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The economic microgeography of diversity and specialization externalities: firm-level evidence from Swedish cities
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.ORCID iD: 0000-0002-0302-6244
University of Cambridge, GBR.
Lunds universitet, SWE.
2019 (English)In: Research Policy, ISSN 0048-7333, E-ISSN 1873-7625, Vol. 48, no 6, p. 1385-1398Article in journal (Refereed) Published
Abstract [en]

We employ finely geo-coded firm-level panel data to assess the long-standing question whether agglomeration economies derive from specialization (within-industry), diversity (between-industry) or overall density. Rather than treating the city as a single unit, we focus our analysis on how the inner industry structures of cities influence firm-level productivity. Our results illustrate the co-existence of several externalities that differ in their spatial distribution and attenuation within cities. First, we find robust positive effects of neighborhood-level specialization on TFP as well as a small effect of diversity at the same fine spatial level. These effects are highly localized and dissipate beyond the immediate within-city neighborhood level. Second, we also find that firms benefit from the overall density of the wider city. The results emphasize the relevance of “opening up” cities to study the workings of their inner organization and support the idea that location in a within-city industry cluster in a diversified and dense city boosts productivity. © 2019

Place, publisher, year, edition, pages
Elsevier B.V. , 2019. Vol. 48, no 6, p. 1385-1398
Keywords [en]
Agglomeration economies, Attenuation, Diversity, Externalities, Geocoding, Knowledge spillovers, Productivity, Specialization, Agglomeration, Geo coding, Industrial economics
National Category
Business Administration
Identifiers
URN: urn:nbn:se:bth-17707DOI: 10.1016/j.respol.2019.02.003ISI: 000466619400006Scopus ID: 2-s2.0-85061793039OAI: oai:DiVA.org:bth-17707DiVA, id: diva2:1294420
Available from: 2019-03-07 Created: 2019-03-07 Last updated: 2021-12-16Bibliographically approved

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Andersson, Martin

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CiteExportLink to record
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Citation style
  • apa
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  • Other style
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  • de-DE
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