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Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity

Almeida, Rita; Fernandes, Ana M.
Fonte: Taylor and Francis Publicador: Taylor and Francis
Tipo: Artigo de Revista Científica
EN_US
Relevância na Pesquisa
46.62%
This article investigates whether the agglomeration of economic activity in regional clusters affects long-run manufacturing Total Factor Productivity (TFP) growth in an emerging market context. We explore a large firm-level panel dataset for Chile during a period characterized by high growth rates and rising regional income inequality (1992–2004). Our findings are clear-cut. Locations with greater concentration of a particular sector have not experienced faster TFP growth during this period. Rather, local sector diversity was associated with higher long-run TFP growth. However, there is no evidence that the diversity effect was driven by the local interaction with a set of suppliers and/or clients. We interpret this as evidence that agglomeration economies are driven by other factors such as the sharing of access to specialized inputs not provided solely by a single sector, e.g. skills or financing.

Growing through Cities in Developing Countries

Duranton, Gilles
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
46.93%
This paper examines the effects of urbanization on development and growth. It begins with a labor market perspective and emphasizes the importance of agglomeration economies, both static and dynamic. It then argues that more productive jobs in cities do not exist in a void and underscores the importance of job and firm dynamics. In turn, these dynamics are shaped by the broader characteristics of urban systems. A number of conclusions are drawn. First, agglomeration effects are quantitatively important and pervasive. Second, the productive advantage of large cities is constantly eroded and must be sustained by new job creation and innovation. Third, this process of creative destruction in cities, which is fundamental for aggregate growth, is determined in part by the characteristics of urban systems and broader institutional features. The paper highlights important differences between developing countries and more advanced economies. A major challenge for developing countries is to reinforce the role of their urban systems as drivers of economic growth.

Agglomeration Economies and Productivity in Indian Industry

Lall, Somik; Shalizi, Zmarak; Deichmann, Uwe
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
46.93%
"New" economic geography theory, and the development of innovative methods of analysis have renewed interest in the location, and spatial concentration of economic activities. The authors examine the extent to which agglomeration economies contribute to economic productivity. They distinguish three sources of agglomeration economies: 1) At the firm level, from improved access to market centers. 2) At the industry level, from enhanced intra-industry linkages. 3) At the regional level, from inter-industry urbanization economies. The input demand framework they use in analysis, permits the production function to be estimated jointly with a set of cost shares, and, makes allowances for non-constant returns to scale, and for agglomeration economies to be factor-augmenting. They use firm-level data for standardized manufacturing in India, together with spatially detailed physio-geographic information that considers the availability, and quality of transport networks linking urban centers - thereby accounting for heterogeneity in the density of transport networks...

A Dynamic Spatial Model of Rural-Urban Transformation with Public Goods

Biller, Dan; Andres, Luis; Cuberes, David
Fonte: World Bank Group, Washington, DC Publicador: World Bank Group, Washington, DC
EN_US
Relevância na Pesquisa
46.77%
This paper develops a dynamic model that explains the pattern of population and production allocation in an economy with an urban location and a rural one. Agglomeration economies make urban dwellers benefit from a larger population living in the city and urban firms become more productive when they operate in locations with a larger labor force. However, congestion costs associated with a too large population size limit the process of urban-rural transformation. Firms in the urban location also benefit from a public good that enhances their productivity. The model predicts that in the competitive equilibrium the urban location is inefficiently small because households fail to internalize the agglomeration economies and the positive effect of public goods in urban production.

Firm Productivity and Infrastructure Costs in East Africa

Iimi, Atsushi; Humphrey, Richard Martin; Melibaeva, Sevara
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
Relevância na Pesquisa
46.84%
Infrastructure is an important driving force for economic growth. It reduces trade and transaction costs and stimulates the productivity of the economy. Africa has been lagging behind in the global manufacturing market. Among others, infrastructure is an important constraint in many African countries. Using firm-level data for East Africa, the paper reexamines the relationship between firm performance and infrastructure. It is shown that labor costs are by far the most important to stimulate firm production. Among the infrastructure sectors, electricity costs have the highest output elasticity, followed by transport costs. In addition, the paper shows that the quality of infrastructure is important to increase firm production. In particular, quality transport infrastructure seems to be essential. The paper also finds that agglomeration economies can reduce firm costs. The agglomeration elasticity is estimated at 0.03–0.04.

