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Measuring Industry Agglomeration and Identifying the Driving Forces

Emma Howard, Carol Newman () and Finn Tarp ()

No 84, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Understanding industry agglomeration and its driving forces is critical for the formulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration. We propose a new measure and examine what it reveals about the importance of transport costs, labour market pooling, and technology transfer for agglomeration processes. We contrast this analysis with insights from existing measures in the literature and find very different underlying stories at work. An exceptionally rich set of data from Vietnam makes us confident that our measure is superior at least in developing country contexts.

Keywords: Industrial policy; Labor market; Manufacturing industries; Economic aspects (Technology) (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ind and nep-ure
Date: 2012
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Journal Article: Measuring industry coagglomeration and identifying the driving forces (2016) Downloads
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