Spatial Localization in Manufacturing: A Cross-Country Analysis
Abstract
This paper employs a homogenous firms database to investigate industry localization in European countries. More specifically, we compare, across industries and countries, the predictions of two of the most popular localization indices, i.e., the Ellison and Glaeser (1997) index and the Duranton and Overman (2005) index. We find that, independently from the index used, localization is a pervasive phenomenon in all countries studied, but the degree of localization is very uneven across industries in each country. Furthermore, we find that the two indices significantly diverge in predicting the intensity of the forces generating localization within each industry. Finally, we perform a cross-sectoral analysis of localized industries. We show that, in all countries, localized sectors are mainly ``traditional'' sectors (like jewelery, wine, and textiles) and sectors where scale economies are important. However, once one controls for countries' industrial structures science-based sectors turn out to be the most localized ones.(This abstract was borrowed from another version of this item.)
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Paper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2009-07.Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:fce:doctra:0907
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Keywords:Other versions of this item:
- Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2009. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Papers in Evolutionary Economic Geography (PEEG) 0906, Utrecht University, Section of Economic Geography, revised Jun 2009.
- Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2009. "Spatial Localization in Manufacturing: A Cross-Country Analysis," LEM Papers Series 2009/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-GEO-2009-09-26 (Economic Geography)
- NEP-URE-2009-09-26 (Urban & Real Estate Economics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Tobias Scholl & Thomas Brenner, 2012. "Detecting Spatial Clustering Using a Firm-Level Cluster Index," Working Papers on Innovation and Space 2012-02, Philipps University Marburg, Department of Geography.
- Tobias Scholl & Thomas Brenner, 2011. "Testing for Clustering of Industries - Evidence from micro geographic data," Working Papers on Innovation and Space 2011-02, Philipps University Marburg, Department of Geography.
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