Journal Article

Agglomeration economies and industrial location: city-level evidence

Elisabet Viladecans-Marsal

in Journal of Economic Geography

Volume 4, issue 5, pages 565-582
Published in print November 2004 | ISSN: 1468-2702
Published online November 2004 | e-ISSN: 1468-2710 | DOI: http://dx.doi.org/10.1093/jnlecg/lbh040
Agglomeration economies and industrial location: city-level evidence

More Like This

Show all results sharing these subjects:

  • Urban, Rural, and Regional Economics
  • Economic Geography

GO

Show Summary Details

Preview

There is clear evidence that economic activity, in particular industrial activity, is unequally located in Spain. Further, the results from the analysis of single manufacturing sectors show an even higher spatial concentration. The aim of this paper is to demonstrate the extent to which agglomeration economies account for this high industrial concentration. To this end, I analyse the influence of various types of agglomeration on the location of manufacturing employment in Spanish cities. I consider two types of agglomeration economies: urbanization economies (associated with a city's population and employment levels and the diversity of its productive structure) and localization economies (associated with a city's specialization in one specific sector). Special attention is given to the geographical unit of analysis by employing spatial econometric techniques that allow the influence of agglomeration effects extending beyond a city's limits to be considered. The results demonstrate that agglomeration economies influence the location of manufacturing activity, with most sectors being influenced by urbanization economies and a few by localization economies. In some sectors, population or employment levels in neighboring cities were found to enhance a city's agglomeration economies.

Keywords: Agglomeration economies; cities; industrial location; JEL classifications: R30, C5, L60

Journal Article.  0 words. 

Subjects: Urban, Rural, and Regional Economics ; Economic Geography

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.