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Economies of Scale in European Manufacturing Revisited

Author

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  • Henriksen, E
  • Knarvik, K.H.M.
  • Steen, F.

Abstract

We test for internal and external economies of scale in European manufacturing employing a more disaggregated data set than what has been used in earlier analyses, and aim to separate externalities from common business cycle effects. Fifteen European manufacturing industries in Germany, France, the U.K. and Italy are analysed. We focus on economies of scale at three levels: the national industry, the national industrial cluster, and the transnational industry.

Suggested Citation

  • Henriksen, E & Knarvik, K.H.M. & Steen, F., 2001. "Economies of Scale in European Manufacturing Revisited," Papers 12/2001, Norwegian School of Economics and Business Administration-.
  • Handle: RePEc:fth:norgee:12/2001
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    References listed on IDEAS

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    1. Basu, Susanto & Fernald, John G., 1995. "Are apparent productive spillovers a figment of specification error?," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 165-188, August.
    2. Michael Benarroch, 1997. "Returns to Scale in Canadian Manufacturing: An Interprovincial Comparison," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1083-1103, November.
    3. Knarvik, Karen Helene Midelfart & Steen, Frode, 1999. " Self-Reinforcing Agglomerations? An Empirical Industry Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 515-532, December.
    4. Caballero, Ricardo J. & Lyons, Richard K., 1990. "Internal versus external economies in European industry," European Economic Review, Elsevier, vol. 34(4), pages 805-826, June.
    5. 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.
    6. Tor Jakob Klette, 1994. "Estimating Price- Cost Margins and Scale Economies from a Panel of Microdata," Discussion Papers 130, Statistics Norway, Research Department.
    7. Pierre Mohnen, 1992. "International R&D Spillovers," Cahiers de recherche du Département des sciences économiques, UQAM 9208, Université du Québec à Montréal, Département des sciences économiques.
    8. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 2008 - 2015 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    Cited by:

    1. Konstantin Kucheryavyy & Gary Lyn & Andrés Rodríguez-Clare, 2016. "Grounded by Gravity: A Well-Behaved Trade Model with Industry-Level Economies of Scale," NBER Working Papers 22484, National Bureau of Economic Research, Inc.
    2. Gene M. Grossman & Esteban Rossi-Hansberg, 2010. "External Economies and International Trade Redux," The Quarterly Journal of Economics, Oxford University Press, vol. 125(2), pages 829-858.
    3. Takashi Ohno, 2006. "On the Effects of Wage Pressure on the Unemployment Rate and Capital Share," German Economic Review, Verein für Socialpolitik, vol. 7, pages 389-401, November.
    4. Helena Marques, 2008. "Asymmetries in Heterogeneous Integrated Areas: Evidence from Intra-EU Sectoral Trade," Working Papers 2008.2, International Network for Economic Research - INFER.
    5. Takashi Ohno, 2006. "On the Effects of Wage Pressure on the Unemployment Rate and Capital Share," German Economic Review, Verein für Socialpolitik, vol. 7(4), pages 389-401, November.
    6. N. Domeque Claver & C. Fillat Castej & F. Sanz Gracia, 2012. "External economies as a mechanism of agglomeration in EU manufacturing," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4421-4438, December.

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    More about this item

    Keywords

    GEOGRAPHY ; MANUFACTURING ; EXTERNALITIES;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • 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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