The Role of Two Agglomeration Economies in the Production of Innovation: A Comparison between Localization Economies and Urbanization Economies

2001 ◽  
Vol 2 (2) ◽  
pp. 103-117 ◽  
Author(s):  
Jung-Hoon Ki
Keyword(s):  
Agglomeration Economies ◽  
Localization Economies ◽  
Urbanization Economies

scholarly journals Agglomeration Economies: An Analysis of the Determinants of Employment in the Cities of Ecuador

Symmetry ◽  
2019 ◽  
Vol 11 (11) ◽  
pp. 1421 ◽  
Author(s):  
Torres-Gutiérrez ◽  
Correa-Quezada ◽  
Álvarez-García ◽  
Río-Rama
Keyword(s):  
Economic Growth ◽  
Instrumental Variables ◽  
Employment Growth ◽  
Positive Impact ◽  
Agglomeration Economies ◽  
Urban Employment ◽  
Level Data ◽  
Localization Economies ◽  
The Empirical Analysis

The objective of this investigation is to study the role of agglomeration economies (manufacturing) in urban employment growth, as a proxy for economic growth, between 1980 and 2010 in Ecuador. The three measures of agglomeration-specialization, diversity, and density-are tested to determine their effect on employment growth in industries. The empirical analysis is based on firm- and city-level data from manufacturing activities. A model is proposed to estimate the effect of agglomeration economies on the growth of employment and a regression is conducted using instrumental variables. In particular, the two-stage least squares (2SLS) estimator is used. We conclude that localization economies measured by a specialization index have a positive impact on the growth of employment in the period analyzed. The results are similar to those obtained by other work carried out both in developed and developing countries.

scholarly journals Regional Disparities in Turkey: A Socio-Economic Perspective

2020 ◽  
Vol 9 (3) ◽  
pp. 103
Author(s):  
Hacer Simay Karaalp-Orhan
Keyword(s):  
Economic Development ◽  
Low Income ◽  
Social Indicators ◽  
Value Added ◽  
Regional Disparities ◽  
Localization Economies ◽  
Urbanization Economies ◽  
Industry Sectors ◽  
Very High ◽  
East West

Economic development, for any country, is one of the most important objectives to be achieved. However, development cannot be realized in all regions and provinces of a county at the same time and speed. Turkey also struggles against a persistent economic development problem among regions in east-west and coast-inland for many years. This study aims to analyze the regional inequalities in Turkey under the scope of economic, demographic and social indicators from 2007 to the latest data. The results indicate that TR-10 Istanbul is the engine region of Turkey in terms of industrialization and development with the highest contribution (31%) based on service and industry sectors, to the gross value added. Other industrialized regions are the Aegean region where localization economies mainly dominated and the East Marmara and TR51-Ankara regions where urbanization economies operated in. Agricultural activities heavily concentrated in Aegean, Antalya, Konya and Şanlıurfa regions. In these regions, participation in the labour market is also very high. However, the highest income inequality and poverty is also found in TR10, TR62 and TR21 regions. The less developed region is the Southeast Anatolian region in terms of low income, education, health and high unemployment, young population and immigration rates. Keywords: Regional disparities, regional development, socio-economic indicators, Turkey

Firms' death rate and spatial agglomeration. Evidence on the resilience of italian local Production systems

2012 ◽  
pp. 101-126
Author(s):  
Giulio Cainelli ◽  
Sandro Montresor ◽  
Marzetti Giuseppe Vittucci
Keyword(s):  
Production Systems ◽  
Local Level ◽  
Preliminary Evidence ◽  
Industrial Clusters ◽  
Industrial Districts ◽  
Spatial Agglomeration ◽  
Start Up ◽  
Urbanization Economies ◽  
Italian Provinces

The paper investigates the role spatial agglomeration has in affecting firm mortality of industries. In particular, the role of variety and specialization is addressed, along with the extent to which industrial clusters can be retained industrial districts. Empirical evidence is provided for a large panel of Italian provinces and manufacturing sectors, over the period 1995-2007. Urbanization economies, rather than localization ones, significantly diminish firm mortality of industries at the local level. The same holds true for industrial variety, even far from the specialization core. Industrial districts, instead, are neither safe nor dangerous places for firms, unless variety is controlled for. Preliminary evidence is also provided by the serial and spatial autocorrelation of firm' death and start-up rates.

