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Public Affairs, Public Policy and Public Administration

2012

Agglomeration Economies, Externalities, & Spillovers

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Full-Text Articles in Architecture

Regional Industrial Structure And Agglomeration Economies: An Analysis Of Productivity In Three Manufacturing Industries, Joshua Drucker, Edward Feser Jan 2012

Regional Industrial Structure And Agglomeration Economies: An Analysis Of Productivity In Three Manufacturing Industries, Joshua Drucker, Edward Feser

Edward J Feser

We investigate whether a more concentrated regional industrial structure – the dominance of a few large firms in a given industry in a region – limits agglomeration economies and ultimately diminishes the economic performance of firms in that industry, especially small ones. In an application to three industries using establishment-level production functions and a combination of confidential and publicly available data sources, we find a consistently negative and substantial direct productivity effect associated with regional industrial structure concentration and only mixed and relatively weak evidence that agglomeration economies are a mediating factor in that effect.

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Regional Industrial Structure And Agglomeration Economies: An Analysis Of Productivity In Three Manufacturing Industries., Joshua Drucker, Edward Feser Dec 2011

Regional Industrial Structure And Agglomeration Economies: An Analysis Of Productivity In Three Manufacturing Industries., Joshua Drucker, Edward Feser

Joshua Drucker

We investigate whether a more concentrated regional industrial structure – the dominance of a few large firms in a given industry in a region – limits agglomeration economies and ultimately diminishes the economic performance of firms in that industry, especially small ones. In an application to three industries using establishment-level production functions and a combination of confidential and publicly available data sources, we find a consistently negative and substantial direct productivity effect associated with regional industrial structure concentration and only mixed and relatively weak evidence that agglomeration economies are a mediating factor in that effect.

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