Agglomeration economies in the Netherlands
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.
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- Paul M Romer, 1999.
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- Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992.
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- 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, Section of Economic Geography, revised Dec 2004.
- 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, 06.
- 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, 08.
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