Spatial And Supply/Demand Agglomeration Economies: An Evaluation Of State-And-Industry-Linkages In The U.S. Food System
In this paper we postulate, measure, and evaluate the importance of cost-impacts from spatial and industrial spillovers for analysis of economic performance. To accomplish this, we incorporate measures of "activity levels" of related states and industries in a cost function model, and estimate their associated thick market and agglomeration effects in terms of shadow values and elasticities. We focus on the food processing sector, the proximity of own-industry activity in neighboring states, and the supply- and demand- side "drivers", associated with urbanization and localization economies (represented by the GSP and agricultural intensity in the own and neighboring states). We find significant cost-savings benefits to a states food processing sector of being close to other food manufacturing centers (high levels of food processing activity in neighboring states). We also find it beneficial to be in a state with high purchasing power (demand), and to have neighboring states that are agriculture-based (supply). However, it also seems costly to actually be located in a heavily agricultural or rural state, possibly due to diseconomies from "thin markets" associated with infrastructure support and labor markets.
|Date of creation:||2001|
|Contact details of provider:|| Phone: 530-752-1517|
Web page: http://www.agecon.ucdavis.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-499, June.
- repec:adr:anecst:y:1998:i:49-50:p:21 is not listed on IDEAS
- Harry H. Kelejian & Ingmar R. Prucha, 1995.
"A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model,"
Electronic Working Papers
95-001, University of Maryland, Department of Economics, revised Mar 1997.
- Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
- David, Paul A. & Rosenbloom, Joshua L., 1990. "Marshallian factor market externalities and the dynamics of industrial localization," Journal of Urban Economics, Elsevier, vol. 28(3), pages 349-370, November.
- Morrison, Catherine J, 1985. "Primal and Dual Capacity Utilization: An Application to Productivity Measurement in the U.S. Automobile Industry," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 312-324, October.
- Jeffrey Bernstein, 1998. "Factor Intensities, Rates of Return, and International R&D Spillovers: The Case of Canadian and U.S. Industries," Annals of Economics and Statistics, GENES, issue 49-50, pages 541-564.
- Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 215-237, May.
- Bartelsman, Eric J & Caballero, Ricardo J & Lyons, Richard K, 1994. "Customer- and Supplier-Driven Externalities," American Economic Review, American Economic Association, vol. 84(4), pages 1075-1084, September.
- Donald S. Siegel & Catherine J. Morrison Paul, 1999. "Scale Economies and Industry Agglomeration Externalities: A Dynamic Cost Function Approach," American Economic Review, American Economic Association, vol. 89(1), pages 272-290, March.
When requesting a correction, please mention this item's handle: RePEc:ags:ucdavw:11982. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.