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Geographical boundaries of external and internal agglomeration economies
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Lavoratori, Katiuscia and Piscitello, L. (2020) Geographical boundaries of external and internal agglomeration economies. In: Colombo, S., (ed.) Spatial Economics Volume II. Cham: Palgrave Macmillan, pp. 221-250. ISBN 9783030400934
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Official URL: https://doi.org/10.1007/978-3-030-40094-1_8
Abstract
This chapter analyses the role of traditional factors associated with Marshallian and Jacobsian economies (i.e. external agglomeration) and the role of factors associated to the intra-firm co-location of activities (i.e. internal agglomeration) in influencing location decisions of multinational enterprises (MNEs) within a foreign country. Our empirical analysis considers the location decision of 447 new greenfield investments in manufacturing activities by 384 foreign MNEs in Italy, throughout the period 1998–2012, at a sub-national NUTS-3 level. Findings from a conditional logit model confirm that (1) both external and internal agglomeration economies have a strong effect on MNEs’ location decisions and (2) once allowing for intra-firm co-location, the influence of external forces decreases. Additionally, results obtained through spatial econometrics techniques show a strong spatial decay effect both for the effects associated with intra-firm co-location in contiguous provinces and for the traditional Marshallian forces. Conversely, the benefits of diversity (Jacobsian economies) cross province geographical boundaries.
Item Type: | Book Item | ||||
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Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HT Communities. Classes. Races |
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Divisions: | Faculty of Social Sciences > Warwick Business School | ||||
Library of Congress Subject Headings (LCSH): | Industrial clusters -- Economic aspects, Business networks -- Italy, Industrial productivity , International business enterprises -- Italy, Space in economics | ||||
Publisher: | Palgrave Macmillan | ||||
Place of Publication: | Cham | ||||
ISBN: | 9783030400934 | ||||
Book Title: | Spatial Economics Volume II | ||||
Editor: | Colombo, S. | ||||
Official Date: | 19 December 2020 | ||||
Dates: |
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Page Range: | pp. 221-250 | ||||
DOI: | 10.1007/978-3-030-40094-1_8 | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Published | ||||
Date of first compliant deposit: | 20 January 2021 | ||||
Date of first compliant Open Access: | 19 December 2022 | ||||
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