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Information, agglomeration, and the headquarters of U.S. exporters

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  • Lovely, Mary E.
  • Rosenthal, Stuart S.
  • Sharma, Shalini

Abstract

Although longstanding arguments suggest that the need to acquire information contributes to spatial concentration of employment, few studies have provided evidence on this point. This paper addresses this issue by examining the spatial concentration of headquarter activity of exporters. Exporting requires specialized knowledge of foreign markets and should, therefore, contribute to spatial concentration. We test this idea by applying differencing methods to 4-digit industry-level data for the fourth quarter of 2000. Results suggest that when foreign market information is difficult to obtain, exporter headquarter activity is more agglomerated. Results also indicate that the sensitivity of agglomeration to foreign trading environments depends on the underlying characteristics that define countries as “difficult”.
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  • Lovely, Mary E. & Rosenthal, Stuart S. & Sharma, Shalini, 2005. "Information, agglomeration, and the headquarters of U.S. exporters," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 167-191, March.
  • Handle: RePEc:eee:regeco:v:35:y:2005:i:2:p:167-191
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    References listed on IDEAS

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    Cited by:

    1. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
    2. Koenig, Pamina, 2009. "Agglomeration and the export decisions of French firms," Journal of Urban Economics, Elsevier, pages 186-195.
    3. Strauss-Kahn, Vanessa & Vives, Xavier, 2009. "Why and where do headquarters move?," Regional Science and Urban Economics, Elsevier, pages 168-186.
    4. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA 2012-11, Groupe de Recherche en Economie Théorique et Appliquée.
    5. Davis, James C. & Henderson, J. Vernon, 2008. "The agglomeration of headquarters," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 445-460, September.
    6. Henderson, J. Vernon & Ono, Yukako, 2008. "Where do manufacturing firms locate their headquarters?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 431-450, March.
    7. Franz-Josef Bade & Eckhardt Bode & Eleonora Cutrini, 2015. "Spatial fragmentation of industries by functions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 215-250, January.
    8. Fu, Shihe & Hong, Junjie, 2008. "Information and communication technologies and geographic concentration of manufacturing industries: evidence from China," MPRA Paper 7446, University Library of Munich, Germany.
    9. Alexander Cordes, 2012. "What Drives Skill-biased Regional Employment Growth in West Germany?," Chapters,in: Foundations of the Knowledge Economy, chapter 11 Edward Elgar Publishing.
    10. Békés, Gábor & Harasztosi, Péter, 2013. "Agglomeration premium and trading activity of firms," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 51-64.
    11. Cuadros, Ana & Martín-Montaner, Joan & Paniagua, Jordi, 2016. "Homeward bound FDI: Are migrants a bridge over troubled finance?," Economic Modelling, Elsevier, vol. 58(C), pages 454-465.
    12. Richard Florida & Charlotta Mellander & Thomas Holgersson, 2015. "Up in the air: the role of airports for regional economic development," The Annals of Regional Science, Springer;Western Regional Science Association, pages 197-214.
    13. Péter Harasztosi, 2016. "Export spillovers in Hungary," Empirical Economics, Springer, vol. 50(3), pages 801-830, May.
    14. Kuznetsova Maria, 2016. "Spatial structure and economic network formation of manufacturing exports in Russia," EERC Working Paper Series 16/08e, EERC Research Network, Russia and CIS.
    15. Johannes Voget, 2010. "Headquarter Relocations and International Taxation," Working Papers 1008, Oxford University Centre for Business Taxation.
    16. Blonigen, Bruce A. & Cristea, Anca D., 2015. "Air service and urban growth: Evidence from a quasi-natural policy experiment," Journal of Urban Economics, Elsevier, vol. 86(C), pages 128-146.
    17. Andrew Cassey & Katherine Schmeiser, 2013. "The agglomeration of exporters by destination," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 495-513, October.
    18. Andrew J. Cassey & Katherine N. Schmeiser & Andreas Waldkirch, 2016. "Exporting Spatial Externalities," Open Economies Review, Springer, vol. 27(4), pages 697-720, September.

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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration

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