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The mechanisms of agglomeration: Evidence from the effect of inter-industry relations on the location of new firms

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  • Jordi Jofre-Monseny

    ()
    (Universitat de Barcelona & IEB)

  • Raquel Marín-López

    ()
    (Universitat de Barcelona & IEB)

  • Elisabet Viladecans-Marsal

    ()
    (Universitat de Barcelona & IEB)

Abstract

The objective of this paper is to explore the relative importance of each of Marshall’s agglomeration mechanisms by examining the location of new manufacturing firms in Spain. In particular, we estimate the count of new firms by industry and location as a function of (pre-determined) local employment levels in industries that: 1) use similar workers (labor market pooling); 2) have a customer-supplier relationship (input sharing); and 3) use similar technologies (knowledge spillovers). We examine the variation in the creation of new firms across cities and across municipalities within large cities to shed light on the geographical scope of each of the three agglomeration mechanisms. We find evidence of all three agglomeration mechanisms, although their incidence differs depending on the geographical scale of the analysis.

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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2010/49.

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Length: 39 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:ieb:wpaper:2010/11/doc2010-49

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Keywords: Agglomeration economies; coagglomeration; labor market pooling; input sharing; knowledge spillovers;

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Citations

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Cited by:
  1. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers, Institut d'Economia de Barcelona (IEB) 2012/9, Institut d'Economia de Barcelona (IEB).
  2. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2014. "Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces," Small Business Economics, Springer, Springer, vol. 43(1), pages 213-228, June.
  3. Ghani, Ejaz & Kanbur, Ravi & O'Connell, Stephen D., 2014. "Urbanization and Agglomeration Benefits: Gender Differentiated Impacts on Enterprise Creation in India's Informal Sector," Working Papers, Cornell University, Department of Applied Economics and Management 180160, Cornell University, Department of Applied Economics and Management.
  4. Daniel J. Graham & David C. Maré, 2010. "Agglomeration Elasticities and Firm Heterogeneity," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0043, Spatial Economics Research Centre, LSE.
  5. Takatoshi Tabuchi & Jacques-Fran�ois Thisse & Xiwei Zhu, 2014. "Technological Progress and Economic Geography," CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo CIRJE-F-915, CIRJE, Faculty of Economics, University of Tokyo.
  6. Nadine Levratto & Denis Carré & Messaoud Zouikri, 2013. "Dynamique des territoires et création d’entreprises : une analyse des départements français en 2008. Local dynamics and firms creation: an analysis of French departments in 2008," EconomiX Working Papers 2013-18, University of Paris West - Nanterre la Défense, EconomiX.
  7. Nadine Levratto & Denis Carré & Messaoud Zouikri, 2013. "Dynamique des territoires et création d'entreprises : une analyse des départements français en 2008," Working Papers, HAL halshs-00840365, HAL.
  8. Augusto Cerqua & Guido Pellegrini, 2014. "Beyond the SUTVA: how policy evaluations change when we allow for interactions among firms," Working Papers, Sapienza University of Rome, DISS 2/14, Sapienza University of Rome, DISS.
  9. Mark J. Kutzbach, 2010. "Access to Workers or Employers? An Intra-Urban Analysis of Plant Location Decisions," Working Papers, Center for Economic Studies, U.S. Census Bureau 10-21r, Center for Economic Studies, U.S. Census Bureau, revised Sep 2012.
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  11. Todd M. Gabe & Jaison R. Abel, 2013. "Shared knowledge and the coagglomeration of occupations," Staff Reports, Federal Reserve Bank of New York 612, Federal Reserve Bank of New York.
  12. repec:wyi:journl:002193 is not listed on IDEAS
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  14. Giulia Faggio & Olmo Silva & William C. Strange, 2014. "Heterogeneous Agglomeration," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0152, Spatial Economics Research Centre, LSE.
  15. Gabriel, Stuart A. & Rosenthal, Stuart S., 2013. "Urbanization, agglomeration economies, and access to mortgage credit," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(1), pages 42-50.

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