Geographic concentration and the temporal scope of agglomeration economies: An index decomposition

  1. Lookup NU author(s)
  2. Professor Colin Wren
Author(s)Wren C
Publication type Article
JournalRegional Science and Urban Economics
Year2012
Volume42
Issue4
Pages681-690
ISSN (print)0166-0462
Full text for this publication is not currently held within this repository. Alternative links are provided below where available.
This paper decomposes a geographical concentration index to examine for differences in the temporal scope of natural advantages and spillovers on industrial location. The former are time-invariant location attributes, whereas spillovers may decay due to obsolescence and the spatial diffusion of knowledge. Coupled with a frequency estimator approach, the paper develops an empirical methodology for quantifying these effects. This is tested by numerical simulation and by application to a dataset on the location of manufacturing foreign direct investment across the regions of Great Britain over 1985-2005. The results indicate that spillovers decay and extend for about 5 years on average across industries. Spillovers have the same location effect as natural advantages but only over a 3-year time horizon.
PublisherElsevier BV
URLhttp://dx.doi.org/10.1016/j.regsciurbeco.2012.03.004
DOI10.1016/j.regsciurbeco.2012.03.004
Actions    Link to this publication