Article
Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries.
Regional Science and Urban Economics
(2012)
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.
Keywords
- Industrial structure,
- agglomeration economies,
- manufacturing,
- productivity,
- small firms
Disciplines
Publication Date
January 1, 2012
DOI
10.1016/j.regsciurbeco.2011.04.006
Citation Information
Joshua Drucker and Edward Feser. "Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries." Regional Science and Urban Economics Vol. 42 Iss. 1-2 (2012) p. 1 - 14 Available at: http://works.bepress.com/jdrucker/1/