IDEAS home Printed from https://ideas.repec.org/p/cpb/discus/124.html
   My bibliography  Save this paper

Agglomeration economies in the Netherlands

Author

Listed:
  • Joeri Gorter
  • Suzanne Kok

Abstract

In this paper we measure the strength of agglomeration economies on the basis of Dutch regional data. The drift to the city has been going on for hundreds of years. As a result, most economic activity is concentrated in small geographical areas. The advantages of proximity of people and firms go under the name 'agglomeration economies'. We regress regional labour productivity on a set of agglomeration indices, and find evidence for a productivity effect of concentration of production with a malus for industrial variety. Thus, the evidence supports Marschall-Arrow-Romer economies. The evidence does not support, however, Jacobs economies, nor variants of the Creative Class Hypothesis.

Suggested Citation

  • Joeri Gorter & Suzanne Kok, 2009. "Agglomeration economies in the Netherlands," CPB Discussion Paper 124, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:discus:124
    as

    Download full text from publisher

    File URL: https://www.cpb.nl/sites/default/files/publicaties/download/agglomeration-economies-netherlands.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Frank Van Oort, 2002. "Innovation and agglomeration economies in the Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 93(3), pages 344-360, August.
    3. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    4. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    5. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2004.
    6. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    7. Frank G. van Oort & Oedzge A. L. C. Atzema, 2004. "On the conceptualization of agglomeration economies: The case of new firm formation in the Dutch ICT sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 263-290, June.
    8. G.A. Marlet & C. van Woerkens, 2004. "Skills and Creativity in a Cross-section of Dutch Cities," Working Papers 04-29, Utrecht School of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefan P.T. Groot & Henri L.F. Groot & Martijn J. Smit, 2014. "Regional Wage Differences In The Netherlands: Micro Evidence On Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 503-523, June.
    2. Christian Schröder, 2010. "Regionale und unternehmensspezifische Faktoren einer hohen Wachstumsdynamik von IKT Unternehmen in Deutschland," EIIW Discussion paper disbei185, Universitätsbibliothek Wuppertal, University Library.
    3. Christian Schröder, 2013. "Regional and company-specific factors for high growth dynamics of ICT companies in Germany with particular emphasis on knowledge spillovers," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 741-772, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Oort, F.G. & Stam, F.C., 2006. "Agglomeration Economies and Entrepreneurship in the ICT Industry," ERIM Report Series Research in Management ERS-2006-016-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    3. Giulio Cainelli & Eleonora Di Maria & Roberto Ganau, 2011. "Agglomeration, related-variety and internationalisation. Does a relationship exist?," Openloc Working Papers 1114, Public policies and local development.
    4. Atzema, Oedzge & van Oort, Frank, 2002. "Agglomeration economies and the location of new information and communication technology (ICT) firms in the Netherlands," ERSA conference papers ersa02p190, European Regional Science Association.
    5. R. Paci & S. Usai, 2006. "Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001," Working Paper CRENoS 200612, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    6. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2023. "Does context matter? Exploring the effects of productive structures on the relationship between innovation and workforce skills’ complementarity," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 1991-2011, June.
    7. Giulio Cainelli & Roberto Ganau & Donato Iacobucci, 2016. "Do Geographic Concentration and Vertically Related Variety Foster Firm Productivity? Micro-Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 47(2), pages 197-217, June.
    8. Oliver Farhauer & Alexandra Kröll, 2012. "Diversified specialisation—going one step beyond regional economics’ specialisation-diversification concept," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(1), pages 63-84, March.
    9. Baldwin, John R. Beckstead, Desmond Brown, W. Mark Rigby, David, 2007. "Urban Economies and Productivity," Economic Analysis (EA) Research Paper Series 2007045e, Statistics Canada, Analytical Studies Branch.
    10. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economics Research Papers 2007-006, Friedrich-Schiller-University Jena.
    11. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    12. William Bowen & Mark Atlas & Sugie Lee, 2009. "Industrial agglomeration and the regional scientific explanation of perceived environmental injustice," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(4), pages 1013-1031, December.
    13. Borowiecki, Karol Jan, 2013. "Geographic clustering and productivity: An instrumental variable approach for classical composers," Journal of Urban Economics, Elsevier, vol. 73(1), pages 94-110.
    14. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 495-518, June.
    15. Eaton, Jonathan & Eckstein, Zvi, 1997. "Cities and growth: Theory and evidence from France and Japan," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 443-474, August.
    16. Benner, Maximilian, 2009. "What do we know about clusters? In search of effective cluster policies," MPRA Paper 43848, University Library of Munich, Germany, revised 2009.
    17. Haifeng Qian, 2018. "Knowledge-Based Regional Economic Development: A Synthetic Review of Knowledge Spillovers, Entrepreneurship, and Entrepreneurial Ecosystems," Economic Development Quarterly, , vol. 32(2), pages 163-176, May.
    18. Kugler, Maurice, 2006. "Spillovers from foreign direct investment: Within or between industries?," Journal of Development Economics, Elsevier, vol. 80(2), pages 444-477, August.
    19. Park, Jeong-Il, 2020. "Industrial diversity in building units and factors associated with diversity: A case study of the Seoul Metropolitan Area," Research Policy, Elsevier, vol. 49(5).
    20. Luigi Aldieri & Jonas Grafström & Concetto Paolo Vinci, 2021. "The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector," Energies, MDPI, vol. 14(14), pages 1-16, July.

    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • 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)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpb:discus:124. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cpbgvnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.