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Evolving agglomeration in the U.S. auto supplier industry

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  • Thomas H. Klier
  • Daniel McMillen

Abstract

Using nonparametric descriptive tools developed by Duranton and Overman (2005), we show that both new and old auto supplier plants are highly concentrated in the eastern United States. Conditional logit models imply that much of this concentration can be explained parametrically by distance from Detroit, proximity to assembly plants, and access to the interstate highway system. New plants are more likely to be located in zip codes that are close to existing supplier plants. However, the degree of clustering observed is still greater than implied by the logit estimates.

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Bibliographic Info

Paper provided by Federal Reserve Bank of Chicago in its series Working Paper Series with number WP-06-20.

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Date of creation: 2006
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Handle: RePEc:fip:fedhwp:wp-06-20

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Keywords: Automobile supplies industry;

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References

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  1. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
  2. Duranton, Gilles & Overman, Henry G., 2006. "Exploring the Detailed Location Patters of UK Manufacturing Industries using Microgeographic Data," CEPR Discussion Papers 5858, C.E.P.R. Discussion Papers.
  3. Gilles Duranton & Henry Overman, 2002. "Testing for Localisation Using Micro-Geographic Data," CEP Discussion Papers dp0540, Centre for Economic Performance, LSE.
  4. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September.
  5. Thomas H. Klier & Daniel McMillen, 2006. "The geographic evolution of the U.S. auto industry (pt. 1)," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 2-6.
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Cited by:
  1. Oliver Falck & Michael Fritsch & Stephan Heblich, 2014. "Is industry location persistent over time? Evidence from coagglomeration patterns between new and incumbent firms in Germany," Jahrbuch für Regionalwissenschaft, Springer, vol. 34(1), pages 1-21, February.
  2. Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2009. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Documents de Travail de l'OFCE 2009-07, Observatoire Francais des Conjonctures Economiques (OFCE).
  3. Arauzo Carod, Josep Maria & Manjón Antolín, Miguel C., 2009. "(Optimal) Spatial Aggregation in the Determinants of Industrial Location," Working Papers 2072/42866, Universitat Rovira i Virgili, Department of Economics.
  4. Rickman, Dan S. & Guettabi, Mouhcine, 2013. "The Great Recession and Nonmetropolitan America," MPRA Paper 44829, University Library of Munich, Germany.
  5. Tobias Scholl & Thomas Brenner, 2013. "Optimizing Distance-Based Methods for Big Data Analysis," Working Papers on Innovation and Space 2013-09, Philipps University Marburg, Department of Geography.
  6. Eckhardt Bode & Peter Nunnenkamp & Andreas Waldkirch, 2009. "Spatial Effects of Foreign Direct Investment in US States," Kiel Working Papers 1535, Kiel Institute for the World Economy.
  7. Vincent FRIGANT & Martin ZUMPE, 2014. "Are automotive Global Production Networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," Cahiers du GREThA 2014-09, Groupe de Recherche en Economie Théorique et Appliquée.
  8. Tobias Scholl & Thomas Brenner & Martin Wendel, 2012. "Evolving localization patterns of company foundations - Evidence from the German MST-industry," Working Papers on Innovation and Space 2012-05, Philipps University Marburg, Department of Geography.
  9. Eckhardt Bode & Franz-Josef Bade Bade & Eleonora Cutrini Cutrini, 2011. "Domestic and International Offshoring of Tasks," ERSA conference papers ersa11p1840, European Regional Science Association.
  10. Barlet, M. & Briant, A. & Crusson, L., 2013. "Location patterns of service industries in France: A distance-based approach," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 338-351.
  11. 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.
  12. Stephen Billings & Erik Johnson, 2012. "Localization and Co-Localization within an Urban Area," ERSA conference papers ersa12p569, European Regional Science Association.
  13. Billings, Stephen B. & Johnson, Erik B., 2012. "A non-parametric test for industrial specialization," Journal of Urban Economics, Elsevier, vol. 71(3), pages 312-331.
  14. Tobias Scholl & Thomas Brenner, 2013. "Detecting Spatial Clustering Using a Firm-Level Index," Working Papers on Innovation and Space 2012-02, Philipps University Marburg, Department of Geography.
  15. Klier, Thomas H. & McMillen, Dan, 2013. "Agglomeration in the European Automobile Supplier Industry," Working Paper Series WP-2013-15, Federal Reserve Bank of Chicago.
  16. Steve Gibbons & Henry G. Overman & Eleonora Patacchini, 2014. "Spatial Methods," SERC Discussion Papers 0162, Spatial Economics Research Centre, LSE.

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