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What Causes Industry Agglomeration Evidence from Coagglomeration Patterns

作者: 点击数: 发布日期:2014-04-12

Many industries are geographicallyconcentrated. Many mechanisms that could account for such agglomeration havebeen proposed. We note that these theories make different predictions aboutwhich pairs of industries should be coagglomerated. We discuss the measurementof coagglomeration and use data from the Census Bureau's Longitudinal ResearchDatabase from 1972 to 1997 to compute pairwise coagglomeration measurements forU.S. manufacturing industries. Industry attributes are used to constructmeasures of the relevance of each of Marshall's three theories of industryagglomeration to each industry pair: (1) agglomeration saves transport costs byproximity to input suppliers or final consumers, (2) agglomeration allows forlabor market pooling, and (3) agglomeration facilitates intellectualspillovers. We assess the importance of the theories via regressions ofcoagglomeration indices on these measures. Data on characteristics ofcorresponding industries in the United Kingdom are used as instruments. We findevidence to support each mechanism. Our results suggest that input-outputdependencies are the most important factor, followed by laborpooling.


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