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Geographical Agglomeration in Australian Manufacturing

Author

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  • Anne Leahy

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Alfons Palangkaraya

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Jongsay Yong

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper investigates the geographic agglomeration of establishments in the Australian manufacturing industries during the period of 1994{1997. We find that although the agglomeration of Australian manufacturing has doubled during the period, it is still not as agglomerated as those in other developed economies such as the United States, the United Kingdom, France and Ireland. We also find that industries which receive higher assistance tend to be more agglomerated. However, there is no statistically significant evidence that the extent of the reduction in assistance due to trade liberalisation between 1994 and 1997 was associated with a further decrease in agglomeration. In terms of establishment dynamics, we ¯nd a significant increase in agglomeration but no evidence that establishment entry-exit patterns are correlated with agglomeration.

Suggested Citation

  • Anne Leahy & Alfons Palangkaraya & Jongsay Yong, 2007. "Geographical Agglomeration in Australian Manufacturing," Melbourne Institute Working Paper Series wp2007n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2007n11
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    References listed on IDEAS

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    Cited by:

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    2. Jean Dubé & Cédric Brunelle, 2014. "Dots to dots: a general methodology to build local indicators using spatial micro-data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 245-272, August.
    3. Lin, Hui-Lin & Li, Hsiao-Yun & Yang, Chih-Hai, 2011. "Agglomeration and productivity: Firm-level evidence from China's textile industry," China Economic Review, Elsevier, vol. 22(3), pages 313-329, September.

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    More about this item

    Keywords

    Agglomeration; Australian Manufacturing; Industry assistance; Trade liberalisation; Entry and exit.;
    All these keywords.

    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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