JUE Insight: Firms and industry agglomeration

Dominick Bartelme and Oren Ziv

Journal of Urban Economics, 2023, vol. 133, issue C

Abstract: Industry agglomeration can be indicative of agglomeration forces and is correlated with firm outcomes. Because multi-plant firms tend cluster their establishments in space, industry agglomeration could in part be driven by forces internal to the firm rather than across-firm spillovers. We propose and implement a decomposition of the industry agglomeration measures into within and across-firm components using U.S. census microdata. The within-firm component makes a small contribution to observed industry agglomeration for most industries and spatial scales, but accounts for 20% or more of observed agglomeration at short spatial scales for a subset of industries.

Keywords: Economic geography; Agglomeration; Firm location; Firm growth (search for similar items in EconPapers)
JEL-codes: L25 R32 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:133:y:2023:i:c:s0094119021000541

DOI: 10.1016/j.jue.2021.103372

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