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What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns
Abstract
Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic Census. We then relate coagglomeration levels to the degree to which industry pairs share goods, labor, or ideas. To reduce reverse causality, where collocation drives input-output linkages or hiring patterns, we use data from UK industries and from US areas where the two industries are not collocated. All three of Marshall's theories of agglomeration are supported, with input-output linkages particularly important. (JEL L14, L60, O33, R23, R32)
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Cites
The Spatial Economy: Cities, Regions, and International Trade
Fujita, M., Krugman, P., & Venables, A. J. (1999) · doi:10.7551/mitpress/6389.001.0001 · Cited by 4,788
Cited by
The Surprisingly Swift Decline of US Manufacturing Employment
Pierce, J. R., & Schott, P. K. (2016) · American Economic Review · doi:10.1257/aer.20131578 · Cited by 1,363
The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade
Autor, D. H., Dorn, D., & Hanson, G. H. (2016) · Annual Review of Economics · doi:10.1146/annurev-economics-080315-015041 · Cited by 1,305
Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings
Greenstone, M., Hornbeck, R., & Moretti, E. (2010) · Journal of Political Economy · doi:10.1086/653714 · Cited by 1,138
Import Competition and the Great US Employment Sag of the 2000s
Acemoglu, D., Autor, D., Dorn, D., Hanson, G. H., & Price, B. (2016) · Journal of Labor Economics · doi:10.1086/682384 · Cited by 1,113
The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States
Glaeser, E. L., & Gottlieb, J. D. (2009) · Journal of Economic Literature · doi:10.1257/jel.47.4.983 · Cited by 1,082
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Metadata
- Authors
- Ellison, G., Glaeser, E. L., & Kerr, W. R.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2010-06-01
- Volume
- 100
- Issue
- 3
- Pages
- 1195-1213
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W3125391194
- Cited by
- 1,549
- References
- 1
- FWCI
- 186.05
- Type
- journal article
- Language
- en
- Open access
- closed
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