On the effect of the geographical scope of agglomeration economies on firm location

Identifier:  PC:2099

Handle: https://hdl.handle.net/20.500.11797/PC2099

Authors:  Arauzo Carod, Josep Maria; Alañón Pardo, Ángel

Abstract:
This article analyses how agglomeration economies shaped the location decisions of new manufacturing start-ups in Catalan municipalities in 2001-2005. We estimate whether the locations of new firms are spatially autocorrelated and whether this phenomenon is industry-specific. Our aim is to estimate the geographical scope of agglomeration economies on firm entries. The data set comes from a compulsory register of manufacturing establishments (REIC: Catalan Manufacturing Establishments Register). JEL classification: R1, R3 Keywords: firm location; spatial autocorrelation