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Evolving Agglomeration In The U.S. Auto Supplier Industry

  • Thomas Klier
  • Daniel P. McMillen

Using nonparametric descriptive tools developed by Duranton and Overman (2005, "Review of Economic Studies", 72, 1077-1106), we show that both new and old auto supplier plants are highly concentrated in the eastern United States. Conditional logit models imply that much of this concentration can be explained parametrically by distance from Detroit, proximity to assembly plants, and access to the interstate highway system. New plants are more likely to be located in zip codes that are close to existing supplier plants. However, the degree of clustering observed is still greater than implied by the logit estimates. Copyright Blackwell Publishing, Inc. 2008

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Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 48 (2008)
Issue (Month): 1 ()
Pages: 245-267

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Handle: RePEc:bla:jregsc:v:48:y:2008:i:1:p:245-267
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  1. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
  2. Thomas H. Klier & Daniel McMillen, 2006. "The geographic evolution of the U.S. auto industry (pt. 1)," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 2-6.
  3. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
  4. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September.
  5. Duranton, Gilles & Overman, Henry G, 2006. "Exploring the Detailed Location Patters of UK Manufacturing Industries using Microgeographic Data," CEPR Discussion Papers 5858, C.E.P.R. Discussion Papers.
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