Cities and clusters: economy-wide and sector-specific effects in corporate location
Giulio Bottazzi, Ugo Gragnolati
Industrial Location, Sector-specific Agglomeration, Urbanization Economy, Maximum
Likelihood Estimation
L1, C31, R3
Are the observed spatial distributions of firms decided mostly by
market-mediated, economy-wide locational forces, or rather by
non-pecuniary, sector-specific ones? This work finds that the latter
kind of forces weight systematically more than the former in deciding
firm location. The analysis uses Italian data on a variety of
manufacturing and service sectors spatially disaggregated at the level
of Local Labor Systems.
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