Firms’ Locational Choice and Infrastructure Development in Rwanda

Iimi, Atsushi; Humphrey, Richard Martin; Melibaeva, Sevara
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
Relevância na Pesquisa
46.79%
Agglomeration economies are among the most important factors to increase firm productivity. However, there is little evidence supportive of this in Africa. By applying the conditional and nested logit models, this paper examines the relationship between firm locations and infrastructure accessibility in Rwanda. It is found that agglomeration economies matter to even one of the smallest countries in Africa. It is also found that infrastructure availability has an important role in affecting the firm location decision. Electricity access and transport connectivity to the domestic and international markets are found to be important to attract new investment. In addition, the quality of local labor supplied, measured by educational attainment, is found as an important determinant of firm location, while the effect of labor costs remains inconclusive.

Firms’ Locational Choice and Infrastructure Development in Tanzania

Iimi, Atsushi; Humphreys, Richard Martin; Melibaeva, Sevara
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
Relevância na Pesquisa
46.87%
Agglomeration economies are among the most important factors in increasing firm productivity. However, there is little evidence supportive of this in Africa. Using the firm registry database in Tanzania, this paper examines a new application of the logit approach with two empirical issues taken into account: spatial autocorrelation and endogeneity of infrastructure placement. The paper finds significant agglomeration economies. It is also found that firms are more likely to be located where local connectivity and access to markets are good. The paper finds that dealing with infrastructure endogeneity and spatial autocorrelation in the empirical model is important. According to the exogeneity test, infrastructure variables are likely endogenous. The spatial autoregressive term is significant. As expected, therefore, there are positive externalities of firm location choice around the neighboring areas.

¿Es la ubicación un factor determinante para la industria conservera? : evidencia empírica para el caso de las empresas gallegas durante la primera década del s. XXI

Fachal Santos, Hugo
Fonte: Universidade da Corunha Publicador: Universidade da Corunha
Tipo: info:eu-repo/semantics/bachelorThesis; info:eu-repo/semantics/bachelorThesis
SPA
Relevância na Pesquisa
46.88%
Traballo fin de grao (UDC.ECO). ADE. Curso 2012/2013; [Resumen]: El principal objetivo de este trabajo es dar respuesta a la pregunta que lleva por título. Es decir, se intentará evidenciar qué factores determinan la ubicación de las empresas dedicadas a la elaboración de conservas de productos del mar en la Comunidad Autónoma de Galicia y si verdaderamente la localización es un factor decisivo para el éxito de las empresas de este sector. Se comenzará haciendo un repaso por las aportaciones de los principales autores que han tratado de explicar los factores que determinan la localización de las empresas industriales. Comenzando con la revisión de los denominados modelos normativos, entre los que podemos destacar el trabajo de Von Thünen, Weber, Hotelling y Lösch. Estos primeros trabajos, marcados por un alto grado de abstracción, dieron paso a nuevas aportaciones mucho más ajustadas a la realidad y entre las que podemos destacar las de Alfred Marshall. Revisadas las aportaciones de los autores más significativos, se propondrá el modelo de Marshall como aquel que mejor explica la actual distribución geográfica de la industria conservera gallega. Para la corroboración de esta hipótesis, sirviéndonos de los datos recogidos en la base de datos Ardán...

Jobs and Land Use within Cities; A Survey of Theory, Evidence, and Policy

Goswami, Arti Grover; Lall, Somik V.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Working Paper; Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
46.79%
Over the last century, the urban spatial structure of cities has transformed dramatically from the traditional monocentric configuration to varying forms of decentralized organization. This paper reviews the theory and empirical evidence to understand the urban morphology of jobs and land use within a city. This survey highlights four broad insights: (i) The evolution of monocentric to polycentric centers has been accompanied by structural changes in the city. (ii) The internal geography of a city is an outcome of the trade-off between the pull from agglomeration economies and the push from congestion. (iii) The presence of externalities implies that the equilibrium spatial organization achieved by profit-maximizing firms may not necessarily be optimal. This justifies the role of public policy in addressing the associated market failures. (iv) The productive edge and competitiveness of a city can be enhanced by introducing policies that increase the overall connectivity to take advantage of economic opportunities across the metropolitan area. The survey also puts together a wide range of policy instruments that are useful in closing the gap between equilibrium urban spatial structure and the optimal outcome.

