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JUE Insight: Firms and industry agglomeration

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  • Bartelme, Dominick
  • Ziv, Oren

Abstract

Industry agglomeration can be indicative of agglomeration forces and is correlated with firm outcomes. Because multi-plant firms tend cluster their establishments in space, industry agglomeration could in part be driven by forces internal to the firm rather than across-firm spillovers. We propose and implement a decomposition of the industry agglomeration measures into within and across-firm components using U.S. census microdata. The within-firm component makes a small contribution to observed industry agglomeration for most industries and spatial scales, but accounts for 20% or more of observed agglomeration at short spatial scales for a subset of industries.

Suggested Citation

  • Bartelme, Dominick & Ziv, Oren, 2023. "JUE Insight: Firms and industry agglomeration," Journal of Urban Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:juecon:v:133:y:2023:i:c:s0094119021000541
    DOI: 10.1016/j.jue.2021.103372
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    Cited by:

    1. Bartelme, Dominick & Ziv, Oren, 2024. "The internal geography of firms," Journal of International Economics, Elsevier, vol. 148(C).
    2. Haichao Yu & Shangze Dai & Haiqian Ke, 2024. "Industrial collaborative agglomeration and green economic efficiency—Based on the intermediary effect of technical change," Growth and Change, Wiley Blackwell, vol. 55(2), June.

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    More about this item

    Keywords

    Economic geography; Agglomeration; Firm location; Firm growth;
    All these keywords.

    JEL classification:

    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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