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Geographic Concentration and Increasing Returns

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  • Paolo Surico

Abstract

. Economic activities are highly clustered. Why is geographic concentration becoming a predominant feature of industrialized economies? On the basis of the empirical models developed by the new theories of international trade, our answer is that increasing returns are the driving force of economic geography in the US as well as in Europe. In so doing, we review several econometric methods proposed in the literature to separate and to test alternative theoretical paradigms.

Suggested Citation

  • Paolo Surico, 2003. "Geographic Concentration and Increasing Returns," Journal of Economic Surveys, Wiley Blackwell, vol. 17(5), pages 693-708, December.
    • Handle: RePEc:bla:jecsur:v:17:y:2003:i:5:p:693-708
    DOI: 10.1046/j.1467-6419.2003.00210.x
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    Cited by:

    1. José Jorge & Joana Rocha, 2018. "Agglomeration and Industry Spillover Effects in the Aftermath of a Credit Shock," GEE Papers 0115, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2018.
    2. Paolo Surico, 2003. "The Agglomeration Dilemma: “Should I Stay or Should I Go?”," Growth and Change, Wiley Blackwell, vol. 34(3), pages 261-275, August.
    3. José Jorge & Joana Rocha, 2018. "Agglomeration and Industry Spillover Effects in the Aftermath of a Credit Shock," CEF.UP Working Papers 1801, Universidade do Porto, Faculdade de Economia do Porto.
    4. Andrés Rodríguez-Pose & Tobias Ketterer, 2015. "Do we follow the money? The drivers of migration across regions in the EU," REGION, European Regional Science Association, vol. 2, pages 27-45.
    5. Mr. Etienne B Yehoue, 2005. "Clusters As a Driving Engine for FDI," IMF Working Papers 2005/193, International Monetary Fund.
    6. Yehoue, Etienne B., 2009. "Clusters as a driving engine for FDI," Economic Modelling, Elsevier, vol. 26(5), pages 934-945, September.

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