Close, but not the same: Locally headquartered organizations and agglomeration economies in a declining industry
Departing from research on expanding, high-technology industries, we study the impact of agglomeration in a declining, low-technology industry. The setting is U.S. footwear manufacturing between 1975 and 1991, when import competition rendered local support critical for survival. We examine how agglomeration-related survival benefits depended upon the presence of locally headquartered manufacturing plants and whether such benefits came at the expense of other local industries. Consistent with ecological arguments, plant failure rates were higher in agglomerations but this effect was attenuated and, in some cases, reversed in agglomerations with more locally headquartered plants. Moreover, only locally headquartered plants experienced such benefits; remotely headquartered plants failed at higher rates in agglomerations. Although more footwear manufacturing jobs were retained in agglomerations with many locally headquartered plants, such locales also exhibited lower manufacturing job growth in other industries. These findings lend greater generalizability to agglomeration theories and also imply trade-offs at the community level.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
- Stuart S. Rosenthal & William C. Strange, 2003.
"Geography, Industrial Organization, and Agglomeration,"
The Review of Economics and Statistics,
MIT Press, vol. 85(2), pages 377-393, May.
- Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 56, Center for Policy Research, Maxwell School, Syracuse University.
- Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 14, Center for Policy Research, Maxwell School, Syracuse University.
- Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992.
"Growth in Cities,"
Journal of Political Economy,
University of Chicago Press, vol. 100(6), pages 1126-52, December.
- Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
- Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
- Kelley, Maryellen R. & Harrison, Bennett, 1990. "The subcontracting behavior of single vs. multiplant enterprises in US manufacturing: Implications for economic development," World Development, Elsevier, vol. 18(9), pages 1273-1294, September.
- Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, W.E. Upjohn Institute for Employment Research, vol. 14(1), pages 15-34, February.
- Rotemberg, Julio J. & Saloner, Garth, 2000.
"Competition and human capital accumulation: a theory of interregional specialization and trade,"
Regional Science and Urban Economics,
Elsevier, vol. 30(4), pages 373-404, July.
- Julio J. Rotemberg & Garth Saloner, 1990. "Competition and Human Capital Accumulation: A Theory of Interregional Specialization and Trade," NBER Working Papers 3228, National Bureau of Economic Research, Inc.
- Dahl, Michael S. & Sorenson, Olav, 2010.
"The migration of technical workers,"
Journal of Urban Economics,
Elsevier, vol. 67(1), pages 33-45, January.
- Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September.
- Holger Görg & Frances Ruane, 2000. "An Analysis of Backward Linkages in the Irish Electronics Sector," The Economic and Social Review, Economic and Social Studies, vol. 31(3), pages 215-235.
- Catherine Beaudry & Stefano Breschi, 2003. "Are firms in clusters really more innovative?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(4), pages 325-342.
- Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
- Barak S. Aharonson & Joel A. C. Baum & Maryann P. Feldman, 2007. "Desperately seeking spillovers? Increasing returns, industrial organization and the location of new entrants in geographic and technological space ," Industrial and Corporate Change, Oxford University Press, vol. 16(1), pages 89-130, February.
- Aharonson, Barak S. & Baum, Joel A.C. & Plunket, Anne, 2008. "Inventive and uninventive clusters: The case of Canadian biotechnology," Research Policy, Elsevier, vol. 37(6-7), pages 1108-1131, July.
When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:39:y:2010:i:3:p:360-374. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.