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Proximity and economic activity: An analysis of vendor‐university transactions

Nathan Goldschlag, Julia Lane (), Bruce A. Weinberg and Nikolas Zolas

Journal of Regional Science, 2019, vol. 59, issue 1, 163-182

Abstract: This paper uses transaction‐based data to provide new insights into the link between the geographic proximity of businesses and associated economic activity. It develops two new measures of, and a set of stylized facts about, the distances between observed transactions between customers and vendors for a research intensive sector. Spending on research inputs is more likely with businesses physically closer to universities than those further away. Firms supplying a university project in one year are more likely to subsequently open an establishment near that university. Vendors who have supplied a project, are subsequently more likely to be a vendor on the same or related project.

Date: 2019
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Working Paper: Proximity and Economic Activity: An Analysis of Vendor‐University Transactions (2017) Downloads
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