2019
DOI: 10.18335/region.v6i1.242
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Agglomeration economies and urban productivity

Abstract: This study explores the relationship between agglomeration economies and industrial productivity between 1980 and 2010 in Ecuador. The measure of productivity used is labor productivity. We conclude that urbanization economies have a positive impact on productivity in the period analyzed. These results are consistent with other works for developed and developing countries. JEL classification: R12

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Cited by 8 publications
(8 citation statements)
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“…The Localization Economies insist on the reduction of production costs associated with the concentration of productive, commercial, and financial activities. Thus, it is associated with a decrease in corporative costs and an increase in the quality of labor, intermediate goods, and knowledge [5,6]. The economies of urbanization insist on the benefits offered by the proximity of the final markets, which allows increasing the contact with clients and final consumers.…”
Section: Introductionmentioning
confidence: 99%
“…The Localization Economies insist on the reduction of production costs associated with the concentration of productive, commercial, and financial activities. Thus, it is associated with a decrease in corporative costs and an increase in the quality of labor, intermediate goods, and knowledge [5,6]. The economies of urbanization insist on the benefits offered by the proximity of the final markets, which allows increasing the contact with clients and final consumers.…”
Section: Introductionmentioning
confidence: 99%
“…A contribution of the present paper is its empirical approach to estimating local markets distance effects in spatial analyses by carefully mapping the spatial returns to scale function. The main specification is the following: (2) where gdp i is a output of sector; pod i is a population density; pol i is a measure of predicted local potential; trd i is a retail and wholesale trade; ttd i is a exports and imports; trc i is a trucking; fms i is a firm size; sbb i is a spatial boundary between regions; tsb i is a spatial transboundary; x stands for a vector of variables that control for additional predictors that are assumed to have an influence on regional disparities; and ε is a heteroscedastic error. In this study local market potential as relative notions of space put forward by Garretsen et al [11].…”
Section: Methodsmentioning
confidence: 99%
“…A number of existing studies on the framework of New economic geography (NEG) consider factors affecting the spatial distribution of resources in emerging local markets. For example, the empirical work of Ezcurra et al [1], Torres-Gutierrez et al [2] and Abreu et al [3] substantiates the influence of trade spending, population density, trucking costs, firm size on spatial lag and firm's productivity in developing country's manufacturing sector.…”
Section: Introductionmentioning
confidence: 95%
“…The spatial concentration of financial markets implies that money tends to flow and accumulate in specific spatial areas, and are not evenly distributed in space [2,42], generating critical challenges to subnational companies accessing external financing sources. In addition, the role of urban agglomerations in providing better access to growth is a topic that has attracted considerable research and policy attention in recent years [46][47][48]. According to location theory, large cities create better opportunities for increasing returns by accumulating knowledge, the combination of labor, infrastructure, and inputs.…”
Section: The Geography Of Financial Business Servicesmentioning
confidence: 99%