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Are Spatial Networks of Firms Random? Evidence from Vietnam

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  • Howard, Emma
  • Carol, Newman
  • Thijssen, Jacco

Abstract

We present a new approach for the empirical investigation of agglomeration patterns. We examine the clustering of manufacturing firms by identifying patterns of spatial network formation that deviate from randomly generated networks. Using firm-level panel data from Vietnam we calculate transitivity, a measure to determine the strength of clustering of manufacturing firms. We then test whether the observed clustering of firms is greater than that of a randomly generated network. Our findings suggest that the extent of clustering is over and above that which can be attributed to the legal and regulatory framework, economic zoning, or population patterns.

Suggested Citation

  • Howard, Emma & Carol, Newman & Thijssen, Jacco, 2011. "Are Spatial Networks of Firms Random? Evidence from Vietnam," WIDER Working Paper Series 087, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2011-87
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    File URL: http://www.wider.unu.edu/sites/default/files/wp2011-087.pdf
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    References listed on IDEAS

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    1. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
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    Cited by:

    1. repec:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0820-y is not listed on IDEAS
    2. 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).
    3. Emma Howard & Carol Newman & Finn Tarp, 2016. "Measuring industry coagglomeration and identifying the driving forces," Journal of Economic Geography, Oxford University Press, pages 1055-1078.

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    Keywords

    clustering; network formation; manufacturing firms; Vietnam;

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