IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa10p841.html
   My bibliography  Save this paper

Regional industrial firm growth under monopolistic competition and human capital externalities

Author

Listed:
  • Stephan Brunow

Abstract

This paper analyses regional firm growth on industry level. To address this question the theoretical models of the New Economic Geography literature of Baldwin (1999), Baldwin et al. (2001) and Martin and Ottaviano (1999) are taken and augmented to a multi-sector approach to find an empirical specification. The main difference to existing literature on firm growth is that interregional demand linkages and human capital spillover and agglomeration effects are explicitly taken into account. They are derived by theoretical considerations. The approach is flexible enough to deal with competitive markets and monopolistic competition situations as well. From an empirical point of view a Spatial Durbin Model on industrial level results. Typically within the firm growth literature productivity per worker is a crucial explanatory variable. Our model suggests that average productivity per firm, and especially the market potential of a single firm, is relevant for firm formation. We employ German data (establishment history panel) in a Panel setting.

Suggested Citation

  • Stephan Brunow, 2011. "Regional industrial firm growth under monopolistic competition and human capital externalities," ERSA conference papers ersa10p841, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa10p841
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper841.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 2021. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 2, pages 25-57, World Scientific Publishing Co. Pte. Ltd..
    2. Baldwin, Richard E., 1999. "Agglomeration and endogenous capital," European Economic Review, Elsevier, vol. 43(2), pages 253-280, February.
    3. repec:bla:econom:v:67:y:2000:i:267:p:307-24 is not listed on IDEAS
    4. David Audretsch & Michael Fritsch, 1999. "The Industry Component of Regional New Firm Formation Processes," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 239-252, November.
    5. Heiko Bergmann & Rolf Sternberg, 2007. "The Changing Face of Entrepreneurship in Germany," Small Business Economics, Springer, vol. 28(2), pages 205-221, March.
    Full references (including those not matched with items on IDEAS)

    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. Stephan Brunow & Peter Nijkamp, 2013. "Firm Formation and Agglomeration under Monopolistic Competition," Tinbergen Institute Discussion Papers 13-134/VIII, Tinbergen Institute.
    2. Stephan Brunow & Peter Nijkamp, 2019. "Firm Formation And Industrial Agglomeration Under Monopolistic Competition - A Study On German Regions," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 13(2), pages 1-25, DECEMBER.
    3. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 2021. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 2, pages 25-57, World Scientific Publishing Co. Pte. Ltd..
    4. Masahisa Fujita & Jacques‐François Thisse, 2003. "Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Loses from It?," The Japanese Economic Review, Japanese Economic Association, vol. 54(2), pages 121-145, June.
    5. Fabio Cerina & Francesco Pigliaru, 2007. "Agglomeration and Growth in the NEG: A Critical Assessment," Chapters, in: Bernard Fingleton (ed.), New Directions in Economic Geography, chapter 5, Edward Elgar Publishing.
    6. Kim, Younghwan & Kim, Wonjoon & Yang, Taeyong, 2012. "The effect of the triple helix system and habitat on regional entrepreneurship: Empirical evidence from the U.S," Research Policy, Elsevier, vol. 41(1), pages 154-166.
    7. Colin Davis & Ken-ichi Hashimoto, 2019. "Innovation Offshoring with Fully Endogenous Growth," ISER Discussion Paper 1055, Institute of Social and Economic Research, Osaka University.
    8. Baldwin, Richard E. & Martin, Philippe, 2004. "Agglomeration and regional growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 60, pages 2671-2711, Elsevier.
    9. Thomas Straubhaar & Marc Suhrcke & Dieter Urban, 2002. "Divergence. Is it Geography?," Development Working Papers 158, Centro Studi Luca d'Agliano, University of Milano.
    10. Xu, Xilei & Dong, Xuebing & Chi, Ruonan & Li, Jixia, 2022. "How does heterogeneous spillover of knowledge affect economic geography? ——An extended local spillover model," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    11. Theresa Grafeneder-Weissteiner, 2010. "Demographic change, growth and agglomeration," Department of Economics Working Papers wuwp132, Vienna University of Economics and Business, Department of Economics.
    12. Orlando Gomes, 2007. "Space, growth and technology: an integrated dynamic approach," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 24(4), pages 248-265, October.
    13. Gianmarco Ottaviano, 2003. "Regional Policy in the Global Economy: Insights from New Economic Geography," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 665-673.
    14. Martin, Philippe, 1999. "Public policies, regional inequalities and growth," Journal of Public Economics, Elsevier, vol. 73(1), pages 85-105, July.
    15. BARRIOS, Salvador & BERTINELLI, Luisito & STROBL, Eric, 2002. "Coagglomeration and growth," LIDAM Discussion Papers CORE 2002053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    16. Fabien Candau, 2008. "Entrepreneurs' Location Choice And Public Policies: A Survey Of The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 909-952, December.
    17. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    18. Thomas Gries, 2006. "SEZ, Regional Development and Disparity," EcoMod2006 272100033, EcoMod.
    19. Theresa Grafeneder-Weissteiner, 2011. "The joint effect of demographic change on growth and agglomeration," ERSA conference papers ersa10p834, European Regional Science Association.
    20. Christophe Heyndrickx & Natalia Tourdyeva & Victoria Alexeeva-Talebi, 2011. "The SUSTRUS model: a CGE model on regional level for sustainability policies in Russia," ERSA conference papers ersa11p1565, European Regional Science Association.

    More about this item

    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:wiw:wiwrsa:ersa10p841. 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: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    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.