Is there a limit to agglomeration? Evidence from productivity of Dutch firms

Marian Rizov

ERSA conference papers from European Regional Science Association

Abstract: We compute aggregate productivity of three categories of regions, classified by level of urbanization in the Netherlands, from firm-specific total factor productivity (TFP) measures. TFP measures are estimated by a semi-parametric algorithm, within 2-digit industries, covering agriculture, manufacturing, construction, trade and services, using AMADEUS data over the period 1997-2006. We analyse the productivity differentials across urbanization categories by decomposing them into industry productivity effect and industry composition effect. Our analysis indicates that there is non-linear, inverted U-shape effect of agglomeration on productivity growth but in levels agglomeration is associated with higher productivity.

Date: 2011-09
New Economics Papers: this item is included in nep-bec, nep-eff and nep-ure
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Citations: View citations in EconPapers (1)

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Journal Article: Is there a limit to agglomeration? Evidence from productivity of Dutch firms (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa11p231

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