Assessing Agglomeration Economies in a Spatial Framework with Endogenous Regressors

Michael John Artis (), Ernest Miguelez () and Rosina Moreno

SERC Discussion Papers from Spatial Economics Research Centre, LSE

Abstract: This paper is concerned with the influence of agglomeration economies on economicoutcomes across British regions. The concentration of economic activity in one place canfoster economic performance due to the reduction in transportation costs, the readyavailability of customers and suppliers, and knowledge spillovers. However, theconcentration of several types of intangible assets can boost productivity as well. Thus, usingan interesting dataset which proxies regional productivity, we will assess the relativeimportance of agglomeration and other assets, controlling both for endogeneity and forspatial autocorrelation at the same time. Our results suggest that agglomeration has a definitepositive influence on productivity, although our estimates of its effect are dramaticallyreduced when spatial dependence and other hitherto omitted variables proxying intangibleassets are controlled for.

Keywords: agglomeration economies; intangible assets; endogeneity; spatial autocorrelation (search for similar items in EconPapers)
JEL-codes: C21 J24 R10 R11 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
Date: 2009-06
View list of references

Downloads: (external link)
http://www.spatialeconomics.ac.uk/textonly/SERC/pu ... nload/sercdp0023.pdf (application/pdf)

Related works:
Working Paper: Assessing agglomeration economies in a spatial framework with endogenous regressors (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cep:sercdp:0023

Access Statistics for this paper

More papers in SERC Discussion Papers from Spatial Economics Research Centre, LSE
Series data maintained by ().