Agglomeration economies in the Netherlands

Joeri Gorter and Suzanne Kok

No 124, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: In this paper we measure the strength of agglomeration economies on the basis of Dutch regional data. The drift to the city has been going on for hundreds of years. As a result, most economic activity is concentrated in small geographical areas. The advantages of proximity of people and firms go under the name 'agglomeration economies'. We regress regional labour productivity on a set of agglomeration indices, and find evidence for a productivity effect of concentration of production with a malus for industrial variety. Thus, the evidence supports Marschall-Arrow-Romer economies. The evidence does not support, however, Jacobs economies, nor variants of the Creative Class Hypothesis.

JEL-codes: O18 R11 R12 (search for similar items in EconPapers)
Date: 2009-04
New Economics Papers: this item is included in nep-eff, nep-geo and nep-ure
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:124

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