Chapter 49 Evidence on the nature and sources of agglomeration economies

Rosenthal, Stuart S.; Strange, William C.

doi:10.1016/s1574-0080(04)80006-3

Cited by 1,689 publications

(1,574 citation statements)

References 59 publications

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“…We then use a non-parametric approach based on various distance bands and more comprehensive 4 0 The result is similar when we split the sample into a pre-and post-2000 period. 4 1 This is consistent, among others, with Rosenthal and Strange (2004). Geographic distance (or transportation costs) plays also a central role in the literature on trade and economic geography (Fujita et al 1999).…”

Section: Spilloverssupporting

confidence: 63%

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

2013

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We study the effect of place-based industrial policy on economic development, focusing on the establishment of Special Economic Zones (SEZ) in China. We use data from a panel of Chinese (prefecture-level) cities from 1988 to 2010. Our difference-in-difference estimation exploits the variation in the establishment of SEZ across time and space. We find that the establishment of a state-level SEZ is associated with an increase in the level of GDP of about 20 %. This finding is confirmed with alternative specifications and in a sub-sample of inland provinces, where the selection of cities to host the zones was based on administrative criteria. The main channel is a positive effect on physical capital accumulation, although SEZ also have a positive effect on total factor productivity and human capital investments. We also investigate whether there are spillover effects of SEZ on neighboring regions or cities further away. We find positive and often significant spillover effects. AbstractWe study the e¤ect of place-based industrial policy on economic development, focusing on the establishment of Special Economic Zones (SEZ) in China. We use data from a panel of Chinese (prefecture-level) cities from 1988 to 2010. Our di¤erence-in-di¤erence estimation exploits the variation in the establishment of SEZ across time and space. We …nd that the establishment of a state-level SEZ is associated with an increase in the level of GDP of about 20%. This …nding is con…rmed with alternative speci…cations and in a sub-sample of inland provinces, where the selection of cities to host the zones was based on administrative criteria. The main channel is a positive e¤ect on physical capital accumulation, although SEZ also have a positive e¤ect on total factor productivity and human capital investments. We also investigate whether there are spillover e¤ects of SEZ on neighboring regions or cities further away. We …nd positive and often signi…cant spillover e¤ects.JEL Codes. H72, L52, O25, O38, O53, P21, R11.

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Section: Spilloverssupporting

confidence: 63%

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

2013

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“…It was confirmed by modern econometric studies, which offer strong support for it. A doubling of city population is generally acknowledged to increase output per worker by 3 to 8% (see Rosenthal and Strange, 2004, for a comprehensive survey). To explain this fact, Smith (1776) put forward one specific mechanism that builds on three propositions.…”

Section: Introductionmentioning

confidence: 99%

Is the division of labour limited by the extent of the market? Evidence from French cities

Duranton

Jayet

2011

Journal of Urban Economics

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This paper provides supportive evidence to the notion that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce specialists occupations are over-represented in large cities. Using census data for French cities, we find strong empirical support for this prediction. ABSTRACT: This paper provides some evidence that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce occupations are over-represented in large cities. Using census data for French cities, we then provide strong empirical support for this prediction.

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“…The most dominant approach to agglomeration comparisons between industries has been in terms of scalar measures of the overall degree of industrial agglomeration (see, e.g., Rosenthal and Strange [42] for a survey). These indices are computed by measuring the discrepancy between the spatial distribution of establishments within an industry and a given reference distribution representing "complete dispersion" of establishments.…”

Section: Comparisons With Scalar Indicesmentioning

confidence: 99%

“…and similarly, is said to be dispersed if it is not localized, and 42 In these terms, the degree of localization at each distance, d , is defined by…”

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On the spatial scale of industrial agglomerations

Mori

Smith

2015

Journal of Urban Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in January 2015 AbstractStandard approaches to studying industrial agglomeration have been in terms of scalar measures of agglomeration within each industry. But such measures often fail to distinguish spatial scales of agglomeration. In a previous paper, Mori and Smith [37] proposed a pair of quantitative measures for distinguishing both the scale and degree of industrial agglomeration based on an explicit method for detecting spatial clusters. The first, designated as the global extent of industrial clusters, measures the spatial spread of these clusters in terms of the areal size of their essential containment, defined to be the (convex-solid) region containing the most significant subset of these clusters. The second, designated as the local density of industrial clusters, measures the spatial extent of individual clusters within their essential containment in terms of the areal share of that containment occupied by clusters. The present paper applies this pair of measures to manufacturing industries in Japan, and the results obtained are systematically compared to those of the most prominent scalar measures currently in use. Finally, these measures are shown to support certain predictions of new economic geography models concerning the relationship between shipment distances and spatial scales of agglomeration for individual industries.JEL Classifications : C49, L60, R12, R14

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Chapter 49 Evidence on the nature and sources of agglomeration economies

Cited by 1,689 publications

References 59 publications

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

Is the division of labour limited by the extent of the market? Evidence from French cities

On the spatial scale of industrial agglomerations

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