Spatial Impacts of Agglomeration Externalities

19 Pages Posted: 19 Oct 2006

See all articles by Daan van Soest

Daan van Soest

Tilburg University - CentER & Department of Economics

Shelby Gerking

University of Central Florida - College of Business Administration - Department of Economics

Frank G. van Oort

University of Utrecht

Abstract

This article examines the extent to which agglomeration economies in one location affect employment growth and establishment births, using data from the Dutch province of South-Holland. The data are of particular interest because they represent a census, rather than a sample, of all establishments and the location of establishments can be pinpointed to within 416 (postal) zip code areas averaging less than 6 km2 in size. Results suggest that agglomeration economies positively affect employment growth and the location of new establishments, but with the possible exception of manufacturing, this effect dies out quickly with distance. Thus, the main finding is that for many industries, agglomerative forces may well operate at a geographic scale that is smaller than a city.

Suggested Citation

van Soest, Daan P. and Gerking, Shelby and van Oort, Frank, Spatial Impacts of Agglomeration Externalities. Journal of Regional Science, Vol. 46, No. 5, pp. 881-899, December 2006. Available at SSRN: https://ssrn.com/abstract=938570 or http://dx.doi.org/10.1111/j.1467-9787.2006.00488.x

Daan P. Van Soest (Contact Author)

Tilburg University - CentER & Department of Economics ( email )

P.O. Box 90153
5000 LE Tilburg
Netherlands
+31 13 466 2072 (Phone)

Shelby Gerking

University of Central Florida - College of Business Administration - Department of Economics ( email )

Orlando, FL 32816-1400
United States

Frank Van Oort

University of Utrecht ( email )

Vredenburg 138
NL-3508 TC Utrecht, 3511 BG
Netherlands

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