Is there a limit to agglomeration? Evidence from productivity of Dutch firms

Rizov, Marian and Oskam, Arie and Walsh, Paul (2012) Is there a limit to agglomeration? Evidence from productivity of Dutch firms. Regional Science and Urban Economics, 42 (4). pp. 595-606. ISSN 0166-0462

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Abstract

We compute aggregate productivity of three categories of regions, classified by level of urbanization and density of economic activity in the Netherlands, from firm-specific total factor productivity (TFP) measures. TFP measures are estimated by a semi-parametric algorithm, within 2-digit industries, covering agriculture, manufacturing, construction, trade and services, using AMADEUS data over the period 1997-2006. We analyse the productivity differentials across urbanization categories by decomposing them into industry productivity effect and industry composition effect. Our analysis indicates that there is non-linear net effect of agglomeration on productivity growth but in levels agglomeration is associated with higher productivity.

Item Type: Article
Research Areas: A. > Business School > Economics
Item ID: 8996
Depositing User: Marian Rizov
Date Deposited: 18 Apr 2012 09:05
Last Modified: 06 Dec 2016 17:19
URI: http://eprints.mdx.ac.uk/id/eprint/8996

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