Is there a limit to agglomeration? Evidence from productivity of Dutch firms

Marian Rizov, Arie Oskam and Patrick Walsh ()

Regional Science and Urban Economics, 2012, vol. 42, issue 4, 595-606

Abstract: We compute aggregate productivity of three categories of regions, classified by the level of urbanization and density of economic activity in the Netherlands, from firm-specific total factor productivity (TFP) measures. TFP measures are estimated by a semi-parametric algorithm, within 2-digit industries, covering agriculture, manufacturing, construction, trade and services, using AMADEUS data over the period 1997–2006. We analyse the productivity differentials across urbanization categories by decomposing them into industry productivity effect and industry composition effect. Our analysis indicates that there is non-linear net effect of agglomeration on productivity growth but in levels agglomeration is associated with higher productivity.

Keywords: Agglomeration; Factor prices; Total factor productivity; Structural estimation; The Netherlands (search for similar items in EconPapers)
JEL-codes: D24 R11 R30 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (16)

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Working Paper: Is there a limit to agglomeration? Evidence from productivity of Dutch firms (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:4:p:595-606

DOI: 10.1016/j.regsciurbeco.2012.02.006

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