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Agglomeration and location: a nonparametric approach

Josep Maria Arauzo Carod and Daniel Liviano
Authors registered in the RePEc Author Service: Josep-Maria Arauzo-Carod

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: The aim of this article is to assess the effects of several territorial characteristics, specifically agglomeration economies, on industrial location processes in the Spanish region of Catalonia. Theoretically, the level of agglomeration causes economies which favour the location of new establishments, but an excessive level of agglomeration might cause diseconomies, since congestion effects arise. The empirical evidence on this matter is inconclusive, probably because the models used so far are not suitable enough. We use a more flexible semiparametric specification, which allows us to study the nonlinear relationship between the different types of agglomeration levels and location processes. Our main statistical source is the REIC (Catalan Manufacturing Establishments Register), which has plant-level microdata on location of new industrial establishments. Keywords: agglomeration economies, industrial location, Generalized Additive Models, nonparametric estimation, count data models.

Keywords: Localització industrial; Agglomeration economies; Industrial location; Generalized Additive Models; Nonparametric estimation; Count data models (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (6)

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