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Agglomeration economies and clustering -- evidence from German and European firms

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  • Kurt A. Hafner

Abstract

This article empirically analyses the impact of agglomeration economies on the clustering of German and European firms using partial proportional-odds models. Firms are grouped according to industry and divided into departments. At the industry level, I find evidence for inter-industry economies derived from the New Economic Geography (NEG) framework for European firms in general and German knowledge-intensive firms in particular. At the department level, Marshallian Externalities such as the hiring of skilled labour and technological spillover, and therefore intra-industry economies , are empirically confirmed for European and German departments like Human Resources and R&D but rarely for others.

Suggested Citation

  • Kurt A. Hafner, 2013. "Agglomeration economies and clustering -- evidence from German and European firms," Applied Economics, Taylor & Francis Journals, vol. 45(20), pages 2938-2953, July.
  • Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2938-2953
    DOI: 10.1080/00036846.2012.690850
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    References listed on IDEAS

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    Cited by:

    1. Christian Schröder, 2014. "Dynamics in ICT cooperation networks in selected German ICT clusters," International Economics and Economic Policy, Springer, vol. 11(1), pages 197-230, February.
    2. Iraj Hashi & Nebojša Stojčić, 2013. "Knowledge Spillovers, Innovation Activities, And Competitiveness Of Industries In Eu Member And Candidate Countries," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(198), pages 7-34, July - Se.
    3. Nebojsa Stojcic & Iraj Hashi & Shqiponja Telhaj, 2011. "Innovation Activities and Competitiveness: Empirical Evidence on the Behaviour of Firms in the New EU Member States and Candidate Countries," CASE Network Studies and Analyses 424, CASE-Center for Social and Economic Research.
    4. Nebojsa Stojcic & Djuro Benic & Petra Karanikic, 2014. "Regional determinants of export competitiveness in Croatian manufacturing industry," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 32(2), pages 193-212.
    5. Kurt A. Hafner, 2008. "Clusterbildung und die Rolle der Politik - wie beurteilen deutsche Unternehmen Firmencluster," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(11), pages 37-40, June.

    More about this item

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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