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Agglomeration Externalities and Localized Employment Growth

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  • Friso de Vor

    ()
    (VU University Amsterdam)

  • Henri L.F. de Groot

    ()
    (VU University Amsterdam)

Abstract

This paper addresses the question to what extent the performance of industrial sites is affected by their local economic structure and accessibility. For this aim, we test for the existence of statistically significant relationships between agglomeration externalities (specialization, diversity, and competition), accessibilty measures and the employment growth of a particular industry on a particular site. We use data on employment growth of site-industries on 68 formal industrial sites in the municipality of Amsterdam between 1998 and 2006. We show that at the site-industry level, specialization hampers growth. Furthermore, we find that industrial sites that are easily accessible from the highway grow relatively fast, as well as sites located in the Amsterdam harbour area.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-033/3.

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Date of creation: 27 Mar 2008
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Handle: RePEc:dgr:uvatin:20080033

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Keywords: industrial sites; agglomeration externalities; employment growth; spatial heterogeneity; accessibility;

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References

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  1. Burger, M.J. & van Oort, F.G. & van der Knaap, G.A., 2008. "A Treatise on the Geographical Scale of Agglomeration Externalities and the Modifiable Areal Unit Problem," ERIM Report Series Research in Management, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasm ERS-2008-076-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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  5. De Dominicis, Laura & Florax, Raymond J.G.M. & Groot, Henri L.F. de, 2007. "De ruimtelijke verdeling van economische activiteit: Agglomeratie- en locatiepatronen in Nederland," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0018, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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  11. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  12. Holmes, Thomas J. & Stevens, John J., 2004. "Spatial distribution of economic activities in North America," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 63, pages 2797-2843 Elsevier.
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Cited by:
  1. Richard Harris & Victoria Kravtsova, 2009. "In search of 'W'," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33208, London School of Economics and Political Science, LSE Library.

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