IDEAS home Printed from
   My bibliography  Save this paper

Marshallian Sources of Growth and Interdependent Location of Swedish Firms and Households


  • Sörensson, Robert

    () (Department of Economics, Umeå University)


This thesis consists of three papers that examine Marshallian sources of growth and interdependent location of Swedish firms and households. Paper [I] examines the impact of static and dynamic knowledge externalities and their impact on Swedish market operating firms growth pattern between 1997 and 2005. The three types of externalities are: (i) Marshall-Arrow-Romer (MAR), (ii) Jacobs, and (iii) Porter. My empirical findings for the 40 industries can briefly be summarized in the following points: (i) static MAR, Jacobs and/or Porter externalities are present in all but nine industries; (ii) except for five cases all industries are exposed to one or more of the MAR, Jacobs and/or Porter type of dynamic externalities; (iii) contrary to previous studies but in line with theoretical predictions, we do find positive and significant effects for static as well as dynamic Jacobs externalities. Paper [II] focuses on the presence of agglomeration economies in the form of labor pooling and educational matching and their impact on economic growth in Swedish manufacturing and service industries from 1997 to 2005. To accom- plish this I employ a translog production function that enables me to decompose the total agglomeration elasticities into returns that accrue to: direct agglom- eration effects, an indirect effect of agglomeration at given input levels, a cross agglomeration effect of matching on labor pooling and vice versa. Household services is the single industry where both the labor pooling and matching hy- pothesis is supported by our data. Publishing is the sole instance of better input usage due to matching consistent with the theoretical claim. Paper [III] studies the interdependent location choices of households and firms expressed as population and employment in Swedish municipalities. Using a model of the Carlino-Mills type to investigate the impact of various location attributes such as differences in public revenue and spending patterns, accessi- bility to jobs and potential workforce, quality of the labor pool, concentration of commercial, private and public services. The findings suggest that fiscal factors significantly alters the impact of housing and accessibility attributes compared to exiting studies on Swedish data. Another finding, in line with previous stud- ies, indicate that there is a significant degree of inertia in household and firm location choices.

Suggested Citation

  • Sörensson, Robert, 2010. "Marshallian Sources of Growth and Interdependent Location of Swedish Firms and Households," Umeå Economic Studies 815, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0815

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Information and knowledge spillover; MAR; Jacobs and Porter externalities; labor pooling; interdependent location choice; panel data;

    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
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:umnees:0815. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Skog). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.