The dynamics of industry agglomeration: Evidence from 44 years of coagglomeration patterns

Mathieu P.A. Steijn*, Hans R.A. Koster, Frank G. Van Oort

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

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Abstract

Evidence abounds that agglomeration patterns have changed over time, but little is known about changes in the underlying determinants of agglomeration. We analyze 44 years of coagglomeration patterns of U.S. manufacturing industries and show that over time, input-output linkages and labor market pooling have become less important determinants of industry agglomeration, while knowledge spillovers have become more important. We show that trade and technology shocks are strongly associated with the decline in labor market pooling and the increase in knowledge spillovers. The downward trend in input-output linkages is associated with an increase in trade competition but not with a decrease in the transportation costs of goods.

Original languageEnglish
Article number103456
JournalJournal of Urban Economics
Volume130
DOIs
Publication statusE-pub ahead of print - 22 Feb 2022

Bibliographical note

JEL classification: L14, L60, R32, F16, O33, R40

Publisher Copyright: © 2022 The Author(s)

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