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Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach
| Venue: | Journal of Political Economy |
| Citations: | 598 - 16 self |
BibTeX
@ARTICLE{Ellison_geographicconcentration,
author = {Glenn Ellison and Edward L. Glaeser},
title = {Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach},
journal = {Journal of Political Economy},
year = {},
pages = {889--927}
}
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Abstract
This paper discusses the prevalence of Silicon Valley–style localiza-tions of individual manufacturing industries in the United States. A model in which localized industry-specific spillovers, natural ad-vantages, and pure random chance all contribute to geographic concentration is used to develop a test for whether observed levels of concentration are greater than would be expected to arise ran-domly and to motivate new indices of geographic concentration and of coagglomeration. The proposed indices control for differ-ences in the size distribution of plants and for differences in the size of the geographic areas for which data are available. As a conse-quence, comparisons of the degree of geographic concentration across industries can be made with more confidence. Our empiri-cal results provide a strong reaffirmation of the previous wisdom in that we find almost all industries to be somewhat localized. In many industries, however, the degree of localization is slight. We explore the nature of agglomerative forces in describing patterns of concentration, the geographic scope of localization, and the coagglomeration of related industries and of industries with strong upstream-downstream ties.
Keyphrases
geographic concentration u.s. manufacturing industry dartboard approach proposed index control observed level agglomerative force previous wisdom size distribution natural ad-vantages individual manufacturing industry silicon valley style localiza-tions empiri-cal result new index geographic scope many industry industry-specific spillover related industry pure random chance strong reaffirmation geographic area united state strong upstream-downstream tie
