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Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries

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Title: Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries
Author(s): Drucker, Joshua; Feser, Edward
Subject(s): industrial structure agglomeration economies productivity manufacturing small firms
Abstract: 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. (C) 2011 Elsevier B.V. All rights reserved.
Issue Date: 2012-01
Publisher: Elsevier
Citation Info: Drucker, J. & Feser, E. 2012. Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries. Regional Science and Urban Economics, 42(1-2): 1-14. DOI: 10.1016/j.regsciurbeco.2011.04.006
Type: Article
Description: NOTICE: this is the author’s version of a work that was accepted for publication in Regional Science and Urban Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Regional Science and Urban Economics, [Vol 42, Issue 1-2, Jan 2012] DOI:10.1016/j.regsciurbeco.2011.04.006
URI: http://hdl.handle.net/10027/8422
ISSN: 0166-0462
Date Available in INDIGO: 2012-07-25
 

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