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Agglomeration economies in the Netherlands

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  • Joeri Gorter
  • Suzanne Kok

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Abstract

In this paper we measure the strength of agglomeration economies on the basis of Dutch regional data. The drift to the city has been going on for hundreds of years. As a result, most economic activity is concentrated in small geographical areas. The advantages of proximity of people and firms go under the name 'agglomeration economies'. We regress regional labour productivity on a set of agglomeration indices, and find evidence for a productivity effect of concentration of production with a malus for industrial variety. Thus, the evidence supports Marschall-Arrow-Romer economies. The evidence does not support, however, Jacobs economies, nor variants of the Creative Class Hypothesis.

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Bibliographic Info

Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 124.

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Date of creation: Apr 2009
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Handle: RePEc:cpb:discus:124

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  2. 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.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  3. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Section of Economic Geography, revised Dec 2004.
  4. Frank van Oort, 2002. "Innovation and agglomeration economies in the Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 93(3), pages 344-360, 08.
  5. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
  6. Frank G. van Oort & Oedzge A. L. C. Atzema, 2004. "On the conceptualization of agglomeration economies: The case of new firm formation in the Dutch ICT sector," The Annals of Regional Science, Springer, vol. 38(2), pages 263-290, 06.
  7. Gerard Marlet & Clemens van Woerkens, 2004. "Skills and Creativity in a Cross-section of Dutch Cities," Working Papers 04-29, Utrecht School of Economics.
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Cited by:
  1. Stefan P.T. Groot & Henri L.F. de Groot & Martijn Smit, 2011. "Regional Wage Differences in the Netherlands: Micro-Evidence on Agglomeration Externalities," Tinbergen Institute Discussion Papers 11-050/3, Tinbergen Institute.

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