Geographic Concentration and Increasing Returns: A Survey of Evidence

Bocconi University Working Paper No 6, Serie di Econometria ed Economia Applicata

27 Pages Posted: 26 Feb 2002

See all articles by Paolo Surico

Paolo Surico

London Business School - Department of Economics; Centre for Economic Policy Research (CEPR)

Date Written: October 17, 2001

Abstract

Economic activities are highly clustered. Why is geographic concentration becoming a predominant feature of modern economies? On the basis of the empirical models developed by the 'new' theories of international trade, our answer is that increasing returns are the driving force of economic geography in the US as well as in Europe. in so doing, we review econometric methods proposed in the literature to separate and to test alternative theoretical paradigms.

Keywords: Increasing returns, market access, demand and cost linkages, large-scale agglomeration

JEL Classification: C52, F11, F12, R12

Suggested Citation

Surico, Paolo, Geographic Concentration and Increasing Returns: A Survey of Evidence (October 17, 2001). Bocconi University Working Paper No 6, Serie di Econometria ed Economia Applicata. Available at SSRN: https://ssrn.com/abstract=301340 or http://dx.doi.org/10.2139/ssrn.301340

Paolo Surico (Contact Author)

London Business School - Department of Economics ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom

HOME PAGE: http://sites.google.com/site/paolosurico

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

HOME PAGE: http://sites.google.com/site/paolosurico

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