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Do agglomeration economies decay over short distances? Are they stable in the face of shocks? Evidence from Manhattan

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  • Matthew P. Drennan

Abstract

This paper analyzes agglomeration economies of four producer service industries in Manhattan applying panel regression to a sample of zip codes and years. Agglomeration economies accrue to producer services in Manhattan, and they decay with distance from their core. Applying the same analysis to three goods production and distribution industries in Manhattan, none show evidence that inferred agglomeration economies decay with distance. Did the shock of 9/11, destabilize the intense concentration of producer service establishments in Manhattan? No. However, the natural experiment of forced relocation shows a strong preference for midtown Manhattan locations over downtown Manhattan locations.

Suggested Citation

  • Matthew P. Drennan, 2018. "Do agglomeration economies decay over short distances? Are they stable in the face of shocks? Evidence from Manhattan," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 22(1), pages 1-16, January.
    • Handle: RePEc:taf:rjusxx:v:22:y:2018:i:1:p:1-16
    DOI: 10.1080/12265934.2017.1407253
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    Cited by:

    1. Yun-Myong Yi & Tae-Hyoung Tommy Gim, 2018. "What Makes an Old Market Sustainable? An Empirical Analysis on the Economic and Leisure Performances of Traditional Retail Markets in Seoul," Sustainability, MDPI, vol. 10(6), pages 1-22, May.
    2. Li Fang, 2020. "Agglomeration and innovation: Selection or true effect?," Environment and Planning A, , vol. 52(2), pages 423-448, March.
    3. Yang, Rui & Che, Tong & Lai, Fujun, 2021. "The Impacts of production linkages on cross-regional collaborative innovations: The role of inter-regional network capitalāœ°," Technological Forecasting and Social Change, Elsevier, vol. 170(C).

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