Assessing agglomeration economies in a spatial framework with endogenous regressors

Michael Artis, Ernest Miguelez and Rosina Moreno ()

No 201112, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: This paper is concerned with the influence of agglomeration economies on economic outcomes across British regions. The concentration of economic activity in one place can foster economic performance due to the reduction in transportation costs, the ready availability of customers and suppliers, and knowledge spillovers. However, the concentration of several types of intangible assets can boost productivity as well. Thus, using an interesting dataset which proxies regional productivity, we will assess the relative importance of agglomeration and other assets, controlling for endogeneity, spatial autocorrelation and heteroscedasticity at the same time. Our results suggest that agglomeration has a definite positive influence on productivity, although our estimates of its effect are dramatically reduced when spatial dependence and other hitherto omitted variables proxying intangible assets are controlled for.

Keywords: Agglomeration economies; intangible assets; endogeneity; spatial autocorrelation; spatial HAC estimation. JEL classification:C21; J24; R10; R11; R12. (search for similar items in EconPapers)
Pages: 40 pages
Date: 2011-07, Revised 2011-07
New Economics Papers: this item is included in nep-eff, nep-geo and nep-ure
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http://www.ub.edu/irea/working_papers/2011/201112.pdf (application/pdf)

Related works:
Working Paper: Assessing Agglomeration Economies in a Spatial Framework with Endogenous Regressors (2009)
Working Paper: Assessing agglomeration economies in a spatial framework with endogenous regressors (2009)
Working Paper: Assessing agglomeration economies in a spatial framework with endogenous regressors (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:201112

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