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Regional Industrial Structure And Agglomeration Economies: An Analysis Of Productivity In Three Manufacturing Industries., Joshua Drucker, Edward Feser
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.
Publication link: https://www.sciencedirect.com/journal/regional-science-and-urban-economics/vol/42/issue/1
How Does Size Matter? Investigating The Relationships Among Plant Size, Industrial Structure, And Manufacturing Productivity., Joshua Drucker
How Does Size Matter? Investigating The Relationships Among Plant Size, Industrial Structure, And Manufacturing Productivity., Joshua Drucker
Joshua Drucker
Industrial concentration and market power have been studied extensively at the national scale, in fields ranging from economics and industrial organization to regional science and economic development. At the regional scale, however, industrial structure and firm size relationships have received little attention outside of non-generalizable case studies, primarily because accurate measurements require difficult-to-obtain plant- or firm-level information. Readily available secondary data sources on establishment size distributions (such as County Business Patterns or the Census of Manufactures) cannot be linked to performance information for particular establishments or firms. Yet region-specific industrial structure may be a crucial determinant of firm performance and …