Artis, Michael , Miguélez, Ernest and Moreno, Rosina (2009) Assessing agglomeration economies in a spatial framework with endogenous regressors. SERC Discussion Papers, SERCDP0023. Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.
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This paper is concerned with the influence of agglomeration economies on economic outcomes across British regions. The concentration of economic activity in one place can foster economic performance due to the reduction in transportation costs, the ready availability of customers and suppliers, and knowledge spillovers. However, the concentration of several types of intangible assets can boost productivity as well. Thus, using an interesting dataset which proxies regional productivity, we will assess the relative importance of agglomeration and other assets, controlling both for endogeneity and for spatial autocorrelation at the same time. Our results suggest that agglomeration has a definite positive influence on productivity, although our estimates of its effect are dramatically reduced when spatial dependence and other hitherto omitted variables proxying intangible assets are controlled for.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 2009 Michael Artis, Ernest Miguélez and Rosina Moreno|
|Library of Congress subject classification:||H Social Sciences > HC Economic History and Conditions|
|Sets:||Research centres and groups > Spatial Economics Research Centre
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