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Title: What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns
Citation Type: Journal Article
Publication Year: 2010
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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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