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AGGLOMERATION ECONOMIES: MICRODATA PANEL ESTIMATES FROM CANADIAN MANUFACTURING.
- Source :
-
Journal of Regional Science . Dec2010, Vol. 50 Issue 5, p915-934. 20p. 6 Charts. - Publication Year :
- 2010
-
Abstract
- This paper identifies the main sources of urban increasing returns, after Marshall. The geographical distance across which externalities flow is also examined. We bring to bear on these questions plant-level data organized in the form of a panel across the years 1989 and 1999. Plant-level production functions are estimated across the Canadian manufacturing sector as a whole and for five broad industry groups, each characterized by the nature of its output. The panel data overcome selection bias resulting from unobserved plant-level heterogeneity that is constant over time. A related set of estimates using instrumental variables allay persistent concerns with endogeneity. Results provide strong support for Marshall's claims about the importance of buyer-supplier networks, labor market matching and spillovers. We show that spillovers enhance plant productivity within industries rather than between them and that these spillovers are highly localized. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00224146
- Volume :
- 50
- Issue :
- 5
- Database :
- Academic Search Index
- Journal :
- Journal of Regional Science
- Publication Type :
- Academic Journal
- Accession number :
- 55532301
- Full Text :
- https://doi.org/10.1111/j.1467-9787.2010.00675.x