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Urban Agglomeration Economies in the U.S. Greenhouse and Nursery Production

  • Cheng, Mei-luan
  • Gomez, Miguel I.
  • Bills, Nelson L.
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    Greenhouse/nursery production in the U.S. has been highly concentrated in metropolitan areas. This paper examines the emergent, complex relationship between urban agglomeration and greenhouse/nursery production in the Northeast, Southeast and Pacific regions of the U.S. We use spatial econometric models to examine the effect of urbanization, spatial concentrations of firms, and firm-internal factors on greenhouse/nursery production levels. The analysis distinguishes the attributes of agglomeration forces stemming from urbanization economies and localization economies. Results suggest that the greenhouse/nursery sector may benefit from clustering among firms within the same sector. Also, greenhouse/nursery production levels are positively associated with population growth and the direct market access to consumers. The economic vibrancy of greenhouse/nursery businesses in densely populated areas would depend upon the capacity to adjust to increased land competition in metropolitan areas, while exploiting marketing opportunities offered by proximity to urban consumers.

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    File URL: http://purl.umn.edu/126611
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    Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 126611.

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    Date of creation: 2011
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    Handle: RePEc:ags:cudawp:126611
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    2. John C. Foltz & Aaron J. Harp & Larry D. Makus & Joseph F. Guenthner & Robert R. Tripepi, 1993. "A factor analysis of the product and service attributes offered by western nursery stock suppliers," Agribusiness, John Wiley & Sons, Ltd., vol. 9(3), pages 247-255.
    3. Shields, Martin & Willis, Fern K., 2003. "The Growing Importance of the Environmental Horticulture Industry in the Agricultural Economy of the Northeastern United States," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(2), October.
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