Industry-specific firm growth and aggolmeration
AbstractThis paper studies the industry-specific relationship between industrial clustering and firm growth. Micro-geographically defined agglomeration measures, free of the modifiable areal unit problem (MAUP), are used to study 23 industries. The spatial impacts of agglomeration of related economic and knowledge generating activities are examined by using travel time distances, a flexible log-logistic decay function framework and quantile regression techniques. We find that firmsâ€™ growth prospects tend to be hampered by the agglomeration of own-industry employment, but improved by proximate scientific activity. Results depend on the kind and age of industry. Furthermore, the optimal decay functions that measure agglomeration effects considerably vary both between the industries and variables. Three illustrative cases of industries are discussed in more details.
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Bibliographic InfoPaper provided by Philipps University Marburg, Department of Geography in its series Working Papers on Innovation and Space with number 2012-06.
Length: 31 pages
Date of creation: 19 Dec 2012
Date of revision:
Firm growth; industrial clusters; agglomeration; MAUP; distance decay function; quantile regression;
Other versions of this item:
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-CSE-2013-01-07 (Economics of Strategic Management)
- NEP-URE-2013-01-07 (Urban & Real Estate Economics)
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