Geographic Concentration, Observational Equivalence and the Source of Industrial Agglomeration
Colin Wren ()
ERSA conference papers from European Regional Science Association
Ellison and Glaeser's (1997) index of geographical concentration distinguishes between natural advantages and spillovers as a source of industrial agglomeration, but the well-known 'observational equivalence' means little is known about the relative importance of these. This paper uses the difference in the temporal scope of the agglomeration source to decompose the index, and sets out a methodology for measuring each of these using the frequency estimator approach of Maurel and SÃ¨dillot (1999). When applied to a dataset on foreign investment it shows spillovers decay and on average extend over three to five years. An implication is that the geographic concentration index will mainly reflect natural advantages, revealing comparatively little about spillovers.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
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:wiw:wiwrsa:ersa10p1635
Access Statistics for this paper
More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().