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Too close for comfort? Micro‐geography of agglomeration economies in the United Kingdom
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Lavoratori, Katiuscia and Castellani, Davide (2021) Too close for comfort? Micro‐geography of agglomeration economies in the United Kingdom. Journal of Regional Science, 61 (5). pp. 1002-1028. doi:10.1111/jors.12531 ISSN 0022-4146.
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Official URL: http://dx.doi.org/10.1111/jors.12531
Abstract
The issue of whether firm productivity is affected by agglomeration externalities is a longstanding area of research. However, the appropriate geographical level to better detect the effects of agglomeration economies is still unclear, and at which level these externalities work. Using detailed firm‐level longitudinal data of manufacturing firms over the period 2008‐2016 in the United Kingdom, we investigate how the micro‐geography of external agglomeration economies associates with firm productivity, comparing different geographical levels: city‐wide and narrowly defined neighborhoods around a firm. Results from a multilevel (mixed‐effects) model show that urbanization externalities play a role at a higher level of geographical aggregation, such as the city, whereas localization externalities operate at a finer level, within the city and in a closer neighborhood to the firm. Failing to control for more granular level of geography results in confounding the two types of externalities. We also provide novel evidence that these externalities vary across firms (such as age, size and productivity) and location (such as population density) characteristics.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HT Communities. Classes. Races |
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| Divisions: | Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School |
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| Library of Congress Subject Headings (LCSH): | Urban economics -- Great Britain, Urbanization -- Economic aspects, Industrial location -- Great Britain, Industrial clusters -- Great Britain | ||||||||
| Journal or Publication Title: | Journal of Regional Science | ||||||||
| Publisher: | Wiley-Blackwell Publishing, Inc. | ||||||||
| ISSN: | 0022-4146 | ||||||||
| Official Date: | November 2021 | ||||||||
| Dates: |
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| Volume: | 61 | ||||||||
| Number: | 5 | ||||||||
| Page Range: | pp. 1002-1028 | ||||||||
| DOI: | 10.1111/jors.12531 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Reuse Statement (publisher, data, author rights): | This is the peer reviewed version of the following article: Lavoratori, K. and Castellani, D. (2021), Too close for comfort? Micro‐geography of agglomeration economies in the United Kingdom. J Regional Sci., which has been published in final form at https://doi.org/10.1111/jors.12531. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Date of first compliant deposit: | 31 March 2021 | ||||||||
| Date of first compliant Open Access: | 30 March 2023 |
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