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Agglomeration, Diversity and Regional Growth

Author

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  • 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)

Abstract

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.

Suggested Citation

  • Braunerhjelm, Pontus & Borgman, Benny, 2006. "Agglomeration, Diversity and Regional Growth," Working Paper Series in Economics and Institutions of Innovation 71, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0071
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    References listed on IDEAS

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    Cited by:

    1. Benny Borgman & Pontus Braunerhjelm, 2010. "Entrepreneurship and Local Growth: A Comparison of the US and Sweden," Chapters,in: Entrepreneurship and Regional Development, chapter 4 Edward Elgar Publishing.

    More about this item

    Keywords

    Co-agglomeration; productivity; growth;

    JEL classification:

    • 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)

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