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Evolving agglomeration in the U.S. auto supplier industry

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Author Info
Thomas H. Klier
Daniel McMillen

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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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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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!]
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  2. Gilles Duranton & Henry G Overman, 2006. "Exploring the Detailed Location Patterns of UK Manufacturing Industries using Microgeographic Data," Working Papers tecipa-248, University of Toronto, Department of Economics. [Downloadable!]
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  3. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September. [Downloadable!] (restricted)
  4. 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.
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  5. Duranton, Gilles & Henry G Overman, 2003. "Testing for Localisation Using Micro-Geographic Data," Royal Economic Society Annual Conference 2003 69, Royal Economic Society. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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). [Downloadable!]
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  2. 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. [Downloadable!]
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