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2015 | OriginalPaper | Chapter

7. Geographic Concentration of Industry

Joint Work with Jacob Bjornson and Mark Cage

Author : Jaime Luque

Published in: Urban Land Economics

Publisher: Springer International Publishing

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Abstract

If I wanted to manufacture aluminum, I would set up a factory in Washington. Why? Aluminum production involves heavy use of electricity and Washington has the lowest electricity prices in the country. That brings us to the question: does natural advantage explain agglomeration? In other words, do industries become geographically concentrated due to locational proximity to inputs that contribute to higher and more efficient production?

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Literature
go back to reference Carlton, D. (1983), “The Location and Employment Decisions of New Firms: An Econometric Model with Discrete and Continuous Exogenous Variables.” Review of Economics and Statistics 65, 440-449. Carlton, D. (1983), “The Location and Employment Decisions of New Firms: An Econometric Model with Discrete and Continuous Exogenous Variables.” Review of Economics and Statistics 65, 440-449.
go back to reference Ellison, G. and E. L. Glaeser (1999), “The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?” The American Economic Review 89, 311-316. Ellison, G. and E. L. Glaeser (1999), “The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?” The American Economic Review 89, 311-316.
go back to reference Ellison, G. and E. L. Glaeser (1997), “Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach”, Journal of Political Economy 105(5), 889-927. Ellison, G. and E. L. Glaeser (1997), “Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach”, Journal of Political Economy 105(5), 889-927.
go back to reference O’Sullivan A. (2012), Urban Economics, Boston: Irwin/McGraw-Hill, 8th edition. O’Sullivan A. (2012), Urban Economics, Boston: Irwin/McGraw-Hill, 8th edition.
Metadata
Title
Geographic Concentration of Industry
Author
Jaime Luque
Copyright Year
2015
DOI
https://doi.org/10.1007/978-3-319-15320-9_7