Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry

Luis Cabral, Daniel Yi Xu and Zhu Wang

No 9435, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry spillovers, particularly the development of the carriage and wagon industry, play an important role. Spinouts play a secondary role and only contribute to agglomeration at later stages of industry evolution. The presence of other firms in the same industry has a negligible (or maybe even negative) effect on agglomeration. Finally, location fixed-effects account for some agglomeration, though to a lesser extent than inter-industry spillovers and spinouts.

Keywords: Employee spinouts; Industry agglomeration; Local externalities (search for similar items in EconPapers)
JEL-codes: J6 L0 R1 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-cse, nep-geo, nep-tre and nep-ure
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Competitor, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry (2018)
Working Paper: Competitors, complementors, parents and places: Explaining regional agglomeration in the U.S. auto industry (2013)
Working Paper: Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry (2013)
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