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Agglomeration and Firm Performance

Agglomeration and Firm Performance
Author: Fiorenza Belussi
Publisher: Springer
Total Pages: 323
Release: 2018-08-10
Genre: Business & Economics
ISBN: 3319905759

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This contributed volume studies and explains the effect of agglomeration on a firm’s innovation and performance. It presents new cases as well as new topics within the agglomeration phenomenon, exploring also their role under the Great Recession. Beyond the analysis of regions or clusters, this volume focuses on firms within agglomerations and captures this phenomenon from different perspectives, contexts and diverse literatures. Specifically, it looks at the question under what circumstances exert generate benefits on firms’ performance, and how those gains are generated and distributed, usually asymmetrically, across agglomerated firms. In this context, the book addresses topics such as networks, collocation, labor mobility, firm’s strategies, innovation, competitiveness and collective actions across a diverse set of literatures, including economic geography, business economics, management, social networks, industrial districts, international business, sociology or industry dynamics.


Handbook of Regional and Urban Economics

Handbook of Regional and Urban Economics
Author: V. Henderson
Publisher: Elsevier
Total Pages: 1081
Release: 2004-07-21
Genre: Business & Economics
ISBN: 0080495125

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The new Handbook of Regional and Urban Economics: Cities and Geography reviews, synthesizes and extends the key developments in urban and regional economics and their strong connection to other recent developments in modern economics. Of particular interest is the development of the new economic geography and its incorporation along with innovations in industrial organization, endogenous growth, network theory and applied econometrics into urban and regional economics. The chapters cover theoretical developments concerning the forces of agglomeration, the nature of neighborhoods and human capital externalities, the foundations of systems of cities, the development of local political institutions, regional agglomerations and regional growth. Such massive progress in understanding the theory behind urban and regional phenomenon is consistent with on-going progress in the field since the late 1960’s. What is unprecedented are the developments on the empirical side: the development of a wide body of knowledge concerning the nature of urban externalities, city size distributions, urban sprawl, urban and regional trade, and regional convergence, as well as a body of knowledge on specific regions of the world—Europe, Asia and North America, both current and historical. The Handbook is a key reference piece for anyone wishing to understand the developments in the field.


Agglomeration Effects and Financial Performance

Agglomeration Effects and Financial Performance
Author: Maarten Jennen
Publisher:
Total Pages: 47
Release: 2009
Genre:
ISBN:

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This study empirically tests the tradeoff between the costs and benefits of agglomeration for a large sample of firms. In line with the existing literature, we find that population and employment density benefit productivity but increase labor and real estate costs. To test the tradeoff of benefits and drawbacks of agglomeration, we focus our analysis on the relation between agglomeration and profitability. For a sample of single-establishment Dutch firms, we find that on average the costs of settling in an area with a dense spatial distribution of employment outweigh the benefits; an effect that holds for both urbanization and localization measures. In general, doubling the employment density will decrease the average return on assets by more than one percentage point.


International Productivity Monitor

International Productivity Monitor
Author: OECD
Publisher: OECD Publishing
Total Pages: 222
Release: 2017-07-17
Genre:
ISBN: 9264279172

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The 32nd issue of the International Productivity Monitor is a special issue produced in collaboration with the OECD. All articles published in this issue were selected from papers presented at the First Annual Conference of the OECD Global Forum on Productivity held in Lisbon, Portugal, July ...


The Spatial Impact of High-Speed Rail on Firm Performance

The Spatial Impact of High-Speed Rail on Firm Performance
Author: Chun Kuang
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

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This paper examines the spatial impact of high-speed rail (HSR) connection on firm performance in China at the micro level using a unique administrative dataset. Connected firms benefit from agglomeration economies and improved market access, but the redistribution of production inputs towards urban cores may have a negative impact on firms in peripheral regions. If these opposing forces are both subject to spatial decay but at different rates, proximity to urban cores could play a crucial role in determining the overall effects of HSR connection on firms. We find that connected firms located farther from urban cores benefit the most, indicating a steeper spatial decay in the redistribution effect relative to the agglomeration effect. This research enhances our understanding of the micro-level spatial impact of HSR on regional development.


Regional Industrial Dominance, Agglomeration Economies, and Manufacturing Plant Productivity

Regional Industrial Dominance, Agglomeration Economies, and Manufacturing Plant Productivity
Author: Joshua M. Drucker
Publisher:
Total Pages: 0
Release: 2009
Genre:
ISBN:

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In a seminal article, Benjamin Chinitz (1961) focused attention on the effects that industry size, structure, and economic diversification have on firm performance and regional economies. He also raised a related but conceptually distinct question that has been overlooked since: how does the extent to which a regional industry is concentrated in a single or small number of firms impact the performance of other local firms within that industry? He suggested that such regional industrial dominance may impact input prices, limit capital accessibility, deter entrepreneurial activity, and reduce the regional availability of agglomeration economies such as specialized labor and supply pools In this paper, we use an establishment-level production function to quantify the links between industrial dominance, agglomeration economies, and firm performance. We consider two questions. First, do greater levels of regional industrial dominance lead to lower economic performance by small, dominated manufacturing plants? Second, are small plants in dominated regional industries more limited in capturing regional agglomeration benefits and therefore do they face rigidities in deploying production factors to maximum advantage? Our results suggest that regional industrial organization does influence productivity but that the effect tends to be a direct one, rather than an indirect effect via its influence on agglomeration economies.


Multilevel Approaches and the Firm-Agglomeration Ambiguity in Economic Growth Studies

Multilevel Approaches and the Firm-Agglomeration Ambiguity in Economic Growth Studies
Author: Frank G. van Oort
Publisher:
Total Pages: 0
Release: 2012
Genre:
ISBN:

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Empirical studies in spatial economics have shown that agglomeration economies may be a source of the uneven distribution of economic activities and economic growth across cities and regions. Both localization and urbanization economies are hypothesized to foster agglomeration and growth, but recent meta-analyses of this burgeoning body of empirical research show that the results are ambiguous. Recent overviews show that this ambiguity is fueled by measurement issues and heterogeneity in terms of scale of time and space, aggregation, growth definitions and the functional form of the models applied. Alternatively, in this paper, we argue that ambiguity may be due to a lack of research on firm-level performance in agglomerations. This research is necessary because the theories that underlie agglomeration economies are microeconomic in nature. Hierarchical or multilevel modeling, which allows micro levels and macro levels to be modeled simultaneously, is becoming an increasingly common practice in the social sciences. As illustrated by detailed Dutch data on firm-level productivity, employment growth and firm survival, we argue that these approaches are also suitable for reducing the ambiguity surrounding the agglomeration-firm performance relationship and for addressing spatial, sectoral and cross-level heterogeneity.


The Effects of Pollution and Business Environemnt on Firm Productivity in Africa

The Effects of Pollution and Business Environemnt on Firm Productivity in Africa
Author: María E. Sopelssa
Publisher:
Total Pages: 33
Release: 2019
Genre:
ISBN:

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This paper explores the links between city competitiveness and air pollution and the business environment. Because competitive cities not only attract more productive firms, but also facilitate their business, the paper look at firm performance as a proxy for city competitiveness. It focuses on African firms, because this region is developing fast and experiencing increasing pollution levels and the effects of agglomeration economies. The analysis finds two interesting results. First, the negative association between air pollution and firm performance can be seen at lower than expected levels of pollution. Second, the effects of capacity agglomeration on labor productivity growth are stronger compared to other regions. These findings suggest that cities in this region should address pollution issues soon, as they continue to grow fast and pollution levels are becoming an increasing concern.