We use detailed micro-geographic data to document the location patterns of Canadian manufacturing industries and changes in those patterns during the first decade of 2000. Depending on industry classifications and years, 40 to 60% of industries are geographically localized, i.e., are spatially clustered relative to overall manufacturing. Although some industries are increasingly clustered, localization has generally decreased in Canada according to our measures. We further document the locational trends of small plants, young plants, and exporters. Their location patterns do not differ significantly from that of the other plants in their industries.

Transport corridors can generate both wider economic benefits (WEBs) and costs through their effects on diverse development outcomes. To advance understanding of how corridors could generate WEBs, this paper undertakes a quantitative review and meta‐analysis of the literature that estimates the impacts of large transport infrastructure projects. The analysis finds that characteristics of individual studies and the design of the transport infrastructure influence estimated benefits. It also shows that, on average, while corridor interventions tend to benefit economic welfare and equity, they often detrimentally impact the environment. To mitigate trade‐offs, policymakers can consider using complementary interventions.

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Using micro-level commodity flow data and micro-geographic plant-level data, we construct industry-specific ad valorem trucking rate series and measures of geographic concentration to provide evidence on the relationship between transport costs and agglomeration. We find that low transport cost industries display significantly more geographic concentration in the cross-sectional dimension, and that falling transport costs agglomerate industries in the panel dimension. The effects are large: the fall in trucking rates between 1992 and 2008 implied a 20% increase in geographic concentration on average, all else equal.

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