Information, agglomeration, and the headquarters of U.S. exporters

Research output: Contribution to journalArticle

52 Scopus citations

Abstract

Although longstanding arguments suggest that the need to acquire information contributes to spatial concentration of employment, few studies have provided evidence on this point. This paper addresses this issue by examining the spatial concentration of headquarter activity of exporters. Exporting requires specialized knowledge of foreign markets and should, therefore, contribute to spatial concentration. We test this idea by applying differencing methods to 4-digit industry-level data for the fourth quarter of 2000. Results suggest that when foreign market information is difficult to obtain, exporter headquarter activity is more agglomerated. Results also indicate that the sensitivity of agglomeration to foreign trading environments depends on the underlying characteristics that define countries as "difficult."

Original languageEnglish (US)
Pages (from-to)167-191
Number of pages25
JournalRegional Science and Urban Economics
Volume35
Issue number2
DOIs
StatePublished - Mar 1 2005

Keywords

  • Agglomeration
  • Exporting
  • Information

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

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