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Heterogeneous Agglomeration

Giulia Faggio (), Olmo Silva () and William Strange

SERC Discussion Papers from Spatial Economics Research Centre, LSE

Abstract: Many prior treatments of agglomeration either explicitly or implicitly suppose that all industries agglomerate for the same reasons, with traditional Marshallian (1890) factors affecting all industries similarly. An important instance of this approach is the extrapolation of the agglomeration experience of one key sector or cluster to the larger economy. Another is the pooling of data to look at common tendencies in agglomeration. This paper uses UK establishment level data on coagglomeration to document heterogeneity across industries in the microfoundations of agglomeration economies. The pattern of heterogeneity that we document is consistent with both traditional Marshallian theories and with alternative approaches that emphasize the adaptive and organizational aspects of agglomeration. *Disclaimer: This work was based on data from the Business Structure Database and the Quarterly UK Labour Force Survey, produced by the Office for National Statistics (ONS) and supplied by the Secure Data Service at the UK Data Archive. The data are Crown Copyright and reproduced with the permission of the controller of HMSO and Queen's Printer for Scotland. The use of the data in this work does not imply the endorsement of ONS or the Secure Data Service at the UK Data Archive in relation to the interpretation or analysis of the data. This work uses research datasets which may not exactly reproduce National Statistics aggregates.

Keywords: Agglomeration; microfoundations; heterogeneity; clusters (search for similar items in EconPapers)
JEL-codes: R00 R28 (search for similar items in EconPapers)
Date: 2014-01
New Economics Papers: this item is included in nep-geo and nep-ure
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Related works:
Journal Article: Heterogeneous Agglomeration (2017) Downloads
Working Paper: Heterogeneous agglomeration (2017) Downloads
Working Paper: Heterogeneous agglomeration (2014) Downloads
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