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What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns

delete2010-06-01
delete876
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OA
AI
E
Ellison, Glenn *
E
Edward L. Glaeser
W
William R. Kerr
DOI:10.1257/aer.100.3.1195delete
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Abstract

Abstract

En 中文
Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic Census. We then relate coagglomeration levels to the degree to which industry pairs share goods, labor, or ideas. To reduce reverse causality, where collocation drives input-output linkages or hiring patterns, we use data from UK industries and from US areas where the two industries are not collocated. All three of Marshall's theories of agglomeration are supported, with input-output linkages particularly important.
Keywords:
GEOGRAPHIC CONCENTRATION
KNOWLEDGE SPILLOVERS
PATENT CITATIONS
UNITED-STATES
MANUFACTURING-INDUSTRIES
ECONOMIC-GEOGRAPHY
SPECIALIZATION
LOCALIZATION
ADVANTAGE
RESOURCES

Journal

American Economic Review cover
American Economic Review
IF:
11.6
Papers:
5.0K
Citations:
7.5W

Organization

H
Harvard University
Scholars:
26.5W
Papers: 22.0W
Citations: 28.7W
N
National Bureau of Economic Research
Scholars:
2.0K
Papers: 2.4K
Citations: 1.1W