The Impact of Aging and Technological Relatedness on Agglomeration Externalities: A Survival Analysis
AbstractWe study localization, urbanization, and Jacobs' externality effects on plant survival inSweden (1970-2004). We focus on two questions: (1) do agglomeration externalities changewith the age of plants? (2) using new information about the relatedness among industries,what is the role of technological relatedness among local industries? We find thatagglomeration externalities affect survival chances of plants. This effect, however, differsbetween corporate and non-affiliated plants. Furthermore, we find that Jacobs' externalitiesbenefit only young plants, whereas urbanization externalities harm plants at all ages.Localization externalities are insignificant, while the presence of related industriessubstantially increases survival rates.
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Bibliographic InfoPaper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0036.
Date of creation: Nov 2009
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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp
Agglomeration Externalities; nursery cities; Cox Regression; Aalen; plant survival; Sweden;
Other versions of this item:
- Frank M.H. Neffke & Martin Henning & Ron Boschma, 2012. "The impact of aging and technological relatedness on agglomeration externalities: a survival analysis," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 485-517, March.
- Ron Boschma & Martin Henning & Frank Neffke, 2009. "The impact of aging and technological relatedness on agglomeration externalities: a survival analysis," LSE Research Online Documents on Economics 33498, London School of Economics and Political Science, LSE Library.
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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