Geographic concentration and establishment scale: can panel data tell us more ?

Salvador Barrios (), Luisito Bertinelli and Eric Strobl ()

No 2003036, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: In a recent study, Holmes and Stevens (2002) identify for the first time a positive relationship that exists between establishment scale and local industry concentration using a large cross-sectional plant level data set for the US. Using an exhaustive plant level panel data set for Irish manufacturing covering nearly three decades, we are able to extend their analysis in two ways. Firstly, we show that failing to control for fixed effects biases the relationship upward, although the essence of it still remains. Secondly, the link is substantially weaker when plants locate for the first time in anarea, but strengthens with age for those that survive in the long run. We link our results to recent contributions on the dynamics of geographic concentration.

Keywords: agglomeration; plant size; Ireland (search for similar items in EconPapers)
JEL-codes: C23 R12 (search for similar items in EconPapers)
Date: 2003-05
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2003036

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