Agglomeration Economies and Industry Location Decisions: The Impacts of Spatial and Industrial Spillovers

Posted: 8 Aug 2016

See all articles by Jeffrey Cohen

Jeffrey Cohen

University of Connecticut - School of Business

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics; National Bureau of Economic Research (NBER); University of Hartford - Barney School of Business

Date Written: August 6, 2016

Abstract

Spatial spillovers and inter-dependencies among industries are often ignored in conventional production studies, despite substantial evidence suggesting their importance. Thick market or agglomeration effects may be associated with own-industry, supply-side, and demand-side spillovers. Our theoretical framework, which measures and evaluates such spillovers, allows us to estimate their cost-effects and to evaluate their contribution to location decisions. Our empirical analysis focuses on spillovers in the US food manufacturing industry across states and from agricultural input supply and consumer demand. We find average and marginal cost-effects in the spatial and industry dimensions that are consistent with food system regional concentration patterns.

Keywords: Spatial and industrial spillovers; Food sector; Agglomeration economies; Location decisions

JEL Classification: R12, Q13

Suggested Citation

Cohen, Jeffrey and Morrison Paul, Catherine J., Agglomeration Economies and Industry Location Decisions: The Impacts of Spatial and Industrial Spillovers (August 6, 2016). Regional Science and Urban Economics, Vol. 35, No. 3, 2005, Available at SSRN: https://ssrn.com/abstract=2819579

Jeffrey Cohen (Contact Author)

University of Connecticut - School of Business ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
916-752-0469 (Phone)
916-752-5614 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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University of Hartford - Barney School of Business

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West Hartford, CT 06117
United States

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