Geographic concentration and the temporal scope of agglomeration economies: An index decomposition

Colin Wren

Regional Science and Urban Economics, 2012, vol. 42, issue 4, 681-690

Abstract: The paper decomposes a geographical concentration index between time-invariant and time varying location factors to examine the temporal scope of a spillover. This is the period of time over which one firm's activity directly affects the location of other activities in the same industry. An empirical methodology is proposed based on a frequency estimator approach. It is tested by numerical simulation and by application to data on the location of foreign-owned investment across British regions over 1985–05. Supposing that natural advantages are fixed, the paper finds that spillovers decay and have a temporal scope of about five years.

Keywords: Industrial location; Agglomeration forces; Geographic concentration index; Spillovers; Temporal scope (search for similar items in EconPapers)
JEL-codes: L10 R12 R30 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:4:p:681-690

DOI: 10.1016/j.regsciurbeco.2012.03.004

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