Shifting Comparative Advantages : Implications for Growth Strategy

Coulibaly, Souleymane
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
46.69%
The future development of the Tajik economy will be shaped by its comparative advantage on world markets. Exploiting comparative advantage enables an economy to reap gains from trade. Tajikistan's most important comparative advantage is its hydropower potential, which is far larger than the economy's domestic requirements. Yet, high capital costs of building hydropower plants and the unstable geopolitical situation in the transit region to reach South Asian export markets are constraining the realization of this potential. In the short term, the sector, which provides the greatest opportunity for Tajikistan to diversify its exports, appears to be agro-industry and, to a lesser extent, clothing. For both sectors, the main export market is likely to be the regional market. Tajikistan also has a comparative advantage in labor exports, which it has successfully exploited since the mid-2000s. To harness the full potential for labor exports will require improving the skills base of migrant workers and, in particular...

Urbanization beyond Municipal Boundaries : Nurturing Metropolitan Economies and Connecting Peri-Urban Areas in India

World Bank
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
ENGLISH; EN_US
Relevância na Pesquisa
56.88%
The report is organized into three chapters: chapter two looks at the pace and patterns of India's urbanization, providing a 100-year perspective on demographic shifts and a 20-year perspective on the spatial distribution of jobs across India's portfolio of settlements. The review is based on a careful, spatially detailed analysis of data from economic and demographic censuses, annual surveys of industry, national sample surveys, and special surveys of freight transport. This chapter provides diagnostics on whether Indian industry is adequately exploiting agglomeration economies and whether there are hints of specific barriers to the natural tendency of standardized industry to reshuffle from large metropolitan areas to smaller urban areas. Chapter three examines specific policy issues and investment bottlenecks that are curbing the pace and benefits of urbanization in India. The policy issues relate to land markets and housing, connectivity (within and between cities), and access to basic services. The purpose of this analysis is to unravel the specific distortions that may be preventing India from reaping the entire range of benefits of urbanization. Chapter four provides some options for policy reform...

Firm Location and the Determinants of Exporting in Developing Countries

Farole, Thomas; Winkler, Deborah
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Publications & Research :: Policy Research Working Paper
ENGLISH
Relevância na Pesquisa
46.93%
Using a cross-section of more than 40,000 manufacturing and services firms in 79 developing countries from the World Bank's Enterprise Surveys Database, this paper assesses how firm location determines the likelihood and extent of exporting in developing countries. Descriptive statistics confirm higher export participation (but not intensity) for firms in core versus non-core regions, despite the finding that firms in the core assess many aspects of the investment climate more negatively. Results from a probit model show that, in addition to firm-specific characteristics, both regional investment climate and agglomeration factors have a significant impact on export participation. Specifically, customs clearance and electricity quality matter for export participation for manufacturing firms. Although localization economies and export spillovers are associated with increased exporting, the opposite is found for urbanization economies for both manufacturing and services firms. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions...

How do agglomeration economies affect the development of cities?; How do agglomeration economies affect the development of cities? / ¿Cómo influyen las economías de aglomeración en el desarrollo de las ciudades?

