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Cities and Clusters: Economy-Wide and Sector-Specific Effects in Corporate Location

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  • Bottazzi Giulio
  • Gragnolati Ugo M.

Abstract

Are the observed spatial distributions of firms decided mostly by market-mediated, economy-wide locational forces, or rather by non-pecuniary, sector-specific ones? This work finds that the latter kind of forces weight systematically more than the former in deciding firm location. The analysis uses Italian data on manufacturing sectors spatially disaggregated at the level of Local Labor Market Areas. Other than the results for the whole of Italy in 1991 and 2001, the paper also provides results for the four macroregions that compose the country.

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Bibliographic Info

Article provided by Società editrice il Mulino in its journal L'industria.

Volume (Year): (2011)
Issue (Month): 4 ()
Pages: 577-614

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Handle: RePEc:mul:j0hje1:doi:10.1430/35939:y:2011:i:4:p:577-614

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Related research

Keywords: Firm Location; Localization Economies; Urbanization Economies; Maximum Likelihood Estimates; L100; C310; R300.;

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Cited by:
  1. Giulio Bottazzi & Ugo Gragnolati & Fabio Vanni, 2014. "A numerical estimation method for discrete choice models with non-linear externalities," LEM Papers Series 2014/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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