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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Official URL: http://dx.doi.org/10.1016/j.regsciurbeco.2012.02.0...

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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:Business School > Economics and International Development
ID Code:8996
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Deposited On:18 Apr 2012 09:05
Last Modified:28 Jul 2014 08:48

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