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The dynamics of agglomeration : evidence from Ireland and Portugal

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  • BARRIOS, Salvador
  • BERTINELLI, Luisito
  • STROBL, Eric
  • TEIXEIRA, Antonio Carlos

Abstract

This paper analyses and compares the dynamics of agglomeration in Portuguese and Irish manufacturing industries between 1985 and 1998 implementing Dumais, Ellison and Glaeser (2002) methodology. Using comparable and exhaustive micro-level data sets, we find that s industries tend to be subject to strong geographical mobility despite little net aggregate changes in agglomeration in both countries. When the aggregate concentration changes are decomposed into portions attributable to the different stages of the plant life cycle, we discover that births consistently play a deagglomerating role, which continues at least into the early stages of the life cycle, whereas deaths have acted to reinforce agglomeration in both countries. Nevertheless, there are some differences across countries and industries.

Suggested Citation

  • BARRIOS, Salvador & BERTINELLI, Luisito & STROBL, Eric & TEIXEIRA, Antonio Carlos, 2004. "The dynamics of agglomeration : evidence from Ireland and Portugal," CORE Discussion Papers 2004010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2004010
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    Cited by:

    1. Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2013. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1534-1554, October.
    2. Izabella Szakálné Kanó & Zsófia Vas, 2013. "Spatial Distribution of Knowledge-Intensive Industries in Hungary," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 19(4), pages 431-444, March.
    3. Anne Leahy & Alfons Palangkaraya & Jongsay Yong, 2010. "Geographical Agglomeration in Australian Manufacturing," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 299-314.
    4. Lafourcade, Miren & Mion, Giordano, 2007. "Concentration, agglomeration and the size of plants," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 46-68, January.
    5. Gilles Duranton, 2007. "Urban Evolutions: The Fast, the Slow, and the Still," American Economic Review, American Economic Association, vol. 97(1), pages 197-221, March.
    6. Wren, Colin, 2012. "Geographic concentration and the temporal scope of agglomeration economies: An index decomposition," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 681-690.
    7. Elif Alkay & Geoffrey Hewings, 2012. "The determinants of agglomeration for the manufacturing sector in the Istanbul metropolitan area," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 225-245, February.
    8. Todd M. Gabe & Jaison R. Abel, 2016. "Shared Knowledge and the Coagglomeration of Occupations," Regional Studies, Taylor & Francis Journals, vol. 50(8), pages 1360-1373, August.
    9. repec:eee:wdevel:v:102:y:2018:i:c:p:90-110 is not listed on IDEAS
    10. Miklos Lukovics & Imre Lengyel, 2006. "An Attempt for the Measurement of Regional Competitiveness in Hungary," ERSA conference papers ersa06p350, European Regional Science Association.
    11. Miren Lafourcade & Giordano Mion, 2005. "Concentration, agglomeration and the size of plants," Working Papers halshs-00590572, HAL.
    12. Vinish Kathuria, 2011. "What Causes Agglomeration? – Policy or Infrastructure – A Study of Indian Manufacturing Industry," Working Papers id:4473, eSocialSciences.
    13. Adriano Borges Costa & Ciro Biderman, 2016. "A Dinâmica Da Concentração Do Emprego Industrial No Brasil (1991-2011) E O Ciclo De Vida Das Empresas," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 180, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    14. Yamamura, Eiji & Shin, Inyong, 2007. "Dynamics of agglomeration economies and regional industrial structure: The case of the assembly industry of the Greater Tokyo Region, 1960-2000," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 483-499, December.
    15. Florian Noseleit, 2011. "Market Selection and Regional Diversification - Empirical Regularities from German Panel-Data," ERSA conference papers ersa10p1117, European Regional Science Association.
    16. Barlet, M. & Briant, A. & Crusson, L., 2013. "Location patterns of service industries in France: A distance-based approach," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 338-351.
    17. repec:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0820-y is not listed on IDEAS
    18. Colin Wren, 2011. "Geographic Concentration, Observational Equivalence and the Source of Industrial Agglomeration," ERSA conference papers ersa10p1635, European Regional Science Association.
    19. Colin Wren, 2011. "Geographic Concentration and the Temporal Scope of Agglomeration Economics: An Index Decomposition," SERC Discussion Papers 0094, Spatial Economics Research Centre, LSE.
    20. Meng Wang & Yaoqiu Kuang & Ningsheng Huang, 2015. "Sustainable Urban External Service Function Development for Building the International Megalopolis in the Pearl River Delta, China," Sustainability, MDPI, Open Access Journal, vol. 7(10), pages 1-26, September.
    21. Daniel Nepelski & Giuditta de Prato, 2014. "Identifying European Poles of Excellence: The Methodology," JRC Working Papers JRC85356, Joint Research Centre (Seville site).
    22. James Foreman-Peck & Tom Nicholls, 2015. "Inter-regional mobility of entrepreneurial SMEs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 57-87, January.
    23. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.
    24. Wren, Colin, 2011. "Geographic concentration and the temporal scope of agglomeration economics: an index decomposition," LSE Research Online Documents on Economics 58351, London School of Economics and Political Science, LSE Library.
    25. Jahyeong Koo & Yune Lee, 2006. "Do historical events matter in geographic agglomeration? The case of South Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 13(15), pages 1013-1016.

    More about this item

    Keywords

    agglomeration; path dependence; plant’s life cycle; Ireland; Portugal;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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