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What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns

National Bureau of Economic ResearchPublished 1 April 2007Open access
Glenn Ellison, Edward L. Glaeser, William R. Kerr
Citations106
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Abstract

Many industries are geographically concentrated. Many mechanisms that could account for such agglomeration have been proposed. We note that these theories make different predictions about which pairs of industries should be coagglomerated. We discuss the measurement of coagglomeration and use data from the Census Bureau's Longitudinal Research Database from 1972 to 1997 to compute pairwise coagglomeration measurements for U.S. manufacturing industries. Industry attributes are used to construct measures of the relevance of each of Marshall's three theories of industry agglomeration to each industry pair:

Keywords

Economics, Econometrics and Finance