This study is to investigate the short- and long-run causal relationship between agglomeration (localization and urbanization) economies and labor productivity in the manufacturing sector of 28 Iranian provinces over an 11-year period, 2001–2011. Fully Modified Ordinary Least Squares (FMOLS) method was used to estimate our long-run panel data model. The empirical findings suggested that localiz...

We investigate whether a more concentrated regional industrial structure—the dominance of a few large firms in a given industry in a region—limits agglomeration economies and ultimately diminishes the economic performance of firms in that industry, especially small ones. In an application to three industries using establishment-level production functions and a combination of confidential and pu...

Entry into an industry often clusters in regions where the industry is already concentrated, which is suggestive of agglomeration economies. Regional public research activities may exert another attracting force on entrants into science-based industries. Empirically these proximity effects are confounded by other influences on where entrants originate and locate. This paper begins to disentangl...

Two contrasting attributes of transportation costs are introduced in this analysis. These are categorized as internal and external to the firm or the industry. It is shown that the trade-off interaction between agglomeration economies and transportation costs in established location theory solely refers to the external nature of transportation costs to the firm. This paper reveals that there is...

This paper extends the work of Glaeser et al. (1992) by looking at effects of agglomeration economies on employment growth in Dutch city-industries and in very small (postal) zip code-industries in the Dutch province of South-Holland. At both levels of geographic detail, findings are broadly consistent with results from the earlier study in that employment growth is enhanced by industrial diver...

This paper provides a survey and guide to the literature relevant to urbanization and economic development. The paper starts with some basic facts and trends about urbanization worldwide. It then reviews the traditional twosector urban-rural model, but focuses on the modern version, Krugman’s coreperiphery model. However, two sector models do not capture the notion of an economy composed of man...

We examine the impacts of agglomeration economies on the location of Foreign Direct Investment (FDI) in Vietnam. Using a large dataset that provides detailed information about individual firms, we investigate the location choices by 920 newly created foreign firms in 2009 in about 125 different 4-digit industries. The estimates of the conditional logit model show that agglomeration benefits mot...