Localization Economies and Establishment Scale: A Dartboard Approach

Octávio Figueiredo, Paulo Guimaraes and Douglas Woodward ()

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: This paper reexamines the relationship between geographic concentration of an industry (localization) and establishment scale. We use an approach that builds on Ellison & Glaeser’s (1997) dartboard location model to measure localization. Contrary to Holmes & Stevens’s (2002) pioneering analysis based on employment location quotients, but in line with the predictions that follow from Alfred Marshall’s concept of localization economies, we find evidence that plants located in areas where an industry exhibits concentration in excess are smaller than plants in the same industry outside such areas.

Keywords: dartboard location model; localization; establishment scale (search for similar items in EconPapers)
JEL-codes: L11 R12 R39 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2007-09
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:247

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