In this paper we analyse vertical industry linkages and the extent to which these work as channels for externalities. First, activity based externalities stemming from output growth and output level in vertically linked industries are tested for. Second, we aim at revealing the importance of a large home market for upstream industries. Eventually, by comparing results on localised inter-industry externalities as well as significance of local sales linkages, we try to identify to what extent the geographical agglomeration of an industry is self-reinforcing. A number of Norwegian maritime transport and services sectors are analysed. The results are promising in the sense that the model distinguishes empirically between different sources of externalities, and unveils which vertical linkages that give rise to endogenous agglomeration.
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Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number
1/2000.
Length: 19 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:norgee:1/2000
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Find related papers by JEL classification: C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables L8 - Industrial Organization - - Industry Studies: Services O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity R1 - Urban, Rural, and Regional Economics - - General Regional Economics
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