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Cities and Clusters: Economy-Wide and Sector-Specific Effects in Corporate Location

Author

Listed:
  • Giulio Bottazzi

    (Institute of Economics of Sant'Anna [Pisa] - SSSUP - Scuola Universitaria Superiore Sant'Anna = Sant'Anna School of Advanced Studies [Pisa])

  • Ugo Gragnolati

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Are the observed spatial distributions of firms decided mostly by economy-wide urbanization economies or rather by sector-specific localization economies? This paper finds that the latter kind of forces weight systematically more than the former in deciding firm location. The analysis uses Italian data on a variety of manufacturing and service sectors spatially disaggregated at the level of local labour market areas.

Suggested Citation

  • Giulio Bottazzi & Ugo Gragnolati, 2015. "Cities and Clusters: Economy-Wide and Sector-Specific Effects in Corporate Location," Post-Print hal-01297044, HAL.
    • Handle: RePEc:hal:journl:hal-01297044
    DOI: 10.1080/00343404.2012.739281
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    References listed on IDEAS

    as
    1. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    2. Giulio Bottazzi & Angelo Secchi, 2007. "Repeated Choices under Dynamic Externalities," LEM Papers Series 2007/08, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
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    Cited by:

    1. Giulio Bottazzi & Ugo M. Gragnolati & Fabio Vanni, 2017. "Non-linear externalities in firm localization," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1138-1150, August.
    2. Thomas Brenner, 2017. "Identification of Clusters - An Actor based Approach," Working Papers on Innovation and Space 2017-02, Philipps University Marburg, Department of Geography.
    3. Giulio Bottazzi & Fabio Vanni, 2014. "A numerical estimation method for discrete choice models with non-linear externalities," LEM Papers Series 2014/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Abiodun Moses Adetokunbo & Ochuwa Priscillia Edioye, 2020. "Response of economic growth to the dynamics of service sector in Nigeria," Future Business Journal, Springer, vol. 6(1), pages 1-10, December.
    5. Ugo M. Gragnolati & Alessandro Nuvolari, 2023. "Innovation, localized externalities, and the British Industrial Revolution, 1700-1850," LEM Papers Series 2023/26, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Giovanni Dosi & Anna Snaidero, 2024. "The nature and the strength of agglomeration drivers and their technological specificities," LEM Papers Series 2024/07, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    More about this item

    Keywords

    Model selection; Firm location; Sector-specific localization economies; Urbanization economies; Maximum likelihood estimation;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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