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External economies as a mechanism of agglomeration in EU manufacturing

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  • Nuria Domeque Claver

    (Structure and Economic History and Public Economy - University of Zaragoza - Universidad de Zaragoza [Zaragoza])

  • Carmen Fillat Castejón

    (Structure and Economic History and Public Economy - University of Zaragoza - Universidad de Zaragoza [Zaragoza])

  • Fernando Sanz Gracia

    (Economic Analysis - University of Zaragoza - Universidad de Zaragoza [Zaragoza])

Abstract

Productive externalities are significant determinants of agglomeration, not deeply studied at the industry and international level. We analyse the impact on productivity growth of technological externalities, both inter- and intraindustry, national or international, at the industry level for the European Union (EU) countries and the period 1995-2002. The results confirm the advisability of considering international externalities when countries are takes as regions, whose omission underestimates national spillovers. Together with national endowments and a central geographical position, the growth of productivity is encouraged by national and international specialization as a general result; moreover, it is fuelled by stronger interindustry spillovers and productive diversification, a result more evident for high technology industries, while lower technology industries are more sensitive to the omission of international externalities. Economic integration seems to be relevant, because supranational regions with less friction for goods and factor movements are more likely to take advantage of external economies as a mechanism of productivity growth and agglomeration.

Suggested Citation

  • Nuria Domeque Claver & Carmen Fillat Castejón & Fernando Sanz Gracia, 2011. "External economies as a mechanism of agglomeration in EU manufacturing," Post-Print hal-00719068, HAL.
  • Handle: RePEc:hal:journl:hal-00719068
    DOI: 10.1080/00036846.2011.589824
    Note: View the original document on HAL open archive server: https://hal.science/hal-00719068
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    2. Giuseppe Medda & Claudio Piga, 2014. "Technological spillovers and productivity in Italian manufacturing firms," Journal of Productivity Analysis, Springer, vol. 41(3), pages 419-434, June.
    3. Wahyu Widodo & Ruhul Salim & Harry Bloch, 2015. "The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia," Applied Economics, Taylor & Francis Journals, vol. 47(31), pages 3258-3275, July.

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