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Spatial Localization in Manufacturing: A Cross-Country Analysis

Author

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  • Stefania Vitali
  • Mauro Napoletano
  • Giorgio Fagiolo

Abstract

Vitali S., Napoletano M. and Fagiolo G. Spatial localization in manufacturing: a cross-country analysis, Regional Studies . This paper employs a homogeneous-firm database to investigate industry localization in European countries. More specifically, it compares, across industries and countries, the predictions of two of the most popular localization indexes, that is, the Ellison and Glaeser index of 1997 and the Duranton and Overman index of 2005. Independently from the index used, it is found that localization is a pervasive phenomenon in all countries studied; and the degree of localization is very unevenly distributed across industries in each country. Furthermore, it is shown that in all countries localized sectors are mainly 'traditional' sectors or, if one controls for country industrial structures, science-based sectors. Moreover, it is found that the two indexes significantly diverge in predicting the intensity of localization of the same industry both across and within countries. In turn, these differences point to the different role played by pecuniary versus non-pecuniary externalities in driving firms' location decisions.

Suggested Citation

  • Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2013. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1534-1554, October.
  • Handle: RePEc:taf:regstd:v:47:y:2013:i:9:p:1534-1554
    DOI: 10.1080/00343404.2011.625006
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    References listed on IDEAS

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    Cited by:

    1. Tobias Scholl & Thomas Brenner, 2013. "Detecting Spatial Clustering Using a Firm-Level Index," Working Papers on Innovation and Space 2012-02, Philipps University Marburg, Department of Geography.
    2. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, Elsevier.
    3. repec:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0820-y is not listed on IDEAS
    4. Steven Brakman & Harry Garretsen & Zhao Zhao, 2017. "Spatial concentration of manufacturing firms in China," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 179-205, March.
    5. Kofanov, D. & Mikhailova, T., 2015. "Geographical Concentration of Soviet Industries: A Comparative Analysis," Journal of the New Economic Association, New Economic Association, vol. 28(4), pages 112-141.
    6. Davidson Natalia & Kislyak Nadezhda & Vorobyev Pavel, 2010. "Spatial Ñoncentration and Firm Performance in Russia," EERC Working Paper Series 10/05e, EERC Research Network, Russia and CIS.
    7. Tobias Scholl & Thomas Brenner, 2015. "Optimizing distance-based methods for large data sets," Journal of Geographical Systems, Springer, vol. 17(4), pages 333-351, October.
    8. Tobias Scholl & Thomas Brenner, 2011. "Testing for Clustering of Industries - Evidence from micro geographic data," Working Papers on Innovation and Space 2011-02, Philipps University Marburg, Department of Geography.
    9. Tobias Scholl & Thomas Brenner, 2013. "Optimizing Distance-Based Methods for Big Data Analysis," Working Papers on Innovation and Space 2013-09, Philipps University Marburg, Department of Geography.
    10. Dauth, Wolfgang & Fuchs, Michaela & Otto, Anne, 2015. "Long-run processes of geographical concentration and dispersion : evidence from Germany," IAB Discussion Paper 201527, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. repec:bpj:jossai:v:2:y:2014:i:5:p:385-400:n:1 is not listed on IDEAS

    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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