Knowledge-Based Externalities and Geographical Clusters

2014 ◽  
pp. 269-286 ◽  
Author(s):  
Nunzia Carbonara
Keyword(s):  
Simulation Analysis ◽  
Geographic Area ◽  
Agglomeration Economies ◽  
Agent Based ◽  
Knowledge Based ◽  
Pecuniary Externalities ◽  
Positive Externalities ◽  
Geographical Cluster ◽  
Geographical Clustering

Agglomeration economies are positive externalities associated with the co-location of firms within a bounded geographic area. Traditionally, these agglomerative advantages have been expressed in terms of pecuniary externalities and they have been identified as one of the key sources of geographical cluster (GC) competitive advantage. However, in the last years the basics of competition are changed and the ability of firms to create new knowledge is more crucial for success rather than the efficiency in production. This has shifted the attention of scholars on the role of knowledge and learning in GCs. In line with these studies, this chapter suggests that agglomeration economies are related to both pecuniary externalities and knowledge-based externalities. The latter are benefits that co-located firms can gain in terms of development of knowledge. To investigate whether knowledge-based externalities affect geographical clustering of firms, an agent-based model is developed. By using this model, a simulation analysis is carried out.

Knowledge-Driven Agglomeration Processes

2016 ◽  
pp. 373-396
Author(s):  
Nunzia Carbonara
Keyword(s):  
Economic Geography ◽  
Simulation Analysis ◽  
Geographic Area ◽  
Agglomeration Economies ◽  
Agent Based ◽  
Knowledge Based ◽  
Pecuniary Externalities ◽  
Positive Externalities ◽  
Geographical Clusters

According to the economic geography literature, firms tend to geographically cluster when agglomeration economies exist. These are positive externalities associated with the co-location of firms within a bounded geographic area. Traditionally, the agglomerative advantages have been expressed in terms of pecuniary externalities and they have been identified as one of the key sources of the geographical clusters' competitive advantage. However, in the last years the basics of competition are changed and the ability of firms to create new knowledge is more crucial for success rather than the efficiency in production. This has shifted the attention of scholars on the role of knowledge and learning for the competitiveness and success of geographical clusters. In line with these studies, the chapter suggests that agglomeration economies are related to both pecuniary externalities and knowledge-based externalities. The latter are benefits that co-located firms can gain in terms of development of knowledge. To investigate whether knowledge-based externalities affect geographical clustering of firms, an agent-based model is developed. By using this model, a simulation analysis is carried out.

scholarly journals WHY MANUFACTURING INDUSTRY PERSISTED TO CLUSTER SPATIALLY IN JAVA?

2003 ◽  
Vol 5 (2) ◽  
pp. 221
Author(s):  
Mudrajad Kuncoro
Keyword(s):  
Imperfect Competition ◽  
Manufacturing Industry ◽  
Statistical Significance ◽  
New Economic Geography ◽  
Trade Theory ◽  
Geographic Concentration ◽  
Regional Specialization ◽  
Localization Economies ◽  
Urbanization Economies ◽  
Regional Dummy

This paper attempts to examine which theory is best in explaining the geographic concentration in Java, an island in which most of the Indonesia’s large and medium manufacturing industries have located overwhelmingly. Using the regional specialization index as a measure of geographic concentration of manufacturing industry and pooling data over the period 1991-J996, our econometric analysis integrates the perspectives of industry, region (space), and time. The most striking result is that most of the NCT (Neo-Classical Theory) hypotheses can be rejected. Moreover, most of the findings support the NTT (New Trade Theory) and NEG (New Economic Geography). Our findings suggest that manufacturing firms in Java seek to locate in more populous and densely populated areas to enjoy both localization economies and urbanization economies, as shown by the significance of scale economies and income per capita. The interplay of agglomeration economies is intensified by the imperfect competition of Java's market structure. This paper gives empirical evidence with respect to path dependency hypotheses. This finding supports the NEG's belief that history matters: older firms tend to enhance regional specialization. In addition, the results, as shown by statistical significance of its regional dummy, suggest that most of the specialized industries in Java have better access to infrastructure.

The role of firm location and agglomeration economies on export propensity: the case of Portuguese SMEs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosa Portela Forte ◽  
Ana Rita Sá
Keyword(s):  
Small And Medium Enterprises ◽  
Probit Model ◽  
Agglomeration Economies ◽  
Export Intensity ◽  
Content Type ◽  
Congestion Costs ◽  
Export Spillovers ◽  
Medium Enterprises ◽  
High Congestion

PurposeThe present study seeks to assess whether the firm's location and agglomeration economies affect the firm's export propensity.Design/methodology/approachThis work is based on a sample of 20,234 Portuguese manufacturing small and medium enterprises (SMEs) and resort to the estimation of a probit model.FindingsEmpirical results show that the location and agglomeration economies have an important role in determining the firm's export propensity. In particular, the study concludes that SMEs located in coastal areas or close to the border are more likely to export. Furthermore, the study also concludes that specialization economies are an important driver of small and medium-sized firms' export propensity while export spillovers are particularly relevant for micro firms. However, urbanization, measured through firms density in NUTS3 region, negatively affects firms' export propensity, which may be due to high congestion costs in the regions with a high firms density.Originality/valueThis study focus on the determinants of the decision to export or the export propensity, particularly the external factors such as the firm's location and agglomeration economies. This is a relatively neglected topic in the literature that has focused on the determinants of export intensity.

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