Regional Industrial Dominance, Agglomeration Economies, and Manufacturing Plant Productivity

Regional Industrial Structure and Agglomeration Economies: An Analysis of Productivity in Three Manufacturing Industries

We investigate whether a more concentrated regional industrial structure—the dominance of a few large firms in a given industry in a region—limits agglomeration economies and ultimately diminishes the economic performance of firms in that industry, especially small ones. In an application to three industries using establishment-level production functions and a combination of confidential and pu...

Urban Productivity: Who Benefits from Agglomeration Economies?

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Agglomeration Economies: Microdata Panel Estimates from Canadian Manufacturing

This paper identifies the main sources of urban increasing returns, after Marshall. The geographical distance across which externalities flow is also examined. We bring to bear on these questions plant-level data organized in the form of a panel across the years 1989 and 1999. Plant-level production functions are estimated across the Canadian manufacturing sector as a whole and for five broad i...

Agglomeration, Productivity and Regional Growth: Production Theory Approaches

Agglomeration Economies, or production cost savings due to geographic clustering of firms and industries, can enhance the growth and development of firms, industries, regions and cities. We provide an overview of the theory and empirical literature of agglomeration, and highlight several applications from the cost function perspective. These applications include cost savings from density in the...

Problems with regional production functions and estimates of agglomeration economies: A caveat emptor for regional scientists