Regional Labour Productivity in The Netherlands - Diversification and Agglomeration Economies
This paper studies the extent to which diversification and agglomeration effects account for regional differences in labour productivity levels and labour productivity growth. Using a large set of regional data for The Netherlands for 40 labour market areas between 1990-2001 we find that roughly 60% of the explained variation in regional productivity differences and 55% of the regional growth differences can be attributed to indicators of diversification and agglomeration effects. A sensitivity analysis shows that these effects are fairly robust.
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