Spatial agglomeration and product market competition
AbstractThis paper tests the hypothesis that product market competition has a negative impact on spatial agglomeration. This hypothesis emerges as an interpetation of the models by Combes and Duranton (2001) and Alsleben (2005) which are about firms' location choice in the presence of knowledge spillovers. Using data for German manufacturing industries, the result is that, while controlling for other agglomeration forces, higher industrial concentration, measured by the Herfindahl index of concentration of sales, implies stronger spatial agglomeration, as measured by Ellison and Glaeser's (1997) index of concentration.
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Bibliographic InfoPaper provided by University of Dortmund, Department of Economics in its series Discussion Papers in Economics with number 05_04.
Length: 16 pages
Date of creation: Mar 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-17 (All new papers)
- NEP-COM-2006-06-17 (Industrial Competition)
- NEP-GEO-2006-06-17 (Economic Geography)
- NEP-URE-2006-06-17 (Urban & Real Estate Economics)
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