Measuring Industry Coagglomeration and Identifying the Driving Forces
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Measuring Industry Coagglomeration and Identifying the Driving Forces. / Howard, Emma; Newman, Carol; Tarp, Finn.
In: Journal of Economic Geography, Vol. 16, No. 5, 13.10.2015, p. 1055-1078.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Measuring Industry Coagglomeration and Identifying the Driving Forces
AU - Howard, Emma
AU - Newman, Carol
AU - Tarp, Finn
N1 - JEL classifications: O14, O33, L14, L60
PY - 2015/10/13
Y1 - 2015/10/13
N2 - Understanding industry agglomeration and its driving forces is critical for theformulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration. We construct a new coagglomeration index based purely on the location of firms. We examine what this index reveals about the importance of transport costs, labour market pooling and technology transfer for agglomeration processes, controlling for overall industry agglomeration. We compare the results based on our new measure to existing measures in the literature and find very different underlying stories at work. We conclude that in conducting analyses of this kind giving consideration to the source of agglomeration economies, employees or entrepreneurs, and finding an appropriate measure for agglomeration, are both crucial to the process of identifying agglomerative forces.
AB - Understanding industry agglomeration and its driving forces is critical for theformulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration. We construct a new coagglomeration index based purely on the location of firms. We examine what this index reveals about the importance of transport costs, labour market pooling and technology transfer for agglomeration processes, controlling for overall industry agglomeration. We compare the results based on our new measure to existing measures in the literature and find very different underlying stories at work. We conclude that in conducting analyses of this kind giving consideration to the source of agglomeration economies, employees or entrepreneurs, and finding an appropriate measure for agglomeration, are both crucial to the process of identifying agglomerative forces.
KW - Faculty of Social Sciences
KW - O14
KW - O33
KW - L14
KW - L60
U2 - 10.1093/jeg/lbv037
DO - 10.1093/jeg/lbv037
M3 - Journal article
VL - 16
SP - 1055
EP - 1078
JO - Journal of Economic Geography
JF - Journal of Economic Geography
SN - 1468-2702
IS - 5
ER -
ID: 146209365