Title: Productivity and the Density of Local Clusters
Abstract: Several streams of theoretical literature, including regional and urban economics, economic geography and economic growth, explain the geographic concentration of economic activity as the result of increasing returns to scale in production. In one strand of literature, agglomeration results from demand linkages between firms, which are created by the interaction of fixed production costs and transport costs (see, for instance, Krugman 1991). In other, earlier strand of literature, agglomeration economies arise from positive spillovers between firms that share the same locality (Henderson 1974, Lucas 1988). This second stream suggests that if there are spillovers in the accumulation of human capital, a worker will be more productive the greater the agglomeration of educated workers with which he/she shares a given location.
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 23
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