: Sources of Productivity Gains and Cumulative Causation?," Papers 1/2000, Norwegian School of Economics and Business Administration-.
- Steen, Frode & Ulltveit-Moe, Karen-Helene, 2000. "Vertical Industry Linkages: Sources Of Productivity Gains And Cumulative Causation," CEPR Discussion Papers 2467, C.E.P.R. Discussion Papers.
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- L8 - Industrial Organization - - Industry Studies: Services
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
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