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Agglomeration and Trade: State-Level Evidence from U.S. Industries

  • Hakan Yilmazkuday

    ()

    (Department of Economics, Temple University)

This paper investigates the connection between economic agglomeration and trade patterns within the U.S. at the industry level. On the consumption side, industry- and state-specific international imports and elasticities of substitution are shown to be systematically connected to consumption agglomeration effects, while on the production side, industry- and state-specific international exports and intermediate input trade are shown to be systematically connected to production agglomeration and specialization effects. Industry structures play an important role in the determination and magnitude of these effects.

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File URL: http://www.cla.temple.edu/RePEc/documents/detu_10_01.pdf
File Function: First version, 2010
Download Restriction: no

Paper provided by Department of Economics, Temple University in its series DETU Working Papers with number 1001.

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Date of creation: Mar 2010
Date of revision:
Handle: RePEc:tem:wpaper:1001
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Web page: http://www.cla.temple.edu/economics/

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  1. Krugman, Paul & Venables, Anthony J, 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
  2. Grossman, Gene & Helpman, Elhanan, 1995. "Technology and Trade," CEPR Discussion Papers 1134, C.E.P.R. Discussion Papers.
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  6. Hanson, G.H., 1999. "`Market Potential, Increasing Returns, and Geographic Concentration," Working Papers 439, Research Seminar in International Economics, University of Michigan.
  7. Hakan Yilmazkuday, 2011. "Understanding Interstate Trade Patterns," Working Papers 1104, Florida International University, Department of Economics.
  8. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December.
  9. Venables, Anthony J, 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
  10. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
  11. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
  12. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
  13. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
  14. David Hummels & Dana Rapoport & Kei-Mu Yi, 1998. "Vertical specialization and the changing nature of world trade," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 79-99.
  15. Yilmazkuday, Hakan, 2009. "How Important is Technology? A Counterfactual Analysis," MPRA Paper 16838, University Library of Munich, Germany.
  16. Hummels, David & Levinsohn, James, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 799-836, August.
  17. Jensen, Paul E, 2000. "Analysis of Bilateral Trade Patterns with Panel Data," Review of International Economics, Wiley Blackwell, vol. 8(1), pages 86-99, February.
  18. Yilmazkuday, Hakan, 2012. "Understanding interstate trade patterns," Journal of International Economics, Elsevier, vol. 86(1), pages 158-166.
  19. John Parr & Geoffrey Hewings & Jungyul Sohn & Suahasil Nazara, 2002. "Agglomeration and Trade: Some Additional Perspectives," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 675-684.
  20. McCann, Philip, 2001. "A proof of the relationship between optimal vehicle size, haulage length and the structure of distance-transport costs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(8), pages 671-693, September.
  21. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  22. Krugman, Paul, 1995. "Increasing returns, imperfect competition and the positive theory of international trade," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 24, pages 1243-1277 Elsevier.
  23. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
  24. McCann, Philip & Fingleton, Bernard, 1996. "The Regional Agglomeration Impact of Just-in-Time Input Linkages: Evidence from the Scottish Electronics Industry," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(5), pages 493-518, November.
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