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Geographical Agglomeration in Australian Manufacturing

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Author Info

  • Anne Leahy

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Alfons Palangkaraya

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Jongsay Yong

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper investigates the geographic agglomeration of establishments in the Australian manufacturing industries during the period of 1994{1997. We find that although the agglomeration of Australian manufacturing has doubled during the period, it is still not as agglomerated as those in other developed economies such as the United States, the United Kingdom, France and Ireland. We also find that industries which receive higher assistance tend to be more agglomerated. However, there is no statistically significant evidence that the extent of the reduction in assistance due to trade liberalisation between 1994 and 1997 was associated with a further decrease in agglomeration. In terms of establishment dynamics, we ¯nd a significant increase in agglomeration but no evidence that establishment entry-exit patterns are correlated with agglomeration.

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2007n11.

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Length: 25 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:iae:iaewps:wp2007n11

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Keywords: Agglomeration; Australian Manufacturing; Industry assistance; Trade liberalisation; Entry and exit.;

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References

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  1. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
  2. Guy Dumais & Glenn Ellison & Edward Glaeser, 1997. "Geographic Concentration as a Dynamic Process," NBER Working Papers 6270, National Bureau of Economic Research, Inc.
  3. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September.
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  5. Wacziarg, Romain & Wallack, Jessica Seddon, 2004. "Trade liberalization and intersectoral labor movements," Journal of International Economics, Elsevier, vol. 64(2), pages 411-439, December.
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  8. Barrios, Salvador & Bertinelli, Luisito & Strobl, Eric & Teixeira, Antonio Carlos, 2004. "The dynamics of Agglomeration: Evidence from Ireland and Portugal," MPRA Paper 5706, University Library of Munich, Germany.
  9. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
  10. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  11. Gordon H. Hanson, 1998. "North American Economic Integration and Industry Location," NBER Working Papers 6587, National Bureau of Economic Research, Inc.
  12. Olga Alonso-Villar & José-María Chamorro-Rivas & Xulia González-Cerdeira, 2001. "Agglomeration economies in manufacturing industries: the case of Spain," Working Papers 0202, Universidade de Vigo, Departamento de Economía Aplicada.
  13. Bhattacharya, Mita & Bloch, Harry, 2000. "The dynamics of industrial concentration in Australian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1181-1199, December.
  14. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  15. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," Harvard Institute of Economic Research Working Papers 1862, Harvard - Institute of Economic Research.
  16. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
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Cited by:
  1. Anne Otto & Michaela Fuchs & Wolfgang Dauth, 2011. "Long-term processes of regional concentration and dispersion - fuzzy evidence for Western Germany," ERSA conference papers ersa10p537, European Regional Science Association.

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