Agglomeration Externalities and Localized Employment Growth

Tinbergen Institute Discussion Paper No. 08-033/3

27 Pages Posted: 1 Apr 2008

See all articles by Friso de Vor

Friso de Vor

VU University Amsterdam

Henri L. F. de Groot

Vrije Universiteit Amsterdam; Tinbergen Institute

Date Written: March 2008

Abstract

This paper addresses the question to what extent the performance of industrial sites is affected by their local economic structure and accessibility. For this aim, we test for the existence of statistically significant relationships between agglomeration externalities (specialization, diversity, and competition), accessibility measures and the employment growth of a particular industry on a particular site. We use data on employment growth of site-industries on 68 formal industrial sites in the municipality of Amsterdam between 1998 and 2006. We show that at the site-industry level, specialization hampers growth. Furthermore, we find that industrial sites that are easily accessible from the highway grow relatively fast, as well as sites located in the Amsterdam harbour area.

Keywords: industrial sites, agglomeration externalities, employment growth, spatial heterogeneity, accessibility

JEL Classification: C31, O18, R11

Suggested Citation

de Vor, Friso and de Groot, Henri L.F., Agglomeration Externalities and Localized Employment Growth (March 2008). Tinbergen Institute Discussion Paper No. 08-033/3, Available at SSRN: https://ssrn.com/abstract=1114026 or http://dx.doi.org/10.2139/ssrn.1114026

Friso De Vor (Contact Author)

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

Henri L.F. De Groot

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
Amsterdam, 1081 HV
Netherlands
0640494981 (Phone)
2135 DL (Fax)

Tinbergen Institute

Gustav Mahlerplein 17
Amsterdam, 1082 MS
Netherlands

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