IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v61y2018i3d10.1007_s00168-018-0881-6.html
   My bibliography  Save this article

Agglomeration near and far, the case of Southern California: supply chains for goods and ideas

Author

Listed:
  • Peter Gordon

    (University of Southern California)

  • John Cho

    (Southern California Association of Governments)

Abstract

Prosperity and economic growth require robust specialization and exchange. This means the formation and maintenance of numerous complex supply chains. These are emergent and include supply chains for things and supply chains for ideas. The former involve transactions; the latter can be via transactions and/or realized positive externalities. All supply chains have a geographic dimension which is also emergent. Firms carefully choose what to make vs what to buy and also where to sell or buy it, near or far. The whole system tends to be a pattern of locations that denote realized transactions (and transactions costs) as well as realized externalities. The city remains a competitive producer if these relationships are encouraged with the attendant costs contained. Cities are “engines of growth.” They offer attractive supply chain formation and management opportunities, including the various spatially situated supply chains for things and ideas. The latter are more complex than textbook discussions of non-rival goods suggest. People are keen to identify and acquire useful knowledge. Consider (1) the advantages of open-source knowledge sharing have been acknowledged; (2) ideas often denote complex tacit knowledge exchange, and (3) access to useful knowledge is priced in land markets and impacts location choice. Favorable networking and location opportunities are significant. Flexible land markets facilitate the availability of such opportunities. Access to pools of human capital is clearly beneficial, but the ability to tailor access to the peculiar requirements of the firm is even better. Detailed firm location data for various sectors for the Los Angeles metropolitan areas are analyzed to support our claims. We estimate Ripley k-functions and note differences by industry as well as firm size. There is agglomeration that is near as well as far. This finding complicates “death of distance” as well as “clustering” discussions.

Suggested Citation

  • Peter Gordon & John Cho, 2018. "Agglomeration near and far, the case of Southern California: supply chains for goods and ideas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(3), pages 517-552, November.
  • Handle: RePEc:spr:anresc:v:61:y:2018:i:3:d:10.1007_s00168-018-0881-6
    DOI: 10.1007/s00168-018-0881-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00168-018-0881-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s00168-018-0881-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wendell Cox, 2011. "Constraints on Housing Supply: Natural and Regulatory," Econ Journal Watch, Econ Journal Watch, vol. 8(1), pages 13-27, January.
    2. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 167-185, March.
    3. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
    4. Pierre Desrochers & Frederic Sautet, 2004. "Cluster-Based Economic Strategy, Facilitation Policy and the Market Process," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 17(2_3), pages 233-245, June.
    5. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    6. Henry O. Pollakowski & Susan M. Wachter, 1990. "The Effects of Land-Use Constraints on Housing Prices," Land Economics, University of Wisconsin Press, vol. 66(3), pages 315-324.
    7. Nebiyou Tilahun & David Levinson, 2009. "Contacts and Meetings: Location, Duration and Distance Traveled," Working Papers 000070, University of Minnesota: Nexus Research Group.
    8. Russell Golman & David Hagmann & George Loewenstein, 2017. "Information Avoidance," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 96-135, March.
    9. Sanford Ikeda, 2004. "Urban Interventionism and Local Knowledge," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 17(2_3), pages 247-264, June.
    10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Gordon & Karima Kourtit, 2020. "Agglomeration and clusters near and far for regional development: A critical assessment," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 387-396, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Gordon & Karima Kourtit, 2020. "Agglomeration and clusters near and far for regional development: A critical assessment," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 387-396, June.
    2. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    3. Lars Mewes, 2018. "Scaling of Atypical Knowledge Combinations in American Metropolitan Areas from 1836 to 2010," Papers in Evolutionary Economic Geography (PEEG) 1841, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    4. John O'Hagan & Karol Jan BOROWIECKI, 2009. "Birth Location, Migration and Clustering of Important Composers: Historical Patterns," Trinity Economics Papers tep0115, Trinity College Dublin, Department of Economics, revised Feb 2015.
    5. Philippe Martin & Thierry Mayer & Florian Mayneris, 2008. "Spatial Concentration and Firm-Level Productivity in France," Sciences Po publications 6858, Sciences Po.
    6. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    7. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    8. Hsu, Wen-Tai & Lu, Yi & Luo, Xuan & Zhu, Lianming, 2023. "Foreign direct investment and industrial agglomeration: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 610-639.
    9. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    10. Keith Head & Yao Amber Li & Asier Minondo, 2019. "Geography, Ties, and Knowledge Flows: Evidence from Citations in Mathematics," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 713-727, October.
    11. GUILLAIN, Rachel & HURIOT, Jean-Marie, 1999. "How information shapes cities: theory and facts," LATEC - Document de travail - Economie (1991-2003) 1999-05, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    12. İ. Akçomak & Lex Borghans & Bas Weel, 2011. "Measuring and Interpreting Trends in the Division of Labour in the Netherlands," De Economist, Springer, vol. 159(4), pages 435-482, December.
    13. Roberta CAPELLO, 2012. "Regional economics: theoretical achievements and challenges," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 5(18), pages 313-335.
    14. Gilles Duranton, 1997. "La nouvelle économie géographique : agglomération et dispersion," Économie et Prévision, Programme National Persée, vol. 131(5), pages 1-24.
    15. Giovanni Peri, 1999. "Local Human Capital Externalities: An Overlapping Generation Model and Some Evidence on Experience Premia," CESifo Working Paper Series 219, CESifo.
    16. Elisabet Viladecans Marsal, 2002. "The growth of cities: Does agglomeration matter?," Working Papers 2002/3, Institut d'Economia de Barcelona (IEB).
    17. Elisabet Viladecans Marsal, 2002. "The growth of cities: Does agglomeration matter?," Working Papers 2002/3, Institut d'Economia de Barcelona (IEB).
    18. Hanlon, W. Walker & Miscio, Antonio, 2017. "Agglomeration: A long-run panel data approach," Journal of Urban Economics, Elsevier, vol. 99(C), pages 1-14.
    19. Borowiecki, Karol Jan, 2013. "Geographic clustering and productivity: An instrumental variable approach for classical composers," Journal of Urban Economics, Elsevier, vol. 73(1), pages 94-110.
    20. Gathmann, Christina & Helm, Ines & Schönberg, Uta, 2014. "Spillover Effects in Local Labor Markets: Evidence from Mass Layoffs," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100378, Verein für Socialpolitik / German Economic Association.

    More about this item

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:61:y:2018:i:3:d:10.1007_s00168-018-0881-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.