Vertical Disintegration in Marshallian Industrial Districts

Octávio Figueiredo, Paulo Guimaraes and Douglas Woodward ()

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

Abstract: This paper uses a novel measure and detailed plant-level Portuguese data to reexamine the Marshallian hypothesis that specialization and the vertical disintegration of firms should be greater in areas where an industry concentrates. Our measure of firm specialization and vertical disintegration employs a Herfindhal index constructed with occupational shares for all workers within the firm. Controlling for firm size and sector of activity, we find that vertical disintegration is around three percent higher in areas where industries agglomerate. Sensitivity tests reveal that this positive relation is remarkably robust across different specifications.

Keywords: Vertical Disintegration of Firms; Agglomeration; Localization Economies (search for similar items in EconPapers)
JEL-codes: L25 R12 R39 (search for similar items in EconPapers)
Pages: 23 pages.
Date: 2008-06
New Economics Papers: this item is included in nep-com, nep-cse, nep-geo, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Vertical disintegration in Marshallian industrial districts (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:280

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