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Agglomeration Economies: Localization or Urbanization?

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  • Ronald L. Moomaw

    (Oklahoma State University, Stillwater, OK 74078)

Abstract

I estimate localization and urbanization economies with a methodology and data different from those of Henderson and Nakamura. After demonstrating the problems associated with using a single agglomeration variable, I present my estimates. As Nakamura found for Japanese cities, I find evidence of both localization economies and urbanization economies but I also find evidence of urbanization diseconomies in some industries, as did Henderson. My evidence for localization and urbanization economies in American cities is stronger than Henderson's evidence. Finally, I show that the pattern of agglomeration economies by industry is consistent with observed patterns of industrial location.

Suggested Citation

  • Ronald L. Moomaw, 1988. "Agglomeration Economies: Localization or Urbanization?," Urban Studies, Urban Studies Journal Limited, vol. 25(2), pages 150-161, April.
    • Handle: RePEc:sae:urbstu:v:25:y:1988:i:2:p:150-161
    DOI: 10.1080/00420988820080201
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    References listed on IDEAS

    as
    1. Nakamura, Ryohei, 1985. "Agglomeration economies in urban manufacturing industries: A case of Japanese cities," Journal of Urban Economics, Elsevier, vol. 17(1), pages 108-124, January.
    2. Kelley, Kevin C., 1977. "Urban disamenities and the measure of economic welfare," Journal of Urban Economics, Elsevier, vol. 4(4), pages 379-388, October.
    3. Aberg, Yngve, 1973. "I. regional productivity differences in Swedish manufacturing," Regional and Urban Economics, Elsevier, vol. 3(2), pages 131-155, May.
    4. Henderson, J Vernon, 1983. "Industrial Bases and City Sizes," American Economic Review, American Economic Association, vol. 73(2), pages 164-168, May.
    5. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59(3), pages 185-185.
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