Title: Agglomeration economies and clustering – evidence from German and European firms
Abstract: Abstract This article empirically analyses the impact of agglomeration economies on the clustering of German and European firms using partial proportional-odds models. Firms are grouped according to industry and divided into departments. At the industry level, I find evidence for inter-industry economies derived from the New Economic Geography (NEG) framework for European firms in general and German knowledge-intensive firms in particular. At the department level, Marshallian Externalities such as the hiring of skilled labour and technological spillover, and therefore intra-industry economies, are empirically confirmed for European and German departments like Human Resources and R&D but rarely for others. Keywords: agglomeration economiesNew Economic GeographyMarshallian Externalitiespartial proportional-odds modelJEL Classification:: C20D21F12R12 Acknowledgements This article was partly written at the Bavarian State Institute of Higher Education Research and Planning (IHF) in Munich and Centro de Investigación y Docencia Económicas (CIDE) in Mexico City. I would like to thank one anonymous referee for helpful comments.
Publication Year: 2012
Publication Date: 2012-06-11
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 11
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