Path Dependence through Agglomeration Spillovers: Evidence from the Beet Sugar Industry

81 Pages Posted: 17 Jun 2024

Date Written: September 17, 2024

Abstract

This paper presents evidence of path dependence in economic geography by investigating the agglomeration spillovers from US beet sugar factories, which attracted large-scale manufacturing facilities near farmlands. I identify runner-up locations for beet sugar plants from a historical trade journal to estimate the effects of plant openings. The results show that these plant openings had large and long-lasting effects on population and manufacturing activities over one hundred years. The agglomeration spillovers benefited industries not only directly linked through input-output linkages but also extended to broader, less related industries outside the production chain of agricultural processing.

Suggested Citation

Baek, Youn, Path Dependence through Agglomeration Spillovers: Evidence from the Beet Sugar Industry (September 17, 2024). Available at SSRN: https://ssrn.com/abstract=4859645 or http://dx.doi.org/10.2139/ssrn.4859645

Youn Baek (Contact Author)

New York University ( email )

Kaufman Management Center, 7th floor
44 West 4th Street
New York, NY New York 10012
United States

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