Abstract

 


 



The Impact of Globalization on Agglomeration: The Case of U.S. Manufacturing Employment from 1988 to 2003


Abdullah M. Khan


Claflin University School of Business; Kennesaw State University

Mark Rider


Georgia State University - Department of Economics

October 16, 2011


Abstract:     
This paper explores the impact of globalization on the micro-determinants of agglomeration, namely labor pooling (LP), goods pooling (GP), and idea pooling (IP). According to our estimates, LP now has a negative effect on employment agglomeration in U.S. manufacturing. More specifically, we find that trade liberalization is increasing the marginal effect of LP on employment agglomeration in U.S. manufacturing, but this positive effect is overwhelmed by the large negative effect of the ICT revolution. We also find that the ICT revolution is having substantial positive effect on the marginal effect of GP on employment agglomeration in U.S. manufacturing; whereas, trade liberalization has a negligible effect on the marginal effect of GP on employment agglomeration. Finally, we report evidence that internal economies of scale have a substantial effect on employment agglomeration in U.S. manufacturing.

Number of Pages in PDF File: 39

Keywords: Agglomeration, Globalization

JEL Classification: L60, R12

working papers series


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Date posted: October 27, 2011  

Suggested Citation

Khan, Abdullah M. and Rider, Mark, The Impact of Globalization on Agglomeration: The Case of U.S. Manufacturing Employment from 1988 to 2003 (October 16, 2011). Available at SSRN: http://ssrn.com/abstract=1944995 or http://dx.doi.org/10.2139/ssrn.1944995

Contact Information

Abdullah M. Khan
Claflin University School of Business ( email )
400 Magnolia St.
Orangeburg, SC 29115
United States
HOME PAGE: http://www.claflin.edu
Kennesaw State University ( email )
United States
404-229-2295 (Phone)
Mark Rider (Contact Author)
Georgia State University - Department of Economics ( email )
35 Broad Street
Atlanta, GA 30303-3083
United States
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