6533b85dfe1ef96bd12be956
RESEARCH PRODUCT
Spatial Localization in Manufacturing: A Cross-Country Analysis
Giorgio FagioloMauro NapoletanoStefania Vitalisubject
Cross-country studies; Industry localization; Localization indexes; Manufacturing industries; Non-pecuniary externalities; Pecuniary externalities; Spatial concentration; Spatial correlationIndex (economics)Manufacturing IndustriesJEL: R - Urban Rural Regional Real Estate and Transportation Economics/R.R3 - Real Estate Markets Spatial Production Analysis and Firm LocationLocalization Indices0211 other engineering and technologies02 engineering and technologyjel:R3Industry Localization0502 economics and businessLocalization indexesEconomicsManufacturing IndustrieSpatial localizationPecuniary externalitiesEconomic geography050207 economicsGeneral Environmental ScienceCross country analysisIndustry LocalizationManufacturing IndustriesLocalization IndicesSpatial ConcentrationSpatial correlationCross-country studies05 social sciencesIndustry Localization; Manufacturing Industries; Localization Indices; Spatial Concentration; Spatial correlation; Cross-country studiesGeneral Social Sciences021107 urban & regional planning[SHS.ECO]Humanities and Social Sciences/Economics and FinanceIndustry Localization Manufacturing Industries Localization Indices Spatial Concentration Spatial correlation Cross-country studiesCross-country studiesEconomies of scaleJEL: R - Urban Rural Regional Real Estate and Transportation Economics/R.R1 - General Regional Economics/R.R1.R12 - Size and Spatial Distributions of Regional Economic ActivityLocalization IndiceEconomy8. Economic growthNon-pecuniary externalitiesCross-country studiejel:R12Spatial correlationSpatial Concentrationdescription
This paper employs a homogenous firms' database to investigate industry localiza- tion in European countries. More specifically, we compare, across industries and countries, the predictions of two of the most popular localization indices, i.e., the Ellison and Glaeser index (Ellison and Glaeser, 1997) and the Duranton and Over- man index (Duranton and Overman, 2005). We find that, independently from the index used, localization is a pervasive phenomenon in all countries studied, but the degree of localization is very uneven across industries in each country. Furthermore, we find that the two indices significantly diverge in predicting the intensity of the forces generating localization within each industry. Finally, we perform a cross- sectoral analysis of localized industries. We show that, in all countries, localized sectors are mainly "traditional" sectors (like jewelery, wine, and textiles) and sec- tors where scale economies are important. However, once one controls for countries' industrial structures science-based sectors turn out to be the most localized ones.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2009-03-01 | Regional Studies |