Testing geographic and economic distance of agglomeration economies
Purpose – The purpose of this paper is to test geographic and economic distance of industrial agglomeration. Design/methodology/approach – Based on a recent census database in China, we estimate the production function of Chinese firms, focusing on the impact of agglomeration economies. Findings – The estimation results provide strong evidence that agglomeration effects decline with increasing geographic and economic distance. Originality/value – Previous studies examine agglomeration effects at certain geographic and industrial level, but largely ignore that agglomeration benefit may be different at different levels of geography and industry. This paper contributes to the literature by examining the geographic and economic distance of agglomeration economies, and shows a clear pattern on geographic and industrial scope of agglomeration economies.
Volume (Year): 4 (2011)
Issue (Month): 1 (February)
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- Shihe Fu, 2005.
"Smart Cafe Cities: Testing Human Capital Externalities in the Boston Metropolitan Area,"
05-24, Center for Economic Studies, U.S. Census Bureau.
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- Shihe Fu, 2005. "Smart Café Cities: Testing Human Capital Externalities in the Boston Metropolitan Area," Boston College Working Papers in Economics 609, Boston College Department of Economics.
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