The Determinants of Geographic Concentration of Industry: A Quantitative Analysis

Zhu Wang, Daniel Yi Xu and Luis Cabral
Additional contact information
Daniel Yi Xu: Duke University

No 615, 2012 Meeting Papers from Society for Economic Dynamics

Abstract: Taking the early U.S. automobile industry as an example, we evaluate two competing hypotheses on geographic concentration of industry: local externalities versus employee spinoffs. Our findings suggest that both forces contribute to industry agglomeration through their specific channels, and the spinoff effect can be viewed as a special form of local externalities. Calibrating our model to the quantitative pattern of industry evolution reveals that traditional local externalities are main driving forces of agglomeration. Particularly, the local economy and related industries play an important role by fostering new entrants. Spinoffs play a secondary role and contribute to an increased concentration at later stages of the industry life cycle.

Date: 2012
New Economics Papers: this item is included in nep-geo and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2012/paper_615.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed012:615

Access Statistics for this paper

More papers in 2012 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().