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How important is geography for agglomeration?

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  • Roos, Michael

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Abstract

The economic geography literature distinguishes between two types of reasons for economic agglomeration. Regional concentration of economic activity can be attributed to 'first nature' meaning geographic advantages and disadvantages given by nature or to 'second nature' meaning agglomeration economies by the interaction of economic agents. Several recent studies tried to estimate the relative importance of the two types of explanation. Most of these studies seem to exaggerate the importance of natural advantages because of loose definitions of geography. We describe geography by a small set of non-economic variables and estimate their importance for agglomeration in Germany. We find that about one third of the agglomeration of economic activity can be attributed to geography.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p517.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p517

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  1. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, American Economic Association, vol. 85(3), pages 615-23, June.
  3. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1862, Harvard - Institute of Economic Research.
  4. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262561476, December.
  5. Alberto F. Ades & Edward L. Glaeser, 1994. "Trade and Circuses: Explaining Urban Giants," NBER Working Papers 4715, National Bureau of Economic Research, Inc.
  6. Paul R. Krugman, 1991. "First Nature, Second Nature, and Metropolitan Location," NBER Working Papers 3740, National Bureau of Economic Research, Inc.
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Cited by:
  1. Anna Agliari & Pasquale Commendatore & Ilaria Foroni & Ingrid Kubin, 2011. "Border Collision Bifurcations in a Footloose Capital Model with First Nature Firms," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 38(3), pages 349-366, October.
  2. Efthymia Kyriakopoulou & Anastasios Xepapadeas, . "Environmental Policy and the Collapse of the Monocentric City," DEOS Working Papers, Athens University of Economics and Business 1021, Athens University of Economics and Business.
  3. Wahl, Fabian, 2013. "Does medieval trade still matter? Historical trade centers, agglomeration and contemporary economic development," FZID Discussion Papers, University of Hohenheim, Center for Research on Innovation and Services (FZID) 82-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  4. Christ, Julian P., 2010. "Geographic concentration and spatial inequality: Two decades of EPO patenting at the level of European micro regions," Violette Reihe Arbeitspapiere, Promotionsschwerpunkt "Globalisierung und Beschaeftigung" 32/2010, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".

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