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On the scope of agglomeration economies: Evidence from Catalan zip codes

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Author Info
Jordi Jofre Monseny () (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))
Abstract

This paper aims at studying the scope of agglomerations economies empirically. In particular, two issues are explored. First, the industrial scope of agglomeration economies is analysed, by comparing the effects arising from co-localization of same industry firms (localization economies) to the benefits derived from large and diversified economic environments (urbanization/Jacobs diversity effects). Second, the geographic scope of these external effects is studied. These issues are addressed by studying the effects of local industrial characteristics on the one number of births of new establishments in the subsequent period. A theoretical framework is used to interpret regression results in terms of scale effects (productivity shifters). Econometric estimations are carried out, separately, for seven industries for Catalonia, which is a Spanish region, using 1997-2000 data. Evidence of localization, urbanization and diversity effects has been found. Agglomeration economies seem to work at a very local level.

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Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2005/4.

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Length: 39 pages
Date of creation: 2005
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Handle: RePEc:ieb:wpaper:269261art106

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Related research
Keywords: Agglomeration economies; Firm creation; Poisson regression;

Find related papers by JEL classification:
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
R30 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - General

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  1. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 56, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
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  2. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May. [Downloadable!] (restricted)
  3. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
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    • 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. [Downloadable!] (restricted)
  4. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August. [Downloadable!] (restricted)
  5. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October. [Downloadable!] (restricted)
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  6. Elisabet Viladecans-Marsal, 2004. "Agglomeration economies and industrial location: city-level evidence," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 565-582, November. [Downloadable!] (restricted)
  7. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117 Elsevier. [Downloadable!] (restricted)
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