Firm Sorting And Agglomeration
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Firm Sorting And Agglomeration
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Author : Cécile Gaubert
language : en
Publisher:
Release Date : 2018
Firm Sorting And Agglomeration written by Cécile Gaubert and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with Economic geography categories.
The distribution of firms in space is far from uniform. Some locations host the most productive large firms, while others barely attract any. In this paper, I study the sorting of heterogeneous firms across locations and analyze policies designed to attract firms to particular regions (place-based policies). I first propose a theory of the distribution of heterogeneous firms in a variety of sectors across cities. Aggregate TFP and welfare depend on the extent of agglomeration externalities produced in cities and on how heterogeneous firms sort across them. The distribution of city sizes and the sorting patterns of firms are uniquely determined in equilibrium. This allows me to structurally estimate the model, using French firm-level data. I find that nearly half of the observed productivity advantage of large cities is due to firm sorting. I use the estimated model to quantify the general equilibrium effects of place-based policies. I find that policies that decrease local congestion lead to a new spatial equilibrium with higher aggregate TFP and welfare. In contrast, policies that subsidize under-developed areas have negative aggregate effects.
Heterogeneous Firms Agglomeration And Economic Geography
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Author : Richard E. Baldwin
language : en
Publisher:
Release Date : 2010
Heterogeneous Firms Agglomeration And Economic Geography written by Richard E. Baldwin and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with categories.
A Melitz-style model of monopolistic competition with heterogeneous firms is integrated into a simple new economic geography model to show that the standard assumption of identical firms is neither necessary nor innocuous. We show that relocating to the big region is most attractive for the most productive firms; this implies interesting results for empirical work and policy analysis. A `selection effect' means standard empirical measures overestimate agglomeration economies. A `sorting effect' means that a regional policy induces the highest productivity firms to move to the core and the lowest productivity firms to the periphery. We also show that heterogeneity dampens the home market effect.
Heterogeneous Firms Agglomeration And Economic Geography
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Author : Richard E. Baldwin
language : en
Publisher:
Release Date : 2004
Heterogeneous Firms Agglomeration And Economic Geography written by Richard E. Baldwin and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Business relocation categories.
Heterogenous Firms Agglomeration And Economic Geography Spatial Selection And Sorting
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Author : Richard E. Baldwin
language : en
Publisher:
Release Date : 2005
Heterogenous Firms Agglomeration And Economic Geography Spatial Selection And Sorting written by Richard E. Baldwin and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with categories.
Firm Heterogeneity Multiplant Choice And Agglomeration
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Author : Hisamitsu Saito
language : en
Publisher:
Release Date : 2015
Firm Heterogeneity Multiplant Choice And Agglomeration written by Hisamitsu Saito and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with categories.
We examine the organization and location choice of heterogeneous firms in a two-region economy. When some high-productivity firms engage in multiplant production, a reduction in transport costs causes two changes in a small region: the closure of plants by high-productivity multiplant firms and the relocation of low-productivity single-plant firms to the region. In the presence of high-productivity multiplant firms, therefore, a decline in transport costs reinforces the spatial sorting of firms by productivity, enlarging the productivity gap between large and small regions. Conversely, reducing investment costs weakens the spatial sorting effects on regional productivity disparities.
Firm Sorting Localization And Vertical Disintegration
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Author : Yingyue Quan
language : en
Publisher:
Release Date : 2023
Firm Sorting Localization And Vertical Disintegration written by Yingyue Quan and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023 with categories.
Clusters are crucial for industrialization, but we still know little about why some firms are clustered and vertically disintegrated, while the others in the same industry are scattered and integrated. Using universal firm-level data on the garment sector in Pearl River Delta, China, we show that firms' localization coexists with vertical disintegration, defined as the shrinking number of activities a firm performs in-house. Moreover, a strengthened localization and vertical specialization is observed after China's WTO accession. However, most existing models regarding the change in agglomeration forces fail to explain these findings. We propose that firms with low productivity draws purchase intermediates and congregate with intermediate-goods sellers to save transportation costs, while high-productivity firms are vertically integrated and scattered. As the market expansion that increases profit margins would lower the productivity requirement for firm entry, new firms tend to be more clustered and more vertically disintegrated. Empirical evidence supports this view.
The Role Of Agglomeration Economies In Firm Location
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Author : Anne Christine Selting
language : en
Publisher:
Release Date : 1994
The Role Of Agglomeration Economies In Firm Location written by Anne Christine Selting and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1994 with Industrial location categories.
Agglomeration And Productivity
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Author : Martin Andersson
language : en
Publisher:
Release Date : 2011
Agglomeration And Productivity written by Martin Andersson and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011 with categories.
Do agglomerations stimulate productivity? An extensive literature on agglomeration economies, or urban increasing returns, has analyzed this question with aggregated spatial data. This paper estimates the relationship between agglomeration and productivity at the firm level using static and dynamic models. It makes use of a rich dataset comprising register information on all manufacturing firms in Sweden with 10 or more employees over the period 1997-2004. Three things emerge. First, firms located in larger regions are more productive when controlling for size, human capital, physical capital, ownership structure, import and export, industry classification and time trend. Second, results from dynamic panel estimations suggest a learning effect in that agglomeration enhances firms' productivity. Third, the role of agglomeration phenomena does not seem to have a clear coupling to firm size.
Agglomeration Economies Search Costs And Industrial Location
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Author : John Joseph McCall
language : en
Publisher:
Release Date : 1979
Agglomeration Economies Search Costs And Industrial Location written by John Joseph McCall and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1979 with Agglomeration categories.
The Spatial Sorting And Matching Of Skills And Firms
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Author : Giordano Mion
language : en
Publisher:
Release Date : 2006
The Spatial Sorting And Matching Of Skills And Firms written by Giordano Mion and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with categories.