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Marshall or Jacobs? New insights from an interaction model

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  • Jan Kluge
  • Robert Lehmann

Abstract

The debate on localization and urbanization economies usually neglects interdependencies between the two types of economies. This paper addresses this problem by employing an interaction model using German data covering four different sectors for the years 1998 to 2008. We find that localization and urbanization economies interact negatively in most of the sectors. Furthermore, we study non-linear effects of specialization and diversification. Taking these into account, the signs indicating localization and urbanization economies change at certain thresholds. Our regression analysis shows evidence of localization economies in manufacturing and basic services. Urbanization economies are generally less prevalent in our data. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Jan Kluge & Robert Lehmann, 2013. "Marshall or Jacobs? New insights from an interaction model," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 33(2), pages 107-133, October.
    • Handle: RePEc:spr:jahrfr:v:33:y:2013:i:2:p:107-133
    DOI: 10.1007/s10037-013-0076-7
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    Cited by:

    1. Robert Lehmann, 2016. "Economic Growth and Business Cycle Forecasting at the Regional Level," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 65.
    2. Mikhail Y. Afanasyev & Alexander V. Kudrov, 2021. "Economic Complexity, Embedding Degree and Adjacent Diversity of the Regional Economies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 17(2), pages 7-22.
    3. Hirte, Georg & Stephan, Andreas, 2014. "Regionale Beschäftigungswirkungen von öffentlichen Investitionen in Straßen- und Schieneninfrastruktur," Discussion Papers 2/2014, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    4. Timo Mitze & Teemu Makkonen, 2020. "When interaction matters: the contingent effects of spatial knowledge spillovers and internal R&I on firm productivity," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1088-1120, August.
    5. Luca Salvati & Margherita Carlucci & Efstathios Grigoriadis & Francesco Maria Chelli, 2018. "Uneven dispersion or adaptive polycentrism? Urban expansion, population dynamics and employment growth in an ‘ordinary’ city," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 38(1), pages 1-25, February.
    6. Stefan Arent & Alexander Eck & Michael Kloß & Oskar Krohmer, 2012. "Income Risk, Saving and Taxation:Will Precautionary Saving Survive?," ifo Working Paper Series 125, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    7. Jan Kluge & Robert Lehmann, 2012. "Spezialisierung oder Diversifikation – was trägt stärker zum sektoralen Wachstum bei?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(02), pages 19-25, April.
    8. Jean-François Hoarau, 2021. "État des lieux, menaces et perspectives futures pour le tourisme à La Réunion : un regard macroéconomique," Post-Print hal-03546567, HAL.

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    More about this item

    Keywords

    Localization and urbanization economies; Interaction models; Regional gross valued added;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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