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Agglomeration economies and clustering -- evidence from German and European firms

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  • Kurt A. Hafner

Abstract

This article empirically analyses the impact of agglomeration economies on the clustering of German and European firms using partial proportional-odds models. Firms are grouped according to industry and divided into departments. At the industry level, I find evidence for inter-industry economies derived from the New Economic Geography (NEG) framework for European firms in general and German knowledge-intensive firms in particular. At the department level, Marshallian Externalities such as the hiring of skilled labour and technological spillover, and therefore intra-industry economies , are empirically confirmed for European and German departments like Human Resources and R&D but rarely for others.

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File URL: http://hdl.handle.net/10.1080/00036846.2012.690850
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Bibliographic Info

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

Volume (Year): 45 (2013)
Issue (Month): 20 (July)
Pages: 2938-2953

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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2938-2953

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  1. Venables, Anthony J., 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
  2. Fujita, Masahisa & Mori, Tomoya, 2005. "Frontiers of the New Economic Geography," IDE Discussion Papers 27, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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  4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  5. Edward L. Glaeser & Giacomo A.M. Ponzetto, 2007. "Did the Death of Distance Hurt Detroit and Help New York?," NBER Working Papers 13710, National Bureau of Economic Research, Inc.
  6. Fujita, Masahisa, 1988. "A monopolistic competition model of spatial agglomeration : Differentiated product approach," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 87-124, February.
  7. Fujita, Masahisa & Mori, Tomoya, 1996. "The role of ports in the making of major cities: Self-agglomeration and hub-effect," Journal of Development Economics, Elsevier, vol. 49(1), pages 93-120, April.
  8. Randall W. Eberts & Daniel P. McMillen, 1999. "Agglomeration Economies and Urban Public Infrastructure," Book chapters authored by Upjohn Institute researchers, in: Paul Cheshire & Edwin S. Mills (ed.), handbook or Regional and Urban Economics, volume 3, pages 1455-1495 W.E. Upjohn Institute for Employment Research.
  9. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  10. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  11. Masahisa Fujita & Paul Krugman, 2003. "The new economic geography: Past, present and the future," Economics of Governance, Springer, vol. 83(1), pages 139-164, October.
  12. Spence, Michael, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Wiley Blackwell, vol. 43(2), pages 217-35, June.
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Cited by:
  1. Kurt A. Hafner, 2008. "Clusterbildung und die Rolle der Politik – wie beurteilen deutsche Unternehmen Firmencluster," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 61(11), pages 37-40, 06.
  2. Nebojsa Stojcic & Iraj Hashi & Shqiponja Telhaj, 2011. "Innovation Activities and Competitiveness: Empirical Evidence on the Behaviour of Firms in the New EU Member States and Candidate Countries," CASE Network Studies and Analyses 424, CASE-Center for Social and Economic Research.

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