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Tracing the Sources of Local External Economies

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  • Edward J. Feser

    (Department of City and Regional Planning, University of North Carolina, CB 3140, New East Building, Chapel Hill, NC 27599 3140, USA, feser@email.unc.edu)

Abstract

In a cross-sectional, establishment-level analysis using confidential secondary data, the paper evaluates the influence of commonly postulated sources of localised external economies-supplier access, labour pools and knowledge spillovers-on the productivity of two US manufacturing sectors (farm and garden machinery and measuring and controlling devices). Measures incorporating different distance-decay specifications provide evidence of the spatial extent of the various externality sources. Chinitz's (1961) hypothesis of the link between local industrial organisation and agglomeration economies is also investigated. The results show evidence of labour-pooling economies and university-linked knowledge spillovers in the case of the higher-technology measuring and controlling devices sector, while access to input supplies and location near centres of applied innovation positively influences efficiency in the farm and garden machinery industry. Both sectors benefit from proximity to producer services, although primarily at a regional rather than a highly localised scale.

Suggested Citation

  • Edward J. Feser, 2002. "Tracing the Sources of Local External Economies," Urban Studies, Urban Studies Journal Limited, vol. 39(13), pages 2485-2506, December.
    • Handle: RePEc:sae:urbstu:v:39:y:2002:i:13:p:2485-2506
    DOI: 10.1080/0042098022000027077
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    3. Jaime Sobrino, 2014. "Urban competitiveness and industrial clusters in Mexico," Chapters, in: Pengfei Ni & Zheng Qiongjie (ed.), Urban Competitiveness and Innovation, chapter 15, pages 252-274, Edward Elgar Publishing.
    4. Pengfei Ni & Zheng Qiongjie (ed.), 2014. "Urban Competitiveness and Innovation," Books, Edward Elgar Publishing, number 15020.
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    6. Aarstad, Jarle & Kvitastein, Olav A. & Jakobsen, Stig-Erik, 2016. "Related and unrelated variety as regional drivers of enterprise productivity and innovation: A multilevel study," Research Policy, Elsevier, vol. 45(4), pages 844-856.
    7. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.

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