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The scope of agglomeration economies: Evidence from Catalonia

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  • Jordi Jofre-Monseny

Abstract

This paper is an empirical study of the geographic and industrial scope of agglomeration economies. We also explore if small establishments make better neighbours than their larger counterparts. We address these issues by studying the effects of local industrial characteristics on the location decisions of new establishments using the random profit maximization framework. We carry out separate econometric estimations for seven industries in Catalonia, a Spanish region, using data from 1995-2002. Agglomeration economies seem to work at a very local level. Evidence of localization, urbanization and diversity effects is found. There is no strong evidence that establishments prefer to be located near to small rather than large establishments. Copyright (c) 2009 the author(s). Journal compilation (c) 2009 RSAI.

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  • Jordi Jofre-Monseny, 2009. "The scope of agglomeration economies: Evidence from Catalonia," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 575-590, August.
  • Handle: RePEc:bla:presci:v:88:y:2009:i:3:p:575-590
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    Cited by:

    1. Vincent Dautel & Olivier Walther, 2014. "The geography of innovation in a small metropolitan region: An intra-regional approach in Luxembourg," Papers in Regional Science, Wiley Blackwell, vol. 93(4), pages 703-725, November.
    2. Josep-Maria Arauzo-Carod & Miguel Manjón-Antolín, 2012. "(Optimal) spatial aggregation in the determinants of industrial location," Small Business Economics, Springer, vol. 39(3), pages 645-658, October.
    3. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2014. "The Determinants Of Localization And Urbanization Economies: Evidence From The Location Of New Firms In Spain," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 313-337, March.
    4. Jordi Jofre-Monseny, 2010. "Is agglomeration taxable?," Working Papers 2010/15, Institut d'Economia de Barcelona (IEB).
    5. Jofre-Monseny, Jordi & Marín-López, Raquel & Viladecans-Marsal, Elisabet, 2011. "The mechanisms of agglomeration: Evidence from the effect of inter-industry relations on the location of new firms," Journal of Urban Economics, Elsevier, vol. 70(2), pages 61-74.
    6. Rosa Sanchis-Guarner, 2012. "Driving Up Wages: The Effects of Road Construction in Great Britain," SERC Discussion Papers 0120, Spatial Economics Research Centre, LSE.
    7. Koh, Hyun-Ju & Riedel, Nadine & Böhm, Tobias, 2013. "Do governments tax agglomeration rents?," Journal of Urban Economics, Elsevier, vol. 75(C), pages 92-106.
    8. Jordi Jofri-Monseny & Maria Sánchez-Vidal & Elisabet Viladecans-Marsal, 2015. "Big Plant Closures and Agglomeration Economies," SERC Discussion Papers 0179, Spatial Economics Research Centre, LSE.
    9. Jofre-Monseny, Jordi & Solé-Ollé, Albert, 2012. "Which communities should be afraid of mobility? The effects of agglomeration economies on the sensitivity of employment location to local taxes," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 257-268.
    10. repec:oup:jecgeo:v:18:y:2018:i:1:p:163-186. is not listed on IDEAS

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