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Spatial Localization in Manufacturing: A Cross-Country Analysis

Author

Listed:
  • Stefania Vitali

    (Chair of Systems Design)

  • Mauro Napoletano

    (Observatoire français des conjonctures économiques)

  • Giorgio Fagiolo

    (Laboratory of Economics and Management (LEM))

Abstract

This paper employs a homogenous firms database to investigate industry localization in European countries. More specifically, we compare, across industries and countries, the predictions of two of the most popular localization indices, i.e., the Ellison and Glaeser index (Ellison and Glaeser, 1997) and the Duranton and Overman index (Duranton and Overman, 2005). We find that, independently from the index used, localization is a pervasive phenomenon in all countries studied, but the degree of localization is very uneven across industries in each country. Furthermore, we find that the two indices significantly diverge in predicting the intensity of the forces generating localization within each industry. Finally, we perform a crosssectoral analysis of localized industries. We show that, in all countries, localized sectors are mainly “traditional” sectors (like jewelery, wine, and textiles) and sectors where scale economies are important. However, once one controls for countries’ industrial structures science-based sectors turn out to be the most localized ones.

Suggested Citation

  • Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2009. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Sciences Po publications 2009/04, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/9932
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    References listed on IDEAS

    as
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    Cited by:

    1. Tobias Scholl & Thomas Brenner, 2013. "Detecting Spatial Clustering Using a Firm-Level Index," Working Papers on Innovation and Space 2012-02, Philipps University Marburg, Department of Geography.
    2. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, Elsevier.
    3. repec:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0820-y is not listed on IDEAS
    4. Steven Brakman & Harry Garretsen & Zhao Zhao, 2017. "Spatial concentration of manufacturing firms in China," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 179-205, March.
    5. Kofanov, D. & Mikhailova, T., 2015. "Geographical Concentration of Soviet Industries: A Comparative Analysis," Journal of the New Economic Association, New Economic Association, vol. 28(4), pages 112-141.
    6. Davidson Natalia & Kislyak Nadezhda & Vorobyev Pavel, 2010. "Spatial Ñoncentration and Firm Performance in Russia," EERC Working Paper Series 10/05e, EERC Research Network, Russia and CIS.
    7. Tobias Scholl & Thomas Brenner, 2015. "Optimizing distance-based methods for large data sets," Journal of Geographical Systems, Springer, vol. 17(4), pages 333-351, October.
    8. Tobias Scholl & Thomas Brenner, 2011. "Testing for Clustering of Industries - Evidence from micro geographic data," Working Papers on Innovation and Space 2011-02, Philipps University Marburg, Department of Geography.
    9. Tobias Scholl & Thomas Brenner, 2013. "Optimizing Distance-Based Methods for Big Data Analysis," Working Papers on Innovation and Space 2013-09, Philipps University Marburg, Department of Geography.
    10. Dauth, Wolfgang & Fuchs, Michaela & Otto, Anne, 2015. "Long-run processes of geographical concentration and dispersion : evidence from Germany," IAB Discussion Paper 201527, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. repec:bpj:jossai:v:2:y:2014:i:5:p:385-400:n:1 is not listed on IDEAS

    More about this item

    Keywords

    Industry Localization; Manufacturing Industries; Localization Indices; Spatial Concentration; Spatial correlation; Cross-country studies;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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