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Measuring Industry Agglomeration and Identifying the Driving Forces

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  • Emma Howard
  • Carol Newman
  • Finn Tarp

Abstract

Understanding industry agglomeration and its driving forces is critical for the formulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration. We propose a new measure and examine what it reveals about the importance of transport costs, labour market pooling, and technology transfer for agglomeration processes. We contrast this analysis with insights from existing measures in the literature and find very different underlying stories at work.

Suggested Citation

  • Emma Howard & Carol Newman & Finn Tarp, 2012. "Measuring Industry Agglomeration and Identifying the Driving Forces," WIDER Working Paper Series wp-2012-084, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2012-084
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2012-084.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Emma Howard, 2017. "Social networks, geographic proximity, and firm performance in Vietnam," WIDER Working Paper Series 069, World Institute for Development Economic Research (UNU-WIDER).
    2. Emma Howard, 2017. "Social networks, geographic proximity, and firm performance in Vietnam," WIDER Working Paper Series wp-2017-69, World Institute for Development Economic Research (UNU-WIDER).
    3. Kristian Behrens, 2016. "Agglomeration and clusters: Tools and insights from coagglomeration patterns," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(4), pages 1293-1339, November.
    4. Thi Bich Tran & Hai Anh La, 2018. "Agglomeration Effects: Productivity of the Informal Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 54(2), pages 292-311, February.
    5. Carol Newman & John Page, 2017. "Industrial clusters: The case for Special Economic Zones in Africa," WIDER Working Paper Series wp-2017-15, World Institute for Development Economic Research (UNU-WIDER).
    6. Diodato, Dario & Neffke, Frank & O’Clery, Neave, 2018. "Why do industries coagglomerate? How Marshallian externalities differ by industry and have evolved over time," Journal of Urban Economics, Elsevier, vol. 106(C), pages 1-26.
    7. Marco Sanfilippo & Adnan Seric, 2014. "Spillovers from agglomerations and inward FDI. A Multilevel Analysis on SSA domestic firms," RSCAS Working Papers 2014/76, European University Institute.
    8. Gabriel Lang & Eric Marcon & Florence Puech, 2020. "Distance-based measures of spatial concentration: introducing a relative density function," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 243-265, April.
    9. Marco Sanfilippo & Adnan Seric, 2016. "Spillovers from agglomerations and inward FDI: a multilevel analysis on sub-Saharan African firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 147-176, February.
    10. Gokan, Toshitaka & Kuroiwa, Ikuo & Nakajima, Kentaro, 2019. "Agglomeration economies in Vietnam: A firm-level analysis," Journal of Asian Economics, Elsevier, vol. 62(C), pages 52-64.
    11. Carol Newman & John Page, 2017. "Industrial clusters: The case for Special Economic Zones in Africa," WIDER Working Paper Series 015, World Institute for Development Economic Research (UNU-WIDER).
    12. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series wp-2018-126, World Institute for Development Economic Research (UNU-WIDER).
    13. John Rand & Finn Tarp & Neda Trifkovi? & Helge Zille, 2019. "Industrial agglomeration in Myanmar," WIDER Working Paper Series wp-2019-3, World Institute for Development Economic Research (UNU-WIDER).
    14. Behrens, Kristian & Guillain, Rachel, 2017. "The determinants of coagglomeration: Evidence from functional employment patterns," CEPR Discussion Papers 11884, C.E.P.R. Discussion Papers.
    15. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series 126, World Institute for Development Economic Research (UNU-WIDER).
    16. Neave O'Clery & Samuel Heroy & Francois Hulot & Mariano Beguerisse-D'iaz, 2019. "Unravelling the forces underlying urban industrial agglomeration," Papers 1903.09279, arXiv.org, revised Jun 2019.

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