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Clusters, Agglomeration, and Economic Development Potential: Empirical Evidence Based on the Advent of Slab Casting by U.S. Steel Minimills

Author

Listed:
  • Frank Giarratani

    (University of Pittsburgh)

  • Gene Gruver

    (University of Pittsburgh)

  • Randall Jackson

    (West Virginia University)

Abstract

Ten new steel plants were constructed in the United States from 1989 to 2001, each taking advantage of new steel slab casting technologies that gave scrap-based minimills access to the flat-products market. This market had been served previously exclusively by ore-based integrated mills. Some of the new minimills were built in established steel industry agglomerations. Others were built in greenfield locations with little or no prior steelmaking activity. This research, based on direct observation and plant visits, brings new evidence to bear on the nature and importance of agglomeration economies associated with steel production by analyzing industry clusters related to the advent of slab casting by steel minimills. The authors find that industry clusters can play an important role in the process of market entry; however, certain product and firm characteristics can shape the nature of industry agglomerations and their effect on firms and regions.

Suggested Citation

  • Frank Giarratani & Gene Gruver & Randall Jackson, 2007. "Clusters, Agglomeration, and Economic Development Potential: Empirical Evidence Based on the Advent of Slab Casting by U.S. Steel Minimills," Economic Development Quarterly, , vol. 21(2), pages 148-164, May.
    • Handle: RePEc:sae:ecdequ:v:21:y:2007:i:2:p:148-164
    DOI: 10.1177/0891242406298833
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    References listed on IDEAS

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    Cited by:

    1. John Feddersen, 2012. "Why we can't confirm the pollution haven hypothesis: A model of carbon leakage with agglomeration," Economics Series Working Papers 613, University of Oxford, Department of Economics.
    2. Peter B. Doeringer & Pacey Foster & Stephan Manning & David Terkla, 2013. "Project-based industries and craft-like production: structure, location and performance," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 4, pages 99-151, Edward Elgar Publishing.
    3. Scott Duke Kominers, 2008. "Response to May 2007 Article by Frank Giarratani, Gene Gruver, and Randall Jackson on Industry Agglomeration," Economic Development Quarterly, , vol. 22(3), pages 264-266, August.
    4. Allan Collard-Wexler & Jan De Loecker, 2015. "Reallocation and Technology: Evidence from the US Steel Industry," American Economic Review, American Economic Association, vol. 105(1), pages 131-171, January.
    5. William Lazonick, 2010. "The Chandlerian corporation and the theory of innovative enterprise," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(2), pages 317-349, April.
    6. Lazonick, William, 2012. "Financialization of the U.S. corporation: what has been lost, and how it can be regained," MPRA Paper 42307, University Library of Munich, Germany, revised 29 Oct 2012.
    7. repec:pri:cepsud:230deloecker is not listed on IDEAS
    8. Carey Durkin Treado & Frank Giarratani, 2008. "Intermediate Steel-Industry Suppliers in the Pittsburgh Region: A Cluster-Based Analysis of Regional Economic Resilience," Economic Development Quarterly, , vol. 22(1), pages 63-75, February.
    9. Allan Collard-Wexler & Jan De Loecker, 2015. "Reallocation and Technology: Evidence from the US Steel Industry," American Economic Review, American Economic Association, vol. 105(1), pages 131-171, January.

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