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Agglomeration and productivity: evidence from firm-level data
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre of Excellence for Science and Innovation Studies, CESIS. KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Samhällsekonomi.
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre of Excellence for Science and Innovation Studies, CESIS. KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Samhällsekonomi.ORCID iD: 0000-0002-5871-8571
2011 (English)In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 46, no 3, 601-620 p.Article in journal (Refereed) Published
Abstract [en]

Do agglomerations stimulate productivity? An extensive literature on agglomeration economies, or urban increasing returns, has analyzed this question with aggregated spatial data. This paper estimates the relationship between agglomeration and productivity at the firm level using static and dynamic models. It makes use of a rich dataset comprising register information on all manufacturing firms in Sweden with 10 or more employees over the period 1997-2004. Three things emerge. First, firms located in larger regions are more productive when controlling for size, human capital, physical capital, ownership structure, import: and export, industry classification, and time trend. Second, results from dynamic panel estimations suggests a learning effect in that agglomeration enhances firms' productivity. Third, the role of agglomeration phenomena does not seem to have a clear coupling to firm size.

Place, publisher, year, edition, pages
2011. Vol. 46, no 3, 601-620 p.
Keyword [en]
PANEL-DATA, DEVELOPMENT SPILLOVERS, ECONOMIC-GROWTH, CITIES, LOCALIZATION, INNOVATION, REGIONS, WORKERS, MODELS, ENTREPRENEURSHIP
National Category
Economics and Business Civil Engineering
Identifiers
URN: urn:nbn:se:kth:diva-34682DOI: 10.1007/s00168-009-0352-1ISI: 000290690500006Scopus ID: 2-s2.0-84861130226OAI: oai:DiVA.org:kth-34682DiVA: diva2:422579
Note
QC 20110613Available from: 2011-06-13 Created: 2011-06-13 Last updated: 2017-12-11Bibliographically approved

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