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Agglomeration economies in the finnish manufacturing sector

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Author Info
Kirsi Mukkala
Abstract

Regional concentration of population and economic activity is a common phenomenon both in Finland and the other most developed countries, which refers to the existence of agglomeration economies. Two types of economies are usually recognized to be important: specialization (Marshall externalities) and diversity (Jacobs externalities) economies. The former refer to the geographical concentration of a specific industry and the latter to the industrial diversity of the local system. This study examines the relationship between agglomeration economies and regional productivity in the manufacturing sector in Finland. A distinction is made between the effects of urbanization and localization economies. The production function method is applied to the manufacturing sub-sectors in the 83 NUTS 4-level regions in 1995 and 1999. The results support the regional specialization more than diversification even if some differences can be seen between the manufacturing sub-sectors.

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 21 (December)
Pages: 2419-2427
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2419-2427

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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. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March. [Downloadable!] (restricted)
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  2. Selting, Anne & Allanach, Christopher & Loveridge, Scott, 1994. "The Role Of Agglomeration Economies In Firm Location: A Review Of The Literature," Staff Papers 13321, University of Minnesota, Department of Applied Economics. [Downloadable!]
  3. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
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    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January. [Downloadable!] (restricted)
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  5. 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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  6. McCoskey, Suzanne & Kao, Chihwa, 1999. " Testing the Stability of a Production Function with Urbanization as a Shift Factor," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 671-90, Special I. [Downloadable!] (restricted)
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  1. Petri Böckerman & Mika Maliranta, 2006. "The Micro-level Dynamics of Regional Productivity Growth: The Source of Divergence in Finland Revised," Discussion Papers 1038, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Matthee, Marianne & Naude, Wim, 2007. "Export Diversity and Regional Growth: Empirical Evidence from South Africa," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Jesús López-Rodríguez & Andrés Faíña & Antonio García-Lorenzo, 2007. "The Geographic Concentration of Population and Income in Europe: Results for the Period 1984-1999," Economics Bulletin, Economics Bulletin, vol. 18(7), pages 1-7. [Downloadable!]
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