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

Luis Cabral (), Zhu Wang and Yi Xu ()

No 18973, NBER Working Papers from National Bureau of Economic Research, Inc

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 work as a special type of intra-industry spillovers. The presence of other firms in the same industry has a negligible (or even negative) effect. Finally, local inputs account for some agglomeration in the short run, but the effects are much more profound in the long run.

JEL-codes: L26 L6 R1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-geo, nep-tre and nep-ure
Date: 2013-04
Note: IO PR
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Published as Luís Cabral & Zhu Wang & Daniel Yi Xu, 2018. "Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry," Review of Economic Dynamics, .

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