TY - JOUR
T1 - The determinants of agglomeration
AU - Rosenthal, Stuart S.
AU - Strange, William C.
N1 - Funding Information:
1We gratefully acknowledge the financial support of the Social Sciences and Humanities Research Council of Canada, the UBC Centre for Real Estate and Urban Land Economics, the Real Estate Foundation of British Columbia, and the Center for Policy Research at Syracuse University. We thank David Audretsch for providing us with data on innovations and Jan Brueckner, Vernon Henderson, and two anonymous referees for helpful comments. We also thank Peter Howe for valuable research assistance and Esther Gray for help in preparing the manuscript.
PY - 2001
Y1 - 2001
N2 - This paper examines the microfoundations of agglomeration economies for U.S. manufacturing industries. Using industries as observations, we regress the Ellison-Glaeser (G. Ellison and E. Glaeser, 1997, J. Polit. Econ. 105, 889-927) measure of spatial concentration on industry characteristics that proxy for the presence of knowledge spillovers, labor market pooling, input sharing, product shipping costs, and natural advantage. The analysis is conducted separately at the zipcode, county, and state levels. Results indicate that proxies for labor market pooling have the most robust effect, positively influencing agglomeration at all levels of geography. Proxies for knowledge spillovers, in contrast, positively affect agglomeration only at the zipcode level. Reliance on manufactured inputs or natural resources positively affects agglomeration at the state level but has little effect on agglomeration at lower levels of geography. The same is true for the perishability of output, a proxy for product shipping costs.
AB - This paper examines the microfoundations of agglomeration economies for U.S. manufacturing industries. Using industries as observations, we regress the Ellison-Glaeser (G. Ellison and E. Glaeser, 1997, J. Polit. Econ. 105, 889-927) measure of spatial concentration on industry characteristics that proxy for the presence of knowledge spillovers, labor market pooling, input sharing, product shipping costs, and natural advantage. The analysis is conducted separately at the zipcode, county, and state levels. Results indicate that proxies for labor market pooling have the most robust effect, positively influencing agglomeration at all levels of geography. Proxies for knowledge spillovers, in contrast, positively affect agglomeration only at the zipcode level. Reliance on manufactured inputs or natural resources positively affects agglomeration at the state level but has little effect on agglomeration at lower levels of geography. The same is true for the perishability of output, a proxy for product shipping costs.
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U2 - 10.1006/juec.2001.2230
DO - 10.1006/juec.2001.2230
M3 - Article
AN - SCOPUS:0035180722
SN - 0094-1190
VL - 50
SP - 191
EP - 229
JO - Journal of Urban Economics
JF - Journal of Urban Economics
IS - 2
ER -