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Knowledge Externalities, Agglomeration Economies, and Employment Growth in Dutch Cities

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  • Soest, D.P. van
  • Gerking, S.D.
  • Oort, F.G. van

    (Tilburg University, Center for Economic Research)

Abstract

This paper extends the work of Glaeser et al.(1992) by looking at effects of agglomeration economies on employment growth in Dutch city-industries and in very small (postal) zip code-industries in the Dutch province of South-Holland. At both levels of geographic detail, findings are broadly consistent with results from the earlier study in that employment growth is enhanced by industrial diversity and local competition, but retarded by industrial specialization.Also, a novel feature of the analysis presented here is that we examine the extent to which agglomeration economies in one location affect employment growth in other locations.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2002-41.

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Date of creation: 2002
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Handle: RePEc:dgr:kubcen:200241

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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. J. Vernon Henderson, 1994. "Externalities and Industrial Development," NBER Working Papers 4730, National Bureau of Economic Research, Inc.
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  18. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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