The empirics of agglomeration economies: the link with productivity
Ana Gouveia (),
Silvia Santos and
Additional contact information
Ana Gouveia: GPEARI - Research and Economic Policy Division
No 67, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia
There is a large branch of literature providing empirical evidence on the positive effects of agglomeration economies on productivity. However, for policy makers it is important to understand the role of agglomeration economies at a more micro level, disentangling the effects across industries, firm-level characteristics and time. The present survey reviews this literature, outlining the econometric approaches and methodological challenges. In general, results show that the magnitude of agglomeration economies differ substantially across industries and point to the presence of non-linear effects, also depending on the industry and product life cycles. The channels through which these effects operate may also differ – resulting from specialization externalities (within industries in the same region) and/or urbanisation externalities (across industries in the same region). Overall, the evidence reviewed in this survey highlights the need for policy makers to follow tailor-made approaches and to complement existing evidence with national level studies, maximizing potential productivity gains.
Keywords: Agglomeration economies; Specialization externalities; Urbanization externalities; Productivity (search for similar items in EconPapers)
JEL-codes: R1 O3 L6 D24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-geo, nep-sbm and nep-ure
Date: 2017-02, Revised 2017-02
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_67.pdf First version, 2017 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.gee.gov.pt:443 (http://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_67.pdf [302 Found]--> https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_67.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0067
Access Statistics for this paper
More papers in GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia Contact information at EDIRC.
Bibliographic data for series maintained by Ricardo Pinheiro Alves ().