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A Stochastic Theory of Geographic Concentration and the Empirical Evidence in Germany

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  • T. Brenner

    ()

Abstract

A stochastic model of the evolution of the firm population in a region and industry is developed. This model is used to make predictions about the expected probability distribution of the firm number in regions and their dynamics. Data on the spatial distribution of firms in Germany is used to check the predictions and estimate the parameters of the model. This is done for 196 industries separately.

Suggested Citation

  • T. Brenner, 2006. "A Stochastic Theory of Geographic Concentration and the Empirical Evidence in Germany," Papers on Economics and Evolution 2005-23, Philipps University Marburg, Department of Geography.
  • Handle: RePEc:esi:evopap:2005-23
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    File URL: ftp://137.248.191.199/RePEc/esi/discussionpapers/2005-23.pdf
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    References listed on IDEAS

    as
    1. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-181.
    2. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
    5. Bottazzi, Giulio & Dosi, Giovanni & Fagiolo, Giorgio & Secchi, Angelo, 2008. "Sectoral and geographical specificities in the spatial structure of economic activities," Structural Change and Economic Dynamics, Elsevier, vol. 19(3), pages 189-202, September.
    6. Denis MAILLAT, 1998. "From the industrial district to the innovative milieu : Contribution to an analysis of territorialised productive organisations," Discussion Papers (REL - Recherches Economiques de Louvain) 1998017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Carlo Pietrobelli, 1998. "The Socio-Economic Foundations Of Competitiveness: An Econometric Analysis of Italian Industrial Districts," Industry and Innovation, Taylor & Francis Journals, vol. 5(2), pages 139-155.
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    More about this item

    Keywords

    geographic concentration; industry dynamics; local clusters; empirical methodology.;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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