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Urban Agglomeration Economies in the U.S. Greenhouse and Nursery Production

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  • Cheng, Mei-luan
  • Gomez, Miguel I.
  • Bills, Nelson L.
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    Abstract

    Greenhouse/nursery production in the U.S. has been highly concentrated in metropolitan areas. This paper examines the emergent, complex relationship between urban agglomeration and greenhouse/nursery production in the Northeast, Southeast and Pacific regions of the U.S. We use spatial econometric models to examine the effect of urbanization, spatial concentrations of firms, and firm-internal factors on greenhouse/nursery production levels. The analysis distinguishes the attributes of agglomeration forces stemming from urbanization economies and localization economies. Results suggest that the greenhouse/nursery sector may benefit from clustering among firms within the same sector. Also, greenhouse/nursery production levels are positively associated with population growth and the direct market access to consumers. The economic vibrancy of greenhouse/nursery businesses in densely populated areas would depend upon the capacity to adjust to increased land competition in metropolitan areas, while exploiting marketing opportunities offered by proximity to urban consumers.

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    Bibliographic Info

    Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 126611.

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    Date of creation: 2011
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    Handle: RePEc:ags:cudawp:126611

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    Related research

    Keywords: Greenhouse/nursery; agglomeration economies; urbanization; land competition; Agribusiness; Community/Rural/Urban Development; Production Economics; R11; Q10; C21;

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