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Cities and clusters: economy-wide and sector-specific effects in corporate location

Author

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  • Giulio Bottazzi
  • Ugo Gragnolati

Abstract

Are the observed spatial distributions of firms decided mostly by market-mediated, economy-wide locational forces, or rather by non-pecuniary, sector-specific ones? This work 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 Labor Systems.

Suggested Citation

  • Giulio Bottazzi & Ugo Gragnolati, 2010. "Cities and clusters: economy-wide and sector-specific effects in corporate location," LEM Papers Series 2010/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2010/16
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    File URL: http://www.lem.sssup.it/WPLem/files/2010-16.pdf
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    References listed on IDEAS

    as
    1. 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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    1. 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.
    2. Giulio Bottazzi & Pietro Dindo, 2010. "An Evolutionary Model of Firms’ Location with Technological Externalities," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 24, Edward Elgar Publishing.
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    5. Bottazzi, Giulio & Dosi, Giovanni & Fagiolo, Giorgio & Secchi, Angelo, 2008. "Sectoral and geographical specificities in the spatial structure of economic activities," Structural Change and Economic Dynamics, Elsevier, vol. 19(3), pages 189-202, September.
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    More about this item

    Keywords

    Industrial Location; Sector-specific Agglomeration; Urbanization Economy; 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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