Distance-based agglomeration externalities and neighbouring firms’ characteristics

Using a natural experiment, we show that temporary place-based subsidies generate persistent effects on economic density. The spatial regression discontinuity design controls for continuous local agglomeration externalities, so we attribute an important role to capital formation in explaining persistent spatial patterns of economic activity. This persistence is driven by higher local public investment levels, which local governments could maintain after the end of the program because of a persistently higher tax base. We also find evidence for significant local relocation of economic activity, which raises doubts that the net effect of the policy is positive. Finally, we show that transfers have capitalized in land rents such that pretreatment landowners have benefited from the program. (JEL H71, H76, O18, R11, R12, R51, R58)

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Agglomeration Externalities and Sectoral Employment Growth in Cities

International Journal of Research in Business and Social Science (2147-4478) ◽

10.20525/ijrbs.v5i2.284 ◽

2016 ◽

Vol 5 (2) ◽

pp. 1-15

Author(s):

Ayse Saime Doner

Keyword(s):

Employment Growth ◽

Initial Level ◽

Regional Growth ◽

Economic Activities ◽

Employment Level ◽

Regional Employment ◽

Agglomeration Externalities ◽

Positive Effects ◽

Economic Development And Growth ◽

The Impact

Firms benefit some external effects resulting from the concentration of economic activities in certain regions. These effects called “agglomeration economies” or “agglomeration externalities” are mainly divided into three categories – MAR, Jacobs and Porter externalities –, and regarded as the determinant factors of regional economic development and growth. This study analyzes the impact of agglomeration externalities on employment growth using Turkish data of 43 sectors operating in 81 Turkish cities between years 2001 and 2007. OLS regression analyses are repeated for each sector. As far as the MAR externalities are concerned, their impact on employment growth is found negative in 23 sectors while Jacobs externalities have significant and positive effects only on 4 sectors, most of which are from service sectors. As for Porter externalities, they prove to have positive effect on the regional employment growth for 16 sectors. Moreover, urbanization externalities are found to affect the regional growth positively in 4 sectors and negatively in 1 sector. While the impact of the initial level of regional labor supply is found positive, the initial level of regional employment level has negative effect on employment growth. Finally, the share of high education level in cities is found to have almost no effect on regional growth.

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A Treatise on the Geographical Scale of Agglomeration Externalities and the MAUP

SCIENZE REGIONALI ◽

10.3280/scre2010-001002 ◽

2010 ◽

pp. 19-39

Author(s):

Martijn J. Burger ◽

Frank G. van Oort ◽

Bert van der Knaap

Keyword(s):

Employment Growth ◽

Methodological Problem ◽

Modifiable Areal Unit Problem ◽

Areal Unit ◽

Agglomeration Externalities ◽

Geographical Scale ◽

Scale Of Analysis

In this article, we test to what extent the Modifiable Areal Unit Problem (MAUP) moderates the effect of agglomeration externalities on areal sectoral employment growth by varying the initial geographical scale of analysis. Using spatial cross-regressive modelling, we find different effects of agglomeration forces across geographical scales. As the MAUP is a theoretical as well as a methodological problem, research should not only work with proper statistical specifications, but also relate this more explicitly to hypotheses concerning the geographical scale at which agglomeration externalities operate. .

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Agglomeration Production, Industry Association and Carbon Emission Performance: Based on Spatial Analysis

Sustainability ◽

10.3390/su12187234 ◽

2020 ◽

Vol 12 (18) ◽

pp. 7234 ◽

Cited By ~ 1

Author(s):

Hui Peng ◽

Yifan Wang ◽

Yisha Hu ◽

Hong Shen

Keyword(s):

Energy Conservation ◽

Emission Reduction ◽

Carbon Emission ◽

Large Scale ◽

Trade Association ◽

Emission Performance ◽

Performance Factors ◽

Agglomeration Externalities ◽

Economic Agglomeration ◽

Merchandise Trade

Current emission reduction policies have struggled to adapt to the reality of industrial spatial agglomeration and increasing industrial linkages. In response, this paper incorporates new economic geography factors such as agglomeration production and industrial (trade) association into the analysis framework of carbon emission performance factors through China’s provincial panel data and conducts empirical research. It has been found that large-scale industrial production under economic agglomeration is conducive to improving carbon emission performance and that different forms of agglomeration at different degrees of agglomeration correspond to different carbon emission performances. As the degree of agglomeration increases, the effect of reducing emissions by specialized agglomeration decreases while the effect of reducing emissions by diversified agglomeration increases. Specialized agglomeration externalities and diversified agglomeration externalities can coexist at the same time, depending on the appropriate degree of agglomeration. There is a strong negative environmental efficiency effect in the provinces with close commodity trade links, which has triggered environmental dumping and pollution transfer between provinces. In the work of energy conservation and emission reduction, we must attach great importance to the hidden carbon in domestic merchandise trade and the resulting intergovernmental environmental game, and furthermore, give full play to the “self-purification” effect of aggregate production on energy conservation and emission reduction.

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Agglomeration Externalities and Skill Upgrading in Local Labor Markets: Evidence from Prefecture-Level Cities of China

Sustainability ◽

10.3390/su12166509 ◽

2020 ◽

Vol 12 (16) ◽

pp. 6509

Author(s):

Shiyang Li ◽

Huasheng Zhu

Keyword(s):

Skilled Workers ◽

Small Cities ◽

Industrial Competitiveness ◽

Agglomeration Externalities ◽

Skill Upgrading ◽

Coastal Cities ◽

Positive Externalities ◽

Positive Effect

Skill upgrading, the increase in the percentage of skilled workers in the employment population, boosts the economic growth of developing countries and sustains their industrial competitiveness. The international economics literature discusses the effects of international trade on skill upgrading, ignoring the potential role of agglomeration externalities. This paper takes China as a case study, which has been encountering a serious challenge about how to strengthen its industrial competitiveness in the world through skill upgrading as its population dividend decreases. The panel data of 2005, 2010 and 2015 from prefecture-level cities in China were used for regression analysis to explore the benefits from agglomeration externalities, including specialization and diversification effects, on skill upgrading. The results show that both the specialization effect and diversification effect do promote skill upgrading. Furthermore, there are significant differences in the influence of local agglomeration externalities across different regions, and the positive effect brought about by specialization externalities is usually dominant in undeveloped, inland or small cities, compared with the diversification in developed or coastal cities. Besides, manufacturing agglomerations exhibit positive externalities to skill upgrading mainly through specialization, while the service agglomerations mainly promote skill upgrading by means of diversification.

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