Is there a limit to agglomeration? Evidence from productivity of Dutch firms

M. Rizov, A.J. Oskam, P. Walsh

Research output: Contribution to journalArticleAcademicpeer-review

17 Citations (Scopus)

Abstract

We compute aggregate productivity of three categories of regions, classified by the level of urbanization and density of economic activity in the Netherlands, from firm-specific total factor productivity (TFP) measures. TFP measures are estimated by a semi-parametric algorithm, within 2-digit industries, covering agriculture, manufacturing, construction, trade and services, using AMADEUS data over the period 1997–2006. We analyse the productivity differentials across urbanization categories by decomposing them into industry productivity effect and industry composition effect. Our analysis indicates that there is non-linear net effect of agglomeration on productivity growth but in levels agglomeration is associated with higher productivity.
Original languageEnglish
Pages (from-to)595-606
JournalRegional Science and Urban Economics
Volume42
Issue number4
DOIs
Publication statusPublished - 2012

Fingerprint

agglomeration
agglomeration area
productivity
firm
total factor productivity
evidence
industry
urbanization
economic activity
manufacturing
Agglomeration
Industry
Productivity
agriculture
Netherlands
Total factor productivity
effect
economics

Keywords

  • regional labor productivity
  • monopolistic competition
  • economic-geography
  • fixed costs
  • model
  • level
  • diversity
  • selection
  • dynamics
  • cities

Cite this

Rizov, M. ; Oskam, A.J. ; Walsh, P. / Is there a limit to agglomeration? Evidence from productivity of Dutch firms. In: Regional Science and Urban Economics. 2012 ; Vol. 42, No. 4. pp. 595-606.
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Is there a limit to agglomeration? Evidence from productivity of Dutch firms. / Rizov, M.; Oskam, A.J.; Walsh, P.

In: Regional Science and Urban Economics, Vol. 42, No. 4, 2012, p. 595-606.

Research output: Contribution to journalArticleAcademicpeer-review

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