Title: Agglomeration, Productivity and Transport Investment
Abstract: This paper seeks to empirically quantify the link between urban and productivity for detailed sectors of the economy. The author proposes an density measure. That can be included within a translog production function framework to estimate elasticities of productivity in connection to urban for certain manufacturing and service industries. Agglomeration economies are described. An effective that captures both the scale and proximity of economic activity is produced. This allows a flexible measure of urbanization that can be constructed for small urban areas and that can incorporate an implicit transport dimension. The study shows that agglomeration economies do matter and that they can be substantial, particularly for services. There is considerable variation by industry in the magnitude of the elasticities. The reliable measure of the density-productivity relationship allows quantification of these wider economic benefits.
Publication Year: 2007
Publication Date: 2007-09-01
Language: en
Type: article
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Cited By Count: 269
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