Abstract
Evidence abounds that agglomeration patterns have changed over time, but little is known about changes in the underlying determinants of agglomeration. We analyze 44 years of coagglomeration patterns of U.S. manufacturing industries and show that over time, input-output linkages and labor market pooling have become less important determinants of industry agglomeration, while knowledge spillovers have become more important. We show that trade and technology shocks are strongly associated with the decline in labor market pooling and the increase in knowledge spillovers. The downward trend in input-output linkages is associated with an increase in trade competition but not with a decrease in the transportation costs of goods.
Original language | English |
---|---|
Article number | 103456 |
Pages (from-to) | 1-14 |
Number of pages | 14 |
Journal | Journal of Urban Economics |
Volume | 130 |
Early online date | 22 Apr 2022 |
DOIs | |
Publication status | Published - Jul 2022 |
Bibliographical note
Funding Information:☆ We would like to thank in particular Bill Kerr, Ed Glaeser, Frank Neffke, Dario Diodato, and the editor Nathaniel Baum-Snow, but also David Autor, Pierre-Alexandre Balland, Ron Boschma, Jasmina Chauvin, Gilles Duranton, Koen Frenken, Henri de Groot, César Hidalgo, Jos van Ommeren, Anna Salomons, Michael Storper, Will Strange, two anonymous referees, and participants at seminars at NBER, Harvard University, MIT Media Lab, Utrecht University, Vrije Universiteit Amsterdam, UEA New York and Amsterdam, GEOINNO2018, and ERSA Groningen for useful comments on this paper. We also wish to thank Gilles Duranton, Sergio Petralia, and Bill Kerr for providing data. This work has benefited from grant 438-13-406 from JPI Urban Europe (Steijn and van Oort).
Publisher Copyright:
© 2022 The Author(s)
Keywords
- Coagglomeration
- Input-output linkages
- Knowledge spillovers
- Labor market pooling