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Agglomeration and location: a nonparametric approach

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  • Arauzo Carod, Josep Maria
  • Liviano, Daniel

Abstract

The aim of this article is to assess the effects of several territorial characteristics, specifically agglomeration economies, on industrial location processes in the Spanish region of Catalonia. Theoretically, the level of agglomeration causes economies which favour the location of new establishments, but an excessive level of agglomeration might cause diseconomies, since congestion effects arise. The empirical evidence on this matter is inconclusive, probably because the models used so far are not suitable enough. We use a more flexible semiparametric specification, which allows us to study the nonlinear relationship between the different types of agglomeration levels and location processes. Our main statistical source is the REIC (Catalan Manufacturing Establishments Register), which has plant-level microdata on location of new industrial establishments. Keywords: agglomeration economies, industrial location, Generalized Additive Models, nonparametric estimation, count data models.

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File URL: http://hdl.handle.net/2072/4288
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Bibliographic Info

Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/4288.

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Date of creation: 2007
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Handle: RePEc:urv:wpaper:2072/4288

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Web page: http://www.urv.cat
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Related research

Keywords: Localització industrial; Agglomeration economies; Industrial location; Generalized Additive Models; Nonparametric estimation; Count data models;

References

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Cited by:
  1. Roberto Basile & Luigi Benfratello & Davide Castellani, 2010. "Location Determinants of Greenfield Foreign Investments in the Enlarged Europe: Evidence from a Spatial Autoregressive Negative Binomial Additive Model," Working papers 10, Former Department of Economics and Public Finance "G. Prato", University of Torino.
  2. Roberto Basile & Luigi Benfratello & Davide Castellani, 2011. "Spatial clustering and nonlinearities in the location of multinational firms," Quaderni del Dipartimento di Economia, Finanza e Statistica 90/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.

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