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Information, agglomeration, and the headquarters of U.S. Exporters

In: International Economic Integration and Domestic Performance

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  • Mary E. Lovely
  • Stuart S. Rosenthal
  • Shalini Sharma

Abstract

Although longstanding arguments suggest that the need to acquire information contributes to spatial concentration of employment, few studies have provided evidence on this point. This paper addresses this issue by examining the spatial concentration of headquarter activity of exporters. Exporting requires specialized knowledge of foreign markets and should, therefore, contribute to spatial concentration. We test this idea by applying differencing methods to 4-digit industry-level data for the fourth quarter of 2000. Results suggest that when foreign market information is difficult to obtain, exporter headquarter activity is more agglomerated. Results also indicate that the sensitivity of agglomeration to foreign trading environments depends on the underlying characteristics that define countries as “difficult”.

Suggested Citation

  • Mary E. Lovely & Stuart S. Rosenthal & Shalini Sharma, 2017. "Information, agglomeration, and the headquarters of U.S. Exporters," World Scientific Book Chapters,in: International Economic Integration and Domestic Performance, chapter 6, pages 93-117 World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789813141094_0006
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    Cited by:

    1. repec:eee:juecon:v:110:y:2019:i:c:p:89-101 is not listed on IDEAS
    2. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
    3. Koenig, Pamina, 2009. "Agglomeration and the export decisions of French firms," Journal of Urban Economics, Elsevier, vol. 66(3), pages 186-195, November.
    4. Strauss-Kahn, Vanessa & Vives, Xavier, 2009. "Why and where do headquarters move?," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 168-186, March.
    5. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA 2012-11, Groupe de Recherche en Economie Théorique et Appliquée(GREThA).
    6. Davis, James C. & Henderson, J. Vernon, 2008. "The agglomeration of headquarters," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 445-460, September.
    7. Henderson, J. Vernon & Ono, Yukako, 2008. "Where do manufacturing firms locate their headquarters?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 431-450, March.
    8. Franz-Josef Bade & Eckhardt Bode & Eleonora Cutrini, 2015. "Spatial fragmentation of industries by functions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 215-250, January.
    9. Fu, Shihe & Hong, Junjie, 2008. "Information and communication technologies and geographic concentration of manufacturing industries: evidence from China," MPRA Paper 7446, University Library of Munich, Germany.
    10. Rudai Yang & Canfei He, 2014. "The productivity puzzle of Chinese exporters: Perspectives of local protection and spillover effects," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 367-384, June.
    11. Alexander Cordes, 2012. "What Drives Skill-biased Regional Employment Growth in West Germany?," Chapters,in: Foundations of the Knowledge Economy, chapter 11 Edward Elgar Publishing.
    12. Békés, Gábor & Harasztosi, Péter, 2013. "Agglomeration premium and trading activity of firms," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 51-64.
    13. Canfei He & Xinyue Ye & Junsong Wang, 2012. "Industrial agglomeration and exporting in China: What is the link?," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(3), pages 317-333, August.
    14. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    15. Cuadros, Ana & Martín-Montaner, Joan & Paniagua, Jordi, 2016. "Homeward bound FDI: Are migrants a bridge over troubled finance?," Economic Modelling, Elsevier, vol. 58(C), pages 454-465.
    16. Bisztray, Márta & Koren, Miklós & Szeidl, Adam, 2018. "Learning to import from your peers," Journal of International Economics, Elsevier, vol. 115(C), pages 242-258.
    17. Richard Florida & Charlotta Mellander & Thomas Holgersson, 2015. "Up in the air: the role of airports for regional economic development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 197-214, January.
    18. Péter Harasztosi, 2016. "Export spillovers in Hungary," Empirical Economics, Springer, vol. 50(3), pages 801-830, May.
    19. Kuznetsova Maria, 2016. "Spatial structure and economic network formation of manufacturing exports in Russia," EERC Working Paper Series 16/08e, EERC Research Network, Russia and CIS.
    20. Johannes Voget, 2010. "Headquarter Relocations and International Taxation," Working Papers 1008, Oxford University Centre for Business Taxation.
    21. Kamal, Fariha & Sundaram, Asha, 2019. "Do institutions determine economic Geography? Evidence from the concentration of foreign suppliers," Journal of Urban Economics, Elsevier, vol. 110(C), pages 89-101.
    22. Blonigen, Bruce A. & Cristea, Anca D., 2015. "Air service and urban growth: Evidence from a quasi-natural policy experiment," Journal of Urban Economics, Elsevier, vol. 86(C), pages 128-146.
    23. Andrew Cassey & Katherine Schmeiser, 2013. "The agglomeration of exporters by destination," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 495-513, October.
    24. Andrew J. Cassey & Katherine N. Schmeiser & Andreas Waldkirch, 2016. "Exporting Spatial Externalities," Open Economies Review, Springer, vol. 27(4), pages 697-720, September.

    More about this item

    Keywords

    International Trade; Foreign Direct Investment; Environmental Standards; Labor Standards;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration

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