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Measuring Industry Agglomeration and Identifying the Driving Forces

Listed author(s):
  • Howard, Emma
  • Newman, Carol
  • Tarp, Finn

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. An exceptionally rich set of data from Vietnam makes us confident that our measure is superior at least in developing country contexts.

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File URL: https://www.wider.unu.edu/sites/default/files/wp2012-084.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series WIDER Working Paper Series with number 084.

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Length: 30
Date of creation: 2012
Handle: RePEc:unu:wpaper:wp2012-84
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  14. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
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  26. repec:hhs:iuiwop:430 is not listed on IDEAS
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