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Agglomeration, Diversity and Regional Growth

  • Braunerhjelm, Pontus

    ()

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Borgman, Benny

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

The objective of this paper is to empirically examine the importance of the structure of agglomeration on productivity and growth. To accomplish this we will include the degree of co-agglomeration of similar industries as an explanatory variable in the empirical analysis, while simultaneously controlling for the degree of industry-specific agglomeration. To the best of our knowledge, the impact of co-agglomerated industries on productivity has not previously been investigated. The empirical analysis confirms a positive statistical relationship between interdependent and co-located industries on labour productivity.

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Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 71.

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Length: 31 pages
Date of creation: 03 Aug 2006
Date of revision:
Handle: RePEc:hhs:cesisp:0071
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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/

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