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The agglomeration economies associated with information technology activities: an empirical study of the US economy

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  • Christian Le Bas
  • Frédéric Miribel

Abstract

This paper deals with the effects of the geographic concentration of economic activity on productivity through agglomeration economies. We split economic activity into information technology (IT)-related activity and all other activities. The main contribution of this paper is to measure and compare the agglomeration economies associated with the geographic concentration of these two types of economic activities. We set out three empirical models of productivity equations (concentration model, localization model, density model) and give estimates based on US data at the state and county levels for the year 1990. We show that the geographic concentration of IT employment has a greater positive effect on labor productivity than the geographic concentration of all other activities. This confirms stronger agglomeration economies in the geographic areas where IT activity is more concentrated. This analysis suggests that the so-called 'death of distance' argument is not relevant for IT activity. Copyright 2005, Oxford University Press.

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  • Christian Le Bas & Frédéric Miribel, 2005. "The agglomeration economies associated with information technology activities: an empirical study of the US economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(2), pages 343-363, April.
    • Handle: RePEc:oup:indcch:v:14:y:2005:i:2:p:343-363
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    Citations

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    Cited by:

    1. Frédéric MIRIBEL, 2006. "Is There A Productivity Paradox At The Regional Level? An Empirical Study Of The Growth Contribution Of It Capital Stock At The State-Level In The United States Between 1977 And 1997," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 24, pages 109-133.
    2. Paul J.J. Welfens, 2008. "Growth, Structural Dynamics and EU Integration in the Context of the Lisbon Agenda," EIIW Discussion paper disbei158, Universitätsbibliothek Wuppertal, University Library.
    3. Simon Condliffe & William Latham & Christian Le Bas & Frédéric Miribel, 2008. "Agglomeration Economies within IT-Producing and IT-Consuming Industries in U.S. Regions," Working Papers 08-24, University of Delaware, Department of Economics.
    4. Bashir, Sadaf & Sadowski, B. M., 2014. "General purpose technologies: A survey, a critique and future research directions," 25th European Regional ITS Conference, Brussels 2014 101443, International Telecommunications Society (ITS).
    5. Abdullah M. Khan, 2012. "Impact of globalization on productivity of u.s. Manufacturing labor 1988-2003," International Journal of Business and Social Research, LAR Center Press, vol. 2(5), pages 203-218, October.
    6. Rickman, Dan S., 2007. "A Brief on When and How Rural Economic Development Should be Done," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(1), pages 1-4.
    7. Simon CONDLIFFE & William R. LATHAM, 2006. "Not So Footloose After All: Locational Behavior Of Information Technology Establishments In The United States, 1989-1998," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 24, pages 45-60.
    8. Abdullah M. Khan, 2012. "Impact of globalization on productivity of u.s. Manufacturing labor 1988-2003," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(5), pages 203-218, October.

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