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

Author

Listed:
  • Cheng, Mei-luan
  • Gomez, Miguel I.
  • Bills, Nelson L.

Abstract

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.

Suggested Citation

  • Cheng, Mei-luan & Gomez, Miguel I. & Bills, Nelson L., 2011. "Urban Agglomeration Economies in the U.S. Greenhouse and Nursery Production," Working Papers 126611, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:126611
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    File URL: http://purl.umn.edu/126611
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    References listed on IDEAS

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    Cited by:

    1. Getu Hailu & B. James Deaton, 2016. "Agglomeration Effects in Ontario’s Dairy Farming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1055-1073.

    More about this item

    Keywords

    Greenhouse/nursery; agglomeration economies; urbanization; land competition; Agribusiness; Community/Rural/Urban Development; Production Economics; R11; Q10; C21;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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