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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.

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  • 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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    Cited by:

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    2. Fanchao Kong & Hongkai Zhang & Xiangyan Meng & Shuai Li & Jia Liu, 2022. "Can the Policy of National Urban Agglomeration Improve Economic and Environmental Gains? Evidence from Quasi-Natural Experiments with 280 Cities in China," IJERPH, MDPI, vol. 19(13), pages 1-18, June.
    3. Iraj Hashi & Nebojša Stojčić, 2013. "Knowledge Spillovers, Innovation Activities, And Competitiveness Of Industries In Eu Member And Candidate Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(198), pages 7-34, July - Se.
    4. Zhang, Gongyi & Zhao, Shukuan & Xi, Yujuan & Liu, Na & Xu, Xiaobo, 2018. "Relating science and technology resources integration and polarization effect to innovation ability in emerging economies: An empirical study of Chinese enterprises," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 188-198.
    5. 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.
    6. Kotorri Mrika & Krasniqi Besnik A., 2018. "Managerial Characteristics and Export Performance – Empirical Evidence from Kosovo," South East European Journal of Economics and Business, Sciendo, vol. 13(2), pages 32-48, December.
    7. 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 and Business, vol. 32(2), pages 193-212.
    8. Hammed Amusa & Njeri Wabiri & David Fadiran, 2019. "Agglomeration and productivity in South Africa: Evidence from firm-level data," WIDER Working Paper Series wp-2019-93, World Institute for Development Economic Research (UNU-WIDER).
    9. Kurt A. Hafner, 2008. "Cluster formation and the role of politics - how German enterprises assess industry clusters," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(11), pages 37-40, June.

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    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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