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Title: What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns

Citation Type: Journal Article

Publication Year: 2010

Abstract: Why do firms cluster near one another? We test Marshalls theories of industrialagglomeration by examining which industries locate near one another, orcoagglomerate. We construct pairwise coagglomeration indices for US manufacturingindustries from the Economic Census. We then relate coagglomerationlevels to the degree to which industry pairs share goods, labor, or ideas.To reduce reverse causality, where collocation drives input-output linkages orhiring patterns, we use data from UK industries and from US areas where thetwo industries are not collocated. All three of Marshalls theories of agglomerationare supported, with input-output linkages particularly important.

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Authors: Ellison, Glenn; Kerr, William R.; Glaeser, Edward L.

Periodical (Full): American Economic Review

Issue: 3

Volume: 100

Pages: 1195-1213

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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