The mechanisms of agglomeration: Evidence from the effect of inter-industry relations on the location of new firms

By Jordi Jofre-Monseny, Raquel Marín-López, Elisabet Viladecans-Marsal. 2011

282 citations recorded by the source corpus.

The objective of this paper is to explore the relative importance of each of Marshall’s agglomeration mechanisms by examining the location of new manufacturing firms in Spain. In particular, we estimate the count of new firms by industry and location as a function of (pre-determined) local employment levels in industries that: (1) use similar workers (labor market pooling); (2) have a customer–supplier relationship (input sharing); and (3) use similar technologies (knowledge spillovers). We examine the variation in the creation of new firms across cities and across municipalities within large cities to shed light on the geographical scope of each of the three agglomeration mechanisms. We find evidence of all three agglomeration mechanisms, although their incidence differs depending on the geographical scale of the analysis.

Subfields: Economics and Econometrics, Urban Studies

View Paper: https://www.semanticscholar.org/paper/1bf50f5074bd5c3d559bf127d754bd8f09dd5617

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Citations in the corpus

Location determinants of high-growth firms (2015, unknown): “Citing Kirchhoff (1994), Bos and Stam (2013) caution (p.”
Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields (2016, background): “…and the presence of large-scale industries may make it attractive for firms in related industries to establish themselves in these regions, due to localization economies (e.g., Glaeser and Kerr, 2009; Jofre-Monseny et al., 2011), while industries with relatively small firm sizes remain absent.”
Marshallian Labour Market Pooling: Evidence From Italy (2013, background): “Jofre-Monseny et al. (2011) carry out a similar exercise and also find evidence consistent with labour market pooling.1 There is also a smaller but growing empirical literature that has looked specifically at labour market pooling.”