Jasson Cruz Villamil; Universidad Nacional de Colombia
Fonte: Revista de Economía del Caribe Publicador: Revista de Economía del Caribe
Tipo: article; publishedVersion Formato: application/pdf
ENG
Relevância na Pesquisa
46.91%
This paper tries to shed some light on the role of agglomerationeconomies in the development of cities, offering a literature reviewof types of agglomeration economies and their sources, and howthose economies can affect both economic growth and urban growthin the cities. Likewise, it aims to document how the agglomerationeconomies can influence the level of specialization and diversificationof the cities.; Este artículo identifica el papel de las economías de aglomeración enel desarrollo de las ciudades, ofreciendo una revisión de la literaturade los tipos de economías de aglomeración y sus fuentes, y cómolas economías pueden afectar tanto el crecimiento económico y elcrecimiento urbano en las ciudades. Del mismo modo, se pretende documentar cómo las economías de aglomeración pueden influir enel nivel de especialización y la diversificación de las ciudades.AbstractThis paper tries to shed some light on the role of agglomerationeconomies in the development of cities, offering a literature reviewof types of agglomeration economies and their sources, and howthose economies can affect both economic growth and urban growthin the cities. Likewise, it aims to document how the agglomerationeconomies can influence the level of specialization and diversificationof the cities.

Agglomeration economies: influence on the distribution of foreing investment in Chile

Quiroga Suazo, Miguel Angel
Fonte: Universidad de Chile. Facultad de Economía y Negocios Publicador: Universidad de Chile. Facultad de Economía y Negocios
Tipo: Artículo de revista
EN
Relevância na Pesquisa
46.71%
The purpose of this work is to empirically study the importance of agglomeration economies in the selection of geographical zones in which foreign investors are willing to develop their investment projects in Chile. For this purpose a discrete choice model, the conditional logit model (CLM), first proposed by McFadden (1974), was used in this study and the application of the IIA test proposed by Hausman and McFadden (1984) is reported. Furthermore, the use of a less restrictive model is proposed. The main advantage of this latter model is that it allows the variances of the random components to be different across alternatives, that is to say it is a Heteroscedastic Extreme Value Model (HEVM). The results suggest that agglomeration economies significantly influence the selection of the geographical zone in which the investment is to be located. The results are robust to different specifications of the model. Furthermore, the IIA assumption seems to be appropriate and the result of the HEVM is not significantly different of the CLM.

The spatial effect of intra-metropolitan agglomeration economies

García López, Miquel-Àngel; Muñiz, Iván
Fonte: Universidade Autônoma de Barcelona Publicador: Universidade Autônoma de Barcelona
Tipo: Trabalho em Andamento Formato: application/pdf
Publicado em //2006 ENG
Relevância na Pesquisa
46.88%
This study deals with the role of spatial accessibility to agglomeration economies in the change in spatial structure of industrial employment for the case of the Barcelona Metropolitan Region of Barcelona (BMR). Using the growth in gross density of municipal employment between 1986 and 1996 for seven manufacturing industries as an indicator of changes in the spatial structure of employment, an exploration is made of the spatial impact of agglomeration economies operating on a local scale the municipality and three areas 5, 8 and 12 kilometres away surrounding the municipality itself - , agglomeration economies emerging from CBD and the main specialised subcentres in the region, and the network economies associated with the total jobs in the region, access to which depends on the distance from the main transport infrastructures

Tax differentials and agglomeration economies in intraregional firm location

Jofre Monseny, Jordi; Solé Ollé, Albert
Fonte: Xarxa de Referència en Economia Aplicada (XREAP) Publicador: Xarxa de Referència en Economia Aplicada (XREAP)
Tipo: Trabalho em Andamento Formato: application/pdf
Publicado em //2007 ENG
Relevância na Pesquisa
46.77%
This paper analyses empirically how differences in local taxes affect the intraregional location of new manufacturing plants. These effects are examined within the random profit maximization framework while accounting for the presence of different types of agglomeration economies (localization/ urbanization/ Jacobs’ economies) at the municipal level. We look at the location decision of more than 10,000 establishments locating between 1996 and 2003 across more than 400 municipalities in Catalonia, a Spanish region. It is necessary to restrict the choice set to the local labor market and, above all, to control for agglomeration economies so as to identify the effects of taxes on the location of new establishments.

