Geographic concentration and establishment scale: can panel data tell us more ?
AbstractIn a recent study, Holmes and Stevens (2002) identify for the first time a positive relationship that exists between establishment scale and local industry concentration using a large cross-sectional plant level data set for the US. Using an exhaustive plant level panel data set for Irish manufacturing covering nearly three decades, we are able to extend their analysis in two ways. Firstly, we show that failing to control for fixed effects biases the relationship upward, although the essence of it still remains. Secondly, the link is substantially weaker when plants locate for the first time in anarea, but strengthens with age for those that survive in the long run. We link our results to recent contributions on the dynamics of geographic concentration.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2003036.
Date of creation: 00 May 2003
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agglomeration; plant size; Ireland;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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