Agglomeration Economies within IT-Producing and IT-Consuming
Industries in U.S. Regions

28 Pages Posted: 21 Jul 2008  

Simon Condliffe

University of Delaware

William R. Latham III

University of Delaware - Department of Economics

Christian Le Bas

Université Catholique de Lyon - ESDES School of Business and Management

Frédéric Miribel

affiliation not provided to SSRN

Date Written: July 17, 2008

Abstract

We extend the agglomeration economies literature (1) by comparing the effects on productivity of geographic concentrations in IT activity and all other activity and (2) by distinguishing between the effects of IT-producing and IT-using sectors on productivity. Four measures of agglomeration for U.S. states and counties are tested in a total labor productivity model which includes each region's capital-output ratio and the quality of the labor supply. The cross section estimates yield mixed results. We find evidence of an effect of concentration of IT on productivity for states level and find stronger effects at the county level from IT-producing concentrations.

Keywords: Agglomeration, Information Technology, Productivity

JEL Classification: R11, O33, D24, D62

Suggested Citation

Condliffe, Simon and Latham, William R. and Le Bas, Christian and Miribel, Frédéric, Agglomeration Economies within IT-Producing and IT-Consuming Industries in U.S. Regions (July 17, 2008). Available at SSRN: https://ssrn.com/abstract=1162373 or http://dx.doi.org/10.2139/ssrn.1162373

Simon Condliffe

University of Delaware ( email )

Newark, DE 19716
United States

William R. Latham III (Contact Author)

University of Delaware - Department of Economics ( email )

Newark, DE 19716
United States
302-731-1464 (Phone)
302-831-6968 (Fax)

Christian Le Bas

Université Catholique de Lyon - ESDES School of Business and Management ( email )

6, rue de l'Abbaye d'Ainay
Lyon, 69002
France

Frédéric Miribel

affiliation not provided to SSRN

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