Households or Locations?; Cities, Catchment Areas and Prosperity in India

Li, Yue; Rama, Martin
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Working Paper; Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
46.79%
Policy makers in developing countries, including India, are increasingly sensitive to the links between spatial transformation and economic development. However, the empirical knowledge available on those links is most often insufficient to guide policy decisions. There is no shortage of case studies on urban agglomerations of different sorts, or of benchmarking exercises for states and districts, but more systematic evidence is scarce. To help address this gap, this paper combines insights from poverty analysis and urban economics, and develops a methodology to assess spatial performance with a high degree of granularity. This methodology is applied to India, where individual household survey records are mapped to “places” (both rural and urban) below the district level. The analysis disentangles the contributions household characteristics and locations make to labor earnings, proxied by nominal household expenditure per capita. The paper shows that one-third of the variation in predicted labor earnings is explained by the locations where households reside and by the interaction between these locations and household characteristics such as education. In parallel...

Assessing agglomeration economies in a spatial framework with endogenous regressors

Artis, Michael; Miguélez, Ernest; Moreno, Rosina
Fonte: Spatial Economics Research Centre (SERC), London School of Economics and Political Science Publicador: Spatial Economics Research Centre (SERC), London School of Economics and Political Science
Tipo: Monograph; NonPeerReviewed Formato: application/pdf
Publicado em /06/2009 EN; EN
Relevância na Pesquisa
46.69%
This paper is concerned with the influence of agglomeration economies on economic outcomes across British regions. The concentration of economic activity in one place can foster economic performance due to the reduction in transportation costs, the ready availability of customers and suppliers, and knowledge spillovers. However, the concentration of several types of intangible assets can boost productivity as well. Thus, using an interesting dataset which proxies regional productivity, we will assess the relative importance of agglomeration and other assets, controlling both for endogeneity and for spatial autocorrelation at the same time. Our results suggest that agglomeration has a definite positive influence on productivity, although our estimates of its effect are dramatically reduced when spatial dependence and other hitherto omitted variables proxying intangible assets are controlled for.

Agglomeration economies and the location of foreign direct investment: quasi-experimental evidence from Romania

Hilber, Christian A. L.; Voicu, Ioan
Fonte: Geography and Environment Department, London School of Economics and Political Science Publicador: Geography and Environment Department, London School of Economics and Political Science
Tipo: Monograph; NonPeerReviewed Formato: application/pdf
Publicado em /03/2006 EN; EN
Relevância na Pesquisa
46.89%
How important are agglomeration economies for the location of foreign manufacturing plants? We investigate this question by combining innovations from previous studies and by taking advantage of a quasi-experimental setting: the political and economic transition in Romania. The recent, sudden and sustained influx of foreign investors into Romania provides an ideal setting to disentangle agglomeration economies from endowment effects. Using a countylevel conditional logit set-up that controls for choice-specific fixed effects and endowment effects, we find that external economies from industry-specific foreign agglomeration and service agglomeration are important location determinants. Increases in the number of foreign plants and in service employment density by 10 percent make the average county 2.2 and 6.2 percent more likely to attract a new foreign investor. Local labor market conditions also matter. Our findings suggest that results are sensitive to the choice of geographical unit of observation and the inclusion of locational fixed effects.

Rocketing rents the magnitude and attenuation of agglomeration economies in the commercial property market

Koster, Hans R. A.
Fonte: Spatial Economics Research Centre (SERC), London School of Economics and Political Science Publicador: Spatial Economics Research Centre (SERC), London School of Economics and Political Science
Tipo: Monograph; NonPeerReviewed Formato: application/pdf
Publicado em /01/2013 EN; EN
Relevância na Pesquisa
47%
Rocketing rents in urban areas are likely explained by agglomeration economies. This paper measures the impact of these external economies on commercial property values using unique micro�]data on commercial rents and employment. A measure of agglomeration is employed that is continuous over space, avoiding the modifiable areal unit problem. To distinguish agglomeration economies from unobserved endowments and shocks, I use temporal variation in densities and instrumental variables. The spatial extent of agglomeration economies is determined by estimating a spatial bandwidth within the model. The results show that agglomeration economies have a considerable impact on rents: a standard deviation increase in employment density leads to an increase in rents of about 10 percent. The geographical extent of these benefits is about 15 kilometres. The bias of ignoring time�]invariant unobserved endowments and unobserved shocks seems to be limited.