The Dynamics of Agglomeration: Evidence from Ireland and Portugal

CORE Discussion Paper No. 2004/10

36 Pages Posted: 28 Mar 2007

See all articles by Salvador Barrios

Salvador Barrios

European Commission, JRC - IPTS

Luisito Bertinelli

Universite du Luxembourg

Eric Strobl

Ecole Polytechnique, Paris - Department of Economic Sciences; IZA Institute of Labor Economics

Antonio Carlos Teixeira

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)

Date Written: April 2004

Abstract

This paper analyses and compares the dynamics of agglomeration in Portuguese and Irish manufacturing industries between 1985 and 1998 implementing Dumais, Ellison and Glaeser (2002)'s methodology. Using comparable and exhaustive micro-level data sets, we find that industries tend to be sub ject to strong geographical mobility despite little net aggregate changes in agglomeration in both countries. When the aggregate concentration changes are decomposed into portions attributable to the different stages of the plant life cycle, we discover that births consistently play a deagglomerating role, which continues at least into the early stages of the life cycle, whereas deaths have acted to reinforce agglomeration in both countries. Nevertheless, there are some differences across countries and industries.

Keywords: agglomeration, path dependence, plant's life cycle, Ireland, Portugal

JEL Classification: R11, R12, R32, L11

Suggested Citation

Barrios, Salvador and Bertinelli, Luisito and Strobl, Eric and Teixeira, Antonio Carlos, The Dynamics of Agglomeration: Evidence from Ireland and Portugal (April 2004). CORE Discussion Paper No. 2004/10, Available at SSRN: https://ssrn.com/abstract=971375 or http://dx.doi.org/10.2139/ssrn.971375

Salvador Barrios (Contact Author)

European Commission, JRC - IPTS ( email )

Edificio Expo
C/ Inca Garcilaso s/n
Seville, 41092
Spain
34 954 48 82 08 (Phone)
34 954 48 82 08 (Fax)

Luisito Bertinelli

Universite du Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Eric Strobl

Ecole Polytechnique, Paris - Department of Economic Sciences ( email )

Ecole Polytechnique
Department of Economics
Paris, 75005
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Antonio Carlos Teixeira

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium

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